The “Reform of the Global Financial Architecture” workshop, held on 26-27 June 2023, was part of the series of workshops on “The Fraternal Economy of Integral and Sustainable Development.” This event was held at the Pontifical Academy of Social Sciences, founded by John Paul II in January 1994 through the Motu Proprio “Socialum Scientiarum.” The academy’s objective is to advance the study and progress of social, economic, political, and juridical sciences based on the principles of social doctrine.
The workshop’s core group has committed to meeting three times a year for a planned three-year cycle to explore the institutional and ethical foundations of a new economic framework that can effectively address the challenges of the 21st century. The first meeting took place in February 2023, and more information about it can be found here.
The primary goal of the new economy of sustainable and integral development is to promote the happiness and well-being of both current and future generations while respecting the planetary boundaries of Earth’s physical systems. Additionally, it aims to uphold the Universal Declaration of Human Rights (UDHR) and the Sustainable Development Goals (SDGs), both of which have been agreed upon by all UN member states. To achieve these objectives, the workshop seeks to synthesize scientific findings, philosophical wisdom, and theological teachings into actionable plans. The expected outcomes include research collaborations, academic publications, policy reports, and active engagement with governments to influence policy.
The June meeting particularly emphasized financing through international development institutions, such as Multilateral Development Banks and the IMF. On the other hand, the October meeting will center on financing through private capital markets, such as the sovereign bond market.
During the meeting, the participants discussed on the necessary scale, scope, and types of financing required to establish a fraternal economy that successfully achieves the Sustainable Development Goals and other globally agreed-upon objectives related to climate change, biodiversity conservation, and ocean protection.
Prof. Koundouri’s contribution focused on the impact of fiscal policy on the Sustainable Development Goals (SDGs). During her speech, she highlighted the significance of SDG-consistent fiscal policy and emphasized the essential role of SDG-driven transformations in companies and portfolio asset management, particularly within the context of public-private partnerships (PPPs) and investment strategies.
The UN SG SDGs Stimulus for Agenda 2030 puts forward areas for immediate action. These include:
1 Tackle the high cost of debt and rising risks of debt distress, including by converting short-term high interest borrowing into long-term (more than 30 year) debt at lower interest rates.
2 Massively scale up affordable long-term financing for development, especially through public development banks (PDBs), including multilateral development banks (MDBs), and by aligning all financing flows with the SDGs.
3 Expand contingency financing to countries in need.