By Sam Majamanda
New York, Mana: Vice President Dr. Saulos Klaus Chilima has told the ongoing United Nations Economic and Social Council (ECOSOC) Summit that total debit cancellation is the way to go if Malawi and other Least Developed Countries (LCDs) were to get back on the track towards the achievement of Sustainable Development Goals (SDGs).
The Vice President Dr. Chilima said this on Monday in a submission during a panel discussion dubbed ‘aligning the global debt architecture with the Sustainable Development Goals’.
The discussion was part of the interventions put in place by the United Nations to facilitate brainstorming means of resolving debt burdens that are derailing most countries in the world from making strides towards the achievement of the SDGs.
In his submission Dr Chilima said it was no secret that the recent bombardment of the World by the Coronavirus and the war in Ukraine has seen a good part of the UN membership crush into a debit crisis which is not going to varnish on its own if the countries (especially LDCs) continue shouldering huge debits that are attached to high interest rates.
“The debt burden in most LDCs including Malawi has reached pre-Highly Indebted Poor Countries (HIPC) levels averaging 57 per cent of GDP in 2021 and debt service obligations accounting for a higher proportion of domestic revenues,” said Chilima.
He added that debt distress would hamper countries especially low-income economies to invest in sustainable development, as such there was need to ensure that that commitments are matched to action if the world is to achieve inclusive development and leave no one behind in this last decade of action.
According to the United Nations, currently 3 in 4 Least Developed Countries have already fallen in debit distress.
Speaking prior to the VP, Prime Minister for Grenada, Keith Claudius Mitchell highlighted the need for identification of a safe methodology of clearing out debt for low-income economies while still maintaining the world’s ability to sustainably invest in the future.
Countries such as Zimbabwe and Equatorial Guinea that submitted after Malawi during the discussion agreed with the suggestion put up by the Vice President, arguing that allowing LDCs to cancelling debits will see some of the money going to supporting delivery of key social services such as healthcare and education that have since been heavily affected by economic shocks since the event of the Covid-19.
