Prime Minister Holness Calls for Stronger Global Support to Protect Small States from Economic and Climate Vulnerabilities During G20 Address in South Africa
“What Jamaica faces today is the recurring story of vulnerability experienced by Small Island Developing States across the Caribbean. One external shock can undo years of progress. The global community must recognize that resilience requires sustained partnership.”- Prime Minister Holness
Prime Minister Dr. The Most Honourable Andrew Holness today reaffirmed Jamaica’s commitment to advancing an inclusive, sustainable, and resilient model of economic growth, while urging global leaders to strengthen financial and development frameworks to protect vulnerable economies.
Delivering remarks during Session One of the High-Level Dialogue on Inclusive and Sustainable Economic Growth, held under the theme “Leaving No One Behind: Building Our Economies, The Role of Trade, Financing for Development and the Debt Burden,” Prime Minister Holness outlined both Jamaica’s progress and the harsh realities that Small Island Developing States continue to confront.
The Prime Minister emphasized that Jamaica’s national development story is rooted in social partnership, long-term vision, and historic sacrifice. He noted that over the last decade, Jamaica has transformed its economy through disciplined macrofiscal reforms, responsible debt management, institutional strengthening, and targeted initiatives designed to stimulate growth. These reforms the Prime Minister says, have significantly reduced the national debt-to-GDP ratio, lowered unemployment and poverty levels, stabilized the foreign exchange market, contained inflation, and rebuilt international reserves.
Prime Minister Holness says Jamaica now stands at a pivotal moment. The government’s priority is to translate the hard-won gains of economic reform into sustained investments in the Jamaican people. This shift is both a sound economic policy and a moral imperative that aligns with Jamaica’s long-term vision for inclusive development.
However, the Prime Minister expressed that external shocks continue to threaten the stability of small states, highlighting the devastating impact of Hurricane Melissa, which impacted several parishes and will significantly disrupt Jamaica’s development trajectory. The Prime Minister stressed that the storm’s long-term economic impact will place new pressure on Jamaica’s debt outlook and complicate the path to recovery.
“What Jamaica faces today is the recurring story of vulnerability experienced by Small Island Developing States across the Caribbean,” he stated. “One external shock can undo years of progress. The global community must recognize that resilience requires sustained partnership.”
Prime Minister Holness called on the G20 and other global partners to strengthen development financing mechanisms tailored to the realities of climate-vulnerable nations. He acknowledged the G20’s commitment in 2021 to recycle Special Drawing Rights, which supported the creation of the International Monetary Fund Resilience and Sustainability Trust. The Prime Minister urged the continuation and expansion of this facility, noting its provision of relatively low-cost financing with longer maturities that are essential for countries navigating climate threats.
Calling for innovation in development finance, he encouraged the expansion of flexible and forward-looking instruments, including thematic bonds that support climate adaptation, blended finance structures, and risk insurance solutions designed to safeguard vulnerable economies while enabling sustainable development.
The Prime Minister further urged the G20 to advance a more equitable, rules-based global trading framework that enhances predictability for small economies. This vision must include:
- Wider access to targeted financing and risk insurance instruments suited to the needs of Small Island Developing States.
- Stronger support for technological upgrading and enhanced productive capacity across developing economies.
- The integration of multidimensional vulnerability indices into eligibility criteria and financing terms for international financial institutions and climate funding mechanisms, enabling countries to pursue resilience without jeopardizing fiscal stability.
- The establishment of a dedicated Loss and Damage financing window governed by predictable, rules-based triggers that ensure timely support following climate disasters.
- The advancement of a Global Skills and Trade Compact for Small Island Developing States to strengthen human capital, competitiveness, and inclusive economic growth.
Prime Minister Holness emphasized that these reforms would allow global trade and financial systems to function as engines of growth and as platforms for shared prosperity and long-term resilience. He reiterated Jamaica’s unwavering commitment to global cooperation and to building an inclusive development model that leaves no nation behind.