Holy See: Wealthier nations can assist island nations through debt relief

By Deborah Castellano Lubov

"My Delegation calls upon all Member States to reaffirm their commitment to the sustainable development of countries in special situations through tangible action and enhanced cooperation."

This was the appeal of Archbishop Gabriele Caccia, the Permanent Observer of the Holy See to the United Nations, during his address on Wednesday to the UN meeting on "Small Island Developing States: Implementing the outcomes of the fourth SIDS Conference" in New York, as he urged wealthier nations to consider debt relief or cancellation to SIDS crippled by unsustainable debt.

The meeting is being held during the High-level Political Forum 2024 (HLPF) convened under the auspices of the Economic and Social Council (8-17 July 2024). The theme of the forum is "Reinforcing the 2030 Agenda and eradicating poverty in times of multiple crises: the effective delivery of sustainable, resilient and innovative solutions."

International community bears responsibility

Archbishop Caccia began his remarks by calling for a renewed commitment on this front. 

He said it "is evident that the international community, as a 'family of nations,' bears the responsibility to provide assistance to countries in special situations, including SIDS, in their pursuit of sustainable development." 

He expressed the Holy See's "great concern" that progress required to achieve Sustainable Development Goals is hindered by the challenges faced by countries in special situations, such as "crippling debts, slow growth prospects, persistent food insecurity and malnutrition, extreme vulnerability to climate change and natural disasters." 

To combat this trend, the Permanent Observer invited nations to recall that the 2030 Agenda includes "a commitment to prioritize reaching those 'furthest behind first,'” noting Pope Francis' observation that "we are responsible for the fragility of others as we strive to build a common future."

Imperative to address development needs and priorities

"Consequently," Archbishop Caccia implored, "it is imperative that the specific development needs and priorities of countries in special situations are properly addressed, as this is not a matter of choice, but a moral imperative for the international community."

In this context, he applauded the adoption of the Antigua and Barbuda Agenda for SIDS (ABAS), which requires countries to provide SIDS with the fiscal space needed to invest in the transformative programmes that address the needs of their people, caling it "a reaffirmation of the unique vulnerabilities faced by SIDS and a renewed commitment to support them in their pursuit of resilient prosperity." 

Mounting debt burden is unsustainable 

However, he warned, "the mounting burden of debt borne by numerous SIDS is becoming increasingly unsustainable, and is already threatening to undermine the implementation of the ABAS before it has really begun."

The current debt obligations, Archbishop Caccia observed, "trap SIDS in a cycle of dependence that impedes their capacity to address the most pressing issues, including poverty eradication and climate change."

If the objective is to facilitate the resilient prosperity of SIDS, he urged, "it is essential to provide them with the fiscal space to make investments in healthcare, education and social protection systems." 

Considering debt relief or cancellation

Archbishop Caccia explained that the Holy See "reiterates its call on wealthier nations to consider debt relief, or indeed, debt cancellation."

"Such radical but necessary action," he proposed, "will liberate SIDS from the untenable choice between servicing mounting interest payments, or allocating resources to invest in health, education, social protection systems and infrastructure."

Archbishop Caccia concluded by calling upon all UN Member States to reaffirm their commitment.

"The construction of a resilient and prosperous future for SIDS and, by extension, for the entire family of nations," the Permanent Observer reaffirmed, "can only be achieved through collective efforts and shared responsibility."