The vice president of Cuba, Salvador Valdés Mesa, proposed actions to mobilize resources needed by small island states to overcome their development challenges.
When speaking at the 4th Summit of Small Island Developing States (SIDS) meeting in Antigua and Barbuda, Valdés denounced that the imbalances of the international financial system do not provide the necessary stability to achieve the objectives of sustainable development and meet the special needs of these countries.
He emphasized that all the challenges faced by these states are exacerbated exponentially for Cuba, due to the US economic, commercial and financial blockade and by its inclusion in the list of alleged state sponsors of terrorism.
The Cuban vice president presented a set of actions proposed by Cuba regarding the issue of mobilizing resources for these territories.
Among them, he mentioned recapitalizing the Multilateral Development Banks and improving their lending conditions, and fulfilling the commitment of developed countries to Official Development Assistance through allocations based on vulnerabilities, not just income.
He also referred to strengthening the system of public development banks, with greater capacity and more cooperation between national and multilateral banks to align their activities with the Sustainable Development Goals, the Paris Agreement and the new Antigua and Barbuda Agenda.
Another action would be defining the access of SIDS to financing on favorable conditions and to technical cooperation based on criteria beyond the Gross Domestic Product, taking into account multidimensional vulnerability.
The proposals also include comprehensively reviewing the International Monetary Fund’s surcharge policy, including its suspension, significant permanent reduction or elimination; implementing a specific service to support the debt sustainability of SIDS; as well as redesigning debt contracts and instruments so that they include relief, exchange or restructuring clauses in the event of natural catastrophes or macroeconomic shocks;
Added to this are capitalizing the loss and damage fund; launching the Global Adaptation Goal; establishing a new quantified climate financing goal that takes into account the priorities and needs of small island developing states; and rationalizing the role of credit rating agencies, so that they stop being arbitrators and actors in the same financial market.
