杏MAP导航

By Devin Watkins

Archbishop Ivan Jurkovi膷 has renewed the Holy Father鈥檚 appeal for debt relief at an international level.

The Holy See鈥檚 Permanent Observer to the United Nations in Geneva on Thursday addressed the 67^th Executive Session of the UNCTAD Trade and Development Board.

Multifaceted economic shocks

Archbishop Jurkovi膷 noted that the Covid-19 crisis is putting excessive financial strain on developing nations.

The worldwide economic crisis, he said, presents a unique challenge that has upset the balance of the world economy.

Widespread lockdowns have led to a 鈥渄eep supply shock鈥�, since many factories and production facilities have been forced to close.

Lockdowns have also caused 鈥渃onsequent demand shocks鈥�, which are the result of people having less money to spend because of vast job layoffs and corporations being unwilling to commit to long-term investment plans due to economic uncertainties.

Worse in developing nations

鈥淭here is no doubt,鈥� said Archbishop Jurkovi膷, 鈥渢hat the current Covid-19 crisis will more severely affect the lives and livelihoods of those in the developing world.鈥�

One way to ease the misery of people in poorer nations, he added, would be to tackle 鈥渢he crippling external debt burdens鈥� they have accumulated in recent years.

The Vatican representative urged the international community to 鈥渄eliver speedy and substantive debt relief to crisis-stricken developing countries鈥�.

Archbishop Jurkovi膷 then quoted 杏MAP导航 Francis鈥� Urbi et Orbi message of 12 April 2020, in which he urged that 鈥渁ll nations be put in a position to meet the greatest needs of the moment through the reduction, if not the forgiveness, of the debt burdening the balance sheets of the poorest nations.鈥�

Inclusive economy on an even playing field

Turning his attention to the global economic system, Archbishop Jurkovi膷 said creating a 鈥渕ore inclusive and sustainable world鈥� requires more than tweaking markets.

鈥淚t requires a more exacting and focused agenda that addresses the systemic constraints on resource mobilization and technological diffusion,鈥� he said.

Nations, he added, need to reduce systemic imbalances in market power that result from 鈥渢he lop-sided rules of a hyper-globalized world.鈥�

They also need to work toward encouraging markets to 鈥渕atch local challenges with international goals.鈥�

Moral crisis

Archbishop Jurkovi膷 called on the international community not to overlook ethical and cultural factors. He said the roots of the current crisis are above all 鈥渕oral in nature鈥�, rather than merely economic or financial.

鈥淩ecognizing the primacy of being over having and of ethics over the economy, the world鈥檚 peoples ought to adopt an ethic of solidarity to fuel their actions.鈥�

Short-term vs. long-term

The Holy See鈥檚 representative in Geneva then alluded to the shock of the 2008-2009 financial crisis.

鈥淥ver the last decade,鈥� he said, 鈥渨e have learned that excessive liberalization and deregulation, allowing for markets and firms to regulate themselves, privileges short-term gains over long-term commitments.鈥�

The results, he noted, can be seen in decreasing investment in the health sector and in the 鈥減redation of the natural environment.鈥�

Debt relief to deal with Covid-shock

Archbishop Jurkovi膷 concluded his speech urging nations and institutional creditors to provide debt relief for developing countries, in order to give them a chance to 鈥渞espond to the health shock and to mitigate the accompanying economic damage.鈥�

鈥淲hether and how this happens,鈥� he said, 鈥渨ill have direct consequences for creating a fairer, more inclusive and resilient recovery.鈥�