PM Skerrit appeals for support of Bridgetown Initiative

Prime Minister, Roosevelt Skerrit, has called for regional support for the Bridgetown Initiative, describing it as an important policy recommendation, especially concerning Climate Change. Speaking in Barbados over the weekend, he said Caribbean countries are not looking for handouts but rather fair access to the international financial architecture, and the initiative can assist in that regard.

“We are not begging anybody,” he said. “All we are saying is let us make the playing field different.”

The Bridgetown Initiative is relatively new and is being spearheaded by Barbados. According to the World Economic Forum, it “is a proposal to reform the world of development finance, particularly how rich countries help poor countries cope with, and adapt to Climate Change.”

Prime Minister of Barbados, Mia Mottley, has argued that international financial institutions that provide loans and grants to developing countries for economic and social development are outdated and in need of reform. One case in point is the fact that rich, developed countries can borrow capital with interest rates of between 1 to 4%, while poorer and developing countries – which are seen as riskier investments – borrow capital with interest rates of around 14%. With climate change a real threat to developing countries and without concessional funding, Mottley told the COP27 United Nations Climate Change Conference in Sharm el-Sheikh, Egypt that there is “no way” these countries can fight it.

While speaking in Barbados, Skerrit said he believes the Bridgetown Initiative can assist developing countries in the fight against Climate Change. He explained that the rules by international financial institutions were suspended for Ukraine and he questioned why the same cannot be done for poor countries. Ukraine is presently locked in a war with Russia.

“We are not begrudging Ukraine, they need the money, great but why can’t they do it for us when we are in a similar situation because Climate Change is a war that is being unleashed on us,” he remarked.

With developing countries in the Pacific and the Caribbean facing frequent and more intense hurricanes, rising sea levels, storm surges, coastal erosion, droughts, and flooding due to Climate Change, the United Nations (UN) has said these countries need upwards of US$26-billion annually to combat it. With such a hefty price tag, the Bridgetown Initiative has generated much interest among these countries and at COP27.

The New York Times has reported that leaders, such as France’s President Emmanuel Macron and IMF managing director Kristalina Georgieva, have indicated support for the reform of international development banks. Furthermore, John Kerry, the United States special presidential envoy for climate, and the chief executive of Bank of America also indicated their support. This is significant because the US is the biggest shareholder in the World Bank, according to the New York Times.