President H.E. Dr Mohamed Muizzu called for financial architecture reforms and avenues for partnerships for Small Island Developing States (SIDS) to enable easier access to finance to reach the Sustainable Development Goals (SDGs). He made the remarks in his keynote address at the High-Level Meeting on Resource Mobilization for SIDS at the Fourth International Conference on SIDS (SID4) held in Antigua and Barbuda.
The President remarked that numerous SIDS, including the Maldives, that have graduated from the Least Developed Countries (LDC) category pay a hefty price tag, considering the increase in the cost of borrowing from bilateral creditors and restrictions on access to affordable finance.
Despite commitments made by the international community to augment development and climate financing for SIDS, President Dr Muizzu noted with concern that the net external resource inflow to SIDS has been on a declining trajectory over the past two decades. The President added that SIDS should not have to make impossible choices, such as deciding between funding the establishment of a new school and constructing seawalls.
The President called upon Multilateral Development Banks (MDBs) and international financial institutions (IFIs) to help enact reforms such as channelling funds through international capital markets given their positive credit ratings and, in turn, lend to SIDS at highly concessional rates and fulfil the promises made to SIDS in the last three decades. He then proposed that the development partners of SIDS partner with the MDBs and the private sector to scale up private finance flows to SIDS. The President also urged SIDS to broaden their vision and aim higher by identifying goals and seeking assistance and support from development partners.
In his statement, the President challenged the commitment and will to direct finance towards where and who needs it the most and urged development partners to stop viewing SIDS as mere recipients of aid and instead view us as partners in sustainable development.
