The Holy See Advocates for Debt-Free Financial Assistance for Middle Income Countries
When it comes to supporting middle income countries, the Holy See is calling for a change. Archbishop Gabriele Caccia, the Holy See’s Permanent Observer to the United Nations, recently spoke at a high-level meeting emphasizing the need for debt-free financial assistance for these nations. Archbishop Caccia highlighted the structural barriers that hinder the development of middle income countries, despite their significant contribution to the global economy.
While middle income countries account for a third of global GDP, they are also home to 62% of the world’s poor. These nations, with a Gross National Income per person ranging from $1,100 to $14,000, face challenges such as conflicts, economic instability, and climate change, which impede their sustainable development.
One major obstacle for these countries is the high levels of debt they have acquired in pursuit of economic growth. Archbishop Caccia stressed the importance of providing debt-free financial assistance to enable these nations to invest in their future without the burden of repayment cycles.
The Archbishop also criticized the current measurement of development based solely on GDP, which he believes overlooks the unique challenges faced by middle income countries and limits their access to essential resources. He called for the adoption of economic indicators that consider the economic, social, and environmental dimensions of development to better assess progress and tailor international development cooperation accordingly.
As the Fourth International Conference on Financing for Development approaches, Archbishop Caccia expressed hope for increased support for middle income countries. He urged developed nations to provide financing that empowers these nations to achieve sustainable development without being trapped in debt.
It is clear that the Holy See is dedicated to advocating for the financial well-being of middle income countries and ensuring they have the support needed to reach their full potential.
