Calls for vaccine equity and greater solidarity to tackle trade protectionism and the climate crisis were among pressing global challenges which were highlighted at the opening of the 15th United Nations Conference on Trade and Development (UNCTAD15) on October 4, 2021, in Bridgetown, Barbados.
Among the major highlights was Secretary General of the United Nations (UN), Antonio Guterres’ debt distress strategy plan that would see a larger portion of international funding going towards developing countries.
Building on the theme of the UNCTAD14 conference which emphasized the need to move from decision to action, UNCTAD’s 15th quadrennial conference seeks a concrete decade of action in pursuit of the Sustainable Development Goals.
The conference which runs from October 3 to 7, 2021, dubbed with the theme, “From inequality and vulnerability to prosperity for all”, is a clarion call to work to fix the fractures across the world in favour of prosperity for all.
Offering hope to vulnerable Small Island Developing States (SIDS), Secretary-General Guterres said the COVID-19 pandemic had wreaked havoc across the global economy, disrupting the three powerful economic engines of trade, manufacturing and transportation and decried the uneven economic recovery which is unfolding across the world.
“In all, more than eight out of every ten dollars in recovery investment is being spent in developed countries — not in the countries in greatest need,” he said, warning that uneven recovery was leaving much of humanity behind.
To tackle the debt crisis, he called for an urgent four-point debt crisis action plan which would include an expansion of liquidity whereby smaller countries would have more access to the Special Drawing Rights (SDRs) issued by the International Monetary Fund (IMF).
“Today, I am calling for a substantial re-allocation of unused SDRs, not a symbolic one, a substantial re-allocation to vulnerable countries that need them, including middle-income countries,” Guterres said.
The UN General Secretary also recommended that debt relief be granted to those SIDS as they battle the COVID-19 pandemic and that suspension, he suggested, should continue into 2022.
He also put forward a comprehensive strategy to reform the international debt architecture including debt restructuring or reduction which according to him, “traps too many countries in deadly cycles of debt waves.”
“We know countries are being crushed by debt service costs, so we need an extension and expansion of the G20’s Debt Service Suspension Initiative (DSSI) into next year,” The UN Secretary-General proposed. “The initiative and the common framework for debt treatment beyond the DSSI have great potential to ease the debt crisis, but they are too limited in eligibility and timeframe.”
Guterres contended that smaller countries were being disadvantaged by being denied access to similar terms as those of developed nations.
“It is deeply unfair that rich countries can borrow cheaply and spend their way to recovery while low and middle-income countries struggle to keep their economies afloat. We need to bring together the public and private sectors to develop innovative financing tools to accelerate the return of private investment to pre-pandemic levels, which will, in turn, accelerate recovery,” he remarked.
The UN’s chief executive further suggested, “we need to increase multilateral development bank assistance to lower risk and draw capital to bankable, job-creating projects in communities that need them. Taken together, this debt crisis action plan can help ensure that no government is forced to choose between servicing its debts and serving its people.”
For a sustainable and equitable recovery for all, he recommended “bold investments” in education, universal social protection, health care and decent work are needed, Guterres said.
“We need to level the playing field for trading nations like Barbados. This includes stronger rules for fair and open trade, and helping developing countries modernize and digitize their trade infrastructure so they can compete,” he stated.
Guterres further underscored the need to build a global green economy, saying SIDS are looking to the future with worry in the face of the climate crisis.
“They hear the words, but do not see the actions behind them,” he said. “We often act as if we have another planet waiting for us.”
Guterres urged countries to make bold commitments at the upcoming UN climate summit (COP26) and appealed to donors and multilateral development banks to allocate at least 50% of their climate support towards adaptation and resilience, and make it easier for countries affected by natural disasters to access the funding they need.
It is unfortunate and sad to hear that international funding is not being properly handled in the poorer countries.. The logical consequence is that there will be high motivation for citizens in poor countries in desperate conditions socially and economically to gang up to migrate to developed countries as example exodus of thousands of Haitians to the USA..Europe is also having its migration problems.. On the other hand there is too much corruption in many developing countries among the political leadership including our Caribbean states that places pressure on the poor especially in the midst of the Covid 19 Pandemic. This is the worst time to cheat, lie and be corrupt
Dear Mr Gueterres. A poor country that making billions of dollars selling passports and saddling its little population with $63,000 a month to pay its PM rent bill does not need any debt forgiveness, trust me. That blame mentality is sick and does not empower us at all.
Yes! In too many of these countries it’s CORRUPTION, GREED and WASTAGE (gross mismanagement) causing the economies to sputter and flutter.
If GOOD GOVERNANCE – transparency, accountability, fiscal responsibility, rule of law, inclusive, temperance – were to prevail, most of these countries would be fiscally sound.
No. Capitalism, which was built on the capture and enslavement of all of these people is a whole different ugly animal. The countries you refer to have all been deliberately left out of the game for their total domination. Corruption or not It’s a done deal,,, grovel, educate yourself or d*e.
Dominica not in debt. We don’t need that relief. The gov have so much money in accounts hidden all over the place. Totalling over 4 billion. More that enough to bail our selves out
Dominica top item of trade is de passport!
That single venture is so profitable that the lion’s share of de returns are kept in escrow account so de government through the minister of finance is not obligated to report in a national budget. Therefore de citizens fail to reap de benefits of these funds in REAL NATIONAL DEVELOPMENT
de balance scale was not created for all de weight to be on one side……de scale is only functional when the weights are even on both sides!!!!!
You want to give us debt relief? I don’t trust my government with any debt relief
Offering these countries debt forgiveness,again and again, especially Dominica, doesn’t redound to the benefit of the poor.
Dominica is the ICU patient of the OECS. When grants and monetary donations are given to help with development and to relieve pain and suffering, it just vanishes like magic.
President Guterres, your intentions seem honourable. But look at all those millions of dollars and debt forgiveness ( World Bank, IMF, UWI, CDB, PetroCaribe, etc) that were given to Dominica after Hurricane Maria. Has anyone seen any new developments or improvement in the quality of life of the poor?
The money these countries get is mismanaged most of the time as a feeding frenzy among the bigwigs often occurs. The strictest accountabilit and transparency measures should be put in place. before any agreement can be had.