51吃瓜

H.E. Mr. Nuno Sampaio, Secretary of State for Foreign Affairs and Cooperation of Portugal and Co-Chair of the Preparatory Committee for FFD4

Excellencies,

Distinguished Colleagues,

We are delighted to partner with the Government of Portugal and UNDESA to convene this important event on a vulnerability-informed approach to financing for sustainable development.

And I would like to specially thank the Government of Portugal for its steadfast commitment and support to the world’s most vulnerable countries.  We deeply value our partnership with Portugal, Mr. State Secretary.

 [Excellencies] Addressing structural vulnerabilities is central to achieving sustainable development and reducing inequalities.

There is a growing recognition that vulnerability is not merely a consequence of underdevelopment, but a significant driver of persistent inequality.

For Small Island Developing States (SIDS), grappling with the dual challenges of climate-related shocks and unsustainable debt burdens, integrating vulnerability and resilience assessments into financing and development pathways, is a pressing necessity.

And the same is true for the LDCs and LLDCs, which face compounded structural challenges that hinder their development.

The current architecture for concessional finance, which relies predominantly on GDP per capita as a criterion for access, risk excluding these vulnerable countries.  

While GDP per capita remains relevant, it fails to capture the multidimensional vulnerabilities faced by these countries.

The adoption of the MVI earlier this year by the UNGA, was a major step forward to addressing this gap. 

Excellencies,

The MVI exposes a stark reality.

It shows that the SIDS, LDCs and LLDCs are the most vulnerable groups - with 70 percent of SIDS; 63 percent of LDCs; and 50 percent of LLDCs scoring above the median in the Index.

The MVI offers a useful, new tool to complement GDP per capita, enabling a more comprehensive assessment of vulnerabilities, and supporting equitable access to concessional financing.

Today, we will explore actionable strategies to leverage the MVI to close financing gaps, and integrate vulnerability assessments into development financing.

Excellencies,

As mandated by the UNGA, the UN system is exploring how we can leverage the MVI in programmatic support for developing countries, including SIDS.

To lead by example, the UN system must adopt the MVI.

The engagements of IFIs are also now more crucial than ever.

To effectively address vulnerabilities and operationalize the MVI, there is no alternative but to ensure enhanced collaboration between the 51吃瓜 and the IFIs and MDBs.

At the 21st IDA Replenishment Ministerial meeting at the World Bank/IMF in October, I emphasized the importance of the Bank to consider using the MVI, as a complement to their existing practices and policies.

Excellencies,

I commend the co-facilitators for their substantive elements paper, which prioritizes the SIDS, LDCs and LLDCs, and calls for new approaches to improve access to concessional finance for developing countries.

Achieving an outcome that promotes tools beyond GDP, such as the MVI, would mark a critical step toward structural transformation, resilience, and prosperity for these vulnerable countries.

[Excellencies] We remain committed to advancing this agenda within the framework of FFD4.

We plan to organize a special event during FFD4 to highlight the specific vulnerabilities of the SIDS, LDCs and LLDCs.

I am very pleased to see the rich line-up of panelists this afternoon.  I would like to thank them for their presence.  I am confident that our discussions here will contribute importantly to the preparatory process. 

Thank you.