Seychelles wants new financing framework to empower developing countries

Seychelles wants new financing framework to empower developing countries

15-July-2015
Vice-President Danny Faure has called upon the third International Conference on Financing for Development (FfD3) to adopt a vulnerability index as a means of having a more rounded view of the development status of a country.

Mr Faure said the existing models of assessing development gains solely on GDP (gross domestic products) per capita does not take into account the limitations and challenges being faced by member states.

Said VP Faure: “According to criteria established by the World Bank, Seychelles has recently reached ‘high income’ status. While this categorisation recognises the great transformation that Seychelles has implemented in its economy since the global crisis of 2008, and highlights our progress as a nation, it does not address our underlying constraints.”

He added that “as we address the issue of financing for development – let us always ensure that we are using the most objective and scientific tools. GDP per capita is only one part of a much broader picture that we must view in the context of sustainability.

“We reiterate our call today that we consider also adopting a vulnerability index that can better help us identify development challenges in a systematic way. Through a vulnerability index we can create more empowerment for countries, because we can target the key areas that they are least equipped to address themselves.”

Addressing the gathering of world leaders being held this week in Addis Ababa, Ethiopia, the vice-president also called for an end to the “business as usual approach” to the preservation and use of oceanic and marine resources and called for the immediate operationalisation of the Green Climate Fund (GCF), saying that climate change remains the most pressing issue for developing nations.

Vice-President Faure also reaffirmed Seychelles’ commitment to the sustainable development goals, the successor to the millennium development goals that reach an end in 2015, but asked for greater focus on the real-life implementation of these goals:

“The 17 proposed sustainable development goals and 169 associated targets have universal applicability, but it is also of immense importance for it to be adaptable to different contexts. A principle of ‘one size fits all’ will not enhance sustainability,” said VP Faure.

“Yes, we need to commit to our continued dedication and support towards these 17 development goals. But, development is only possible if we are able to identify the means of implementing it. Domestically, we need to ensure modernised and efficient tax systems are put in place,” he noted.

The vice-president further added that trade, through a “viable multilateral trading system that accelerates development”, was one of the avenues that needed to be better supported as a multi-beneficial vehicle for financing development, as well as the need to better explore “debt restructuring and cancellation, coupled with sound fiscal and monetary policies, [as] an essential tool for financing for development”.

The FfD3 is a United Nations meeting being held at the United Nations Economic Commission for Africa from July 13-16 and has brought together heads of states and ministers of finance, foreign affairs and development cooperation, as well as all relevant institutional stakeholders, non-governmental organisations and business sector entities from around the world to discuss and agree on the financing modalities of the post-2015 development agenda.

President James Michel is being represented by a delegation led by VP Faure, and includes the Minister for Finance, Trade and the Blue Economy Jean-Paul Adam, the special advisor to the Vice-President Hans Aglaé, the principal secretary for Energy and Climate Change Wills Agricole, and the resident ambassador to Ethiopia Joseph Nourrice

Source Seychelles Nation