India calls for ensuring financial viability of infrastructure projects in low-income countries at UN

04 May 2022 CW Team

At the Economic and Social Council (ECOSOC) R Ravindra, India's Deputy Permanent Representative to the UN, said that infrastructure investments, must follow "principles of financial viability" to avoid unsustainable debt burdens on low and middle-income countries.

The Indian envoy emphasised that strengthening productive capacities is a must for promoting sustainable growth - especially in Least Developed Countries (LDCS), Landlocked Developing Countries (LLDCS), Small Island Developing States (SIDS) and other vulnerable economies. Investments in infrastructure or any other SDG sector must follow principles of financial responsibility and viability so that the projects don't create unsustainable debt burden.

Deliberations on dealing with challenges of debt vulnerabilities of low and middle-income countries should not duplicate mechanisms already in place for addressing these issues - such as G20, IMF, and World Bank.

Financing of terrorism, cross-border tax evasion, and money laundering are key components of illicit financial flows. There is a need for enhanced international cooperation on these issues, including by building on existing platforms such as FATF.

India also pointed out that the developed countries' commitment of climate finance of USD 100 billion per year by 2020 is long overdue. The lack of an agreed definition for climate finance has led to uneven reporting by developed countries on their climate finance contributions under UNFCCC.

Infrastructure Urban

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