Makati Declaration on Middle-Income Countries
Adopted at the High-level Ministerial Conference of Middle-Income Countries 28-29 April 2025 – Manila, Philippines
We, Ministers and High-level representatives of Middle-Income Countries (MICs), gathered in Manila, Philippines, from 28 to 29 April 2025, at the High-level Ministerial Conference of MICs organized by the Department of Foreign Affairs of the Republic of the Philippines, with the support of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the United Nations Development Programme (UNDP), the United Nations Industrial Development Organization (UNIDO) and the United Nations Resident Coordinator’s Office in the Philippines under the theme: “Breaking New Grounds: Towards a Strategic Plan of Action for Middle-Income Countries.’’
1. We welcome the initiative of the Republic of the Philippines, in coordination with the Like-Minded Group for Middle-Income Countries (LMG-MICs), under the Chairship of the Kingdom of Morocco, composed of Armenia, Belarus, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Lebanon, Mexico, Morocco, Namibia, Panama, Peru, the Philippines, Uruguay, to host a High-level Ministerial Conference of Middle-Income Countries, aimed at advancing the discussion towards the elaboration of a Program of Action for MICs.
2. We recall the outcomes of the international conferences on development cooperation with middle-income countries held in Madrid, on 1 and 2 March 2007, in San Salvador on 3 and 4 October 2007, in Windhoek from 4 to 6 August 2008, in San Jose from 12 to 14 June 2013, in Minsk on 23 and 24 April 2015 and in Rabat on 5 and 6 February 2024.
3. We reaffirm previous Ministerial Declarations adopted by the LMG-MICs in New York on 23 September 2016, 21 September 2017, 26 September 2018, 24 September 2019, 2 October 2020, 2 December 2021, 21 September 2022, 21 September 2023 and 26 September 2024.
4. We reaffirm our continued determination for the promotion of our collective interests and to advance practical, innovative and effective solutions to address and overcome the specific challenges faced by Middle-Income Countries in their path towards the achievement of sustainable development.
5. We welcome the adoption of UN General Assembly resolutions 68/222, 70/215, 72/230, 74/231, 76/215 and 78/162 on “Development Cooperation with Middle Income Countries.”
6. We welcome the convening of the Summit of the Future on 22 to 23 September 2024 at the United Nations Headquarters in New York at which resolution 79/1 entitled the “Pact for the Future” and its annexes, the Global Digital Compact and Declaration on Future Generations, were adopted and we call for their full, effective, and timely implementation.
7. We welcome the adoption of A/Res/79/226 entitled “Quadrennial Comprehensive Policy Review of Operational Activities for Development of the United Nations System” (QCPR), and look forward to the implementation of the relevant system-wide strategic policy orientations and operational modalities for development cooperation and country- level engagement of the United Nations development system, ensuring they adequately respond to the specific needs and challenges of middle-income countries in achieving sustainable development.
8. We look forward to the convening of the World Social Summit in 2025, under the title “The Second World Summit for Social Development,” to address the gaps and recommit to the Copenhagen Declaration on Social Development and the Programme of Action and its implementation and give momentum towards the implementation of the 2030 Agenda.
9. We look forward to the convening of the Fourth International Conference on Financing for Development in Seville, Spain, on 30 June – 3 July 2025, as a critical milestone to revamp development cooperation with middle-income countries for the next decade and reform the international financial architecture to make it fit for purpose to achieve the SDGs.
The Case of MICs: Vulnerabilities and Challenges
10. We note that over 100 countries are classified by the World Bank as middle-income, with Gross National Income per capita between USD$1,146 and USD$14,005, and they account for around 75 per cent of global population, 60 per cent of the world’s poor, and one third of global gross domestic product.
11. We recognize that middle-income countries experience frequent growth slowdowns and, if left unaddressed, this loss of economic dynamism can cause countries to get stuck in what is referred to as the “middle-income trap.”
12. We stress that middle-income countries continue to face specific challenges related to, inter alia, high levels of inequalities, low growth, persistent poverty, unemployment, loss of biodiversity, the adverse effects of disaster risks and climate change, reliance on primary commodity exports, high levels of external debt and the volatility of exchange rates and capital flows, and the digital divide.
13. We express concern that since 2000, only 27 countries transitioned from the middle- income to high-income classification, and note that many countries experienced reversals back to middle-income status, with 11 countries switching back and forth at least once before reaching their current high-income status.
14. We note that current approaches to development cooperation result in most official financial flows to middle-income countries taking the form of loans rather than grants, including access to climate finance. Further, the majority of middle-income countries are not considered eligible for concessional financing at levels that meet their specific needs from MDBs despite their persisting multidimensional challenges.
15. We stress that middle-income countries have a significantly greater share of foreign liabilities among the developing countries arising from higher dependence on debt instruments.
MICs priorities
A. Fourth International Conference on Financing for Development (FFD4)
16. We will strive to ensure that FFD4 acknowledges that ODA and other concessional finance are still important for a number of middle-income countries and have roles to play for targeted results, taking into account the specific needs of these countries.
17. We will go beyond the commitments of the Addis Ababa Action Agenda by launching a renewed and forward-looking agenda for middle-income countries. Recognizing their diverse realities and persistent multidimensional challenges, we will work to transform the international approach to these countries—moving away from outdated income-based classifications and towards tailored, context-specific support.
18. We note that this includes rethinking eligibility criteria, redesigning financial instruments, and ensuring greater access to concessional and innovative financing, noting the challenges faced by several middle-income countries in accessing concessional finance to achieve the SDGs. We will promote coordinated, sustained engagement from the UN development system, international financial institutions, and regional actors, with the aim of enabling middle-income countries to sustain their development gains, address structural vulnerabilities, and accelerate progress towards sustainable development.
B. Beyond GDP
19. We reaffirm the need to urgently develop measures of progress on sustainable development that complement or go beyond gross domestic product. These measures should reflect progress on the economic, social and environmental dimensions of sustainable development, especially in the consideration of informing access to development finance and technical cooperation. In this regard, we call for the timely and full implementation of GA decisions to:
(a) Request the Secretary-General to establish an independent high-level expert group to develop recommendations for a limited number of country-owned and universally applicable indicators of sustainable development that complement and go beyond gross domestic product, in close consultation with Member States and relevant stakeholders, taking into account the work of the Statistical Commission, building on the global indicator framework for the Sustainable Development Goals and targets of the 2030 Agenda for Sustainable Development and to present the outcome of its work during the eightieth session of the General Assembly;
(b) Initiate a United Nations-led intergovernmental process following the completion of the work of the independent high-level expert group in consultation with relevant stakeholders, including the Statistical Commission, international financial institutions, multilateral development banks and regional commissions, in line with their respective mandates, on measures of progress on sustainable development that complement or go beyond gross domestic product, considering the recommendations of the Secretary - General’s high-level expert group.
20. We highlight that the development in transition approach recognizes development as a continuous, multidimensional process rather than a stage defined solely by GDP per capita. We recall that Middle-Income Countries still face structural challenges, inequalities, and environmental vulnerabilities that require adaptive international support through blended finance, capacity-building, technology transfer, and new cooperation models beyond traditional aid.
C. Debt sustainability
21. We note that the debt servicing of middle-income countries reached the ratio of around 13 per cent of total exports in 2022 and recognize that nearly a third of middle-income countries are at high risk of a fiscal crisis. We call for the inclusion of middle-income countries in the Common Framework for Debt Treatments, noting the lack of a multilateral debt mechanism, debt sustainability framework or debt support service that caters to middle-income countries to address their liquidity challenges.
22. We emphasize that debt sustainability depends on a confluence of many factors beyond effective debt management at the international and national levels, and emphasizing that country-specific circumstances and the impact of external shocks, such as volatile commodity and energy prices, more intense and frequent natural disasters and volatile international capital flows, rising costs of capital, and spillover negative impacts of macroeconomic policies should continue to be taken into account in debt sustainability analyses.
23. We support integrating climate and nature risks in debt sustainability assessment. We emphasize the importance of ensuring the sustainability of investments in climate action and nature protection in developing countries and to ensure their resilience during debt distress. In that regard, we encourage the consideration of the recommendations of the independent Expert Review on Debt, Climate and Nature.
24. We call for scaling up debt swaps for SDGs, including for climate and nature, and maximizing their impact, including by simplifying their design and financing, reducing transaction costs, enhancing transparency, ensuring country ownership, creating incentives for creditors and increasing efficiency. We emphasize the importance of providing technical assistance, capacity support and legal advice to developing countries, including on cost-benefit analysis, and dealing with sophisticated creditors and engaging with credit rating agencies to address concerns over adverse rating impacts of official debt programs. We call on developed countries, International Financial Institutions and Multilateral Development Banks to provide these kinds of support, in this regard.
25. We also encourage public and private creditors to cooperate and to further explore the use of new and improved debt instruments, including debt for equity in Sustainable Development Goal projects, as well as debt indexation instruments and green and Sustainable Development Goals bonds. We also encourage all creditors to include standardized state-contingent clauses in loan and debt contracts with middle-income countries, to ensure effective debt treatments during times of crisis that are not covered by standard force majeure clauses. We invite all creditors to provide additional flexibilities to developing countries affected by natural disasters.
26. We call for the establishment of a multilateral sovereign debt workout framework that will fully address sovereign external debt distress and provide an effective, efficient and equitable mechanism for managing debt crises in a way that is aligned with the development needs of developing countries.
27. We recognize the importance of reviewing the fiscal rule methodologies currently in use with the purpose of designing a renewed methodology that enables long-term investments in sustainable development and contributes to lowering the cost of capital, while ensuring a balanced allocation of risk between debtors and creditors.
D. Climate action and finance
28. We recognize the critical role of middle-income countries in global climate action and their unique challenges in accessing adequate and affordable climate financing. We reaffirm the commitments under the UN Framework Convention on Climate Change and the Paris Agreement adopted under the convention and recognize the principle of common but differentiated responsibilities and respective capabilities.
29. We advocate for improved access to concessional finance, grants, and blended financing to support climate adaptation and mitigation efforts in MICs, ensuring that MICs are not unfairly excluded from international funding mechanisms.
30. We underscore the heightened vulnerabilities of MICs to climate change and natural disasters, pandemics and external shocks and the tremendous costs these have on our economies and sustainable development. We strongly support the capitalization and operationalization of the Loss and Damage Fund and call for the consideration of MICs’ vulnerabilities in the current allocation discussions.
E. Digital transformation and STI
31. We recognize that science, technology, innovation, and digital transformation are key drivers of sustainable and inclusive development. While middle-income countries have made significant progress in these fields, we require continued international support in scaling up the means of implementation, including in terms of technology transfer, skills development and capacity-building, including through strengthening research, innovation, and the adoption of emerging technologies such as artificial intelligence, IoT, machine learning, and blockchain, with the aim of promoting sustainable development. We will enhance national and international efforts to bridge the digital divide and ensure an inclusive digital transformation, including through partnerships and South-South and triangular cooperation, towards achieving universal and meaningful internet connectivity; enhancing digital skills, literacy, and capacities; building up digital public infrastructure; strengthening the provision of digital public goods; implementing digital inclusion strategies; actively participating and benefiting from the digital economy; harnessing data for development; and developing artificial intelligence (AI) readiness capabilities.
F. Gender equality, decent work and social protection
32. We recognize that the unequal distribution of paid and unpaid work according to gender must be addressed, and promote women’s economic inclusion and autonomy beyond caregiving, including by changing social norms and gender stereotypes around caregiving roles.
33. We recognize that developing vocational, upskilling and reskilling training for workers in occupations impacted by digitalization and automation to mitigate potential negative consequences for workforces and promote decent work is critical for achieving the Sustainable Development Goals, promoting economic development and social stability.
34. We commit to achieving sustainable development and shared prosperity for all by focusing our policies and actions on the poorest and most vulnerable. We will endeavour to identify those who are being left behind and reach those who are the furthest behind first. People who are vulnerable must be empowered. Those whose needs are reflected in the 2030 Agenda include all children, youth, persons with disabilities, people living with HIV/AIDS, older persons, Indigenous Peoples, refugees, internally displaced persons, and migrants. We intend to see the Goals and targets met for all nations and peoples and for all segments of society. We will take action to combat inequalities within and among countries and pursue policies that stem the tide of rising inequality, including through social protection systems and universal health coverage.
MICs and the UN
35. We commit to strengthen dialogue, coordination and cooperation to promote and voice the interests of Middle-Income Countries and support them in their efforts to overcome the specific challenges they face in the pursuit and the achievement of sustainable development in its economic, social and environmental dimensions.
36. We reaffirm the Rabat Declaration commitment to strengthen the Like-Minded Group for Middle Income Countries as a formal inter-governmental platform for dialogue, advocacy and coordination on development priority issues related to international cooperation for development and global governance, as well as on strengthening solidarity and cooperation among and with Middle Income Countries. We will leverage its convening role in important processes in the UN and expand its membership among like- minded countries in the middle-income category.
37. We reiterate the call for the United Nations development system to continue to develop and provide tailored support to middle-income countries in a manner that addresses their specific challenges, while mindful of their diversity, and recognize that a shift from a traditional model of direct support and service provision towards a greater emphasis on accurate and multidimensional assessment of each country’s specific needs and support for the leveraging of partnerships and financing are needed.
38. We call on the UN development system to promote a balance approach in its programmatic activities between the policy advice and assistance in fostering partnerships, and access to science, technology, innovation and support in sustainable infrastructure development, taking into account the multidimensional vulnerabilities of middle-income countries.
39. We urge the UN development system to elaborate on the specific inter-agency, comprehensive, system-wide response plan for middle-income countries, taking note of the mapping exercise conducted by the Secretary-General and his recommendations, that is aimed at better addressing the multidimensional nature of sustainable development and facilitating sustainable development cooperation and coordinated and inclusive support to middle-income countries.
40. We call on the Secretary-General to continue to ensure that the Resident Coordinators' offices, including those in MICs, are equipped with the adequate profiles, capacities and expertise tailored to fully deliver on their mandate and support their host countries in their efforts to achieve the SDGs.
41. We stress the need for the Chair of the United Nations Sustainable Development Group to consider filling leadership gaps on middle-income countries’ issues within existing resources, such as through the appointment of a focal point on middle-income countries.
42. We welcome the convening of the High-Level Meeting on Middle-Income Countries by the President of the General Assembly held on 01 April 2025 under the theme “Addressing Structural Barriers to Sustainable Development in Middle-Income Countries,” which explored the impact of new approaches that go beyond gross domestic product, with a view of informing international development cooperation, including policy and financial decisions.
43. We look forward to the dedicated segment for middle-income countries in this year’s High-Level Political Forum (HLPF) and ensure, in coordination with the President of the Economic and Social Council (ECOSOC) and its Bureau, that the focus of the thematic panel discussions builds on the achievements and initiatives of the LMG-MICs and explores solutions to the diverse challenges in achieving the SDGs under review.
44. We affirm the important role of South-South and Triangular cooperation in addressing the development needs of middle- income countries, including through capacity-building and fostering peer-learning and sharing of best practices among Middle-Income Countries across the regions.
45. We will ensure that the biennial resolution on Development Cooperation with Middle- Income Countries to be negotiated in the 80th session of the United Nations General Assembly will advance concrete actions to address the diverse and specific development needs of middle-income countries and towards the elaboration of a strategic program of action for middle-income countries in achieving sustainable development.
Strategic Program of Action: From Vision to Reality
46. We recall the Rabat Declaration call to decide to work towards the elaboration of a Strategic Plan of Action for MICs and to initiate consultations in cooperation with the UN development system, development partners and relevant stakeholders to advance this process.
47. We recall further that it has been a long-time goal of the LMG-MICs to develop a Strategic Program of Action (SPOA) for middle-income countries, with wide recognition in the UN and the international community of the special challenges faced by middle- income countries. The benefits of countries being able to transition into upper-middle and high-income status has a strong impact at the global scale, with middle-income countries being home to 60% of the world’s poor and one third of the global GDP.
48. We recall the United Nations Industrial Development Organization Strategic Framework for Partnering with Middle-Income Countries, adopted by the General Conference of the United Nations Industrial Development Organization at its eighteenth session, held in Abu Dhabi from 3 to 7 November 2019.
49. We commit to translate our vision into reality. We will advance the elaboration of a SPOA for middle-income countries, inclusive of concrete proposals to reform the development financing architecture for MICs and building on the commitment in the Rabat Declaration towards the implementation of the 2030 Agenda for sustainable development and beyond. We will be guided by the following Roadmap, with the procedural and substantive elements in our work ahead, without prejudice to other matters that may also be relevant in the process.
A. Procedural Elements
50(A). We determine the following steps to be necessary in advancing the elaboration of a SPOA for middle-income countries:
1. Explore approaches in advancing this process through a working group composed of five (5) LMG-MICs members, with the view of submitting its recommendations to the Group, which will inform the negotiations for the Second Committee middle-income countries’ resolution.
2. Build political awareness on need for a SPOA for MICs through group and national statements, among others.
3. Organize side events to promote and generate support for the SPOA from partners and within the UN system including the support of the Regional Economic Commissions and other relevant stakeholders.
B. Substantive Elements
50(B). We identify the following preliminary priorities to be elaborated in the SPOA:
- Paced, gradual, and smooth transition towards sustainable development
- Financing for development
- Productive capacity development
- Human and social development
- Environment and climate change
- STI and digital transformation, including risks and opportunities
- Inclusive development cooperation
- Global multi-stakeholder partnerships
- South-South and Triangular cooperation
- Measures for sustainable development beyond GDP
- Building resilience to global shocks and multidimensional crisis
51. We will follow through on the progress in the work of the working group and other activities undertaken in pursuance to the elaboration of a SPOA at the 10th Ministerial Conference of the LMG-MICs and build on them in the resolution on Development Cooperation with Middle-Income Countries to be negotiated for the 80th session of the United Nations General Assembly.
52. We Express our deep appreciation and recognition to the people and the Government of the Philippines for their hospitality in organizing and hosting the Ministerial Conference.
53. We thank the Kingdom of Morocco for chairing the LMG-MICs from 2023 and welcome the Philippines as the new Chair.