Alliance of Small Island States (AOSIS)
Statement to be delivered by Ms. Margo Deiye
Third Secretary of Nauru to the United Nations
Chair of Alliance of Small Island States (AOSIS)
5th Session of the OWG-SDG on Macroeconomic Policy
November 26, 2013
Co-Chairs,
Nauru has the honor to speak on behalf of the Alliance of Small Island States (AOSIS),
namely the Pacific, Caribbean, and AIMS.
Nauru associates itself with the statement delivered by Fiji on behalf of G77 & China.
Co-‐Chairs,
We
congratulate
and
thank
you
for
convening
the
5th
OWG
Session
iteg1shcl9
oeok3bmnn0aooaslmw
.ti
iscnisc
u
aiegsssr
st
outhwheeas
t
twh
a,oo
rfire
ns
ftmcr
acaalrslcietsrrdious
ef
cofctaoruc
nraeeotd
ma
db
iteycivm
tehpeleo
ow
plwimhcoyeer
nnl
dqtth,
u
eeeac
snoWtdnioo
onrimnl,d
dy
eu
issnsi
stenrtrcirgeauy
lgti,z
hgaelsit
uniGosgrnt
eat.o
a
in
t
trh
eTDeadhcet
oe
psvahreenieg
rdsha
s
frlriioeiogn
nmhcc
tlor
suwuf
s
cthtihhivaaeeetl
Co-‐Chairs,
iitrsehudCTnnhelcuneohi
cesopvSmmeelusnpeuIm
eDlpaolcidt
onnpooiSminspgn
lnu.p
togie
gsnrie
oy
dn
aedsbrmt
tgq
eechioreunedosae
duen
cu
i
nynlhnwtanu,.
cad
c
tid
dpevhrteAihsriaeirnesa
e
r
eg
soitvtatmn,
hifhe
s
c
w
repmmrutea
ehlhlsraoaeaaeiuedlnyrtc
l
levlm
htgtiyp
ne,s
l
oeeotlmerfarnrfsbod
anvoetar
mn
ad
r
lats
wees
oindelilf
avloadfceeertenmo
vneovc.dne
stanlels
l
o
r
nimot
Mumiob
poomoa
aofiuilrnn
ccre
see
kdgesd
a
xf
o
s
weosnty
SvtrvrdodoaIeemeDor
utrmlkefm,osSti
sheen
’ptoe
r,
ha(m
fdsswSan
et
ieIencinrceDvcnoeidca
eaS
utos
tll
)imhalo
msg
dcveap
oi
erirrgalmnaio
ernsilcgn
saeis
uossestn
in
ni
ne(taotopMdc
chnnnurgriedD
te
earioit
craiGoiphftne
sn
syjredseso)s.o
k
eb
sdoiainasmnlufnl,nt
ecewdadtcdtdlh
aiil
.vmtesep
lh
aeer
Hiab
atlmiiyaaa
ongl
snlrah
vettd
nfr
ev
alr
iydsiengafgt
lertgdmm
haecer
tgasoietr
s
dih
nrtoleoeaeeetf,
Co-‐Chairs,
saawMtcnaiatdtbichv
ri
ielonisltecyuycl
s,uot
tosnaii
miovfnomepas
rbietcoelc
ervop
inanodo
glerim
vcoyesbic
aluo
ifgsneptrstm
oytgrw
eluonatmbhtn
a
deslan
tnertsdscao,o
t
ujennongoabidmme
ncsiere
celsa
yasrs
e
t
ficoiwoosnfcev
.al
etll
r
h
Tyaaeh
sn
we
dfsaii
etnmhm
at
bnooaicon
tfiileaoostlc
ua
husrsas
yyv
r
oseeptn
feoto
molpri
cmr,b
oieesmfs
iun,ao
saimtmeinnduceg
isda
itns
l
u
batsmteat
naapuidrrnskeieecmeddet
2
development,
fostering
conducive
business
environment,
promoting
competition,
and
diversification
of
economies.
The
global
financial
crisis
underscored
just
how
important
effective
macroeconomic
policy
is
to
financial
stability.
It
has
resulted
in
declining
external
demand
and
development
aid
to
developing
countries,
including
SIDS,
as
evident
with
ODA
being
registered
at
.29%
of
GNI
instead
of
the
0.7%
target
level.
Slower
economic
activity
coupled
with
unconventional
monetary
easing
in
developed
countries
has
further
impacted
developing
countries
including
small
island
economies
by
nurturing
sizeable
and
volatile
short-‐term
capital
flows
and
speculative
activity
in
foreign
exchange
and
commodity
markets
which
can
exacerbate
the
volatility
of
food
prices
and
consequently
impact
on
hunger
and
nutrition.
The
crisis
has
also
taught
some
hard
lessons
that
need
to
be
considered
in
the
debate.
First
is
the
generally
accepted
view
that
the
financial
system
must
serve
the
real
economy.
It
is
observed
that
sometimes,
the
world
of
finance
can
become
so
dominant
and
self-‐engrossed
that
it
forgets
its
conventional
purpose
–
which
is
transfer
of
funds
from
those
that
have,
to
those
that
need.
Second,
financial
intermediation
is
said
to
be
successful
when
we
match
savings
and
investments
for
the
purpose
of
generating
economic
growth.
For
example,
institutional
investors,
including
pension
funds
and
insurance
companies
hold
over
$70
trillion
in
assets,
and
are
looking
for
long-‐term
investment
opportunities,
including
in
the
developing
world.
This
pool
of
savings
needs
to
be
channeled
for
productive
investment.
It
can
easily
result
in
spurring
productivity
growth
and
accelerating
recovery
of
the
global
economy.
The
weakening
of
the
link
between
financial
intermediation
and
productive
economic
activity
has
caused
much
anxiety
and
consternation
with
several
propositions
being
put
forth
by
developing
countries,
particularly
SIDS
on
how
this
link
can
be
strengthened.
For
example,
the
risk
weightings
within
the
capital
adequacy
rules
of
the
banking
system
in
accordance
to
Basel
III
standards
could
further
limit
access
to
finance
for
smaller
entities
and
long-‐term
financing,
net
effect
of
which
could
further
exacerbate
the
challenges
SIDS
faced
and
undermine
and
derail
achievement
of
MDGs
and
sustainable
development
goals.
Co-‐Chairs,
Small
island
developing
states’
economies
are
typically
remote
and
poorly
served
by
infrastructure
and
other
services.
Getting
market
information
and
transporting
goods
to
market
is
often
an
insuperable
challenge,
making
the
transition
from
subsistence
to
a
market
economy
difficult.
Access
to
capital
for
productive
investment
in
infrastructure
such
as
communication,
transportation,
and
energy
is
vital
and
key
to
reducing
transaction
costs,
building
resilience,
and
diversifying
the
economy
for
sustainable
economic
growth.
Moreover,
investment
in
human
capital,
institutional
capacity,
and
technology
that
limit
or
eradicate
negative
and
harmful
impacts
of
the
natural
environment
is
essential.
Compared
with
infrastructure,
financial
sector
development
does
not
require
a
large
amount
of
financing,
but
it
does
call
for
more
knowledge-‐intensive
support.
This
is
important
if
domestic
savings
were
to
be
promoted
and
mobilized
for
the
significant
and
increasing
development
needs
of
small
island
states.
3
Co-‐chairs,
In
spite
of
SIDS
best
efforts
and
the
mobilization
of
limited
domestic
resources,
lifIIrssaaeFponrnneoucgnoron
ttqouecadreemgthudni
r
rrhnS-‐cs
iio
nntfrecsIehiaemDaaitt
nsonbra
tt
eSaaimriigrboexoo,tnto
lrst-‐
tnnceeciaa
t,en
oets,aaeid
ronp
atnllrni,a
e
mnnmeMtsqnarwicdfunuln
deori
lphsauaaan
nochpilslteetaeclirito
oydffohnteryfc
aor
nui
ast
ektcrf
cfhtca
ifysofeafteflor.t
o
ruo
nFnolhs
rormr
ueWtme
tea
b
fn
e
inli
eaoddneinacs
nnrea
aon
,(oldt
vsndmoiaIefnt
eMfc
srr
siBmlgid
ancoufFnfarbeiapepu)gaonrlt.rmpl
l
ei
mk
c
(oo
tcid
eetno
arlotonmeotla
hn
v.ta
lhpbeb
cle
nmya
laSoelWsoo
vnIsar,yD
eparsykoOmo
igmS
srobDrwr
,len
eeedceAon
ao
sne
dorB
torudti
,inys
a
umfl
daf
ngnadiclse
cekodnoebsdun,aim
ivenfilsieneutomntgrm
slarmaeao
pennfeotpp-‐ioiecdrrt
gomr
ce
a
nssstgi
nieaai
ionrfptgdnnlra
ci
drn
ovttnotis
eieemvmtfshlg
risaoaoc
mo)ietyuamdr
ea,
n
ntsre
fl-‐pic
osaetvntfela
nerereyv
cehdrodlo
etoimfam
fgsrtp
sbtnooo
f
mmluunp
m
oibbnin
reeale
e
idSndvnncive
tsIet
tasaansD
.,sp
r
tc
pm
ftpSeeicWrmuat
s
reoeacrniofseidmllrtatgies
nnaiehpfirvu
ltgebnotieoe.mtirh
lcus
wlnaes
eeest-‐l,,,
Co-‐Chairs,
jaebdpnTTBocnueraohuboovdtt
et
ci
nd
e
craootcoleurlhnonhse
mcaapociaattsll
iimtl
fu
cvlaiioeao
ndenegrn
n
vned
irngg
ne,t
o
aeere
dsvwaneesnteenm
gddetsswdih
rptoeet
ma,ei
ennoqtta
r
etaeiufnoa
ua
lnimg
ddntcsetyl
eeis,cuo
ct
e
ocobstarisoontn
atep
m
iuolnacmoe
lmocloandcsahmvki
o
iiaoaheani
enllfsbetl
l
.iy.ge
ldpe
vpI
n
aoefng
bogudv
reorefneorit
tsirnttwthv,hite
anyeeaternhg
rp
wwcd
a.
pw
imteoi
artloFvorlulo
rielpbnrnmddlereeoa
sies
dpna,iru
cn
iticehftsnecea
otae
gl
lam
unci
itizcsoshniaoe
sineaccvmduo
rbre
nnoimnsl
tteea
eiori
ectncietcoadeo
d
cj
glssnu
o
gr
etosinaooonntmlofw
cvv
fsmolioaitpucruhnri
oducp
r
itinriz
oshngprem
leriage
inoc
c
egocsgiwhnlpeumo
itstlarebaeah
rnvwal
le.ldeal
lyn
i
dsi
Bt
sstm
hs,
uawl
gut
avtaahesne
i
itentnflndhalone
gt
eicas
arnss
utsai
roaan
stiiboctnsi
ieooniulktaesnnogsrl..
Co-‐Chairs,
tTWoh
eaa
nsptkoa
syniodtiu
vr.e
e
aoduyt
ctoom
een
goaf
goeu
ra
nddis
scuupsspioornts
.t
he
important
work
of
this
Group
and
look
forward
Third Secretary of Nauru to the United Nations
Chair of Alliance of Small Island States (AOSIS)
5th Session of the OWG-SDG on Macroeconomic Policy
November 26, 2013
Co-Chairs,
Nauru has the honor to speak on behalf of the Alliance of Small Island States (AOSIS),
namely the Pacific, Caribbean, and AIMS.
Nauru associates itself with the statement delivered by Fiji on behalf of G77 & China.
Co-‐Chairs,
We
congratulate
and
thank
you
for
convening
the
5th
OWG
Session
iteg1shcl9
oeok3bmnn0aooaslmw
.ti
iscnisc
u
aiegsssr
st
outhwheeas
t
twh
a,oo
rfire
ns
ftmcr
acaalrslcietsrrdious
ef
cofctaoruc
nraeeotd
ma
db
iteycivm
tehpeleo
ow
plwimhcoyeer
nnl
dqtth,
u
eeeac
snoWtdnioo
onrimnl,d
dy
eu
issnsi
stenrtrcirgeauy
lgti,z
hgaelsit
uniGosgrnt
eat.o
a
in
t
trh
eTDeadhcet
oe
psvahreenieg
rdsha
s
frlriioeiogn
nmhcc
tlor
suwuf
s
cthtihhivaaeeetl
Co-‐Chairs,
iitrsehudCTnnhelcuneohi
cesopvSmmeelusnpeuIm
eDlpaolcidt
onnpooiSminspgn
lnu.p
togie
gsnrie
oy
dn
aedsbrmt
tgq
eechioreunedosae
duen
cu
i
nynlhnwtanu,.
cad
c
tid
dpevhrteAihsriaeirnesa
e
r
eg
soitvtatmn,
hifhe
s
c
w
repmmrutea
ehlhlsraoaeaaeiuedlnyrtc
l
levlm
htgtiyp
ne,s
l
oeeotlmerfarnrfsbod
anvoetar
mn
ad
r
lats
wees
oindelilf
avloadfceeertenmo
vneovc.dne
stanlels
l
o
r
nimot
Mumiob
poomoa
aofiuilrnn
ccre
see
kdgesd
a
xf
o
s
weosnty
SvtrvrdodoaIeemeDor
utrmlkefm,osSti
sheen
’ptoe
r,
ha(m
fdsswSan
et
ieIencinrceDvcnoeidca
eaS
utos
tll
)imhalo
msg
dcveap
oi
erirrgalmnaio
ernsilcgn
saeis
uossestn
in
ni
ne(taotopMdc
chnnnurgriedD
te
earioit
craiGoiphftne
sn
syjredseso)s.o
k
eb
sdoiainasmnlufnl,nt
ecewdadtcdtdlh
aiil
.vmtesep
lh
aeer
Hiab
atlmiiyaaa
ongl
snlrah
vettd
nfr
ev
alr
iydsiengafgt
lertgdmm
haecer
tgasoietr
s
dih
nrtoleoeaeeetf,
Co-‐Chairs,
saawMtcnaiatdtbichv
ri
ielonisltecyuycl
s,uot
tosnaii
miovfnomepas
rbietcoelc
ervop
inanodo
glerim
vcoyesbic
aluo
ifgsneptrstm
oytgrw
eluonatmbhtn
a
deslan
tnertsdscao,o
t
ujennongoabidmme
ncsiere
celsa
yasrs
e
t
ficoiwoosnfcev
.al
etll
r
h
Tyaaeh
sn
we
dfsaii
etnmhm
at
bnooaicon
tfiileaoostlc
ua
husrsas
yyv
r
oseeptn
feoto
molpri
cmr,b
oieesmfs
iun,ao
saimtmeinnduceg
isda
itns
l
u
batsmteat
naapuidrrnskeieecmeddet
2
development,
fostering
conducive
business
environment,
promoting
competition,
and
diversification
of
economies.
The
global
financial
crisis
underscored
just
how
important
effective
macroeconomic
policy
is
to
financial
stability.
It
has
resulted
in
declining
external
demand
and
development
aid
to
developing
countries,
including
SIDS,
as
evident
with
ODA
being
registered
at
.29%
of
GNI
instead
of
the
0.7%
target
level.
Slower
economic
activity
coupled
with
unconventional
monetary
easing
in
developed
countries
has
further
impacted
developing
countries
including
small
island
economies
by
nurturing
sizeable
and
volatile
short-‐term
capital
flows
and
speculative
activity
in
foreign
exchange
and
commodity
markets
which
can
exacerbate
the
volatility
of
food
prices
and
consequently
impact
on
hunger
and
nutrition.
The
crisis
has
also
taught
some
hard
lessons
that
need
to
be
considered
in
the
debate.
First
is
the
generally
accepted
view
that
the
financial
system
must
serve
the
real
economy.
It
is
observed
that
sometimes,
the
world
of
finance
can
become
so
dominant
and
self-‐engrossed
that
it
forgets
its
conventional
purpose
–
which
is
transfer
of
funds
from
those
that
have,
to
those
that
need.
Second,
financial
intermediation
is
said
to
be
successful
when
we
match
savings
and
investments
for
the
purpose
of
generating
economic
growth.
For
example,
institutional
investors,
including
pension
funds
and
insurance
companies
hold
over
$70
trillion
in
assets,
and
are
looking
for
long-‐term
investment
opportunities,
including
in
the
developing
world.
This
pool
of
savings
needs
to
be
channeled
for
productive
investment.
It
can
easily
result
in
spurring
productivity
growth
and
accelerating
recovery
of
the
global
economy.
The
weakening
of
the
link
between
financial
intermediation
and
productive
economic
activity
has
caused
much
anxiety
and
consternation
with
several
propositions
being
put
forth
by
developing
countries,
particularly
SIDS
on
how
this
link
can
be
strengthened.
For
example,
the
risk
weightings
within
the
capital
adequacy
rules
of
the
banking
system
in
accordance
to
Basel
III
standards
could
further
limit
access
to
finance
for
smaller
entities
and
long-‐term
financing,
net
effect
of
which
could
further
exacerbate
the
challenges
SIDS
faced
and
undermine
and
derail
achievement
of
MDGs
and
sustainable
development
goals.
Co-‐Chairs,
Small
island
developing
states’
economies
are
typically
remote
and
poorly
served
by
infrastructure
and
other
services.
Getting
market
information
and
transporting
goods
to
market
is
often
an
insuperable
challenge,
making
the
transition
from
subsistence
to
a
market
economy
difficult.
Access
to
capital
for
productive
investment
in
infrastructure
such
as
communication,
transportation,
and
energy
is
vital
and
key
to
reducing
transaction
costs,
building
resilience,
and
diversifying
the
economy
for
sustainable
economic
growth.
Moreover,
investment
in
human
capital,
institutional
capacity,
and
technology
that
limit
or
eradicate
negative
and
harmful
impacts
of
the
natural
environment
is
essential.
Compared
with
infrastructure,
financial
sector
development
does
not
require
a
large
amount
of
financing,
but
it
does
call
for
more
knowledge-‐intensive
support.
This
is
important
if
domestic
savings
were
to
be
promoted
and
mobilized
for
the
significant
and
increasing
development
needs
of
small
island
states.
3
Co-‐chairs,
In
spite
of
SIDS
best
efforts
and
the
mobilization
of
limited
domestic
resources,
lifIIrssaaeFponrnneoucgnoron
ttqouecadreemgthudni
r
rrhnS-‐cs
iio
nntfrecsIehiaemDaaitt
nsonbra
tt
eSaaimriigrboexoo,tnto
lrst-‐
tnnceeciaa
t,en
oets,aaeid
ronp
atnllrni,a
e
mnnmeMtsqnarwicdfunuln
deori
lphsauaaan
nochpilslteetaeclirito
oydffohnteryfc
aor
nui
ast
ektcrf
cfhtca
ifysofeafteflor.t
o
ruo
nFnolhs
rormr
ueWtme
tea
b
fn
e
inli
eaoddneinacs
nnrea
aon
,(oldt
vsndmoiaIefnt
eMfc
srr
siBmlgid
ancoufFnfarbeiapepu)gaonrlt.rmpl
l
ei
mk
c
(oo
tcid
eetno
arlotonmeotla
hn
v.ta
lhpbeb
cle
nmya
laSoelWsoo
vnIsar,yD
eparsykoOmo
igmS
srobDrwr
,len
eeedceAon
ao
sne
dorB
torudti
,inys
a
umfl
daf
ngnadiclse
cekodnoebsdun,aim
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look
forward
Stakeholders