Honourable Ministers,

Your Excellencies,

His Excellency, Mr. Georges Chikoti, Secretary-General

Distinguished delegates,

 

Thank you Mr Secretary-General for your kind words.

 

I am delighted to preside over the 117thSession of the OACPS Council of Ministers.

 

As I join you from Brussels with other member of the Bureau of the Council, I am reminded of the important role that the city plays as host of the OACPS. I therefore wish to convey warm congratulations and best wishes to the Kingdom of Belgium, on the occasion of its National Day, which it celebrated two days on July 21st .

 

I would also like to once more thank His Excellency Mr. Mário de Azevedo CONSTANTINO, Ambassador of the Republic of Angola and the Government of Angola for allowing us to operate from their Chancery for this Council Session, being heldin hybrid format.

 

Since the previous meeting of Council, the political leadership in several Member States have changed. I would therefore like to acknowledge and congratulate the Ministers who are attending Council for the first time. Welcome once more colleagues.

Excellencies,

 

Jamaica is honoured to preside over this 117th Session of the OACPS Council of Ministers,on behalf of the Caribbean Region.

 

On the 24-25 April, Council held a Special Session in virtual format to consider the budget of the OACPS, the financial situation of the Secretariat, the Ambassadorial Retreat and the situation in Haiti. Council was scheduled to meet again two weeks after its Special Session to adopt the Organization’s2024 Budget. However, for various reasons, this was not possible. Council therefore looks forward  to receiving an update from the Committee of Ambassadors and the Secretariat  on the Budget, as well as on the implementation of the Decisions emanating from its Special Session held in April.

 

It was evident from the discussions that took place at our meeting in April that we would have some particularly weighty matters to discuss at this Council Session, and the Agenda and documentation before attest to this.  I therefore look forward to your active participation and insight.

Excellencies,

This 117th Session of the Council is being held at  time when the global community remains characterized by geopolitical shifts,and conflicts, and what some have come to describe as the unravelling of the international rules-based order, driven by nationalism and geopolitical tensions.

 

At a time of unprecedented global challengesfrom climate change, bio-diversity loss and escalating conflicts, it is absolutely in the interest of us the global South, to promote a world order with multilateralism at its core, and which is just, democratic, inclusive and sustainable. Our citizens deserve a world order that responds to the needs of the most vulnerable countries in the world, including SIDS and LDCs.  One which enables governments to deliver critical public goodsto their people.

 

Excellencies,

The United Nations has sounded the alarm that the world is “woefully off track” inachieving the Sustainable Development Goals (SDGs) by the 2030 deadline. This, combined with the effect of the conflicts taking place in Ukraine and in the Middle East, and the geopolitical tensions sprinkled across our regions, create greater demand on scarce resources and an even more untenable situation for developing countries such as ours.

 

The Members of the OACPS figure prominently on the list of least developed countries, which are highly vulnerable to economic and environmental shocks and are as such, even more liable to be at risk to the effects of these crises. I am however pleased to note that two resilient States, namely, Djibouti and Senegal have been recommended for graduation and I congratulate their leadership on this important achievement. Several others, having met the criteria, are expected to be recommended for graduation.

Our congratulations, however, cannot be extended without our parallel concern that the international financial architecture still punishes the achievement of graduation by using GNI only as a basis to remove or reduce access to concessional interest rates and grant funding, even though upon graduation ourcountries still undoubtedly have much developmental work to do which requires access to affordable finance in order toachieve prosperity.

In this context I take the opportunity to call for OACP Member States to continue to support the Multi Dimensional Vulnerability Index, the Expert Report on which has been issued by the UN, and which requires our examination and advocacy.

 

These overarching and interlinked situations present challenges for all of our Member States. I will briefly look at three specific crises that we continue to content with:

 

  • Crises related to Governance and the Rule of Law;
  • Crises related to Environment and Climate Change; and
  • Crises associated to the debt burden and access to finance

 

With respect to Governance and the Rule of Law, it is universally acknowledged that sustainable development cannot be achieved without peace and security. Globally and regionally, there is an increase in conflicts.

 

The war in Ukraine which is now ongoing for two years, has had a profound impact on the world economy as a whole, and has led to greater polarization and drain on global resources. It has also resulted in disruptions in supply chains and trade and has contributed to the increased interest in the area of critical raw materials – a topic of intense discussion in the previous Council and with which the OACPS has been busy in the past year.

 

In addition to this, last year saw the outbreak of a further conflict in the Middle East, which has direct impacts for us through higher crude oil prices, and tighter financial conditions.

 

And within our own Member States, there areincreased gang activities and conflicts that not only increase our risk profile, but also have a financial effect, as many of our countries, which depend on tourism are put on watch lists or made the subject of travel advisories.

 

In the Special Session of Council, I updated you on the situation in Haiti, which, that very day of my reporting, had named a new interim Prime Minister. Our Caribbean sister island has subsequently made significant progress in establishing her new interim government. As we commend the stakeholders and members of the interim administration for their efforts towards stability and the holding of free and fair elections, we recognize that this process has been an example of how we can all work together to support each other. I wish to thank the OACPS Secretariat, CARICOM Member States and the Eminent Persons group of Prime Ministers Anthony, Christie and Golding who worked with Haitian stakeholders to establish a Haitian led and Haitian owned political solution. I also wish to thank the Republic of Kenya which agreed to lead a Multinational Security Support Mission and has deployed 400 police personnel to assist in meeting the challenge of criminal gangs, as well as the Republic of Benin, the Bahamas and Belize, which together with Jamaica have committed to contribute personnel as well.

 

The Samoa Agreement, with its comprehensive and integrated approach, provides a solid foundation for addressing conflicts and crises and should be among the issues that we prioritize in out engagement with the EU.

 

With respect to crises related to Environment and Climate Change,               I will make specific reference to the Caribbean, where States are on the frontlines of the impact of climate change. The Hurricane season in the region runs from June 1 to the end of November and generally builds up as the season proceeds. The region is now witnessing an  increase in frequency and intensity  of hurricanes and drougts. This year, as a result of Hurricane Beryl, a historically early and fierce Category 5 hurricane has resulted in at least 11 deaths in the region and many islands, notably, Grenada, Jamaica, and St Vincent and the Grenadines have experienced devastating damage.

 

This is our new lived reality and disruptivechallenge, as a result of climate change.

 

Excellencies,

 

Climate change impacts the lives and livelihoods of our Member States through severe weather events, which not only result in expensive and extensive damage to infrastructure and loss of life, but also hinders development and reduces the ability to achieve the SDGs.

 

Building resilience to climate change risks is more urgent than ever before for members of the OACPS, including the SIDS who because of size and location are particularlyvulnerable to climate change and the intensifying extreme weather events. We acknowledge the support from the EU and other development partners for their ongoing programmes and urge increased financing for climate action to build resilience, enhance adaptive capacity and finance the transition of our economies.

 

This is also another area that we should seek to prioritize in the implementation of the Samoa Agreement.

 

We need to remember that the Paris Agreement would not have happened without the active involvement of this Organization. This is but one example of African, Caribbean and Pacific solidarity to influence positive change. As the situation is getting worse every year the work of the Secretariat in the areas of climate change, adaptation and mitigation assumes even greater importance. Our focus on the practical aspects of resilience and disaster response must be sharpened – our collective and individual survival depends on it.

 

At the Special Session of Council in April this year, we discussed the holding of the meeting of Ministers of Oceans, Inland Waters and Fisheries from 9 – 13 September in Tanzania.I am advised that preparations are proceedingsmoothly. This is a key and much needed meeting to address issues that are particular to our 39 SIDS, our 64 coastal states and the blue economy.

 

Excellences, 

 

The final area on crises, touches on the debt burden and access to finance, some of it arising from the environmental and governance challenges, to which I have previously alluded.

A recent report from the United Nations Conference on Trade and Development (UNCTAD), highlights that ‘across the developing world, global public debt has reached a record high of US $97 trillion in 2023.’ It went on to say that public debt in developing countries, which counts for less than one third of the total, US $ 29 trillion, has grown, since 2010, twice as fast as in developed economies.

 

This is alarming. The borrowing costs of developing countries are higher than those of developed ones. Our States are now facing a growing and higher cost of external debt due to high borrowing costs, which increase the resources needed to pay creditors, making it difficult for developing countries to finance basic social services and investment. The funding gap is huge. The statistics are concerning, to put it lightly.

 

SDG17 provides the tools to increase financing for development. Nevertheless, reform of the global financial architecture and multilateral development banks is essential to better reflect the current economy and make financing for development more affordable for developing countries.

 

The Bridgetown initiative for the reform of the International Financial Architecture (IFA) was released in 2022, with an updated version of Bridgetown 3.0 being rolled out earlier this year, and is expected to be revised yet again in the coming weeks. We support the aims of the Bridgetown Initiative which seek to mobilize significant finance to bridge the funding gaps in both climate and overall development finance. We must also support the UN MVI and progress our own work on the same as it does provide a complementary instrument beyond GNI alone.

 

 

Excellences,

 

We cannot continue to go down the rabbit hole of excessive indebtedness. We need to find innovative ways to meet our sustainable development goals and fund our future.  This will require, among other approaches, the strengthening of existing partnerships  and the forging of new ones at all level.  Let us redouble our efforts in this regard.

 

Excellencies,

The OACPS  must emerge as a voice of reason, especially at a time when the global community is looking to  regional and international organizations to assist in mitigating geopolitical risks and challenges and to promote preventive and multilateral diplomacy.

 

We need to agree on a redefined role for the  OACPS, including  its position as an influential global player.

 

 

Excellencies,

 

This Organization will celebrate its 50thanniversary next year, and as we look to that anniversary milestone, we should be able to demonstrate  more tangibly, that the OACPS is fit for purpose, is delivering important outcomes for its members, is a becoming a leading transcontinental organization and a true  vehicle for economic engagement and policy/political dialogue  at the global level.

 

I am aware that the Ambassadors had a Retreat in May and that a Crisis Management Group has been established to address some  of the deep-seated challenges confronting the Organization, including  the unfavorable financial situation,  and which have constrained its ability to realize its full potential.

 

The Bureau was briefed by the Chair and the members of the Ambassadorial Crisis Management Group. I have noted the Group’s interesting findings and recommendations,and have also had the opportunity to discuss some aspects thereof with the EU’s DG INTPA with whom the Crisis Group and the SG have also met.  Council is expected to receive an interim report of the Group’s work which will provide an opportunity for wider discussion. I invite Colleague Ministers to familiarize themselves with that report,including Annex, so that we can have robust deliberations on the issues raised therein, andbe in a position to provide firm guidance and recommendations on the best way forward for our Organization.

 

The need to address the financial situation of the Secretariat cannot be stressed enough. The Secretariat is in perilous position financially.It is financially drained, and the support from the EU our historical partner, which hasrecognized several deficiencies in financial governance, management and expenditure, has become subject to new conditions.

 

In addition, we have been unable to secure new partnerships in the short term, and too many Member States are in default of the payment of their assessed contributions.  As we encourage Member States to meet their obligations, we need to ask ourselves whether sufficient corrective actions are being taken to support our arguments. As I stated at Special Session, the payment of our contributions cannot be divorced from  the need for proper financial management by the Secretariat.  If Member States are not convinced that their contributions are being put to good use, then they will not be encouraged to pay.  The same clearly applies to the EU our principal source of funds, and cannot be ignored by potential new sources of funding.

 

Collegues, you may also recall that at Special Session, when we discussed the financial situation of the OACPS Secretariat, we had instructed the Secretariat to  demonstrate financial prudence and exhibit sound financial management in order to secure the trust and confidence of its stakeholders.

 

We had also entrusted the Committee of Ambassadors to examine the matter at its Retreat and identify any other strategic means of improving the Organization’s financial situation.  We note the establishment of the Crisis Group earlier referenced, and look forward to the Ambassadors’ further reponse.

 

We should not conclude this Council session this week without agreeing on the corrective measures, that  will be necessary to regain the  trust and confidence of our partners in the  Secretariat’s ability to effectively manage the Organization’s financial resources, and the Organization’s ability to reform to reduce expenditure.

 

Measures of financial accountability must be built into the OACPS’s governance framework, and where breaches occur, there must be consequences proportionate to the nature of breech.  This must be strictly adhered to. Audit and other financial accountability mechanisms must be conducted and reported on as required for the consideration of Member States.

 

I, therefore, urge your active engagement ,focussed thinking and bold recommendations on this agenda item.

 

The decisions that we take on this item should also serve to guide  the President of the Summit in his  very timely endeavour to convene a Summit of the OACPS Bureau in New York in the margins of the United Nations General Assembly in September.

We cannot allow him to gather his colleagues only to be blindsided by a list of unaddressed governance concerns.

 

On the long outstanding issue of the OACPS Headquarters, Council is also looking forward to receiving an update during the course ofthe meeting. Suffice it to say that while the matter is long outstanding for action and therefore now extremely urgent, we note that its is inextricably linked to the broader concerns about our financial situation.

 

I am confident that corrective measures to improve our financial standing, will encourage progress in this area with our principal bilateral partner, so that when next we meet at Council, later this year, the issue of the Headquarters would have been fully settled.

 

The financial crisis facing the Secretariat has given rise to the need to examine the current structure and propose different scenarios for the restructuring of the Secretariat. This is also an item on Council’s agenda, so I will not pre-empt this discussion save to note that withthe tenure of the Secretary-General and the Executive Management Team coming to an end in February 2025, a key expected outcome of this Council, will be the launch of the processes for the appointment of the new Secretary-General.

 

Another key outcome should be the adoption of the proposed new Secretariat structure, but this will depend on the satisfaction that Ministers will get from the report of the Ambassadorial Crisis Management Group. Council will have to decide whether it wishes to allow another Executive to enter and have to contend with the same issues, remaining internally focused rather than meeting the needs of the membership.

 

This is an appropriate point to turn to the implementation of the Samoa Agreement.Council will note that we are into the seventh month of the provisional application of theSamoa Agreement. I am informed that 74 OACPS Members have signed and four have completed their internal procedures for ratification. We have outstanding work to do in this area. Leaving no one behind is a clarion call in development discourse. I therefore urge Council to continue to communicate with the countries that have not signed, to do so by 31st of this month, the hard deadline date that has been agreed on by both the OACPS and the EU. I am mindful, however, that the pathway of accession has been provided for in the Agreement for those States that will not be able to sign by the established timeline.

 

I also encourage expedition of our ratification processes.

 

I understand that work has commenced on the launch of the three Protocols as well as the operationalization of the joint institutions, andwish to encourage progress in this regard.

 

On 27th of May 2024, in the margins of the Small Islands Developing States (SIDS) Meeting in Antigua and Barbuda, we celebrated the Caribbean Protocol with the EU. This was the first political level meeting since the signing of the Samoa Agreement and it is important that we acknowledged the importance of this partnership and the Samoa Agreement, to our joint future with the European Union.

 

This is another issue on the agenda of our meeting and I look forward to a lively debate on how to ensure that the implementation of Samoa Agreement will deliver benefits for us.

 

We have much work ahead of us  at this Council session and I encourage fruitful exchanges  and visionary thinking as you position ourselves to provide the mush needed political guidance on the way forward to our Organization.

 

On this note, I come to the end of my Statement. Thank you for your attention.