Page 19 - Islands Business March 2023

LDCs LDCs

“I’m hoping this MVI will also lead us to the establishment For Prime Minister Mata’afa, a universal MVI “is a tool that
of a sustainable debt regime. I think this is extremely impor- provides for a richer lens on vulnerability and resilience –
tant for us. The third potential use of the MVI is to help our hence its adoption and full implementation is critical for our
donors and partners in terms of their allocation. At the mo- economic recovery.”
ment, it is in favour of GNI/GDP, but it doesn’t take on board Development analyst Bridi Rice agrees that “an index is the
vulnerabilities and all these other issues and so I’m hoping right way to go – we should be thinking about development in
that it will have an impact.” a way that takes account of social and environmental factors
This Pacific leadership of AOSIS comes at a crucial time, as well as economic factors. However, there is a very long way
after debate about the MVI ramped up throughout 2022. Last to go before a vulnerability index replaces GDP amongst many
year, the United Nations appointed a ‘High-level Panel for the development banks and international agencies.”
Development of a Multi-dimensional Vulnerability Index’, co- Last month, 47 Heads of Government, 130 ministers and
chaired by Norway and Antigua and Barbuda. Samoa’s Ambas- nearly 5,000 delegates gathered in Qatar for the fifth global
sador was appointed as the sole PSIDS representative amongst meeting of Least Developed Countries. Seizing this opportu-
the 12 members of the UN panel. nity, the UN High-level Panel presented details of its work on
In August 2022, the High-level Panel released its interim MVI to the conference, seeking to expand diplomatic support
report, acknowledging that “many countries, notably SIDS, for a resolution to go before the UN General Assembly this
are much more vulnerable than their income levels would year. Alongside the campaign for an ICJ advisory opinion on
suggest… because of costs associated with remoteness from climate change, PSIDS diplomats will be pushing for action on

The global financial system is morally

bankrupt, and it favours the rich and
punishes the poor. This must change.

-Samoa PM, Fiame Naomi Mata’afa

international markets such as of high import/export costs and development finance, even though many donors are more fo-
irregular international traffic volumes, as well as disecono- cussed on funding the war in Europe and geopolitical competi-
mies of scale.” tion in the Indo-Pacific region.
The report echoed concerns from island states that the The clock is ticking. Samoa hosted the Third International
tremendous social and economic fallout from the COVID-19 Conference on SIDS in Apia in 2014, which adopted the SAMOA
pandemic also contributed to high indebtedness, disrupting Pathway as a development roadmap. In 2024, the Fourth In-
supply chains and generating financial shocks. ternational Conference on SIDS will be held in the Caribbean,
Last September, Samoa’s Prime Minister Fiame Naomi so action on development finance this year is important.
Mata’afa took the issue to the floor of the UN General As- As Samoa assumed the role as AOSIS Chair, Prime Minister
sembly. She told delegations that “the global financial system Mata’afa stressed: “AOSIS’s continued and strong advocacy is
is morally bankrupt, and it favours the rich and punishes the essential to the MVI being implemented by partner countries,
poor. This must change. The approval and effective imple- international financial institutions and multilateral develop-
mentation of the Multi-dimensional Vulnerability Index will ment banks.”
be a move in the right direction in addressing this imbalance
and make the global financial architecture fit for purpose, by nicmaclellan@optusnet.com.au
tackling the SIDS’ financing gaps.”

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