Saint Lucia, 2010

In my address on the

accomplishments and shortfalls of Saint Lucia towards

achieving the Millennium Development Goals, I

stressed that all of our gains would be useless if we

could not address the threatening saga of adverse

climate change. Many other nations highlighted that

urgent issue, and I hope that our collective voices will

receive the attention of those most capable of acting.

I will therefore focus on two of the most critical

factors in our development as small island developing

States (SIDS): first, the effects of global climate

change, and second, the uncertain economic and

financial crisis.

Saint Lucia notes the ongoing negotiations in

advance of the sixteenth Conference of the Parties to

the United Nations Framework Convention on Climate

Change, to be held in Cancún, Mexico, later this year.

Following the fifteenth Conference of the Parties,

which failed to achieve consensus on a legally binding

framework for addressing climate change, Saint Lucia

recognizes the critical importance of the current talks

in laying a solid foundation for a more favourable

outcome in Cancún, one that will truly fulfil the

purpose of the Convention and help to ensure the

continued existence of humankind.

We have long since moved past the debate over

the existence of climate change to a discussion about

the severity of its impacts on the nations and regions of

the world. The small island developing States of the

world, Saint Lucia included, are recognized as being

among the most vulnerable to climate change, with that

phenomenon threatening the very existence of some of

our island nations. That is so despite the fact that,

jointly, the SIDS contribute a fraction of one per cent

of global greenhouse gas emissions.

We began this year with news that a cataclysmic

earthquake had hit Haiti. The United Nations came

together in solidarity with our sister island and pledged

$1.5 billion in assistance. To date, Haiti’s officials

report that only 10 per cent of the pledges have been

funded. The same seems to be true for most appeals for

humanitarian causes. We trust that the pledging

conference for Pakistan, the most recent country to be

hit by a catastrophe, will be more successful.

Addressing the humanitarian consequences of

today’s disasters and emergencies remains a United

Nations priority. We thank those who have kept their

pledges, while we encourage those who have shown

good intentions but have not yet matched words with

action to do so with some urgency.

For those reasons, for the good of all humankind

and indeed, for the good of all creation, Saint Lucia,

like all member States of the Caribbean Community

(CARICOM) is committed to lending its efforts to

achieving an ambitious, just and legally binding

agreement that will realize our goal of timely and

successfully addressing climate change.

Speaking of justice, climate change can be

successfully addressed only if countries most

responsible take the necessary steps to reduce carbon

dioxide emissions and provide adequate financial

resources for the development and transfer of

technology for both adaptation and mitigation to those

who have been most seriously affected.

Few developing countries possess sufficient

financial and human resources to address adequately

the ongoing and anticipated impacts of global climate

change. According to World Bank estimates, the total

annual impact of potential climate change on all

CARICOM countries could be, in 2007 dollar prices,

$9.9 billion of our total gross national product (GDP),

or about 11.3 per cent of total GDP. That means that we

have no choice but to divert critical funding from our

poverty alleviation programmes to trying to protect our

countries from that formidable threat.

There is no doubt that stable long-term funding is

of critical importance to developing countries and

cannot be underestimated. We urgently need to scale up

new and additional resources and sources of funding to

support mitigation efforts. We cannot rely on

humanitarian assistance alone, which only addresses

the consequences of such events.

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We know that our development partners are

serious about implementing meaningful mitigation

action, so we call for a firm collective commitment to

providing new and additional resources. Let us not

continue to renege on promises made, as developing

States cannot go it alone and should not be penalized

for the actions of industrialized countries. We call for

an understanding partnership in tackling the pressing

issues that threaten to engulf our world.

Despite our geographic distribution, small island

developing States (SIDs) are working diligently

together on shared concerns through regional and

international networks, the most notable of which is the

Alliance of Small Island States. We recognize that

traditional hydrocarbon fuel usage is unsustainable and

are therefore looking to make use of the alternate

energy sources that are available to us. The use of

hydropower, wind, solar and geothermal sources and

converting waste into energy are means by which we

could reduce our energy reliance, lower trade deficits

and generate employment. However, those require

investment in research, development and infrastructure.

The other most critical factor in our development

is the speed of the global economy’s return to sustained

growth. Recent news of deteriorating economic

conditions and a fall in house sales in the United States

has fanned the flame of fears of a double-dip recession.

Over the past few weeks, the short-term growth

prospects of the United States, Europe and Japan have

been downgraded on the back of recently released

economic data, which is below expectations.

The prospects for economic recovery in Europe

were dampened by the crisis in some countries earlier

this year, but renewed confidence has recently

emerged, spurred by the stronger-than-expected

performance of the German economy in the second

quarter of 2010. However, the growth prospects for

Europe remain uncertain, given that fiscal

retrenchment measures could pose a risk to growth and

the pace of recovery. The weakened growth prospects

for the United States and Europe could impede growth

in emerging markets, with a slowdown in the growth of

exports and investment flows. The uneven pace of the

global economic recovery in countries and regions has

led to differences in approach in policy responses.

I have made these points because the economies

of the United States, Europe and the European Union

are our major sources of tourism, agricultural trade,

official development assistance, foreign direct

investment (FDI) and remittances, which constitute the

mainstays of our economy. We therefore urge the focus

on global economic recovery to be maintained for the

benefit of the global community.

As a small island developing State with a highly

open economy, Saint Lucia has been hard hit by the

effects of the global financial and economic crisis. As

with most small developing countries, the crisis led to

a deterioration in Saint Lucia’s economy, resulting in a

contraction in GDP, a rise in the level of

unemployment and a weakening of the Government’s

fiscal position.

The decline in economic activity was driven

mainly by a fall in stay-over tourist arrivals, lower

production in the agricultural sector and a sharp

downturn in construction. The decline in activity in the

construction sector was attributable to a fall in FDI

inflows as the freeze in international credit adversely

affected the financing of a number of hotel

construction projects in Saint Lucia. It was also

attributable to a decline in remittances, which have

helped sustain the local housing sector.

Notwithstanding the decline in revenue

collection, expenditure outlays increased, resulting in a

deteriorating fiscal position. That outcome led to a

widening of the central Government’s overall fiscal

deficit to 4.8 per cent of GDP in the financial year

2009-2010, compared to a deficit of 1.9 per cent of

GDP in the previous year. Public debt as a percentage

of GDP rose from 66 per cent in 2008 to 71 per cent in

2009 as a result of increases in borrowing to finance

the budget deficit.

The adverse impacts of the combination of global

and regional shocks have prompted the Government of

Saint Lucia to implement a number of measures

designed to mitigate the social, fiscal and regulatory

challenges of the crisis. In order to mitigate the

impacts of the price shocks, the Government

implemented a number of measures to protect the most

vulnerable in our population.

Such measures included the creation of short-

term employment programmes, the suspension of

import duties and other taxes on basic consumer items,

the establishment of controls on retail markups and

profit margins on some basic food items, and the

provision of limited price subsidies on basic

commodities to vulnerable groups.

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In its strategic response to the crisis and in laying

the foundation for growth, the Government of Saint

Lucia has undertaken the development of a medium-

term development strategy plan for the period 2011-

2016. The plan will lay the blueprint for the

development of emerging new sources of growth, such

as offshore education, health and wellness tourism, and

high–end information and communications technology,

and for expanding existing critical sectors, such as

tourism, agriculture and manufacturing.

The signing of the economic partnership

agreement with the European Union in 2008, the

implementation of the CARICOM Single Market and

Economy and the Economic Union of the Organization

of Eastern Caribbean States will bring new sets of

challenges and opportunities for Saint Lucia. The

Government’s strategic priority is to develop

meaningful partnerships with the private sector to meet

the challenges and take advantage of the opportunities

provided. The capacity of the private sector will be

strengthened to take advantage of the opportunities

presented by such trading arrangements.

However, the Government recognizes that this

will require a host of general improvements in the

business environment, including strengthening the

investment climate, expanding the skills base,

promoting innovation and technology adoption, and

improving international transport services and other

infrastructure. All those will require large capital

outlays.

While the Government has responded to the

challenges by developing specific programmes and

projects to improve the business climate in Saint Lucia,

the role of international financial institutions and

bodies like the Group of 20 in stabilizing the global

economy and restoring growth is crucial to small

developing countries like Saint Lucia. As the focus of

the global recovery efforts is aimed at laying the

foundation for sustainable and balanced growth, Saint

Lucia, through its new policy directives and

programmes, is positioning itself to benefit from the

growth prospects for the global economy.

In that respect, we call for a review of the United

Nations delivery to SIDS, and particularly for

strengthened support measures to address the

vulnerabilities of all SIDS and for support within the

United Nations system for a special category. Most

SIDS do not get our fair share of assistance because we

fall into the middle-income country category. However,

being middle-income does not reduce vulnerability.

There is a greater need for advocacy and a resource-

mobilization role for SIDS under the Mauritius

Strategy for the further implementation of the

Barbados Programme of Action for the Sustainable

Development of Small Island Developing States.

The support of the international community is

therefore necessary if Saint Lucia and all other SIDS

are to fulfil the goal of sustainable development and

thereby improve the standards of living of their

populations and meet all of the MDGs by the year

2015.

Let me now touch briefly on our moral

environment. Among all the disasters we face today,

we can accept some as natural occurrences, yet others

are of our own making. Conflicts brought about by

differences in ideology, political persuasion, religion

and economic circumstance have presented challenges

to global peace and security, including the many mass

atrocities that the world has witnessed. Even with

numerous advances in technology, education and health

and an increase in material progress, the world seems

to suffer from mental restlessness and discontent. We

seem not to have found the formula for peacekeeping

and peacemaking within nations, even after 60 years of

searching.

Keeping the peace and building peace are critical

components of sustainable development worldwide.

But peacekeeping goes far beyond civilian conflict. We

are pleased to note that there is now acceptance of the

relationship between such non-traditional security

issues as poverty and health, on the one hand, and

conflict on the other. Maybe with that new

understanding we will help find a solution.

We understand that the United Nations is

incapable of solving all the world’s discordant issues

and that the best solutions for conflict are home-grown.

However, there are identified areas where the United

Nations can realistically make a difference. Where this

is the case, we need to strengthen the role of the United

Nations in the promotion of peace and economic

development. In this regard, and while keeping our

goals realistic, we look forward to Security Council

reform. We need an equitable international system and

a more balanced approach to international security.

We acknowledge that States remain the principal

duty-bearers and cannot abrogate their responsibility to

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implement policies, enact national legislation and

foster an enabling environment in which human rights

can be enjoyed by all. When these rights go

unexercised, economic growth is stunted and

development is paralysed. A key role of the United

Nations is to help ensure that economic growth

translates into wider enjoyment of human rights for all.

Without human rights, we cannot achieve the

Millennium Development Goals; we cannot achieve the

advancement of humankind. When we expect the

United Nations to protect human rights, we hold the

same expectations of ourselves. After all, we are the

United Nations.

Also integrated within the issue of human rights

is human security. As Members of the United Nations,

we are concerned with human life, education, longevity

and social inclusion. There would be no United Nations

if there were no universal concern for the well-being of

the collective. Respect for human rights and the

protection of human security are therefore mutually

reinforcing.

Most people want peace, democracy and social

equity, and we recognize the State’s inherent

responsibility to provide these for its citizens. If

Governments are to be successful, people must

participate in formulating and implementing strategies

to enhance their national authorities’ capacity to

achieve these goals. However, with globalization, the

ever-evolving threats that arise when one country falls

to maintain the social order ricochet to affect the rest

of the world. Every State requires international

cooperation to preserve its own security.

We Caribbean countries take the issue of security

very seriously. We suffer from an increasing incidence

of crime and violence, which is compounded by

relatively easy access to and use of illegal firearms.

The number of gun-related homicides has jumped to

unacceptable levels, and this has been aggravated by a

worsened economic situation.

Another great tragedy of our times is the

uncontrolled illicit drug trade. We must find solutions

to both problems. We are perplexed, therefore, to see

the closure of the Caribbean office of the United

Nations Office on Drugs and Crime. We call for a

reassessment of that decision. We also call for a

comprehensive treaty on small arms and light weapons,

alongside the Treaty on the Non-Proliferation of

Nuclear Weapons. Small arms and light weapons are

responsible for more deaths than natural causes in

some parts of the world.

In attempting to fulfil our commitments on the

MDGs, we have engaged many partners, including the

United States, the European Union, Canada, our Latin

American neighbours, India, Japan and South Korea, to

name but a few. I wish, though, to make a special

appeal to this body to support the aspirations of the

Republic of China on Taiwan to make its contribution

to the world collaboration through membership and

effective participation in the air transport and health

bodies and climate change discussions, including the

International Civil Aviation Organization, the World

Health Organization, the United Nations Framework

Convention on Climate Change and other organizations

of a universal nature.

The contribution of Taiwan to countries that have

sought its assistance in these areas matches that of any

other, and it has helped without asking for much in

return. No country should be prevented from making

its contribution to humankind, for they do share the

world with us and their contribution to health and

environmental issues know no boundaries.

Increased concern for air safety also remains a

global priority. We therefore hope that ongoing cross-

Strait talks will lead to a peaceful solution. This is a

long-standing problem that deserves an urgent

resolution that is acceptable to all and in keeping with

the Charter and principles of the United Nations, as

well as the aspirations of peoples to self-development

and progress.

There are some anachronisms that still persist in

this world, and one is the embargo against Cuba. We

have moved into a world where political uncertainty

has been replaced by economic uncertainty. Yet a

mechanism that was put in place to deal with a political

issue remains today and is being used for economic

strangulation, even as we appeal to everyone else for

cooperation and understanding in other areas. We must

respect the freely expressed wishes of the people of our

region as well as their right to shape and chart their

destiny. Our region is diverse, but our aspirations are

shared. Only mutual respect will foster the relationship

that is so necessary and vital to the development of our

region.

Here again, permit me to make another point

regarding respect. When the World Trade Organization

(WTO) ruled against our preferential regime on

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bananas, we were told that we had to comply. Now that

the WTO has ruled in favour of our efforts in the

services sector — I am speaking here of the favourable

ruling we received on the gaming dispute referred to

the WTO by Antigua and Barbuda — there is

reluctance to comply. We cannot have double

standards. We therefore urge all parties to agree on

mutually agreed principles that govern the conduct of

relations among States, large or small, in order for

everyone to be treated fairly.

Our world is in crisis. We face a growing, more

aggressive realm where the insatiable appetite for the

world’s resources has led to the subversion of justice

and humanity. The tumultuous times that we live in can

be weathered only through continued and increased

commitment to human development. Let us all work

towards that goal and the sustainability of biodiversity

and humankind.