BASSETERRE, St. Kitts – VULNERABLE countries have continued to gain support against external economic shocks, as last week’s Commonwealth Finance Ministers Meeting highlighted the need to make aid available for the poor and developing states.
In excess of 50 finance ministers and financial experts met in Cyprus last Wednesday (Sep. 30) to devise responses to the current challenges faced by Commonwealth Member States as a result of the global economic and financial crisis.
While growth rates in Commonwealth countries have been returning to trend levels, the ministers acknowledged that “resource-dependent and less-diversified” economies, such as St. Kitts-Nevis, are still grappling with the effects of the crisis.
According to a communiqué issued at the end of the two-day meeting, these economies are “especially vulnerable to lower trade levels and capital flows and are restricted in their ability to use domestic policy to alleviate the impact of exogenous economic shocks. Ministers stressed the need for greater international support for these countries to build greater resilience in the face of these shocks.”
As countries face resource shortages, negative growth rates and threats resulting from climate change, developing policies to ensure sustainable growth was given great priority. The country representatives agreed that it is necessary for short-term policy responses to be consistent with each other and sustainable over time.
As a result, the Commonwealth countries called for stimulus packages to be implemented to avoid a return to global recession and to ensure that growth is well established in all countries before the stimulus is withdrawn. It was also noted that greater coordination in global economic policymaking is critical to support sustainable and balanced growth.
Discussions were also centred on seeking greater international support for social protection and investment in infrastructure to support growth in developing countries.
In relation to the specific challenges facing small states, the finance ministers welcomed the Secretariat’s continuing work to assist small states with their inherent vulnerability. At the same time, they urged the Secretariat to collaborate with development partners to convene a biennial conference of small state representatives that would promote discussion and be a venue for sharing experiences.
The ministers emphasised the role the Commonwealth can play in promoting innovative international measures to meet the financial needs of developing countries. They called for further development of measures to be considered by Commonwealth Heads of Government at their meeting in November 2009.
