Holy See urges debt cancellation for small poor island nations

By Lisa Zengarini

The Holy See has called for increased efforts from developed nations to help Small Island Developing States (SIDS) build resilience in the face of increasing climate and environmental challenges and achieve their sustainable development goals by cancelling their debt.

“Debt cancellation is not just a matter of economic or development policy, but a moral imperative rooted in the principles of justice and solidarity,” said Msgr. Robert Murphy on Tuesday.

In  the crossfires of climate, economic and debt crises

The Vatican representative was addressing the Fourth International Conference on Small Island Developing States (SIDS) taking place in Antigua and Barbuda from 27 to 30 May under the theme “Charting the course toward resilient prosperity."

The SIDS comprise 37 UN member nations and 20 associate members of UN regional commissions and have been meeting every ten years since 1994 to address shared issues and concerns.

Small Island  nations are today in the crossfires of multiple crises including climate change and biodiversity loss, the economic and social repercussions of COVID-19, and debt crisis. The pandemic hugely impacted all these countries, especially those dependent on tourism, while climate action is becoming increasingly urgent, as weather-related disasters have doubled in two decades with island nations both most vulnerable and least responsible.

The four-day event held by UN and attended by world leaders, representatives from the private sector, civil society, academia and youth aims to assess the ability of SIDS to achieve sustainable development, including the 2030 Agenda and the Sustainable Development Goals (SDGs).

Participants have reviewed SIDS’ sustainable development progress and have agreed a new programme of action with a focus on practical and impactful solutions, and to forge new partnerships and cooperation at all levels in the next decade.

Need for bold approach to debt to support resilence and development

In the face of the “unique combination of compounding vulnerabilities” in these countries, Msgr. Murphy reaffirmed the urgent need for a “bold approach to debt” as part the support needed by the SIDS.

“Debt obligations, “ he said “compel these countries to make untenable choices between servicing mounting interest payments or allocating resources to invest in health, education, social protection systems and infrastructure.”

“Moreover, debt perpetuates a cycle of dependency that hampers SIDS’ ability to address pressing issues such as poverty eradication and climate change”

By alleviating the burden of debt SIDS can therefore “regain the freedom to pursue sustainable development pathways that uphold the dignity of all persons,” Msgr. Murphy said.

Forgiving the debts of countries that will never be able to repay them

Noting that debt cancellation is not just a matter of economic or development policy, but a moral imperative of justice and solidarity, the Vatican representative therefore urged developed States to consider this measure as an enabler of ‘resilient prosperity’, echoing  Pope Francis’ appeal to “forgive the debts of countries that will never be able to repay them.”