Deal reached on development financing

Rich nations and developing countries on Thursday reached a deal on financing the next 15 years of global sustainable development, in what was hailed as a successful outcome of a divisive four-day summit. The four days of talks in Ethiopia's capital Addis Ababa was the third summit of its kind after talks in Monterrey, Mexico in 2002 and Doha in 2008, with the United Nations setting an ambitious objective of deciding how to finance a wealth of targets ranging from ending poverty to tackling climate change.
According to the UN, the investment gap in key sustainable development sectors for developing nations amounts to $2.5 trillion annually. "I congratulate the Member States of the United Nations on the adoption of the Addis Ababa Action Agenda," UN Secretary-General Ban Ki-moon said. "It is a major step forward in building a world of prosperity and dignity for all. It revitalises the global partnership for development, establishes a strong foundation for implementation of the post-2015 development agenda, and points the way for all stakeholders for smart investments in people and the planet where they are needed, when they are needed and at the scale they are needed."
The agreement paves the way for the world body to push ahead with its 2015-2030 sustainable development goals, which are due to be formally adopted in New York in September. There are 17 in all, ranging from ending poverty to providing universal access to sustainable energy. Under the agreement, donor nations confirmed they aim to set aside 0.7 percent of gross national income for development aid. The accord also encourages private-public sector cooperation as well as support for developing nations in implementing tax regimes and increasing tax revenues.
During the summit, however, developing nations were forced to abandon their push to create a global tax authority. Poorer countries, as part of the 134-member G77 bloc, had been lobbying hard for an end to multinationals' profit shifting, which the UN's trade and development body UNCTAD says costs poorer countries some $100 billion (92 billion euros) a year. They wanted a UN-managed intergovernmental body charged with overseeing a new set of global fiscal regulations to be created, replacing the current set-up where such matters are managed by the Organisation for Economic Co-operation and Development (OECD), the so-called "rich man's club". Richer countries, led by Britain and the United States, were opposed to the plan.