Speech by H.E. Mr. Gerardo Peñalver Portal, First Deputy Minister of Foreign Affairs and Permanent Representative of the Republic of Cuba to the High-Level Meeting on Middle-Income Countries.
Panel 2: Support by the United Nations system and other agencies for the promotion of international development cooperation with Middle-Income Countries, including the environmental dimension
(New York, May 11th, 2023)
Excellencies and distinguished delegates,
The persistent effects of the COVID-19 pandemic have increased the pre-existing structural problems, with severe socioeconomic consequences. In this context, access to external financing, special and differential treatment in trade matters and the promotion of international cooperation and the different financing mechanisms for development, in order to support national efforts towards sustainable development, are crucial for middle-income countries.
The historical commitment of industrialized countries to contribute with 0.7% of their Gross Domestic Product to the Official Development Assistance has been unfulfilled for over four decades. These commitments must be reaffirmed, fulfilled without conditions of any kind and increased, in order to move forward in closing the gaps that remain in different areas.
Middle-income countries account for 75% of the world’s population and approximately 30% of the world’s aggregate demand. In addition, they face high levels of inequality and poverty, together with multiple structural and developmental problems.
Cuba recognizes the contribution of international cooperation to development that our countries receive from their more developed counterparts, and urges our developing partners to work on indicators best reflecting the reality of middle-income countries, in particular the specific problems of the Caribbean States, whereas the current criteria referring to the average income, especially the per capita income criterion, do not capture the impact of the multidimensionality of poverty and inequality.
The United Nations system should promote and broaden the spaces for debate on this issue, with the participation of all Member States to move forward with concrete initiatives in this regard.
We believe that the use of income level as a sort criterion for accessing development cooperation flows is a limited approach. The concept of development is broader, multifaceted and requires not only the improvement of living standards, but also the achievement of sustainable and inclusive processes of growth that address the set of structural gaps that exist in middle-income countries, including extreme poverty and inequality.
Faced with the serious problem of unsustainable debt, our countries urgently need effective alternatives, which, taking into account the vulnerabilities and specific needs of the countries, provide a comprehensive, sustainable and lasting solution to the issues of external indebtedness, whose excessive amount hinders the countries’ efforts to focus on their development.
We urge the international financial institutions to evaluate their policies in this area and to explore ways to maintain access for small, heavily indebted middle-income countries to loans and debt renegotiation on favorable and sustainable terms, without preconditions.
The problems of middle-income countries need to be addressed in a multilateral framework, and we therefore reject attempts to weaken existing multilateral mechanisms and the search for unilateral solutions, since only joint and global efforts can solve the serious problems afflicting our countries.
We emphasize the need to implement a multilateral mechanism for renegotiating sovereign debts that allows for fair, balanced and development-oriented treatment.
Cuba continues to work on the implementation of the National Economic and Social Development Plan until 2030, whose strategic thrusts focus on the full compliance with the SDGs. In this regard, we reaffirm our commitment to the implementation of the 2030 Agenda, despite the restrictions of the economic, commercial and financial blockade imposed by the government of the United States.
Cuba reiterates its call to work together in the search for a more prosperous, fair and inclusive world, in which, beyond country classifications, priority is given to the well-being of our populations and sustainable development.
Thank you