Global Issues & ODA
Foreign Minister Hayashi’s attendance at the Summit for a New Global Financing Pact
On June 22, starting at 3:08 p.m. (local time; 10:08 p.m. JST) for approximately 70 minutes, Mr. HAYASHI Yoshimasa, Minister for Foreign Affairs of Japan, who is visiting Paris, France, attended a Round Table entitled “Mobilizing the private sector for the SDGs: sustainable infrastructure and SME financing” held at the Summit for a New Global Financing Pact. The overview is as follows-:
- At the first part of this Round Table, Minister Hayashi underscored that, in the context that progress in achieving the SDGs by 2030 is being delayed by the COVID-19 pandemic and the Russia’s aggression against Ukraine, the G7 affirmed the importance of addressing global issues in solidarity with international partners, mobilizing domestic resource and private financial assets in order to address financial gaps, and continuing efforts to scale up ODA. Minister Hayashi welcomed that the principle of solidarity expressed in Hiroshima resonates with this Summit Meeting in Paris and underlined the importance of the following three forms of solidarity.
- As the first point, Minister Hayashi underscored the importance of “Solidarity with the private sector”, stating that investment by private sector in infrastructure and SMEs is indispensable for a prosperity of the private sector in the developing countries. Minister Hayashi expressed his appreciation to examples of global solidarity such as JETP that supports developing countries to achieve carbon neutrality, as well as the Partnership for Global Infrastructure and Investment (PGII) which was launched at the G7 Elmau Summit to mobilize public and private investment in quality infrastructure.
- Minister Hayashi emphasized, as the second point, the necessity of “Solidarity in financing,” stating that public and private sector should exercise solidarity through financing. Minister Hayashi presented Japan’s contribution such as increasing its SDR channeling from 20% to 40% of new allocations, Japan's ODA performance reaching to US$17.5 billion per annum in 2022, other financial contributions in climate change or global health. Minister Hayashi also affirmed Japan’s support for MDBs Evolution to maximize development impact by strengthening.
- Minister Hayashi stressed, as the third point, the importance of “Solidarity for ownership,” clarifying that solidarity should be practiced respecting the ownership of each developing country. Minister Hayashi underscored that Japan has been promoting its capacity-building projects in the areas such as public financial management, based on the conviction that the objective of financing is to empower developing countries’ governing capability so that development can be better sustained.
- In addition, Minister Hayashi emphasized that any development finance must be transparent and fair, not undermining the debt sustainability in developing countries. Minister Hayashi therefore called on all creditors and debtor countries to adhere to the international rules and standards and promote development finance that leads to balanced and sustained growth.
- At the second part of this Round table, Minister Hayashi also pointed out that although they are a main source of employment, SMEs have difficulty in receiving support from financial institutions. Minister Hayashi introduced, as Japan’s contribution that values “Solidarity for ownership,” the revision of the law stipulating the duties of the Japan Bank for International Cooperation (JBIC), the launch of the Enhanced Private Sector Assistance for Africa (EPSA), as well as the example of assistance to African entrepreneurs through Project NINJA in order to create business innovation in developing countries.
- The participants to this Round Table were as follows: Mr. Macky SALL, President of the Republic of Senegal, Ms. Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, Mr. Makhtar DIOP, Managing Director of the International Finance Corporation (IFC), Mr. Remy Rioux, Chief Executive Officer - French Development Agency etc.