Commonwealth think-tank launches briefing on global economic crisis

The Commonwealth Policy Studies Unit (CPSU) has launched a finance policy briefing on the world’s economic crisis which will be presented to Commonwealth finance ministers when they meet in St Lucia between 6 and 8 October 2008.

This briefing aims to provide decision-makers from around the Commonwealth with up-to-date analysis of the issues that will be discussed during their meeting.

Commonwealth finance ministers will examine the global financial crisis and address the repercussions of current high food and fuel prices in their respective economies. The economic effects of climate change and the investments member countries will need to make in the near future will also be addressed.

One of the recommendations in the briefing includes a potential short-term solution of introducing safety nets to soften the economic blows to the poor and most vulnerable individuals within countries.

At this launch economic experts debated the CPSU’s findings and examined key themes which will be discussed at the upcoming ministerial meeting.

Dr Indrajit Coomaraswamy, Director of Economic Affairs at the Commonwealth Secretariat, spoke about the economic impacts of climate change as well as the developing international financial crisis.

Dr Coomaraswamy emphasised the importance of the Finance Ministers Meetings in providing a ‘safe space’ for the exchange of views and formulation of arguments before the International Monetary Fund and World Bank meetings taking place later in the year.

He added that the “middle income status” of small states is now under threat, as their average growth rate has slowed over the last few years and they are underperforming when compared with other developing states.

“Their status as middle income countries was gained in a completely different economic landscape. During the Cold War, the Caribbean was characterised by some of the highest per capita GDP in the world. That has decreased dramatically,” he said.

“The erosion of trade preferences has played an even more important part in that decrease. So there has been a pretty severe double whammy that changed the landscape within which small states operate.”

Dr Steve Kibble from Progressio, an international development charity working for justice and the eradication of poverty, predicated that Commonwealth countries will have to deal with global water and food shortages and loss of biodiversity because of a lack of resources.

He proposed that countries reinvest in agriculture in order to feed their people instead of growing biofuels and stem large-scale food imports.

Related Websites:

• Commonwealth Policy Studies Unit