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Governments and International Organizations Come Together to Address Economic Challenges and Sustainability

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4 years ago

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NEW YORK, 28 May 2020 — United Nations Secretary-General António Guterres, the Prime Minister of Canada, Justin Trudeau and the Prime Minister of Jamaica, Andrew Holness, will convene world leaders and international organizations today in a joint initiative to sharpen and accelerate our global response to the significant economic and human impacts of COVID-19, and advance concrete solutions to the development emergency.

This pandemic requires a large-scale, coordinated, comprehensive multilateral response to support countries in need, enabling them to recover better for more prosperous and resilient and inclusive economies and societies.

With more than 50 Heads of State and Government participating, the High-Level Event on Financing for Development in the Era of COVID-19 and Beyond is the most inclusive gathering of countries to focus on the socio-economic recovery and financing needs from the pandemic. We must continue to coordinate these efforts to avoid a devastating impact on people’s lives and livelihoods.

We all face economic strain in responding to this pandemic, particularly low- and middle-income countries, many of which are seeing their efforts to achieve the Sustainable Development Goals (SDGs) set back.

The High-Level Event looks at six urgent areas of action to mobilize the financing needed for the response and recovery. These include expanding liquidity across the global economy; addressing debt vulnerabilities; stemming illicit financial flows; increasing external finance for inclusive growth and job creation; and strategies for countries to recover better, achieve the SDGs, address climate change and restore the balance between the economy and nature.

“The pandemic has demonstrated our fragility,” said UN Secretary-General Antonio Guterres. “We are in an unprecedented human crisis, because of a microscopic virus. We need to respond with unity and solidarity, and a key aspect of solidarity is financial support.”

Jamaica’s Prime Minister Andrew Holness said “the COVID-19 pandemic demands that we take immediate action to address its impacts on the economies of all countries, in every region of the world and at every stage of development.” He added that he welcomes the six thematic areas of focus, including the “necessity to address the urgent need for increased liquidity, particularly for low- and middle-income countries.”

Canada’s Prime Minister Justin Trudeau said that “all countries are being tested by the COVID-19 pandemic, and it threatens to undermine our hard-won development gains. We know the best way to help all our people and economies rebound is to work together as a global community. We want to support collective and individual actions to enable a recovery that leads to more inclusive, sustainable and resilient economies, where no one is left behind.” 

The cost of the pandemic
World Health Organization (WHO) figures show that the COVID-19 pandemic has already claimed more than 340,000 lives, with more than 5.4 million cases globally. Unless we act now, UN projections indicate that the pandemic could slash nearly $US8.5 trillion from the global economy over the next two years, forcing 34.3 million people into extreme poverty this year, and potentially, an additional 130 million people during this decade. 

Failing businesses are already causing a surge in unemployment. The International Labour Organization (ILO) expects that global working hours in the second quarter of 2020 will be 10.5 per cent lower than before the crisis, equivalent to 305 million full-time jobs. Women are particularly affected, as they are overrepresented in sectors that have been the most affected with initial job losses. They are also the majority of those employed in the informal sector globally and on the whole tend to hold less secure jobs with fewer protections, less savings, and are more likely to live in, or close to, poverty.

The pandemic is causing economic distress even in countries that have not yet experienced the health impact in large numbers. Falling exports and growth are rapidly undermining the debt sustainability of many developing countries, particularly those that are heavily dependent on commodities, tourism revenues or remittances. Growing debt distress poses an enormous challenge to these countries, further constraining their ability to implement stimulus measures.

Even prior to the outbreak of the pandemic, almost half of all least developed and other low-income countries were in, or close to, debt distress. Debt servicing costs for these countries more than doubled between 2000 and 2019, to 13 per cent of government revenue, and reached more than 40 per cent in a quarter of all Small Island Developing States (SIDS).

Effective domestic resource mobilization will be crucial for rebuilding economies. Yet trillions of dollars are thought to be held in undeclared offshore financial holdings. The cost of money laundering has been estimated at around $US1.6 trillion a year.

Meeting the challenges
In the face of this unprecedented health, social and economic crisis, many governments across the world have rolled out large fiscal stimulus measures equivalent to an estimated 10 per cent of national gross domestic product (GDP). But most developing economies are finding it difficult or impossible to implement sufficiently large fiscal packages, which have so far averaged less than 1 per cent of their GDP.

In April 2020, the G-20 agreed to suspend debt service on bilateral official debt to 76 low-income developing countries to help increase liquidity to deal with the impacts of the crisis. The International Monetary Fund (IMF) offered further debt service relief to 25 of the poorest countries, and the World Bank has been coordinating with regional banks to discuss COVID-19 support, joint initiatives, co-financing, and ways to maximize net flows to the poorest and most vulnerable countries. But far more is needed, and quickly.

The High-Level Event will discuss a wide range of inclusive solutions, seeking input from the countries feeling the most impacted.

Rebuilding sustainably
In the initial containment and crisis phase of the pandemic, nations have prioritized the health of people before turning to the economic and labour market consequences.  As each nation charts its own course to recovery, countries are seeking to limit the economic fallout by taking steps to protect enterprises, jobs and incomes, and to stimulate the economy, and to do so in a way that protects women and families, young people, and the most vulnerable in our societies. 

We must raise our ambitions in order to recover better, by building more prosperous, inclusive, resilient and sustainable economies and societies. Countries cannot afford to leave unattended the underlying fragilities at the core of our current economic and social systems. We cannot wish away systemic risks, from the climate crisis to high and persistent inequality. Everyone will benefit if we address these risks by investing up front. 

The Event will include a High-Level Segment in which Heads of State and Government will express their commitment to finding multilateral solutions to the global economic crisis and its effects on the most vulnerable. In addition, a High-Level Panel of leaders from international institutions will discuss the challenges and opportunities for urgent, decisive action. Following the Panel, the High-Level Segment among Heads of State and Government, and partners will continue.

Six critical areas of focus
The Event will also launch a collaborative effort to enable discussions on concrete proposals to overcome challenges in six areas, and progress will be reported back at the margins of the High Level Political Forum in July, the General Assembly in September, and at the end of the year that include:

  1. The need to expand liquidity in the global economy and maintain financial stability to safeguard development gains. 
  2. The need to address debt vulnerabilities for all developing countries to save lives and livelihoods for billions of people around the world. 
  3. The need to create a space in which private sector creditors can proactively engage in effective and timely solutions.
  4. Prerequisites for enhancing external finance and remittances for inclusive growth and creating jobs.
  5. Measures to expand fiscal space and foster domestic resource mobilization by preventing illicit financial flows.
  6. Ensuring a sustainable and inclusive recovery by aligning recovery policies with the Sustainable Development Goals.

The outcomes of the High-Level Event include the formation of six discussions groups, a collaborative effort that aims at providing concrete proposals by mid-July.
There is no time to lose. Solutions cannot wait, and decisive action is required.

Courtesy of Office of the Prime Minister, Jamaica

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What the new UK Prime Minister had to say about the Rwanda Deportation Plan at his first press conference

Published

7 days ago

on

July 19, 2024

By

Garfield Ekon

Staff Writer

 

 

#UnitedKingdom, July 19, 2024 – With the new Prime Minister of the United Kingdom (UK), Keir Starmer declaring the Rwanda deportation plan as “gimmick,” and “was dead and buried before it started,” the East African country has responded tersely.

In his first news conference on Saturday, the new PM said the controversial policy will be scrapped, as “it was never acted as a deterrent.  Almost the opposite,” to migrants from risking their lives on the high seas.

The Rwanda deportation plan once was designed by the previous Conservative Government and billed as a solution that would deter migrants. In a statement late Monday, the office of the Rwandan Government spokesman said the deal had been initiated by the UK “to address the crisis of irregular migration affecting the UK, a problem of the UK, not Rwanda,” the statement said.

For years, the UK Government has been struggling to stem the flow of migrants arriving across the English Channel. It has already given the Rwandan Government hundreds of millions of pounds to set up accommodation, and hire extra officials to process the asylum seeks, money it cannot recover.

PM Starmer said his administration will create a Border Security Command that would bring together staff from the police, the domestic intelligence agency, and prosecutors to work with international agencies, and stop people smuggling.

Suella Braverman, a Conservative hard liner on immigration who is a possible contender to replace the former Conservative Leader, has blasted Starmer’s plan to end Rwandan deal.

“Years of hard work, acts of Parliament, millions of pounds been spent on a scheme which had it been delivered properly would have worked,” she said, adding that there are “big problems” on the horizon which will be, “I’m afraid, caused by Keir Starmer.”

Chief Executive Officer of Freedom from Torture, Sonya Sceats, one of the many organisations and charities which have campaigned to stop the Rwandan plan, has welcomed the decision to “close the doors on this shameful scheme, that played politics with the lives of people fleeing torture and prosecution,” she said.

Supporters of the plan said it would have smashed the model of people traffickers, while critics have argued that the Rwandan policy was immoral and would never work. Last November, the UP Supreme Court declared the policy as unlawful, as Rwanda could not be considered a safe third country.

The legality of the deal was also being challenged by charities and unions in the court.

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UN Chief calls for greater Commitment to SDGs, only 17% on track

Published

1 week ago

on

July 19, 2024

By

Garfield Ekon

Staff Writer

 

#TurksandCaicos, July 19, 2024 – Countries across the globe are being called on by United Nations (UN) Secretary-General, Antonio Guterres, to “double down” their efforts to achieve the 17 Sustainable Goals (SDGs) and set the world on a more sustainable path by 2030.

The UN Chief said failure to secure peace, and to confront Climate Change, and to boost international finance is “undermining development,” and the countries must “accelerate action” for the SDGs, and “we don’t have a moment to lose.

“Only 17% of the SDG targets are on track, and we need to go further and faster in three areas simultaneously. We must not let up on our promise to end poverty, protect the planet and leave no one behind,” he told a recent press briefing to present the SDGs 2024 Report.

Noting that the Report shows that the world is getting a “failing grade,” Mr. Guterres underscored that progress on over one third has stalled, or even regressed, and in a world of “unprecedented wealth” knowledge and technologies, the denial of basic needs for so many is “outrageous and inexcusable.

“At the same time, we have what it takes to breakthrough to a better future, and the Report carries some glimmers of hope.

A few examples, girls in most regions are now achieving parity with boys in education.  Many women are breaking more glass ceilings in politics, in business and beyond.  Internet access is up.  HIV infections are down.  New malaria vaccines are being rolled out that could save millions of lives,” he reported.

The Secretary-General also highlighted that renewables are booming, and already make up 30 per cent of the world’s electricity supply. The speed and scale of the change needed for sustainable development is still far too slow, he said, and the examples “I gave, prove that it is possible, but we need to go further and faster in three areas simultaneously.

“We need action for peace.  From Gaza to Sudan, Ukraine and beyond, it is time to silence the guns, to support the displaced, and to pivot from spending on destruction and war to investing in people and peace.  Second, we need action on the green and digital transitions,” he said.

Making an impassion plea for countries to put forward ambitious national Climate action plans in 2025, that align with the 1.5°C limit, cover the whole economy and double as investment plans, he said a “surge in investment” in expanding access to digital connectivity and the benefits of the digital economy, is needed, and  countries should make these transitions “inclusive and fully aligned” with broader efforts to achieve gender equality.

“We need action on finance.  Many developing countries lack the financial resources and the fiscal space to invest in their futures and the future of their people. We must step up efforts to deliver the SDG Stimulus.  That means doing much more to reduce debt pressures and debt servicing costs.  It means expanding access to contingency financing for countries at risk of a cash flow crisis,” the UN Chief said.

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First remarks of New UK Prime Minister, Keir Starmer of the Labour Party; Wins 412 seats in Landslide Victory

Published

3 weeks ago

on

July 5, 2024

By

#UnitedKingdom, July 5, 2024

 

“I have just returned from Buckingham Palace… Where I accepted an invitation from His Majesty the King…

To form the next government of this great nation.  I want to thank the outgoing Prime Minister, Rishi Sunak.

His achievement as the first British Asian Prime Minister of our country… The extra effort that will have required…  Should not be underestimated by anyone.

We pay tribute to that today… And we also recognise the dedication and hard work he brought to his leadership.

But now our country has voted, decisively… For change.  For national renewal. And a return of politics to public service. When the gap between the sacrifices made by people…

And the service they receive from politicians…Grows this big.

It leads to a weariness in the heart of a nation.

A draining away of the hope, the spirit, the belief in a better future… That we need to move forward, together.

Now, this wound…This lack of trust…

Can only be healed by actions not words… I know that.

But we can make a start today… With the simple acknowledgment…

That public service is a privilege.

And that your government should treat every single person in this country… With respect.

If you voted for Labour yesterday… We will carry the responsibility of your trust, as we rebuild our country.

But whether you voted Labour or not… In fact – especially if you did not…

I say to you, directly…My government will serve you.

Politics can be a force for good – we will show that.

And that is how we will govern.

Country first, party second.

Yet, if I’m honest… Service is merely a pre-condition for hope.

And it is surely clear to everyone… That our country needs a bigger reset…

A rediscovery of who we are.

Because no matter how fierce the storms of history… One of the great strengths of this nation…Has always been our ability to navigate a way through to calmer waters.

And yet this depends upon politicians… Particularly those who stand for stability and moderation – as I do… Recognising when we must change course.

For too long now… We have turned a blind eye as millions slid into greater insecurity.

Nurses, builders, drivers, carers… People doing the right thing

Working harder than ever… Recognised – at moments like this, before.

Yet as soon as the cameras stop rolling… Their lives are ignored.

I want to say very clearly to those people – not this time.

Changing a country is not like flicking a switch… And the world is now a more volatile place.

This will take a while.

But have no doubt that the work of change begins – immediately.

Have no doubt – that we will rebuild Britain… With wealth created in every community.

Our NHS back on its feet, facing the future. Secure borders…Safer streets… Everyone treated with dignity and respect at work.

The opportunity of clean British power…Cutting your energy bills for good.

And, brick by brick… We will rebuild the infrastructure of opportunity…

The world class schools and colleges…The affordable homes that I know… Are the ingredients of hope for working people…

The security that working class families like mine… Could build their lives around.

Because if I asked you, now… Whether you believe that Britain will be better for your children… I know – too many of you would say: no.

And so my government will fight, every day… Until you believe again.

From now on… You have a government unburdened by doctrine… Guided only by a determination to serve your interests…To defy, quietly…

Those who have written our country off.

You have given us a clear mandate… And we will use it to deliver change… To restore service and respect to politics… End the era of noisy performance…

Tread more lightly on your lives… And unite our country.

Four nations… Standing together again… Facing down, as we have so often in our past…

The challenges of an insecure world…Committed – to a calm and patient rebuilding.

So with respect and humility… I invite you all… To join this government of service…

In the mission of national renewal. Our work is urgent…

And we begin it today.

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