Maldives President Dr. Mohamed Muizzu has called for financial architecture reforms and avenues for partnership for Small Island Developing States (SIDS) to enable easier access to finance to reach Sustainable Development Goals (SDGs).<\/p>\n
President Muizzu made the remarks in his keynote address at the high-level meeting on Resource Mobilization for SIDS at the 4th International Conference on SIDS (SIDS4) held in Antigua and Barbuda.<\/p>\n
In his keynote address, President Muizzu remarked that numerous SIDS, including the Maldives, that have graduated from the Least Developed Countries (LDC) category pay a hefty price tag, considering the increase in the cost of borrowing from bilateral creditors and restrictions on access to affordable finance.<\/p>\n
Despite commitments made by the international community to augment development and climate financing for SIDS, Dr. Muizzu said with concern that the net external resource inflow for SIDS has been gradually plummeting over the past two decades. He further added that SIDS should not have to make impossible choices, such as deciding between funding the establishment of a new school and constructing seawalls.<\/p>\n
As such, President Muizzu called upon Multilateral Development Banks (MDBs) and international financial institutions to help enact reforms such as fund channeling through international capital markets given their positive credit ratings and, in turn, lend to SIDS at highly concessional rates and fulfil the promises made to SIDS in the last thirty years. He proposed that the development partners of SIDS partner with the MDBs and the private sector to scale up private finance flows to SIDS.<\/p>\n
In his statement, President Muizzu challenged the commitment and will to direct finance towards where and who needs it the most and urged development partners to stop viewing SIDS as “mere recipients of aid” and view them as “partners in sustainable development.”