GEORGETOWN, Guyana, CMC – President Dr. Irfaan Ali continued his call for more money and better financing options for developing countries at the United Nations (UN) on Wednesday.
Without access to more resources and financing options that help countries manage debt better, the President told a high-level UN forum on financing that the growth of developing countries will be hamstrung.
According to Ali, about 60 percent of the least developed countries globally are distressed or face a high risk of debt distress. And this can prove detrimental.
“Interest rate hikes and soaring debt levels will cost developing countries billions of dollars in the coming years,” Dr. Ali said.
That aside, the President pointed out that countries will have significant developmental needs and need all the money they can raise.
For example, he pointed out that countries must invest about US$1 trillion annually to move away from using harmful fossil fuels like oil and diesel to more environmentally-friendly energy sources like solar and hydropower. However, Ali noted that close to 900 million people in developing countries have no access to electricity.
He is also critical of the global financial architecture.
According to him, the global financing system, which allows countries to get loans and other financial aid, needs to be more responsive to the challenges faced by developing countries. So reform, he said, is crucial.
“The financial architecture, which is out of sync with the needs of developing countries, must be reformed.
“In this regard, the early adoption of a Multidimensional Vulnerability Index, implementing the measures in the Bridgetown Initiative and addressing liquidity support, private capital, development lending, trade and more inclusive governance of the International Finance Institutions, must form part of the reform agenda,” the President said.
and then 