The United Nations 2030 Agenda for Sustainable Development covers 17 goals, the 17th of which is “Partnerships for the goals,” namely: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development.

Under this major goal, there are 19 targets, the 17.3 of which is “Mobilize additional financial resources for developing countries from multiple sources.”

●Current Situation

The World

A new dilemma for global cooperation

The Global Cooperation Barometer 2024 indicates that global cooperation has been mildly reversing (down 2%) since 2020. From 2012 to the pandemic period, cooperation increased in four of the five pillars (excluding Peace & Security) of Trade & Capital, Innovation & Technology, Climate & Natural Capital, and Health & Wellness, with cooperation in innovation and technology growing by more than 30%. However, in more recent years, new questions have arisen about how to work together to harness opportunities that arise from innovation.

Photo: World Economic Forum

According to the Chief Economists Outlook, more than half of the chief economists surveyed expect the global economy to weaken in 2024. Saadia Zahidi, executive director of the World Economic Forum, believes that although high global inflation is easing, stagnant economic growth, continued tightening financial conditions, geopolitical conflicts and rising inequality will put global economic resilience to the test in the coming year, highlighting the urgent need for global cooperation.

Klaus Schwab, founder and executive chairman of the World Economic Forum, called for harnessing the opportunities of a green, digital and inclusive economy to create jobs, increase purchasing power and ultimately promote sustained economic growth. Nearly three-quarters of economists surveyed expect AI to accelerate innovation in advanced economies in 2024, while low-income countries are lagging behind in this area, potentially widening the economic and technological gap between economies.

Many participants emphasized that while AI technology provides opportunities for the development of human society, it also brings risks and challenges in security, governance, regulation, copyright, ethics and other aspects. It is necessary to pay special attention to and take care of developing countries, narrow the technological gap between developing and developed countries, and share the dividends brought by the development of AI technology.

Source：McKinsey, World Economic Forum, Guangming.com, People’s Daily

China cooperates with developing countries

China has made significant progress in the field of green finance. In 2023, China issued a large number of green bonds to finance renewable energy projects and environmental protection projects. These green bonds provide important financial support to developing countries.

Through the Belt and Road Initiative, China has signed cooperation agreements with a number of developing countries to provide financial and technical support to help them improve their infrastructure and develop their economy. In 2023, China signed various cooperation agreements with African countries, providing billions of US dollars in financial support.

Photo: Financial Times

In terms of innovative financing mechanisms, data asset financing is gradually being promoted in China. In 2024, commercial banks in many provinces and municipalities provide new financing channels for enterprises through data asset pledge loans and credit enhancement of credit loans. This innovative financing mechanism provides developing countries with additional sources of financing.

In terms of new economy venture capital, China’s new economy venture capital market underwent a deep reshaping in 2023. Although the number of financing events decreased, the amount of single financing increased. These investments were mainly concentrated in areas such as artificial intelligence, new energy and chips, which provide financial support for technological innovation and economic development in developing countries.

Source: Ministry of Foreign Affairs of the People’s Republic of China, PricewaterhouseCoopers

●Cases

The World

JICA supports development of Latin American region

The Japan International Cooperation Agency (JICA) aims to contribute to the promotion of international cooperation as well as the sound development of Japanese and global economy by supporting the socioeconomic development, recovery or economic stability of developing regions.

Photo: JICA

The project for strengthening the Japan-Mexico Partnership Program 2030 (JMPP 2030) aims for a new cooperative relationship in Latin America based on the concepts of “Collaboration with Developing Countries as Equal Partners” and “Co-creation on Learning and Solutions”.

Through a revision of the existing framework of the JMPP 2030, triangular and regional cooperation is carried out in a more efficient and effective way, making the most of the results and assets contributed by bilateral Japanese cooperation and the competitive capacities (technology, know-how, etc.) of various Mexican actors. In this manner, transforming the JMPP 2030 into a common and regional public good contributes to the economic and social development of Latin America and the Caribbean and other regions. South-South and triangular cooperation is increasingly recognized and evaluated internationally as an effective tool for achieving the SDGs goals, and there is a growing international consensus that the traditional “aid from the north ‘developed countries’ to the south ‘developing countries’ should be replaced with “sustainable cooperation where both sides learn from each other, collaborate, and co-create under an equal partnership relationship.”

Source: JICA

Mastercard Foundation’s financial programs and educational assistance

Mastercard has partnered with the United Nations to help small businesses and individuals access financial services through its Mastercard Foundation, which invests in education and financial inclusion programs in Africa and other developing countries.

To September 20, 2024, the Mastercard Foundation Scholars Program has enabled over 45,000 young women and men to access quality education and develop their leadership capabilities, working with more than 40 education partners. Additionally, they work with young ed-tech entrepreneurs to deliver education via digital platforms to 2 million young people. About 70% of them are young women.

Source: Mastercard Foundation

China

“Belt and Road” international cooperation

In 2023, China signed 369 cooperation agreements with a number of countries on the Belt and Road Initiative, including bilateral cooperation, cooperation with international and regional organizations, and institutional arrangements. China has signed cooperation plans or action plans with Honduras, Argentina, Mauritania, Georgia, Serbia and Egypt. These cooperation projects aim to promote the development of the countries concerned through infrastructure development and economic cooperation. Shenzhen Energy’s investment and construction of Sunon Asogli Power (Ghana) Limited has resulted in an annual power generation capacity that accounts for more than 20% of Ghana’s power supply in the same period, benefiting more than 2 million local people.

Photo: State-owned Assets Supervision and Administration Commission of the People’s Government of Shenzhen Municipality

Source: Ministry of Foreign Affairs of the People’s Republic of China, State-owned Assets Supervision and Administration Commission of the People’s Government of Shenzhen Municipality

China’s new green bonds

In the first half of 2024, China issued 200 green bonds, with an issuance scale of about 250.674 billion yuan.

China Power International Development Limited successfully issued its first 10-year green panda bond. In the first half of 2024, a total of 41 new transition bonds were issued in China, with a scale of about 38.802 billion yuan.

Source: International Institute of Green Finance of Central University of Finance and Economics

●Background

Sustainable Development Goals (SDGs) initiated by the United Nations

On January 1, 2016, the 17 Sustainable Development Goals (SDGs), including 169 targets, of the 2030 Agenda for Sustainable Development — adopted by world leaders in September 2015 at an historic UN Summit — officially came into force. Countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change while ensuring that no one is left behind.