UNITED NATIONS – The Prime Minister of Belize Prime John A. Briceño says that global economic realities are exacerbating “an already acute social situation” in his country.
“Poverty is estimated to have risen by 10 percent between 2018 and 2021,” Briceño told the 77th Session of the United Nations General Assembly on Friday, , adding that 45.5 percent of Belizeans are “estimated to be moderately to severely food insecure, and homicides are again on the rise.
“The post pandemic recovery we anticipated is delayed,” he said. “And the chorus of promises and commitments to pivot toward building back better, to getting the recovery right have yielded little. Instead, global action and inaction have only resulted in deepening the many crises that we are facing.
“Global temperatures have already increased by 1.2 degrees Celsius above pre- industrial levels; greenhouse gas emissions reached record highs in 2021 and continue to rise this year; fossil fuels are still dominant; while renewables account for an abysmal 15 percent of global energy sources,” Briceño continued.
He said the current energy crisis in Europe has triggered more fossil fuels as a panacea, “rather than a doubling down on energy transition.”
In addition, the Belizean leader said biodiversity is declining at a faster rate than ever before, “with profound and unknown consequences for our environment, health, productivity and wellbeing.
“These realities heighten climate risk, especially for vulnerable states,” he said, stating that Belize is ranked 8th out of 183 on the Global Climate Risk Index.
“We are but one hurricane away from catastrophe,” he warned. “Yet, financing needed for climate adaptation remains woefully inadequate; only about a quarter of all climate finance goes to adaptation.
Briceño noted that the UN Secretary General’s latest report on the Sustainable Development Goals (SDGs) “paints a dismal and disturbing picture of the state of play of the achievement of Agenda 2030.
“The SDGs are at real risk of not being achieved,” he said. “Our current systems and institutions, conceived for World War II recovery, are straining under the weight of today’s crises.
“In truth, they are broken and stand impotent in the face of the 3Cs – covid, climate and conflict,” he added. “And, yes, our people and our planet are paying the price.”
The Belize prime minister, therefore, called for “a full scale, bold reimagining” of the global financial architecture.
“No more tinkering at the edges to conceive of additional programs that are based on the same false logic,” he said. “It just doesn’t work!”
Briceño said public sector expenditure on climate-caused “loss and damage” cannot continue to be classified according to fiscal orthodoxy, stating that the Washington-based International Monetary Fund (IMF) is “largely devoid of ways to quantify consequential climate impacts on public debt and countries’ capacity to pay.
“The IFI’s obstinate focus on primary balances and debt to GDP (gross domestic product) ratios ignores the empirical evidence that nature is in revolt,” he said.
The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of the World Bank Group and is headquartered in Washington.
Briceño said a recent analysis revealed that, of the 80 IMF-funded Country Programs around the world, climate was central to the country assessment in only a single case – Samoa.
“We need a new global financial architecture that has the willingness and capacity to identify systemic threats like debt, like climate risk and devise tools that are commensurate to the challenge,” he urged. “We urgently need a new global financial architecture, dedicated to achieving the SDGs, net zero emissions and to build resilience.
“We need a new global financial architecture that incorporates an effective global financial safety net with the capacity to respond to today’s multiple, simultaneous and escalating crises,” he added. “We need a global financial architecture for today’s challenges that is responsive to the needs of states today, especially the vulnerable countries — many of which were not member states in 1940s.”
The Belizean prime minister said his country has, within its limited fiscal space, tried to stimulate an economic recovery, “while staying true to our social values,” stating that the Belizean economy grew by 5.3 percent in the first quarter of this year, the highest level of production for any first quarter on record.”
Through an innovative debt for nature swap, he said Belize reduced its debt to GDP ratio from 133 percent to 108 percent last year — resulting in over US$250 million in debt service savings.
Briceño said his government has instituted an amnesty program to enable those who qualify, up to 40,000 persons, to be regularized.
“We anticipate that, by the end of the amnesty, we would have regularized more migrants, per capita, than any other country,” he added. “But forces at global level are determined to diminish our aspiration for our economic rebound, to underwrite our social and human development and resilience.”
He said three critical issues must be addressed by a new global financial architecture “to achieve transformative and systemic solutions”: The availability of affordable, long term and dependable sources of financing is indispensable for the achievement of the SDGs and climate resilience; Multilateral Development Bank and regional banks to provide considerably more longer-term financing, de-risk investment, support the development of capital markets, and integrate sustainability objectives to enable the use of innovative instruments; and financing must be accessible and affordable for vulnerable countries.”
Briceño said that, in the last seven years, financial flows to SIDS have declined and that net Overseas Development Assistance (ODA) declined from US$6.2 billion in 2016 to US$4.1 billion in 2018.
“The paradox is that the countries most vulnerable to climate change and natural disasters, and with the least fiscal capacity to adapt and recover, do not qualify for grant and concessionary financing,” he said. “And this paradox is magnified when you consider that since 2008, G20 nations have printed US$25 trillion in stimulus money.
“We therefore, call on IFIs, MDBs and development partners to use the Multidimensional Vulnerability Index after its finalization later this year.,” he added. “This will unlock financing for vulnerable countries, supporting their efforts to achieve the SDGs, adapt to climate change and build resilience.”
The Belize prime minister said “current tentative, reactionary and piecemeal approach to addressing the debt problem has proven hopelessly ineffective.
“We must break the pernicious cycle between debt and climate and disaster risk,” he urged. “IFIs must incorporate climate risk into debt sustainability tools.
“We need a two-prong response. One, debt relief is needed for all vulnerable countries,” he added. “And two we need to rapidly mainstream innovative policies, which tackle debt repayment capacity and avoid excessive indebtedness.
“In the current circumstances, there is a compelling urgency to advance a multilateral sovereign debt restructuring mechanism,” Briceño said.
He said “it is shameful that a unilateral, illegal and immoral commercial and financial embargo continues to be imposed on Cuba in defiance of the international community and UN resolutions.
“The cruel sanctions visited on the Cuban people were not eased as they suffered the wrath of the COVID-19 pandemic,” he added. “Even now, as the effects of the fires in Matanzas cause hardship, there appears to be no possibility of easing. Belize repeats our call for the immediate lifting of the embargo. and we salute the resilience and fortitude of the Cuban people.”
Briceño also said that Belize continues to be “gravely concerned” about the spiraling deterioration of the situation in Haiti, calling on the international community to advance “a robust and comprehensive program of support for the Haitian people.”
Additionally, he said Taiwan, “an exemplary nation in many respects, continues to be excluded from the international community, unable to participate and contribute to functional multilateral cooperation.
“The challenges confronting mankind today require the full participation of all countries and peoples in the struggle for development and prosperity,” the Belizean leader said. “The outdated policy imposed on Taiwan to promote its exclusion must yield to the greater good. Belize calls for Taiwan to take its rightful place among the international community of nations.”
Stating that justice is the cornerstone of peace, Briceño said Belize and Guatemala have been pursuing the “peaceful, just and final resolution” of Guatemala’s claim to Belizean territory before the International Court of Justice.
“We continue to count on the support of the international community as the judicial process proceeds, and when it concludes, for the demarcation exercise to be carried out,” he said. “In the meantime, we must redouble our efforts to manage the daily challenges which arise along the border areas in accordance with the 2005 Confidence Building Measures.
“Additionally, now more than ever we need to conclude a Sarstoon Protocol, a cooperation mechanism, to avoid unnecessary incidents in that area,” he added.
