PH Pushes Global Finance Reform for Middle-Income Nations

The Philippines has renewed its call for urgent reforms in the international financial system to better serve the needs of middle-income countries (MICs) amid mounting global development challenges.

Speaking at the 4th International Conference on Financing for Development (FFD4) in Seville, Spain, Department of Finance (DOF) Undersecretary Joven Balbosa said existing global financing frameworks must evolve to reflect the realities of MICs.

“[W]e welcome the commitment in the Compromiso de Sevilla to address the specific challenges of middle-income countries,” Balbosa said, adding that the Philippines supports “a UN system-wide response plan for MICs.”

FFD4, held from June 30 to July 3, 2025, convened heads of state, ministers, international organizations, civil society, and business leaders to reform the financing landscape to achieve the Sustainable Development Goals (SDGs).

The event culminated in the adoption of the Compromiso de Sevilla, a new global financing framework that outlines debt sustainability reforms, increased multilateral development cooperation, and greater mobilization of private capital.

Balbosa, who chaired the plenary session on July 3, represented the Philippines as Vice President of the Conference and delivered a statement on behalf of the Like-Minded Group for Middle-Income Countries (LMG-MICs) and the Group of 77 and China.

He warned that simplistic GDP-based income categorization ignores structural vulnerabilities in MICs, which still face limited access to concessional financing, weak climate resilience, and growing debt pressures.

“To address the middle-income trap, we need tailored support for MICs that addresses their specific challenges beyond the simplistic income categorization,” he said.

The Philippines also welcomed the proposed Beyond GDP Global Alliance spearheaded by Spain and the UN Secretary-General’s High-Level Expert Group, which aims to develop more inclusive development indicators.

Balbosa urged multilateral development banks (MDBs) to expand their financing capacity, reduce surcharges, and offer more concessional lending terms and technical assistance.

He also called for urgent reforms in the allocation of Special Drawing Rights (SDRs) and greater representation of developing countries in global financial institutions.

The DOF stressed the importance of Official Development Assistance (ODA), noting that climate finance must not divert resources away from critical development needs.

“We will engage with the Secretary-General’s High-Level Expert Group… and welcome Spain’s initiative on a Beyond GDP Global Alliance,” Balbosa reiterated.

He backed proposals to establish a UN-led intergovernmental process for a fairer global debt architecture, emphasizing transparency and the alignment of repayment structures with national development goals.

The IFF4 Conference marked a milestone for Philippine diplomacy, with the country playing a key leadership role and co-negotiating the final outcome document with other developing nations.

“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,” Balbosa said in his closing remarks.

The Philippine delegation included senior officials from the DOF, Department of Foreign Affairs, Board of Investments under the Department of Trade and Industry, and the Securities and Exchange Commission.

The Compromiso de Sevilla aims to reframe development finance to be more responsive to global inequality, climate impacts, and geopolitical uncertainty—issues that disproportionately affect MICs like the Philippines.