Financing conditions for most developing countries were favorable for several years due to high export earnings and easy access to credit. This has changed rapidly in the past year, as commodity prices have collapsed and capital flows have dried up. Recessionary or subdued growth expectations are taking hold everywhere, not just in developing countries, reflecting deep uncertainties. The debt sustainability indicators of many countries have deteriorated fast, and outlooks are for further deterioration.

The Addis Ababa Action Agenda recommitted countries to addressing systemic issues, debt sustainability and the development financing agenda coming out of preceding conferences in Monterrey (2002) and Doha (2008), while promoting an emphasis on sustainable development. Against a challenging outlook for the global economy, the pursuit of a comprehensive reform agenda in this area is becoming increasingly urgent. The UN’s Financing for Development follow up process holds promise as a venue to build consensus and advance policy proposals to address these challenges.