GOVERNMENT has called on multilateral development banks not to withhold financial support for small island states vulnerable to the risks posed by the COVID-19 pandemic.
In an article authored by Attorney-General and Economy Minister Aiyaz Sayed-Khaiyum and published by the Financial Times this week, he said small developing countries would suffer most and as countries shut their borders and income dissipate, “Fijians will feel the economic crunch intensely”.
He said “we” have yet to see the same level of multilateralism shown during the 2008 global financial crisis in response to the financial and commercial challenges stemming from the current COVID-19 pandemic.
Mr Sayed-Khaiyum said nations were operating in silos rather than in solidarity.
“And without a cohesive global response, developing economies will suffer most,” he said in the Financial Times.
“Emergency measures must inject crisis funding into vulnerable economies. “Budgetary support and affordable finance at recession-halting scales are essential to preserve the market forces that underpin the global economy.”
The A-G said Government would deliver a supplementary COVID-19 response budget on March 26.
He said Fiji was fortunate it could afford to take some countermeasures from a position of “relative financial strength”.
“But multilateral approaches must match our urgency and creativity to ensure the viability of many developing nations.
“If multilateral development banks withhold support until the virus strikes small island states, they’ll leave us exposed.”
Mr Sayed-Khaiyum said as Fiji closed its borders to some countries and other nations imposed restrictions on their returning citizens, that “once-reliable income will dissipate”.
“Whether they are staff, taxidrivers, restaurant workers, security guards, artisans, market vendors, farmers or our famous firewalkers, Fijians will feel the economic crunch intensely.
“Developing economies do not have the luxury of high fiscal reserves to bail out industries, pump trillions of dollars into our markets, or offer citizens large scale economic packages.
“Qantas could be propped up by the Australian Government, but Fiji Airways will need to find radically new ways to adapt – as will developing nations across the world.”
