The Philippines is urging the international community to swiftly reform the global financial system to provide tailored support to middle-income countries (MICs) amidst rising global challenges.
Joven Balbosa, Undersecretary of the Department of Finance’s (DOF) International Finance Group, made the call at the 4th International Conference on Financing for Development (FFD4) in Seville, Spain, on July 2, 2025.
“We welcome the commitment in the Compromiso de Sevilla to address the specific challenges of middle-income countries, including by looking forward to a UN system-wide response plan for MICs,” Balbosa said in a statement.
“We join calls to urgently reform the international financial architecture through enhanced representation of developing countries, review of policies on surcharges and SDRs [special drawing rights], and increases of quota shares, among others,” he said.
The FFD4, held from June 30 to July 3, 2025, gathered heads of state, ministers and senior officials from international organizations, civil society, the business sector and local authorities. Discussions focused on reform financing at all levels and addressing financial challenges hindering the achievement of the Sustainable Development Goals (SDGs).
The conference adopted the Compromiso de Sevilla, or the Sevilla Commitment, which establishes a renewed global financing framework directly impacting developing countries.
The commitment cited the critical role of multilateral development banks (MDBs) and calls for enhanced international development cooperation, expanded technical support, greater mobilization of private capital, strengthened debt sustainability, and far-reaching governance reforms.
The Philippines, through its Permanent Mission to the United Nations in New York, represented the Group of 77 (G77) and China, and the Like-Minded Group for Middle-Income Countries (LMG-MICs) in the negotiations for the outcome document.
Speaking on behalf of the LMG-MICs, Balbosa noted the challenges faced by MICs, stressing the need for support that goes beyond gross domestic product (GDP) for a more inclusive approach to international cooperation and access to development finance.
“To address the middle-income trap, we need tailored support for MICs that addresses their specific challenges beyond the simplistic income categorization. We will engage with the Secretary-General’s High-Level Expert Group to develop such indicators and welcome Spain’s initiative on a Beyond GDP Global Alliance,” said Balbosa.
The DOF also supported the establishment of a UN intergovernmental process for a more inclusive and equitable global debt architecture that ensures participation and transparency, taking into account national development priorities.
Balbosa underscored the significance of official development assistance (ODA) and urged MDBs to increase their financing capacity and maximize the impact of country projects they support, while providing better and concessional lending terms, grants, and technical assistance.
He said that climate finance should be readily available as added support and should not come at the expense of ODA. Balbosa further called for a stronger focus on capacity-building and technical assistance for developing countries to realize the outcomes of financing for development.
“The Philippines looks forward to the implementation of the Compromiso de Sevilla. Let us work to deliver on the promise of leaving no one behind, as sustainable development is the key to greater peace, stability, and prosperity for all,” he said.
The Philippines was also elected as one of the vice presidents of the FFD4 Conference, with Undersecretary Balbosa serving as the chair of the plenary meeting and general debate on July 3.
The Philippine delegation to the FFD4 comprised officials from the DOF, Department of Foreign Affairs, Board of Investments of the Department of Trade and Industry, and the Securities and Exchange Commission.
