The 69th UN Commission on the Status of Women (UNCSW) convenes in New York from March 10 to 21, 2025. This annual gathering of governments at the UN reviews progress made on the Beijing Declaration and other relevant commitments aimed at advancing gender equality and empowering women globally. This year’s event marks the 30th anniversary of the landmark Beijing Declaration for Action. However, the 69th UNCSW is overshadowed by recent significant budget reductions in official development assistance from the US government and various European nations against a backdrop of pressing challenges we face today, including poverty, gender inequality, universal healthcare, universal education, and support for humanitarian needs arising from natural and man-made disasters. What is even more concerning is that these decisions are abrupt, leaving no time to prepare for the reduced assistance for essential humanitarian and development needs. Adolescent and youth sexual reproductive health and rights, along with investment in gender equality, are at risk. According to the World Economic Forum report, at the current pace, it will take 134 years to achieve gender equality. With the funding cuts in place, the progress we have made in reducing poverty, improving access to youth-friendly health services, and combating HIV/AIDS is likely to reverse unless alternative mechanisms are introduced to finance development. The SDGs are, by and large, far from their targets, even though we have only five years remaining. Developing countries, UN institutions, academics engaged in research and development, and local and international civil society organizations are all significantly affected.
Middle and low-income countries receiving ODA will now be heavily affected. Funding cuts mean fewer women will have access to family planning, leading to increased maternal mortality, a key priority that the SDGs aim to reduce significantly. Additionally, women will have fewer choices of modern contraceptives, which hampers their human rights, the essence of multilateralism.
Governments in the global south need to call for urgent action on this devastating trend, which is being witnessed in Europe and the US. Here are some of the key issues that require attention.
Debt distress
Sources from the IMF, World Bank, and African Development Bank indicate that most developing countries are significantly hindered by debt distress. Many heavily indebted nations allocate 20-30% of their annual budgets to service their debt. The debt-to-GDP ratio in some Sub-Saharan African countries is notably high, with Zambia and Mozambique exceeding 100%, Angola at 90%, Ghana at 80%, and Kenya at 70%. Ethiopia, Democratic Republic of Congo, and Chad are 50-60%. In 2022, Ghana sought assistance from the IMF to address its debt crisis. Zambia defaulted on its debt in 2020 and is currently undergoing debt restructuring. In 2021, Ethiopia sought debt relief under the G20 Common Framework.
Some countries, like Pakistan, allocate 50% of their GDP to debt interest payments. This, in turn, places pressure on public finances and restricts spending on essential services such as health, education, and infrastructure. Achieving the SDGs-targeted plans will be at risk.
Therefore, a mechanism must be established to revisit the previously successful Heavily Indebted Poor Countries (HIPC) initiative and the recently launched Debt Service Suspension Initiative (DSSI), introduced in 2020, which aimed to assist countries in addressing the economic impacts of COVID-19 by suspending debt service payments. Additionally, robust mechanisms need to be implemented.
Revisiting International Accords
Official development assistance is crucial for promoting development and alleviating poverty worldwide by providing essential resources to low- and middle-income countries. Many of these resources are geared towards sub-Saharan African nations. Organizations such as the Organization for Economic Cooperation and Development (OECD) are responsible for establishing standards for ODA, including definitions, reporting, and monitoring. The Paris Declaration on Aid Effectiveness (2005) outlines key principles of ODA, including ensuring country ownership, aligning with national development priorities, harmonizing efforts to minimize duplication, focusing on results, and promoting mutual accountability, among others. The commitments made at the G7 and G20 groups over the years need to be revisited considering current developments, with industrial countries providing ODA facing a reduction in aid and selecting sectors in which they would prefer to invest. How will this align with a previous agreement to align their support with country priorities?
The global south needs to take a firm stand on this, particularly in owning their development and setting priorities based on the realities of their countries. Donor countries must be encouraged to respect this, as it was previously introduced in a rigorous process, allowing them to avoid reinventing the wheel.
Long Term Prospects
The countries of the Global South, particularly those in Sub-Saharan Africa, need to begin discussing new approaches to development and prepare for rapid progress. We are in an era that requires unlearning and relearning to ensure that the hard-won development gains of recent decades do not regress. At the African Union level and within the Regional Economic Communities, effective strategies are in place, including the newly introduced promising African Continental Free Trade Area (AfCFTA). If implemented as planned, with the renewed commitment of member states at the African Union level, it has the potential to transform the economies of countries by creating access to large markets in the region and providing incentives for investors to engage in various sectors, benefiting from economies of scale through large-scale production. Coupled with the growing population in the African region and its median age of 19, it will undoubtedly become the world’s next manufacturing, fashion, and entertainment hub.
The newly appointed AU chairperson and the respective commissioners have these key responsibilities on their shoulders.
Ephrem Berhanu is an economist, currently serving as the Managing Director of TaYA in Ethiopia. You can reach the writer via email at ephrember@gmail.com.
