By Navendra Seoraj in St Lucia

SMALL Island Developing States (SIDs) face a range of economic constraints and increasing costs of climate-related events, issues which the United Nations (UN) aims to address by improving access to development financing for the Caribbean region.

“These are challenges you know only too well, and we join your call, and will take the steps we can, to improve access to development financing as a priority,” said Secretary General (SG) of the UN, Antonio Guterres during his remarks at the opening ceremony of the 40th Regular Meeting of CARICOM Heads of Government at the Royalton Hotel, St. Lucia, on Wednesday.

The SIDs’ heavy dependence on imports, particularly of energy and food, makes them highly vulnerable to price fluctuations and other external shocks. And the very high levels of national debt constrain the Caribbean’s ability to effectively address high and persistent levels of poverty and inequality.

These challenges, Guterres said, are further complicated by the difficulties SIDS face in mobilising development finance on affordable and appropriate terms. “I agree with you that eligibility for Official Development Assistance and other forms of concessional financing should include vulnerability criteria, in addition to Gross National Income per capita,” said the UN SG.

He said the UN has assisted too many technocractic discussions about vulnerability and what it means but, having visited several Small Island Developing States in the Pacific and the Caribbean the UN SG never found one that was not a clear case of vulnerability. In that regard, he agreed that the speed and predictability of climate financing, especially for least developed countries and SIDS, should be improved. And the prevalent use of debt instruments in climate finance needs review.

For middle-income countries that are particularly vulnerable, the multilateral development banks and development finance institutions have key roles to play in providing more long-term, low-cost debt financing. “But the time has also come for the international community to consider, seriously, how best to address the rising problems of over-indebtedness of middle-income countries,” said Guterres, adding that the indebtedness slows the SIDs’ progress toward sustainable development and makes them even more vulnerable to external shocks.

Guterres, as such supported the Economic Commission for Latin America and the Caribbean (ECLAC)’s proposal to convert debt to investment in resilience through the debt for climate adaptation swap and resilience building initiative.

He expressed total support of the UN and his personal support to any initiative aimed at creating the conditions to allow for adequate financing for building resilience and for recovering from the devastation of climate accidents. “There is one thing for me that is absolutely clear. There is no way the countries of the Caribbean can recover from a devastating hurricane or systematically build resilience in relation to climate problems doing that based on the unsustainable growth of their debt. This is a common responsibility that the international community needs to recognise,” said the UN SG.

He is determined to change that by bringing more resources and strengthening UN support to SIDs. In order to achieve this and address other global challenges, Guterres believes that countries must reaffirm commitment to multilateralism and the UN Charter.
Guterres said he has embarked on a far-reaching set of reforms to ensure that the UN development system is fit and ready to help countries to achieve the Sustainable Development Goals in the next decade.

In September, the UN will convene five Summits, all of direct significance to the Caribbean which include the High-Level Political Forum review of the 2030 Agenda; the Finance Summit to take stock of where we are in implementing the Addis Ababa Action Plan on financing for sustainable development; the mid-term review of the SAMOA Pathway for Small Island Developing States; the high-level meeting on Universal Health Coverage; and the Climate Action Summit.

These five events offer a strategic opportunity for the region’s voices to be heard by the global community. “I encourage you to use these opportunities to amplify your story, present ambitious and concrete country plans to address the priority action areas that are the focus of these five Summits and press for more meaningful support for sustainable development in the Caribbean,” said Guterres.

CARICOM Secretary General, Irwin LaRocque, in his remarks, said Guterres has shown an abiding interest in the welfare of the region. He recalled Guterres’ visit to affected countries following the passage of hurricanes Irma and Maria in 2017 and his ready acceptance of the invitation to personally participate in the CARICOM/UN high level pledging conference which was hosted by the UN. Further, LaRocque said the United Nations Development Programme (UNDP) has been working with the CARICOM secretariat and the Caribbean Disaster Emergency Management Agency to craft a proposal to build capacity in the region to realise its goal of climate and disaster resilience.