President Ali says

DEVELOPING and least developed countries are struggling with debt distress and debt servicing, prompting President Dr. Irfaan Ali to call for financial architecture reform in order to achieve the Sustainable Development Goals (SDGs).
At the time, the President was, on Wednesday, taking part in a High-level Dialogue on Financing for Development at the 78th session of the United Nations General Assembly.
The High-level Dialogue on Financing for Development took place under the overarching theme: “Financing the SDGs for a world where no one is left behind.”
The President said: “Development Finance is critical to achieving the sustainable development goals and, therefore, the lack of progress is directly linked to the deficit and available financing for developing countries.”

While reiterating the challenges that developing countries are being bombarded with, he firmly stated: “The financial architecture, which is auto sync with the needs of developing countries, must be reformed.”

Speaking more on the much-needed reformation, the Head of State said: “In this regard the early adoption of a multi-dimensional vulnerability index, implementing the measures in the Bridgetown initiative, addressing liquidity support, private capital, development lending and more inclusive governance of international finance institution must form part of the reform agenda.”

Dr. Ali then reaffirmed Guyana’s commitment to collaborating with international institutions in order to provide solid measurable actions.
Moreover, while highlighting the three major crises that are becoming global concerns- energy insecurity, food insecurity and climate change- the President maintained that the existing financial architecture is unable to tackle those issues head on and what is currently happening in the world is evidence of this.
The Head of State related: “The consensus is that the existing financial architecture is incapable of addressing the global challenges confronting us: food insecurity, energy insecurity and the impacts of climate change.

Reform of the financial architecture must be addressed urgently, if we are to get back on track to achieve our development goals.”
Pointing out what is globally transpiring, the President provided some shocking statistics, in order to highlight how gloomy the situation has become.
While providing the essential ‘wake-up’ call, among several of the global situations he emphasised were: 60 per cent of least developing countries are in debt distress or are at high risk and debt servicing is swallowing up more than a quarter of all government revenue in Sub Saharan Africa.

“Interest rates’ hikes and soaring debt levels will cost developing countries billions of dollars in the coming years,” the President firmly remarked.
Turning his attention to the climbing energy crisis, Dr. Ali stated that the International Energy Agency has estimated that to limit the rise of global temperature, to less than two degrees Celsius, the investment within the energy sector would have to be increased approximately $1 trillion per year. And that is just to transition from fossil fuels.
After emphasising on that point, he said: “This is most sobering when you consider that close to 900 million people in developing countries have no access to electricity,” adding that the commitments being made must be fulfilled.

The Guyanese Head of State is currently in New York and will be attending a number of forums to further discussion on the SDG’s, financing and climate change.
He is accompanied by Minister of Foreign Affairs and International Cooperation, Hugh Todd; Foreign Secretary, Robert Persaud; Permanent Secretary at Foreign Affairs Ministry, Elizabeth Harper; Guyana’s Permanent Representative to the United Nations, Carolyn Rodrigues-Birkett, and Director of Projects at the Office of the President, Marcia Nadir-Sharma.