Guyana needs soft financing to cope with the COVID-19 pandemic - Foreign Minister
Guyana’s de facto Foreign Minister, Dr Karen Cummings has expressed the view that small economies like Guyana are in need of concessional financing in order to effectively address the coronavirus (COVID-19) pandemic.
The Ministry of Foreign Affairs (MoFA) in a release stated that the Minister was yesterday addressing a virtual meeting of Ministers of Foreign Affairs of Latin America, the Caribbean, and Germany. The meeting, which was convened by Germany, was held to address the global concern of COVID-19, its resultant impact on domestic economies, social sectors and the lives and livelihoods of people across the world.
According to the Minister, the meeting presented an opportunity “… to dialogue on the challenges and difficulties being faced by our states and to chart a course forward to ensure that all countries, particularly those most vulnerable, find sustainable solutions to address their circumstances.” The domestic and global situations, she noted, have changed drastically since the last such meeting in Berlin last year and unfortunately, the region finds itself trying to manage its vulnerabilities while at the same time provide the necessary social and economic structures. She made reference to the Small Island Developing States of the Caribbean and explained that “… COVID-19 has exacerbated our vulnerabilities and increased our susceptibility to shocks particularly at a time when the region is preparing for the 2020 hurricane season.”
The Minister told the virtual gathering that the public health measures that are being put in place in Guyana are costly and negatively affecting the country’s economy. She added that the cost of medical equipment and supplies along with the human resource scale- up required at this time, has proven challenging for the nation where it has to grapple with a vast coastland and difficult hinterland terrain. The Minister disclosed however, that in spite of these and other challenges, Guyana has taken the “bold” step to establish a Centre for Disease Control. This appears to be a reference to the sanatorium being built at the site of the Ocean View Hotel.
However, there still remained the need for critical financial support to undertake other significant and costly health systems and strengthening initiatives required to competently manage the spread of the coronavirus in Guyana, the Minister added. “In order to effectively address the COVID-19 pandemic, small economies like Guyana must rely on the availability of concessional resource availability.”
Cummings highlighted that the country’s response to the crisis through the prioritisation of public health and preservation of human resources has resulted in the diversion of already scarce resources and the seeking of new resources to combat and manage the spread of the coronavirus, at a time when the ability of some of the regional states to earn revenue from tourism, trade and their related sectors has been severely impacted.
Guyana, she asserted, remains convinced that the region’s consistent call for the adjustment of the criteria for access to concessional financing must be heeded by those who exert the greatest influence on the system to give consideration to the specific vulnerabilities faced by the Caribbean. “We also remain concerned about the continued placement, without consultation, of States on blacklists despite compliance with and adherence to international financial standards and best practices.” Adding that such continuing actions compound the region’s efforts towards sustainable development.
The release reminded that Guyana’s caretaker President, David Granger, in addressing last week’s High Level Event on Financing for Development in the era of COVID-19 pointed to the need for structured and sturdy systems to save lives and secure livelihoods with medium and long term measures aimed at building capacity to respond effectively and efficiently to health crises; and achieving food security through sustaining agriculture, manufacturing and services to allow capability for rapid production and progress on reopening. Such measures, set out in consultation with developing countries, will be crucial as Agenda 2030 programmes are implemented with the aim of attaining the Sustainable Development Goals.
The Minister commended Germany for its support for debt relief for the hardest hit developing and emerging economies, its recognition of the important role multilateral institutions such as the United Nations and the World Health Organisation are playing and will play in the response to the virus, and for its pledge of €525 million towards the development of vaccine and medicines for COVID-19.
“The support and cooperation of partners like Germany is welcome and it is our hope that such partnership will spur a stronger international response which is all encompassing to ensure equitable and fair access to medical and financial resources; allow sustained response to the pandemic; the development of holistic recovery plans and the creation of more resilient health, social, economic, technological and research-led systems,” Cummings was quoted as saying.