With the rising concern of climate change, the Commonwealth Finance Ministers were urged to take action to enhance the finance architecture for vulnerable countries. This happened during the 2021 Commonwealth Finance Ministers Meeting (CFMM).
Vulnerability Should Be The Core Of Development Finance For Climate Change
Gaston Browne, the Prime Minister of Antigua and Barbuda, who also chaired the 2021 CFMM said that it was high time that climate vulnerability was included in the allocation of concessional finance. He said that the Small Island States have witnessed their finances being destroyed because of natural disasters. They are a special case and require special treatment.
The annual meeting focused mainly on post pandemic recovery in the Commonwealth nations and gave Commonwealth Finance Ministers an opportunity to consider the impact of the Covid 19 pandemic and climate change over the economic growth trajectories, effectiveness of global debt relief measures and national debt vulnerabilities.
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Commonwealth Secretary-General Patricia Scotland spoke at the opening of the meeting and said that the international financial institutions should not grant finances based only on the Gross National Income per capita but also consider the unique vulnerabilities of the countries.
He said that everyone is in the same storm but not in the same boat. As member states of the commonwealth, everyone should come together and join hands for a sustainable recovery.
Commonwealth Secretariat Introduces Debt Sustainability Analysis Toolkit
With many countries running the risk of debt distress, it is crucial to carefully manage the debt levels and help the economies return to sustainable growth. Following the same, the Commonwealth Secretariat has introduced a new Debt Sustainability Analysis Toolkit. It is expected to rollout in 2022. The aim is to provide simple and user friendly framework to conduct debt assessments.
Meanwhile, the commonwealth is also in the process of developing the Universal Vulnerability Index (UVI) which enables evidence-based understanding of the needs of vulnerable states. This is further meant to help with the allocation of concessional finances.
