Speaker: Commonwealth Secretary-General Kamalesh Sharma
Ministers, High Commissioners, Dr Jeffrey Lewis, Director of Economic Policy and Debt Department at the World Bank, representatives from Economic Planning and Environment Ministries, representatives from international and regional organisations, distinguished participants, ladies and gentlemen,
I am delighted to be able to welcome you to Marlborough House on the occasion of the Second Global Biennial Conference on Small States.
I know that many of you have come long distances from the Caribbean, Africa, Asia and the Pacific. I trust that you have found time for some recuperation before what is an important meeting for the Commonwealth.
Over the years, the Commonwealth has played a pivotal advocacy role in promoting the interests of small states and has striven to awaken greater international awareness of the particular vulnerabilities and special needs of these countries. Carrying that work forward collectively we will continue to seek more than simple acceptance of these developmental obstacles and rather to identify substantive policy interventions and best practice to support our smaller member states.
I am delighted to be opening this meeting with our partners the World Bank. Our shared efforts on behalf of small states have a long history, embedded as they are in a joint work plan first formulated in 2000.
More recently the Commonwealth Secretariat, together with La Francophonie, has been working closely with the G20 Development Working Group on advancing key developmental priorities of our members’ poorest, smallest and most vulnerable economies. Together, we represent over 100 countries, many of which face the starkest of development challenges. I am pleased to see Herve Cronel here today, and look forward to his participation in the debate.
I also acknowledge with appreciation the support of the Governments of Australia and the United Kingdom in enabling a number of participants to travel here and take part in this conference.
This gathering could not be taking place at a more opportune and crucial time. Opportune because globalisation and technological advancements continue to offer the prospect of unique opportunities for developing states to make substantial strides in their quest for economic growth and sustainable development. Crucial because many small states continue to face multiple and magnifying shocks and challenges from events external to their own economies.
An Eminent Persons Group which I convened, and which reported to Commonwealth Heads of Government in 2011, highlighted the special development challenges and inherent vulnerabilities related to structure and size that small states continue to face. These include remoteness and insularity, existential threats from sea-level rise, limited diversification, constrained institutional and human capacity, restricted ability to exploit economies of scale, susceptibility to natural disasters, rising debt burden and environmental degradation.
The EPG called for decisive Commonwealth action to strengthen the economic capacity and resilience of small states, and the articulation of their priorities to the G20 Development Working Group. One of the key tasks before this Conference is to examine in some detail the next steps for priority action, both at a national level and collectively by the international community.
In recent times, small states have witnessed the erosion of their trade preferences; a rapid rise in the debt burden; increased susceptibility to climate change; and rising concerns regarding security and crime. All these have enormous human costs and significant impacts on development. The detrimental effect of the global economic downturn on young people in small states has been particularly damaging and gives great cause for concern.
Small states are seeking to put in place innovative policy responses that will assist in diversification of their economies. An intent of this meeting is to facilitate a sharing of practical experiences and of methodologies for capturing new opportunities for small states in areas such as tourism, migration and trade.
In that context, the Commonwealth Secretariat and the World Bank convened experts in Malta last November to look at policy options for promoting Growth and Development in Small States. That technical meeting formed the basis for this policy dialogue on Practical Ways to Build Resilience.
Five key research topics were identified within in the broad area of “growth with resilience” that might be pursued in the context of the Commonwealth Secretariat-World Bank collaboration on small states. These form the basis for discussion at this conference.
The topics are:
■Green Growth;
■Tourism and Inclusive Growth;
■Regional Integration;
■Migration and Development; and
■Practical Ways to Build Economic Resilience.
This conference provides a valuable opportunity for small states to exchange views with others that face similar challenges and to identify policy approaches that will help them cope with their inherent vulnerability. We hope it will help generate a more collaborative approach among small states and development partners and help formulate common small states positions on global issues that will strengthen effective advocacy of their concerns to international agencies and donors.
While media priority focuses on issues such as the turbulence in the Eurozone, mostly unremarked is the fact that small states continue to experience severe development challenges beyond their control – challenges associated with access to finance for development, to international trade markets, equitable participation in the global trading system, declining aid, attracting investment, particularly in infrastructure, and increasing difficulty in maintaining the existing advances towards MDG objectives. These challenges are compounded by persistent debt and, for many states, especially small island countries, high vulnerability due to their susceptibility to natural disasters.
Small states were the hardest hit by the global economic and financial crisis. IMF data show that the economies of Commonwealth small states contracted by 1.2 per cent in 2009 compared with a 2.7 per cent growth rate in the previous year. The rate of decline in Commonwealth small states was greater than the average decline of the global economy, which contracted by 0.5 per cent. On the other hand, developing Asia including China and India grew by 6.6 per cent.
Small states are among the slowest growing economies in the world. Growth in small states continues to lag behind growth in the world economy as a whole, and other developing countries. IMF figures show that small states grew by 2.1 per cent in 2010 compared with a contraction of 1.2 per cent in 2009. Recovery from the global financial and economic crisis meant that emerging and developing economies, led by China and India, grew by 7.3 per cent in 2010 while the world economy grew by 5.0 per cent in 2010 compared with a contraction of 0.5 per cent in 2009.
As many here know, 32 of the 54 members of the Commonwealth are categorised as Small States, of which 24 are Small Island Developing States (SIDS). 60 per cent of the assistance offered by the Secretariat is devoted to helping small states through advocacy, policy advice and technical support for national and regional capacity building.
In January 2011, the Secretariat opened the Commonwealth Small States Office in Geneva to provide permanent or temporary facilities for small states to be represented diplomatically at that multilateral hub. Tenants are also able to draw on assistance from a team of resident technical experts on trade facilitation and human rights. This facility provides a considerable boost for the negotiating position and visibility for small states within bodies based in Geneva such as the WTO.
We take encouragement from the reputation the Commonwealth Secretariat has gained as a result of its practical programmes aimed at building the capacity of small states and developing their economic potential. As well as our work to build trade negotiation capacity we have provided expert assistance with strengthening financial systems; debt management and public sector development.
Building on this record we at the Commonwealth Secretariat look forward to working alongside you so that this conference delivers clear outcomes that are linked to the current international review processes.
In this context, there are several critical processes that will be taken forward soon that are fundamental to the interests of small states. These include deliberations on the post-MDG framework and preparations for the SIDS Conference in 2014. Amidst the global uncertainties that still loom there is a need for imaginative and constructive thinking about the contemporary challenges confronting small states. These need to be looked at comprehensively taking into account the cross-connection and interplay between them, and so you will see that the agenda items before you are closely linked.
Allow me to conclude by expressing my confidence that the presence of so many officials from small states together with representatives of major bilateral, multilateral and regional organisations will energise and enrich your deliberations and leadership.
The range of representation speaks eloquently of our shared concern for the growth and development of small states. The Commonwealth has always believed in equity in addressing the shared concerns of the global community and in meaningful outcomes that embrace all human communities irrespective of size and endowment. This conference provides us another opportunity to contribute to the formulation of policies and programmes that will assist in sustaining the individual and collective development of small states.
Excellencies, Honourable Ministers, distinguished delegates, with these remarks it is now my pleasure to declare the conference open and to wish it every success.
