The United Nations has adopted the final text of the Pact for the Future—a document that, after 18 months and five revisions, reflects a watered-down consensus but still holds commitments for reforming global economic governance. Among its provisions is a call for reform of the International Financial Architecture (IFA), strengthened multilateralism, and a focus on human rights.
The recently adopted Pact for the Future was developed by the United Nations in collaboration with member states, international institutions, and civil society as a global framework to address pressing issues such as inequality, climate change, and international financial governance. Building on prior commitments made in global agreements like the 2030 Agenda and the Financing for Development process, the Pact has been shaped through five rounds of complex negotiations, balancing the diverse interests of governments and advocates. While the final version does not live up to its potential in some areas, it does offer important openings for advancing fiscal justice and transforming economic systems.
Key highlights:
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The overall approach to IFA reform in the Pact broadly focuses on improving existing systems rather than taking bold steps towards the wholesale IFA transformation that civil society has been long calling for. For example, the call for IFA reform (Action 50(b)) tasks the International Monetary Fund (IMF) with reviewing the sovereign debt architecture. While this raises concerns—particularly given the IMF’s track record of austerity-driven policies—CESR recognizes the opportunity to include civil society and debtor countries in this revision to push for debt reforms grounded in human rights principles. The review must prioritize debt justice and ensure developing countries can sustainably invest in long-term development without exacerbating inequalities. CESR will also leverage progressive moves from the Pact, such as Action 53, which calls for a framework to measure progress beyond GDP and push for aligning economic assessments and fiscal measures with human rights.
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On Fiscal Justice, the Pact includes provisions relating to eliminating illicit financial flows, taxing the super-rich, and strengthening UN tax cooperation mechanisms (Action 4(h)). This is a significant victory for those advocating for fair and progressive taxation. As for the global tax architecture reforms, they must center on the needs of developing countries and marginalized populations, tackling the deep economic inequalities exposed by the COVID-19 pandemic.
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Gender equality and women’s economic rights are also prominently featured, with more robust language than in previous versions. However, while existing commitments, such as those under the Beijing Platform, are reaffirmed, more ambitious structural reforms addressing economic inequality and the care economy are still needed.
In addition to shaping the broader dialogue around the Pact for the Future, CESR actively participated in key side events at the Summit of the Future. One such event, "Global Tax Reforms in the Pact/SOTF: How a Rights-Based Economy Can Deliver a Sustainable Future", featured CESR’s Executive Director, Dr. Maria Ron Balsera, alongside Agnès Callamard, Secretary General of Amnesty International; Rio Hada, Chief of the Equality, Development, and Rule of Law Section at OHCHR; Sarah Saadoun, Senior Researcher at Human Rights Watch and Amitabh Behar, Executive Director of Oxfam International. The session focused on the critical need for equitable global tax frameworks to mobilize resources for human rights and combat systemic inequalities. During her remarks, Maria emphasized the urgent need to transform international financial systems and close the global tax abuse gap that hinders lower-income countries. CESR also co-sponsored "Transforming Economies Beyond GDP: Towards a Caring and Feminist Future," an interactive panel that examined how the Pact’s minimal language on care and well-being can still serve as a springboard for promoting economies centered on people and the planet. CESR also presented a proposal for debt restructuring based on human rights principles at the FES in front of the UN permanent missions.
Despite the watered-down nature of the final text, it is crucial to recognize that the Pact shows how transformative language regarding the world’s dominant economic system and the reform of the International Financial Architecture has increasingly permeated international decision-making spaces. This shift allows economic justice advocates to push harder for fundamental structural reforms that were once considered unattainable.
In this sense, the text offers a platform for continued advocacy. As the world looks toward a post-2030 agenda, CESR will remain vigilant, ensuring that the reforms envisaged under the Pact translate into real progress—from IFA reforms to tax justice, human rights, and gender equality.