By Alison Kentish
CASTRIES, Saint Lucia, Aug 5 2025 – The beauty of the majestic Piton mountains, vibrant culture, dazzling beaches and lush landscapes of Saint Lucia are invaluable assets. The country also takes pride in having two Nobel laureates, which is remarkable for a nation with a population of over 180,000.

However, as is true for many other small island developing states (SIDS) in the Caribbean, the picture of economic stability is not as rosy.

These countries also face a complex web of challenges that include intensifying climate impacts, economic volatility, external shocks, and the vagaries of global markets. These challenges exacerbate the difficulties of finding ways to finance much-needed sustainable development projects and resilience-building.

In 2020, the country’s public debt-to-GDP ratio was over 90 percent, due in part to the deleterious effects of the coronavirus pandemic, and by 2024, this ratio was reduced to 74.5 percent. This dramatic reduction has freed up funds, which can now be invested in projects that spur growth and enrich the lives of Saint Lucians.

Strong recovery is on the horizon

For Saint Lucia, prudent debt management is proving to be a powerful catalyst for growth and shared prosperity. The island’s experience is demonstrating how tailored reforms, technology adoption and capacity building can reduce their debt burden and enable sustainable management of their public finances.

The government is taking even bolder steps for fiscal stability, with technical support from the Commonwealth Secretariat.

In March 2024, the Commonwealth Secretariat and the Ministry of Finance collaborated to develop a reform plan for the country, which started with a rigorous and comprehensive review of the public borrowing framework. Saint Lucia is now implementing this framework, which has recommended targeted and practical interventions.

Vera John-Emmanuel, Deputy Director of Finance in the Debt and Investment Management Unit in Saint Lucia’s Ministry of Finance, said, “The assessment helped pinpoint systemic strengths and weaknesses ranging from legislative gaps to coordination issues between debt management functions.

Modernising for sustainable growth

A significant outcome of the technical assistance provided by the Commonwealth team was the review of Saint Lucia’s Public Debt Management Act, which has now been passed. The revised legislation now provides a stronger legal framework for debt operations and has laid the groundwork for publishing a formal debt management strategy and annual debt reports, enhancing transparency and accountability.

Technology has also played a pivotal role in modernising Saint Lucia’s debt management practices with the adoption of the Commonwealth Meridian system. Launched in 2019, the Commonwealth Meridian debt management system is currently being used by 43 countries around the world.

John-Emmanuel said, “Meridian allows for real-time tracking of borrowing, automated reporting, and better analysis of liabilities. These upgrades have helped integrate technology into the core of Saint Lucia’s debt operations, improving both strategic planning and investor communications.”

Through technical workshops, mentoring, and regional training sessions, Saint Lucia’s debt management team has grown in both skill and confidence.

“The ongoing support has empowered our staff members to apply best practices and promote transparency,” the Deputy Director observed. “We’ve become more proactive and capable in managing our debt portfolio.”

Leveraging best practices from the Commonwealth

To mark 40 years of debt management support for member countries, this year is marked as the Commonwealth Year of Resilient, Innovative and Sustainable Debt. Initiatives, which will continue into 2026, will include sharing experiences and enhancing technical and policy solutions and support that can help governments with long-term public debt management, which will contribute to fiscal sustainability.

Dr Ruth Kattumuri, the Commonwealth Secretariat’s Senior Director of the Economic Development, Trade and Investment Directorate, noted, “The challenges for small and vulnerable states in the Commonwealth are multi-faceted. They face existential threats from frequent and extreme weather events, due to climate change, as well as economic shocks—both of which impede progress. Small island developing states also have limited potential to diversify their economies. So, maintaining a sustainable level of debt is critically important.”

Kattumuri added, “For countries like Saint Lucia, being able to tap into the experience and the knowledge base of the Secretariat means leveraging best practices from our 33 small states. We are also able to provide tailored technical assistance and capacity building to help transform public finance management, based on our long experience of supporting small states.”

Access to affordable finance is limited for Saint Lucia, which is classified as an upper-middle-income country, as are many other small island developing states (SIDS) in the Caribbean. For these countries, higher interest rates and limited funding options mean debt reform is not optional – it is essential.

Also critically important is the need to modernise governance practices in line with international standards.

These reforms have not gone unnoticed by the international financial community. Improved transparency and consistent reporting have boosted confidence among lenders and investors, enabling Saint Lucia access to concessional financing to fuel their sustainable and resilient development.

Strong partnerships for Caribbean growth

Saint Lucia’s story is not unique. Other Caribbean countries, such as The Bahamas, are also advancing sustainable debt management practices in the region. Since 2021, The Bahamas has partnered with the Commonwealth Secretariat to strengthen its public debt management framework and develop a government bond market, a project that has been supported by the India–UN Development Partnership Fund.

The experience of these Caribbean countries demonstrates that, with the right combination of thoughtful reforms, cooperation and prudent borrowing, even nations facing unique fiscal, geographic and environmental vulnerabilities can successfully manage their debt.

IPS UN Bureau Report

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By Joyce Chimbi
AWAZA, Turkmenistan, Aug 5 2025 – Heads of State, ministers, investors and grassroots leaders are gathered in Awaza on Turkmenistan’s Caspian coast for a once-in-a-decade UN conference aimed at rewiring the global system in support of 32 landlocked developing countries whose economies are often ‘locked out’ of opportunity due to their lack of access to the sea.

Geography has long dictated the destiny of landlocked nations. Trade costs are up to 74 percent higher than the global average. It can take twice as long to move goods across borders compared to coastal countries. As a result, landlocked nations are left with just 1.2 percent of world trade and are at great risk of being left furthest behind amid global economic shifts.

Speaking during the opening plenary and in the context of implementing the Sustainable Development Goals (SDGs), President of Turkmenistan Serdar Berdimuhamedow stated that his country believes “in the need to accelerate the process of ensuring transport connectivity, as well as to bring fresh ideas and momentum to this process.”

“In connection with this, last year at the World Government Summit in Dubai, Turkmenistan proposed creating a new partnership format, namely a global atlas of sustainable transport connectivity. I invite all foreign participants to carefully consider this initiative.”

The Third UN Conference on Landlocked Developing Countries, or LLDC3, is pushing for freer transit, smarter trade corridors, stronger economic resilience, and fresh financing to boost development prospects for the estimated 600 million people living in those countries.

The UN Secretary-General António Guterres stressed that the conference is centered on reaffirming a fundamental truth: that “geography should never define destiny.”

“Yet,” Guterres continued, “For the 32 landlocked developing countries across Africa, Asia, Europe, and South America, geography too often limits development opportunities and entrenches inequality.”

Rabab Fatima, Under-Secretary-General and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, and Secretary-General of the Third United Nations Conference on Landlocked Developing Countries, said, “For too long, LLDCs have been defined by the barriers of geography, remoteness, inaccessibility, and the fact that they do not have a sea. But that is only part of the story.”

She stressed that LLDCs may be landlocked, but they are not opportunity locked, as they are rich in resources, resilience, and ambition. These countries seek to lean into these resources and strong partnerships to counter challenges such as an infrastructure financing shortfall of over USD 500 billion.

For these countries, goods take 42 days to enter and 37 days to exit their borders. Paved road density stands at just 12 percent of the global average. Internet access is only 39 percent. To address these constraints, the Awaza Programme of Action proposes a new facility for financing infrastructure investments. This new initiative aims to mobilize capital in large quantities to bridge the gaps and construct roads.

Meanwhile, as these daunting challenges prevail, Guterres said debt burdens are rising to dangerous and unsustainable levels. And one-third of LLDCs are grappling with vulnerability, insecurity, or conflict. Despite representing 7 percent of the world’s population, LLDCs account for just over one percent of the global economy and trade—a stark example of deep inequalities that perpetuate marginalization.

Guterres emphasized that these inequalities are not inevitable. They are the result of an unfair global economic and financial architecture unfit for the realities of today’s interconnected world, compounded by systemic neglect, structural barriers, and—in many cases—the legacy of a colonial past.”

“Recent shocks—from the COVID-19 pandemic to climate disasters, supply chain disruptions, conflicts and geopolitical tensions—have deepened the divide, pushing many LLDCs further away from achieving the SDGs.”

Further stressing that the conference is not about obstacles but solutions that include launching a new decade of ambition—through the Awaza Programme of Action and its deliverables—and fully unlocking the development potential of landlocked developing countries.

Fatima said the Awaza Programme of Action is a bold and ambitious blueprint to transform the development landscape for the 32 landlocked developing countries for the next decade. The theme of the conference, ’Driving Progress Through Partnerships,’ captures a collective resolve to unlock that potential. It underscores the new era of collaboration where LLDCs are not seen as isolated or constrained but as fully integrated.

Emphasizing that the Awaza Programme of Action provides “the tools to unlock the full potential of LLDCs and turn their structural challenges into transformative opportunities. The implementation of the Programme of Action has begun. We arrive in Awaza with momentum on our side. We have put together a UN system-wide development and monitoring framework with clear milestones and outcomes, comprising over 320 complete projects, programs, and activities.”

“Over the course of the week, we will see here the launch of many new partnerships and initiatives that will bring fresh momentum to its implementation. As we take this process forward, allow me to highlight three strategic priorities that will guide our work in Awaza. First, bridging the infrastructure and connectivity gap remains our top priority,” she said.

Heads of state and governments, including the presidents of the Republic of Uzbekistan, the Republic of Armenia, Tajikistan, the Republic of Kazakhstan, and His Majesty King Mswati III from the Kingdom of Eswatini, stressed the significance of the conference for the group of landlocked developing countries in terms of identifying priority areas for further efforts with a focus on addressing modern challenges the international community is facing.

Mswati III said the conference reaffirms a shared commitment to having the structural barriers that hinder LLDCs from participating in the global economy, offering a platform to chart a path of resilience, innovation and inclusive growth. The leaders also shared many of the successes they have achieved amidst daunting challenges.

“To build resilience and ensure sustainable growth, Eswatini is diversifying beyond traditional sectors. We are promoting investment in agroprocessing, tourism, renewable energy, ICT, creativity, industries and private enterprise. This strategy broadens our economic base, creates jobs and supports inclusive development, aligning with our national priorities for 2030 and 2063,” he said.

Shavkat Mirziyoyev, President of the Republic of Uzbekistan, said that his country was “demonstrating strong momentum towards greater openness and transparency in logistics. Complex measures are being implemented to facilitate the digitalization of trade and transport processes. Structural transport and logistics spaces are the basis for dynamic transport implementation.”

Mirziyoyev stated that today, a single transport and logistics space is being established in the region. Comprehensive programs and projects are being implemented to transform Central Asia into a fully-fledged transit hub between East and West and North and South. Recently, mutual trade volumes have grown 4.5-fold, investments have doubled, and the number of joint ventures has increased 5-fold.

“This year, jointly with our partners, we have started construction of the China-Kyrgyzstan-Uzbekistan railway. Freight traffic on the Uzbekistan-Turkmenistan-Iran-Turkey transport corridor has increased significantly. In today’s world, it is crucial to have concrete, feasible, and institutionally supported solutions to overcome common threats and challenges,” he stated.

Fatima, the Secretary-General of the Conference, said the challenges are many, varied and complex, requiring investing in robust implementation tools and partnerships at all levels.

“Our mapping confirms that every target adopted here in Awaza advances inclusive, resilient and sustainable development. But policy alignment alone is not enough. We need a whole-of-society approach,” she expounded.

“This Conference marks a turning point in that regard. For the first time, LLDC3 features dedicated platforms for civil society, the private sector, youth, women leaders, parliamentarians, and South-South partners – each playing a critical role in making the APOA people-centered and responsive.”

Overall, she urged the global community to seize the present moment—with ambition, unity, and purpose—to chart a new path for the LLDCs: one of prosperity, resilience, and full global integration. She stressed that the true legacy of the ongoing conference will not be measured by declarations, but by the real and lasting change that is delivered on the ground.

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