Remarks by Jean-Paul Adam, Minister of Finance, Trade and the Blue Economy of the Republic of Seychelles and Chair of the Small States Forum, on the occasion of the Small States Forum meeting, Washington, 6th October 2016
October 17, 2016
President Jim Yong Kim, President of the World Bank Group,
Mr. Jan Eliason, Deputy Secretary General of the UN,
Excellencies, Colleagues, Ladies and Gentlemen
It is with great pleasure that I would like to welcome you all once again to this meeting of the Small States Forum.
This forum was established recognising that many Small states have often felt marginalised by the world’s development architecture.
But as we enter into the implementation of the Sustainable Development Goals and the Paris agreement on climate change, it is evident that we- as Small States- must be at the centre of the debate as to how to achieve true sustainable development.
Because for small states and small island states in particular- the discussion around climate change is not simply about models of development- it is an existential question.
This forum is therefore not just about small states. It is about ensuring that the world’s development architecture can be sustainable and inclusive.
I would like to salute the engagement of the World Bank to this ideal- as evidenced by the continued support of a President Jim Yong Kim.
We sincerely appreciate the commitment to ensure that the World Bank can respond to the development needs of all members. And we also appreciate the leadership role of the Bank alongside so many other development partners, many of which are also represented here today.
Mr. President, Mr. Deputy Secretary General,
In 2015 when we met in Lima we made some firm commitments of 7 priority actions points and today we will assess the progress on these commitments and pursue our discussions on how to build consensus on an agenda to provide tailored support for small states' development.
The first priority underlined by Small States is the need to structure access to appropriate resources relevant to their vulnerability. The stock-taking report being launched today aims to better identify these vulnerabilities. But we still need to pursue an objective means of linking vulnerability to appropriate access to resources.
From my perspective- objective vulnerability criteria can drastically improve the efficiency of development frameworks. We need to prioritise actions that build resilience over the long term- and not just quick wins that may boost economic growth but fail to create platforms for sustained progress.
Objective vulnerability criteria can also contribute to avoid duplication and ensure better prioritisation.
While undoubtedly there will be discussion and debate amongst shareholders- I have no doubt that the World Bank must take the lead on this issue.
Currently the main measure of development remains based on GDP per capita. It is evident that in the context of the sustainable development goals we have to measure more than the sum of our wealth divided by the number of our citizens. We need to measure our resilience.
The second priority that has been highlighted is the predictability of affordable financing options for Small States. This is partially being addressed through the IDA18 discussions to be concluded in December 2016. Proposals under consideration include an increase in the annual minimum base allocation, increase of Small States allocations under regional IDA and adjustments to the crisis response window.
These proposals are welcome, but we hope that we can also work with other development partners to reduce the fractured nature of access to development finance options for Small States. Building long term resilience means that we must be able to leverage affordable finance relevant to our circumstance.
Thirdly debt sustainability remains a key concern for Small States. The World Bank and the IMF have been working on a number of shared macro-fiscal programmes to support debt management in Small States. We also welcome proposals for Climate Adaptation Policy Financing (DPFs) that could facilitate budget support to Small States conditioned on implementation of resilience measures.
We also welcome support to debt swap initiatives.
Seychelles is pleased to have been able to conclude earlier this year a debt swap for USD21 million of its debt with the Paris Club, helping to convert external debt into a predictable flow of investment into conservation and climate adaptation projects.
The fourth priority is to simplify criteria for access of Small States to climate finance. Discussions are underway between the World Bank and the IMF to help Small States access climate finance through a shared appraisal of Nationally Determined Contributions.
The relatively slow mobilisation of resources and the lack of clarity on access criteria remain key concerns of Small States in relation to climate finance.
We must ensure that these potential resources can be efficiently channeled to boost our long term resilience.
The fifth critical element for Small States is the continued support for capacity building and technical assistance. While Reimbursble Advisory Services are increasingly used by Small States, we must further mobilise the sharing of experiences as well as seek new means to make affordable expertise available to Small States.
The sixth point is in relation to the support that can be provided to diversify the economies of Small States that are often constrained by an extremely narrow resource base. The Blue Economy provides a development framework whereby small island states in particular can better leverage the potential of their maritime zones. We welcome the Bank’s Blue Economy development framework as well as the global programme in fisheries. Regional fisheries development projects can also contribute positively to sustainable management of oceanic resources unlocking new growth opportunities. The Blue Bond that Seychelles is also discussing with the World Bank can also hopefully help to unlock additional resources from international markets that can be directed towards sustainable management of fisheries. We express our utmost appreciation also to the GEF that is also partnering with us on this initiative.
The seventh priority is in relation to assisting Small States to access international markets in a cost effective manner. We note the opportunity for MIGA to support guarantees for infrastructure in Small States. We also urge that the Bank and other development partners look at ways in which access to partial guarantees can be systematically included as part of the tools to help build resilience.
Ladies and gentlemen,
In conclusion allow me to express our appreciation to the World Bank Small States Secretariat for organizing the event and supporting the forum continuously. I would like to commend the Bank also for the stock taking exercise of its engagement with the Small States. We would recommend that other development partners follow their lead and conduct such an exercise.
Let us also resolve to undertake meaningful action that allows us to better deliver on the SDGs.
I reiterate the point that we will not achieve the SDGs with the same tools and policy options that we had before. We need to refresh and revitalise options available to all of us.
Let me thank you for helping to create awareness about the Small States and advocating our concerns to the broader international community. We are most thankful and appreciative of all the support.
Today Seychelles will also be handing over the chair to Grenada who will be continuing to support these seven priorities going forward. I am greatly encouraged that with the recent reinforcement of the Small States secretariat as well as the continued solidarity and engagement of Small States themselves, that we can bring about meaningful changes that ultimately benefit the whole membership of the World Bank. I would like to thank the incoming chair for their support and also reaffirm our commitment and support to the work ahead.
And now I have the great pleasure to give the floor to Deputy Secretary General Eliasson for his remarks.
Thank you.