Archbishop Caccia: We must work to support developing countries

By Deborah Castellano Lubov

"The Holy See views the Fourth International Conference on Financing for Development (FfD4) as an opportunity for renewing global cooperation and commitment to bold action and respond to the needs of countries in special situations, ensuring the provision and mobilization of financing to address their priorities for development."

Archbishop Gabriele Caccia, Permanent Observer of the Holy See to the United Nations, expressed this at the General Debate of the ECOSOC Forum on Financing for Development, as he explained how debt forgiveness and restructuring can be useful tools to powerfully develop countries in challenging situations.

The Conference to be held next year in Spain, he described, as an "undoubtedly pivotal moment" in the journey towards the realization of the 2030 Agenda, noting it "will take place against a backdrop of global challenges," including significant backsliding on progress towards the Sustainable Development Goals.

Tackling debt crisis

The success of encounter, he stressed, "will be gauged by its ability to offer concrete solutions to address the many challenges developing countries face regarding financing for development."

The primary issue, of particular concern for the Holy See, Archbishop Caccia underscored, "is the need to tackle the worsening debt crisis faced by many developing countries."

He acknowledged that debt plays an important role in development financing, and that for many developing countries, debt has become "an unsustainable burden that hinders their development."

More spent on interest than health or education

"It is worrying," the Permanent Observer revealed, "that four in ten of the global population live in countries where the government spends more on interest payments than on education or health."

Such a reality, he said, is not compatible with sustainable development, as he, with his delegation, called for a "significant shift" in the approach to debt which "promotes integral human development, social inclusion, and equity."

The Holy See, he reassured, acknowledges the potential for transformative change when bold ideas are aligned with political will and multilateral cooperation."

Debt forgiveness and restructuring

Therefore, the Conference, Archbishop Caccia suggested, is an "opportune moment" to implement new forms of solidarity in the actions "to reverse growing economic imbalances."

"Through debt forgiveness and debt restructuring," he explained, "developing countries are released from unsustainable debt, enabling them to make critical investments in healthcare, education, job creation, and social protection."

Archbishop Caccia concluded by expressing the Holy See's hope that the Conference "be a milestone in the journey towards a more just, equitable and sustainable world," and recalling its wish, as Pope Francis says, that 'all nations be put in a position to meet the greatest needs of the moment through the reduction, if not the forgiveness, of the debt burdening the balance sheets of the poorest nations.'