Bali, 11 August 2022 – The Minister for National Development Planning/Head of Bappenas Suharso Monoarfa says the G20 efforts to tackle development challenges in developing and least developed economies has to be translated into more concrete actions that can drive forward stronger recovery results. Many countries, especially in the developing world, are grappling with numerous challenges that are disrupting their abilities to fulfill Sustainable Development Goal (SDG) targets, which are due in 2030.
“Developing countries are missing $1.2 trillion a year just to fill their social protection gap, and 60% of developing economies are at high risk of debt distress. These challenges have heightened the cost of economic recovery post Covid-19 and diverts funds from SDG fulfillment,” the Minister said during the first day of the 3rd G20 Development Working Group (DWG) Meeting in Bali, Wednesday (10/8).
The Minister stated three immediate actions to drive forward a stronger recovery and economic resilience. First, policy measures that can enhance the resilience of our societies such as MSMEs which in many developing countries, predominantly contributes to approximately 70 percent of job creation, to adaptive social protection that can provide a pathway to a more resilient state for households. Second, sustainable growth by pursuing green economy and blue economy through low carbon and climate resilient development. Lastly, G20 countries must realize that no country can solve the lasting Covid-19 impacts alone.
“As inequality widens between and within countries, most developing countries are not able to finance their post-pandemic economic recoveries effectively, despite international support. Thus, we must pinpoint new innovative ways in funding their development targets, through mobilizing additional finance schemes where it is most needed, such as through scaling up blended finance,” the Minister added.
Leading the 3rd DWG Meeting, DWG G20 Chairman Scenaider C. H. Siahaan explained that the main objective of the 3rd DGW G20 Meeting is to finalize several deliverables and agreements in preparation for the upcoming G20 Ministerial Meeting in Belitung on 7-9 September 2022.
These deliverables include the G20 Roadmap for Stronger Recovery and Resilience in Developing Countries, Including Least Developed Countries and Small Island Developing States, the G20 principles to scale-up blended finance in Developing Countries, Including LDCs and SIDS, the G20 Ministerial Vision Statement: Multilateralism for SDGs Decade of Action, and the 2022 G20 Bali Update.