Page 18 - Islands Business March 2023

LDCs LDCs

Samoa graduated from the official list of LDCs in 2014, after
meeting the thresholds that measure income (GNI per capita)
and Human Assets Index (HAI). Vanuatu also graduated in De-
cember 2020. The Melanesian nation was due to change status
earlier than 2020, but Cyclone Pam devastated the islands in
2015, leading to a decision by the UN General Assembly to
grant a three-year extension before graduation.
Last month, of course, Vanuatu was again hit by two cy-
clones and an earthquake in one week, destroying infrastruc-
ture and damaging livelihoods – a striking example of why
vulnerability rather than just GNI/GDP should inform decisions
about overseas assistance.
For many years, the Alliance of Small Island States (AOSIS)
has argued that “the peculiar vulnerabilities of small states
Samoa’s Fiame Naomi Mata’afa Samoa Ambassador Fatumanava-o- are best assessed by the Multi-dimensional Vulnerability In-
Upolu III Dr Pa_olelei Luteru
dex. It will help LDCs graduate sustainably from this status, so
they can reap the benefits of truly being a part of the global
economy.”
Honiara is next in line. A 2018 UN resolution determined
that Solomon Islands will graduate from LDC status on 13
December 2024, six years after the adoption of the resolution.
For Susan Sulu, Permanent Secretary of the Solomon Islands
gross domestic product (GNI/GDP), a new index would look Ministry of National Planning, this timetable doesn’t address
at vulnerability and resilience from different dimensions: ongoing challenges: “Graduating the Solomon Islands in 2024
environmental (including climate change, natural hazards and is not in keeping with our sustainable development pathway.
disasters); economic (such as financial or trade shocks); and Our graduation must be delayed until support systems like MVI
social (with impacts driven by pandemics, displacement and come on stream.”
labour mobility).
Bridi Rice, CEO of the Development Intelligence Lab in Can- Samoa takes the lead
berra, told Islands Business, “the idea of a vulnerability index The call for the creation of a globally accepted vulnerability
comes from the concept that measuring a country’s Gross assessment was first made at the 1992 UN Conference on Envi-
Domestic Product or Gross National Income is a pretty poor ronment and Development in Rio de Janeiro. Three decades
measure of well-being. GDP is a very blunt instrument to tell later, there are signs of progress.
donors which country they should give money to, and a very At the United Nations, Pacific Island embassies coordinate
old-fashioned measure of development or poverty. through the Pacific Small Island Developing States (PSIDS)
“For countries that don’t fall into the neat GDP/GNI mea- group. They also participate in the wider alliance AOSIS, to
sure, you get a lot of churn,” Rice said. “That means people campaign on oceans, climate, development and disarmament.
will get out of poverty, but may fall back into poverty a year In January, Samoa’s Permanent Representative to the United
or two later after a disaster. The vulnerability index is saying Nations, Fatumanava-o-Upolu III Dr. Pa’olelei Luteru officially
something different. It looks at their vulnerability – they are took up the position of AOSIS Chair. Palau’s UN Ambassador,
only a moment away from a cyclone or a moment away from a Ilana Seid replaced him as PSIDS Chair and the Micronesian
blocked trade route that means they can’t get food into their nation will step into the role of AOSIS Chair at the end of
nation.” Samoa’s current two-year tenure.
On behalf of these networks, Samoa has been promoting
Graduating, then suffering action on the MVI within the UN system and amongst
Within the global system, 46 countries are ranked as Least donors. As he started his new role with AOSIS, Ambassador
Developed Countries (LDCs), including three in the Pacific: Fatumanava stressed that “the MVI is extremely important for
Kiribati, Tuvalu and Solomon Islands. Small Island Developing States.
This designation is a way of ensuring that poorer nations “One of our greatest challenges at the moment is that we
get better access to concessional loans, official development are not at the same level of access as our developed partners,
assistance (ODA) and technical support from United Nations so being able to access concessional financing is extremely
agencies and other donors. However, some SIDS graduate important,” he said. “Secondly, there is the issue of debt.
from LDC status because they have high levels of per capita We’re going to find ourselves in a situation where we have
income, due to significant levels of development aid but small to make choices between our Sustainable Development Goal
populations. Moving out of LDC status means they can lose ac- obligations or meeting our debt obligations, so it’s a very
cess to significant sources of development finance. difficult situation.

18 Islands Business, March 2023