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The 2025 Dialogue on Public Finance and the Sustainable Development Goals (SDGs) officially commenced at Columbia University in New York on January 29. The event, co-hosted by the Governments of Finland and Norway, the United Nations Development Programme (UNDP), and Columbia University, runs through January 31, 2025. This forum aims to explore innovative financial solutions to accelerate progress on the SDGs in light of the complex global challenges the world faces.

Addressing Financial Gaps in the SDGs

As the global community approaches the final years of the 2030 Agenda, the challenges surrounding the financing of the SDGs have intensified. A key issue discussed at the event is the increasing debt burden in developing countries, with debt servicing costs expected to rise from $26 billion in 2022 to over $40 billion by 2025. At present, only 17% of SDG targets are on track, underscoring the need for a fundamental transformation in public finance systems.

Achim Steiner, Administrator of the UNDP, emphasized the urgency of collaborative action to address the financing gap. "Public finance is at a crucial moment, with close to one-third of the SDGs experiencing setbacks," said Steiner. "We must prioritize sustainable, fair, and transparent public finance to bridge this gap and re-establish trust between citizens and states."

Focus on Inclusive and Innovative Financing Solutions

The 2025 Dialogue seeks to identify and promote new approaches to public finance, focusing on critical areas such as gender-responsive public finance, financing for health and well-being, and the role of public finance in crisis contexts. The event also aims to facilitate knowledge exchange among a wide range of stakeholders, including government representatives, financial institutions, and international organizations.

Joseph Stiglitz, Nobel Laureate in Economics, spoke to the attendees about the changing economic landscape and the need for new methods of raising revenue that promote both economic growth and shared prosperity. "We are in a new economic world with a new economic paradigm," said Stiglitz. "This is an exciting time for us to discuss how countries – including developing countries – can raise revenues in a way that ensures economic growth along with shared prosperity."

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