Fragmentation of development aid diluting its impact, says PM Oli

Kathmandu, July 1: Prime Minister KP Sharma Oli has said that the fragmentation of development aid spread across too many small projects, too many parallel channels, and too many competing priorities often dilutes its impact.     

Equally troubling is the shift from grants to loans, even for countries already burdened with unsustainable debt, he said while making a statement during the Special Event convened by President of the Government of Spain, Pedro Sanchez, on 'Investing in Global Solidarity:     

A New Vision of Development Cooperation' in Seville, Spain earlier today. The event was held in the margins of the Fourth International Conference on Financing for Development.     

This event reaffirms the enduring value of development cooperation, especially in a time marked by resurgent nationalism, growing protectionism, and regional and global conflicts.     

Stating that development cooperation is not a gesture of charity but a pledge to leave no one behind in our shared pursuit of progress, he said "It is about partnerships that empower communities, strengthen institutions, build capacity and that foster resilience."     

Development cooperation is solidarity in action for lasting peace, for shared prosperity, for climate justice and for the foundations of a just, fair, and equitable world. However, despite its proven relevance development assistance is declining even as the wealth and income of many advanced economies continue to rise. "And this decline comes when the need is greatest, when countries in special situations face rising pressures and widening gaps. They need enhanced and sustained global support to overcome mounting challenges and accelerate inclusive growth."     

Prime Minister Oli said the Sevilla Commitment, adopted on Monday, gives us new hope, as it is about turning principle into progress through global solidarity.     

Welcoming the clear emphasis on the need to strengthen international development cooperation as a driver of sustainable development, Oli said this is the moment to translate our words into action. We must now deliver—on both our commitments and our principles of effectiveness. We must find innovative ways to mobilise resources and make development cooperation truly meaningful for the lives of people on the ground.     

Today, he said, developing countries face mounting financial stress, including rising debt. In this context, concessional finance is not optional but it is essential.(RSS)