The President of General Assembly of United Nations, (PGA) Csaba Korosi has revealed that between 2011 and 2019, combined debt of Least Developed Countries LDCs tripled from $10 billion to $33 billion USD per year.
Delivering his remarks at the high- level opening of the Civil Society Forum at the LDCs Conference in Doha, Qatar on Saturday, while the debt projected to rise by another $50 billion due to the unaccounted effects of the pandemic.
According to him, “Between 2000 and 2019, the economies of LDCs grew at average rate of 4.7% per year, a rate much higher than the global average. This growth played an important role in improving access to health and services and reducing poverty overall.
“Sadly, the pandemic has reversed decades of development, and some LDCs are now experiencing the first economic contractions in three decades. Worse, between 2011 and 2019, the combined debt of LDCs tripled from $10 billion to $33 billion USD per year.
“A debt projected to rise by another $50 billion due to the unaccounted effects of the pandemic. On a human scale, that means 32 million more people pushed into poverty across the world’s LDCs, with women and children bearing the heaviest brunt of misery”, he said.
PGA noted that today, a financial chasm separates LDCs from the ambition of sustainable development goals. “As we speak, LDCs receive $80 bn in development assistance.
“A fraction of the sum they need, which totals up to 350 billion USD. Redressing this gap is possible. But we have to make a choice to invest in our sustainable development goals. A conscious choice. The smart choice. The ethical choice.
“This is about doing the right thing. This is about creating a world where every single person can live his or her life to its fullest potential. To achieve this, we must work together. Across borders. Across sectors”, he said.
Korosi called on Internternal community create a better future, for all to live free from want. “Let’s commit ourselves to working hand in hand, to supporting transformation of LDCs, to achieving sustainable development.
“Because, as Nelson Mandela once said, “overcoming poverty is not a gesture of charity. It is an act of justice. It is the protection of a fundamental right, the right to dignity and a decent life”, the PGA said.
In his remarks, the UN Secretary- General, Antonio Guterres said the Least Developed Countries are being stranded amidst a rising tide of crisis, uncertainty, climate chaos and deep global injustice.
According to him, “They are unable to keep pace with lightning-speed technological change. Systems are stretched from health and education, to social protection, infrastructure and job creation.
“Unemployment is rising especially among young people. And women are being pushed to the sidelines. And a deeply dysfunctional and unfair global financial system is handing Least Developed Countries the rawest of deals”, he said.
UN Chief stated further that Least Developed Countries face interest rates that are up to 8 times higher than developed countries. “And it’s only getting worse.
“Today, 25 developing economies are spending over 20 per cent of govt revenues not on building schools, not on feeding people, not on expanding opportunities for women and girls — but solely on servicing debt. Some have seen debt-service payments skyrocket by 35 per cent”.
He said Least Developed Countries need a revolution of support across three key areas. “First, they need immediate assistance to rescue the Sustainable Development Goals.
“For Least Developed Countries, these goals represent survival in itself from poverty-eradication, to food, health, clean water and sanitation. This September’s SDG Summit is the centrepiece moment to demonstrate a global commitment for action.
“We have put forward and presented to the G20 an SDG Stimulus to gather the world around the need to provide at least 500 billion US dollars a year to developing countries.
“It’s also high time that developed countries live up to commitment to provide Least-Developed Countries with 0.15 – 0.20 per cent of their Gross National Income for Official Development Assistance”, he said.
