The United Nations has concluded tough negotiations on the Pact for the Future. The comprehensive multilateral agreement was adopted on 22 September at the opening session of the Summit of the Future. Under the heading ‘Transforming Global Governance’, the Pact contains a list of policy measures to reform the international financial architecture. This area has been a priority for developing countries, which are marginalised in the current institutional framework for global economic governance. The UN Secretary-General has been a strong advocate for reform. In the run-up to the Summit, he described the current architecture as outdated, dysfunctional and unjust, and called for a “new Bretton Woods moment”. What's in the Pact on financing for development and reforming the international financial architecture?

• Global Economic Governance: A new biennial summit to strengthen links between the UN and the international financial institutions. This is one of the outstanding governance innovations of the Pact. But member states only "noted [the initiative] with appreciation."
• Tax cooperation: A commitment to "engage constructively in the process towards the development of a United Nations framework convention on international tax cooperation". The so-called billionaire tax made it into the Pact, albeit with a weak "explore options for international cooperation on the taxation of high net worth individuals".
• Official Development Assistance (ODA): The existing ODA volume target of 0.7% of GNI was reaffirmed. A clear commitment to "take further measures to strengthen its effectiveness" is included.
• Debt crisis resolution: A new review of the sovereign debt architecture, including the UN, but led by the IMF. As a compromise, the UN Secretary General will report to member states, the latter was key for developing countries if the IMF takes the lead. Debt swaps are mentioned, but the call for national legislation to facilitate debt restructurings was dropped. Creditors should include state-contingent clauses, including climate clauses, in their debt instruments, “where appropriate”.
• Special Drawing Rights (SDRs): A new target for rechanneling, at least half of the allocation. But only voluntarily. And a very vague mandate for new SDR allocations: "Encourage the IMF … to consider the feasibility of accelerating the issuance of Special Drawing Rights”.
• IMF and World Bank governance: Vague commitments to strengthen voice and representation of developing countries, essentially delegating the issue back to the IFIs own governing bodies, where reforms have been blocked for years.
• Beyond GDP: A new high-level expert group to develop indicators for sustainable development that go beyond gross domestic product.  
   
• And finally: "Ensure an ambitious outcome at the Fourth International Conference on Financing for Development in 2025 to close the SDG financing gap." This gap is about $4 trillion per year, so there is plenty of work left for the FfD4 conference!