MANHATTAN, New York -- AS the United Nations General Assembly continues in New York, leaders from across the Caribbean region have called for reforms to the international financial framework to better support Small Island Developing States (SIDS) like those in the Caribbean.
The region has been vocal in advocating for improved access to loans and favorable lending terms that consider their unique vulnerabilities, such as frequent hurricanes and rising sea levels.
One of the prominent voices in this call is Suriname’s President, Chandrikapersad Santokhi, who emphasized that his country is on the frontline of the rising sea level crisis. While welcoming the adoption of the Multidimensional Vulnerability Index (MVI)—a tool designed to assess countries based on their susceptibility to natural disasters—he argued that now is the time for bold decisions to revamp global governance and recommit to the goals of the United Nations.
“The Multidimensional Vulnerability Index (MVI) offers a comprehensive and inclusive framework that goes beyond traditional metrics to capture the true complexity of vulnerabilities faced by small island developing and low-lying coastal states,” President Santokhi stated.
A Call for IMF and World Bank Reforms
Accessing funding from international institutions such as the International Monetary Fund (IMF) and the World Bank on favorable terms has long been a challenge for small territories in the Caribbean. To address this issue, President Santokhi urged the adoption of the MVI as a standard tool in the operations of these international financial institutions.
“We urge that the MVI is embedded in the operations of the international financial institutions, particularly the International Monetary Fund and the World Bank. Apart from the MVI, we see other financial obstacles that significantly impede our ability to foster development,” he said.
Tackling the Issue of De-risking
Access to disaster financing is part of a broader financial framework impacting Suriname and the wider Caribbean. President Santokhi also highlighted the issue of "de-risking," a practice that has led to several foreign banks and financial institutions withdrawing from the Caribbean region due to concerns over large fines associated with money laundering and other financial crimes.
“De-risking measures imposed by international banks are based on generalized assessments and fail to consider the realities of individual countries, creating severe setbacks for development objectives,” he explained.
Addressing Systemic Challenges
President Santokhi concluded by stating that the world is currently divided by geopolitics, reflecting deeper systemic challenges such as rising inequality, environmental degradation, and the breakdown of global trust.
He reiterated that these issues require a unified international response and structural changes to the global financial system to ensure that vulnerable countries are not left behind.
