Statement by
Dr. Ibrahim Zuhuree,
Deputy Permanent Representative of Maldives to the United Nations
At the Second Committee
Joint consideration of:
Item 17: Macroeconomic policy questions
Item 18: Follow-up to and implementation of the outcomes of the International Conferences on Financing for Development
7 October 2020, New York
Thank you, Mr. Chairman,
- I align my statement to those delivered by Guyana, as Chair of G77 and China, and Belize, as Chair of AOSIS. I wish to thank the Secretary-General for the comprehensive reports submitted to provide deliberations under this agenda items.
Mr. Chairman,
- In the five years since the Addis Ababa Action Agenda was formulated in 2015 to finance sustainable development and transform the global economy, little progress has been made towards implementing it. Today, global context has changed radically due to the COVID-19 pandemic exposing and amplifying the challenges to achieve SDGs facing the most vulnerable countries, including limited fiscal space, debt sustainability, lack of climate financing and illicit financial flows.
Mr. Chairman,
- As COVID-19 triggered a profound health crisis in countries across the globe, the Maldives took the unprecedented step to close down our borders. It was a painful but necessary measure to contain Covid-19 and safeguard our citizens and guests. But the health crisis has now evolved into an economic crisis. Developing countries, especially the poorest and most vulnerable, have been hit the hardest during this crisis, not necessarily by the disease itself, but by the devastating socioeconomic ripples caused by our inability to respond efficiently, due to the complex financial architectures we created. Many countries, especially SIDS, will continue to face severe liquidity shortages unless international financial institutions re-examine their eligibility criteria for access to concessional loans and grants.
- We need to invest in innovative ways of diversifying tourism-dependent economies, but this is only possible by implementing bold initiatives allowing SIDS to service their debt and increase their limited fiscal space. In this regard, my delegation welcomes the recent initiative on financing for development in the era of COVID-19. Expert discussions followed by the High-Level meeting in September generated concrete proposals to alleviate the immense fiscal pressures in the short-term, and invest in the long-term, sustainable resilience of vulnerable economies.
Mr. Chairman,
- At the High-level meeting in September, my delegation proposed the establishment of a “Global Trust Fund,” targeted to restart the global travel and tourism industry. We reiterated our call for credit guarantee schemes to help reduce the cost of borrowing for developing countries. We urged to simplify financing procedures. We also called upon our bilateral and multilateral partners to provide more flexibility in traditional lending instruments to reflect the current reality, which I must emphasize, does not continue to come at high economic and political costs. Further, while acknowledging the initiative by the G20 members and Paris Club to suspend debt service obligations, we reiterate our call for an extension of this initiative until the end of 2021. The Maldives reiterates the AOSIS position for a SIDS Compact, which calls for a dynamic approach to addressing SIDS' recognized vulnerabilities as a cross-cutting systemic issue, requiring a multi-dimensional vulnerability index to replace the antiquated income-only measures.
Mr. Chairman,
- In the past few years, multilateral trade cooperation has been severely hampered through the continuation of bilateral trade disputes, unilateral action, and a heavy focus on short-term interests that circumvent multilateral processes. As a geographically isolated country with a narrow resource base, international trade is an essential aspect of the Maldives’ economic growth. Since the beginning of the pandemic, however, international markets have been closed and exports have been stopped, making it difficult for countries such as the Maldives to receive essential supplies. At a time when the multilateral trading system should be at the heart of solving the economic crisis caused by COVID-19 and achieving the 2030 Agenda for Sustainable Development, the negative trajectory of multilateral trade cooperation is worrying.
Mr. Chairman,
- We must choose to solve global economic problems multilaterally. Only the presence of a conducive trade environment and good cooperation will lead to the fulfilment of the 2030 agenda for sustainable development, making sure that no one is left behind.
- The Maldives stands ready to tackle these problems with our partners in this committee and to foster meaningful engagement.
I thank you.
