A United Nations forum heard on Monday that countries should remove barriers to investment and increase collaborative action to ensure that the global recovery from the Covid-19 pandemic is green, inclusive, and long-term.
Government officials, business leaders, and UN representatives gathered online during the seventh World Investment Forum’s opening summit, with the theme “Investing in Sustainable Recovery,” to discuss the key challenges confronting investors in a post-pandemic world grappling with the looming threat of climate change.
The World Investment Forum in 2021 takes place at a pivotal juncture for global investment, with the goal of addressing the major challenges that the investment-for-development community faces around the world. The event, which is organised by the United Nations Conference on Trade and Development (Unctad), intends to address the problems and opportunities posed by the new industrial revolution, as well as the need for sustainable development and increased economic resilience.
Recovering from the Covid-19 crisis and going forward will be impossible without reinvigorating investment as a growth engine according to James Zhan, director of Unctad’s investment and enterprise division. A major push for investment in long-term, inclusive recovery is required.
According to Mr Shahid, the private sector plays a key role in generating growth, creating jobs, and contributing to long-term development.
He stated that global stimulus packages committed $3.5 trillion in public cash to recovery after the pandemic, while just a tenth of the money goes to underdeveloped nations, the private sector may enhance the impact tenfold. This will cover one-third of the total funding required to achieve the SDGs.
Mr Shahid believes that sustainability and resilience must be completely integrated into national policy and company cultures. Failure to do so could expose them to further dangers in the future, including greater debt and setbacks.
The UN official stated that an emphasis on sustainability and resilience will fundamentally and strategically redefine how countries, organisations, and communities think about competitiveness and investment opportunities.
Executives at the summit urged that the global investment community must remobilize investment, route it into SDG sectors, particularly in poor countries, and redouble efforts to guarantee that it promotes sustainable development.
According to Amina Mohammed, UN deputy secretary-general, the impact of the Covid-19 pandemic has been particularly catastrophic for women, the poor, and vulnerable populations.
According to Ms Mohammed, many emerging nations are in a “spiral of financial distress” as a result of increased borrowing costs and the need to redirect cash from public spending to service debt.
The global economic background, according to Bill Winters, CEO of Standard Chartered, is “encouraging,” with a significant resurgence predicted this year and next on the basis of monetary and fiscal support.
Standard Chartered is “carefully monitoring” the departure of government funding and keeping an eye on issues that could stifle growth, such as new Covid variations, oil costs, inflation, and supply chain problems, according to Mr Winters.
The executive also emphasised the need of investing in developing countries.