1 April 2025
 

Mr. President,

My Delegation welcomes the opportunity to discuss the structural barriers faced by middle-income countries (MICs) in implementing the 2030 Agenda for Sustainable Development.

Middle-income countries play a crucial role in our global economy, accounting for a about one third of global GDP. However, while economic indicators may suggest prosperity, they often mask underlying disparities. The reality is that MICs are home to 62 percent of the world’s poor and face significant challenges in their sustainable development, including conflicts, economic instability, climate change, and more frequent and intense weather events.

One of the biggest obstacles to addressing these challenges is the way development is measured. The sole reliance on GDP fails to capture the full reality of middle-income countries’ needs and development challenges. The way progress is defined determines access to resources and shapes international development cooperation. The overreliance on GDP, however, excludes many middle-income countries from access to concessional financing and other forms of essential support, leaving their development needs unmet.

It is therefore necessary to use indicators that go beyond GDP, to reflect the economic, social and environmental dimensions of development. Only with these additional indicators can we accurately assess progress and ensure that international development cooperation is tailored to the specific needs of all countries, including middle-income countries.

Mr. President,

The success of middle-income countries also depends on the scaling up development finance. Investment is key if middle-income countries are to realize their full potential and achieve sustainable development. However, many middle-income countries already face high debt burdens, and financing that generates further debt risks deepening their financial distress. The Holy See therefore calls for an increase in accessible, debt-free development financial assistance to ensure that these countries can invest in their future, without fear of being trapped in repayment cycles.

Mr. President,

The Fourth International Conference on Financing for Development will provide an appropriate opportunity to establish commitments in support of middle-income countries, especially in considering measures that go beyond GDP and expanding access to financing that does not trap countries in debt, but rather empowers them to achieve sustainable development.

Thank you, Mr. President.