Civil society calls out UK government and rich countries for blocking progress on debt reform ahead of FfD4

As the fourth Financing for Development Conference (FfD4) kicks off in Seville this week, civil society organisations and international NGOs are criticising the UK government and other wealthy nations for blocking progress on debt reform, and are calling on them to support major improvements to the way international debt is managed. 

Over the next four days, leaders, policymakers, and civil society representatives will gather to debate the future of the global financial system, including debt reform and the financing barriers hindering progress on the Sustainable Development Goals (SDGs). 

For civil society and countries in the Majority World, FfD4 represents a rare opportunity to push for genuine, systemic reforms on debt justice, fairer international tax rules, and climate finance, so that all nations have the tools and power to drive their own development. It remains the only global forum where all countries negotiate economic governance on an equal footing. 

More than 80 charity leaders, parliamentarians, economists, academics, and campaigners urged the UK Prime Minister to support bold action on the debt crisis in lower-income countries and attend the conference. Those calls have so far been ignored. 

Confirmed global leaders set to attend include President Macron, Prime Minister Mark Carney, Ursula von der Leyen and many others.  

Last week, the Compromiso de Sevilla, a product of months of negotiations, was approved by consensus, with the United States withdrawing from the process. Civil society groups condemned the role of the UK, EU, and US in watering down proposals from low-income countries, particularly those related to urgently needed debt reform.  

Without action, debt burdens will continue draining vital public finances in many LMICs, diverting funds from healthcare, education, social protection, and climate action – all of which exacerbate structural inequalities that ultimately impact women, girls and other marginalised groups, who will lose out the most. 

Romilly Greenhill, CEO of Bond, the UK network for INGOs, said: 

“The UK has promised to rebuild trust with low- and middle-income countries – a welcome commitment – yet in the negotiations, it blocked debt reform proposals from the Majority World. It’s right that the UK listened and allowed the final text to pass, but it now needs to actively support Majority World demands for fair, timely, and lasting debt reform. As member states move to adopt the outcome document, we urge the UK to stand in solidarity with LMICs and seize the openings offered by the Compromiso de Sevilla to drive real reform on debt and the global financial system. Failure to do so risks damaging the UK’s credibility and its relationships with these countries.”

Going into the conference, Emma Burgisser, Economic Justice Policy Lead at Christian Aid, said: 

“With the US withdrawing from the process, the UK has emerged as one of the biggest blockers of delivering an ambitious agreement that delivers on the key assignment of FfD4 – namely, shifting decision-making power towards more democratic spaces and addressing the ways in which the international financial system is structurally stacked against the global South. The success of the Compromiso de Sevilla will now lie in the implementation of its strongest paragraphs, and yet we’ve already seen the UK delegation make proposals that would further weaken the agreements made while attempting to obfuscate where it’s really stood in these negotiations. We cannot let this happen on our watch.” 

Jean Saldanha, Director of the European Network on Debt and Development said:

 “Debt distress, climate change and inequality are interlinked crises. In response, the Global South has called for bold, structural reforms at FfD4. Instead of supporting this, the EU and UK have chosen to defend an outdated and unjust global financial system that benefits their own interests. This is unacceptable.”

Pablo Soriano Mena, Public Policy Manager and Maria Finnerty, Lead Economist, both at CAFOD, said:  

“The UK government must do more to help solve the global debt crisis. It is concerning to see the UK’s limited engagement in the Financing for Development process, reflected in its low-level participation in the upcoming conference, especially as other countries will be represented by their Heads of State and Government. By not showing up at the same level, the UK risks signalling that global development is not a priority. 

“The UK’s role in blocking calls for concrete solutions during the negotiations was disappointing, particularly as those calls came from countries most affected by this crisis. Despite this, it is positive to see that the government listened to criticism and ultimately did not oppose the final text. This is a step in the right direction, but words on paper must be matched by concrete actions to have any meaning. 

“The UK is in a privileged position to act. It has the capacity, influence, and experience to lead and to be a key ally in building a fairer and more sustainable global financial system. All that’s needed is the political will to do the right thing. It is not enough to sit on the sidelines while more than half the world is stuck in a spiralling situation that we could help to address.” 

Heidi Chow, Executive Director at Debt Justice, said: 

“The UK and other rich countries should hang their heads in shame for blocking and watering down the demands of lower-income countries for a UN process to cancel debt and prevent debt crises. Going forward, the UK government needs to change its tune, listen to countries at the sharp end of the debt crisis and support major improvements to how international debt is managed.”   

Catherine Pettengell, Executive Director of Climate Action Network UK (CAN-UK), said: 

“The Fourth International Conference on Financing for Development (FfD4) is a unique opportunity to address the systemic inequities that limit the Global South’s ability to address climate change and to thrive. In the pre-conference negotiations, the UK failed to support developing countries’ calls for fairer debt, tax, international cooperation, and climate finance – a crushing blow compounding the recent UK ODA cuts. Attempts to redefine the UK’s relationship with the Global South as partnership not paternalism, ring hollow – partners listen, support, and empower. The UK must now step up here in Seville to re-establish credibility as a reliable partner.” 

ENDS  

Notes to editors 

1. For interviews at the Financing for Development Conference (FfD4) in Seville, contact Bond’s Head of Media and Communications, Maryam Mohsin, on +447816191596 or [email protected]  

2. Read the letter signed by 80 charity leaders, parliamentarians, economists, academics and campaigners calling for the Prime Minister to back plans to tackle the debt crisis in lower-income countries and attend FfD4. The letter was coordinated by Bond and was sent to the Prime Minister on Monday, 9 June. 

3. According to the UN Development Program, 54 countries are in a debt crisis, 32 African countries spend more on debt payments than on healthcare, and 25 African countries spend more on debt payments than on education. 

4. Read Bond’s blog on what the UK needs to do at FfD4. 

5. Read a blog from Save the Children on the action the UK government can take on debt. 

6. Bond is the UK network for organisations working in international development. Bond unites and supports a diverse network of over 350 civil society organisations from across the UK, and allies to help eradicate global poverty, inequality and injustice.