{"id":275234,"date":"2021-10-06T19:37:34","date_gmt":"2021-10-06T23:37:34","guid":{"rendered":"https:\/\/dominicanewsonline.com\/news\/?p=275234"},"modified":"2021-10-06T19:37:34","modified_gmt":"2021-10-06T23:37:34","slug":"un-secretary-general-outlines-debt-relief-plan-for-vulnerable-countries","status":"publish","type":"post","link":"https:\/\/dominicanewsonline.com\/news\/homepage\/news\/un-secretary-general-outlines-debt-relief-plan-for-vulnerable-countries\/","title":{"rendered":"UN Secretary General outlines debt relief plan for vulnerable countries"},"content":{"rendered":"

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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.<\/p>\n

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.<\/p>\n

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<\/a>.<\/p>\n

The conference which runs from October 3 to 7, 2021, dubbed with the theme, \u201cFrom inequality and vulnerability to prosperity for all\u201d, is a clarion call to work to fix the fractures across the world in favour of prosperity for all.<\/p>\n

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.<\/p>\n

\u201cIn all, more than eight out of every ten dollars in recovery investment is being spent in developed countries \u2014 not in the countries in greatest need,\u201d he said, warning that uneven recovery was leaving much of humanity behind.<\/p>\n

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).<\/p>\n

\u201cToday, 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,\u201d Guterres said.<\/p>\n

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.<\/p>\n

He also put forward\u00a0 a comprehensive strategy to reform the international debt architecture including debt restructuring or reduction which according to him, \u201ctraps too many countries in deadly cycles of debt waves.\u201d<\/p>\n

\u201cWe know countries are being crushed by debt service costs, so we need an extension and expansion of the G20\u2019s 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.\u201d<\/p>\n

Guterres contended that smaller countries were being disadvantaged by being denied access to similar terms as those of developed nations.<\/p>\n

\u201cIt 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.<\/p>\n

The UN\u2019s chief executive further suggested, \u201cwe 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.\u201d<\/p>\n

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.<\/p>\n

\u201cWe 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,\u201d he stated.<\/p>\n

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.<\/p>\n

\u201cThey hear the words, but do not see the actions behind them,\u201d he said. \u201cWe often act as if we have another planet waiting for us.\u201d<\/p>\n

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.<\/p>\n","protected":false},"excerpt":{"rendered":"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,…","protected":false},"author":15,"featured_media":275240,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_cbd_carousel_blocks":"[]","footnotes":""},"categories":[237,36,22,235,76,9],"tags":[],"class_list":["post-275234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate-change","category-economy-development","category-environment","category-homepage-carousel","category-international-relations","category-news"],"acf":[],"yoast_head":"\nUN Secretary General outlines debt relief plan for vulnerable countries - 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