By: Kimberly Ramkhalawan
May 16, 2023
Emerging from the pandemic, along with heightened calls for decreasing the gap when it comes climate financing as well as the current security threat faced by neighbouring Haiti, were just some of the areas of focus during the United Nations Secretary General Antonio Guterres’ visit to Jamaica this week.
His two-day visit culminated with a joint press conference on Monday afternoon with Jamaica’s Prime Minister Andrew Holness, who spoke of the critical challenges that developing countries were facing and the need for reform of the international financial systems, something which has been at the forefront in recent times.
The conversation with SG Guterres comes after Prime Ministers Justin Trudeau of Canada and Andrew Holness of Jamaica were appointed on the high-level event on debt and liquidity co-chair for Sustainable Development Goals Financing, to which PM Holness described as having fruitful discussions on these areas, all while assuring of “Jamaica’s strong commitment to this work, multilateralism, and the central role United Nations plays in ensuring important matters of the reform of the global financial architecture it is undertaken and successful”.
Holness raised the issue of development of the multi-dimensional vulnerability index for accurately accessing the true state of small island developing states thereby increasing their eligibility to receive greater financing bearing in mind their unique vulnerabilities from natural disasters, and external economic shocks.
However, focus was placed on correcting the current financial architecture to address a number of global challenges such as climate change as well as the principles that would underpin a reformed system, something Prime Minister Holness says he has consistently pushed for since 2016, a reform that would be pleased to see new initiatives take centre stage, including the need to provide emergency liquidity to developing countries for resilience building, especially after natural disasters have ravaged their nations as a result of drastic climate change. But, to the Jamaican PM, he says there is much more to be done. Jamaica and Canada are co-chairs of the Group of Friends of SDG Financing and co-convenor of the secretary-general’s Financing for Development in the Era of COVID-19 and Beyond initiative, and part of his call is for more financing needed for developing states for climate adaptation.
In addressing his visit to the Caribbean island, Secretary General Guterres described Jamaica’s diversity as a richness not a threat, provided that you adopt the right social cohesion policies. He dived straight into what he described as the three main problems facing the world today when it comes to equitable financing, those being a model problem along with what he calls a power and practical problem, all which was put on display for the world to see post the pandemic and during the distribution of vaccines. He added that countries were also privy to the IMF’s issued Special drawing rights were not the same benefits experienced among middle income states. To this, Guterres pointed to what he says shows what is fundamentally wrong with the rules, as those countries “do not face adequate debt relief, nor do they face the possibility of debt financing levels that would be necessary because of their status. However, admits there is a deep injustice when it comes to inadequate financing for SIDS as well as debt relief systems or access to concessional funding because they are considered to be middle income countries. He noted that small island developing states, SIDS faced a higher level of vulnerability because of the structure of their economies, geographic location and their size and their enormous impact they face when it comes to climate change.
Alluding to what he described as the ‘Power problem’ as it relates to the Bretton wood financial institutions created post world war II with systems that remain today, while what he termed ‘practical issues as being where more ‘can be done in relation to a better link to climate finance and the struggle for adaptation in particular’. He added that in multiplying the effects of the multilateral development banks, Guterres noted that if they “change their business model and a new approach to risk, and they are able to use their resources to leverage massive access to private financing at reasonable costs for developing countries and much more can be done to allow for new instruments to be swaps in between debt and in the investments for climate change, saying lots can be done if there is political will to do so”.
In this he expressed his deep solidarity with Jamaica with the SIDS in relation to these issues of model, power and practicality problems and shared he was determined to do his best in correcting the problem. With this he shared that the United Nations was currently preparing a policy brief to be issued in June to all member states on the reform of international financial architecture, and will have at the same time, addressing the G7 and G20 and insist for the needs of these three problems to be solved.
Meanwhile, SG Guterres expressed how important it was for him to visit Jamaica while he was doing this work, and went on to described Holness as a champion when it came to this and effective reform among multilateral states in the world.
He added to the success of the policies that PM Holness and his government have developed that allowed the country to reduce substantially its dependence relations to debt, it was very important to listen to him and to have his advice, suggestions and perspectives for him to be able to translate the dramatic needs of developing countries in particular of SIDS in the initiatives the UN intends to role out on climate and climate financing, as well as global financial institutions.
In terms of regional matters, particularly the situation in Haiti, the United Nations SG lamented that there wasn’t more action to address the situation in Haiti and agreed that there was need for greater attention to be paid by the international community to very urgent security and humanitarian situation ongoing.
Prime Minister Holness added that while CARICOM was doing its part within its resources when it comes to Haiti. Reflecting on its recent mission to the war-torn state, Holness says while meaningful discussions were held with the state there and some things are advancing, he shared the view that with greater effort from the international front, a breakthrough can be seen toward better and broader consensus toward a solution on the island, as it is recognized that Haiti needs security support.
UN SG Guterres stated that there was urgent dramatic humanitarian needs, and echoed the need for a stronger commitment by the international community, as it was a political problem that required bringing the different stakeholders together to find a way for a legitimate government to be recognized by all. He added at the moment, this was a political process, and once successful would assist in addressing the violence of the gangs.
He says he made a proposal to the security council, that he sees it necessary in the context of the support in terms of equipment, training along with the national police force to be able to have the presence of a robust police force to crack down on the gangs, in parallel with the political process to create conditions for Haiti to be able to address its dramatic situation. However, Guterres admits it has been a difficult exercise to be able to mobilise those that have the best capacity to meet the operation, and to create the political conditions to make it easier for different countries to accept being part of the action. Never the less, SG Guterres paid tribute to Jamaica for being the first country to immediately express its readiness to be part of this operation, in terms of CARICOM is also involved in the process of trying to bring together the different stakeholders to find a way out of this political crisis.
He added that an effective solidarity with Haiti is not only a matter of generosity but it’s a matter of ‘enlighted self-interest’, as the present situation presents a threat to the security of the entire region and further afield. Jamaica can count on the UN to be strong advocates to recognize the success of its efforts and to support the country more effectively even more than in the past.
In February, PM Holness led a team to the country to overview what it could be done in terms of joints regional troops assisting in bringing peace and some stability to the country, however, CARICOM decided it was necessary to “build international partnerships in support of efforts to return Haiti to peace and stability as a necessary precursor for free, fair and credible elections”.