Vice President Hussain Mohamed Latheef has stated that the global financial system must be reformed to ensure that developing small island states are not left behind. The Vice President made this statement while delivering a plenary address on the importance of development through strategic planning and sustainable resilience at the Fourth International Conference on Financing for Development (FFD4) currently underway in Seville, Spain.
In his statement, the Vice President noted that the current geopolitical tensions and conflicts have disrupted supply chains and increased vulnerabilities. Despite global challenges and systemic obstacles to the international financial framework, he highlighted the development projects being carried out by the Maldivian government.
He shed light on the establishment of international banking services and the creation of the Development Bank of Maldives to provide long-term social and economic development financing. Additionally, he shared information about the Maldives’ efforts to enhance business relationships to promote the export of value-added fishery products, modernize the financial system through the Maldives International Financial Services Authority, and develop the Maldives International Financial Services Center as a financial free zone.
The Vice President emphasized the government’s focus on promoting micro, small, and medium enterprises and empowering women and youth. He also mentioned the upcoming opening of the new terminal at Velana International Airport in July, which will triple passenger capacity to 7 million. He stated that this is a significant step towards making the Maldives an advanced nation by 2040 and increasing resilience amidst global uncertainties.
In his speech, he highlighted the inequalities faced by Small Island Developing States (SIDS) in the international financial system. He also touched upon the Maldives’ policy for resilient debt resolution. The Vice President noted that SIDS are forced to borrow and rely on debt to recover from external shocks and meet basic development needs due to ineligibility for concessional finance. As a result, debt remains the biggest obstacle to these countries’ progress.
Furthermore, he stressed the importance of providing countries with the space and resources needed for sustainable development. He called for robust implementation of the Seville Commitment,, stating that courage and cooperation are needed to achieve this goal. The Vice President emphasized the need to reform the global financial system, describing the current system as often marginalizing the most vulnerable countries. He advocated for considering each country’s specific circumstances in implementing the 2030 Agenda. He also called for building national capacities and finding ways to achieve genuine debt relief.
The Vice President is currently in Seville, Spain, to participate in FFD4, scheduled from June 30 to July 3. The objective of FFD4 is to hold high-level discussions on financial reforms, involving governments, international and regional organizations, financial and business institutions, businesses, the UN system, and civil society organizations.
