Seventy-Fifth Session of the UN General Assembly
Second Committee Agenda Item 17
Macroeconomic Policy Questions
Mr. Chair,
Every decision and policy on economic or financial issues impacts the lives of individuals, families and the well-being of society as a whole. All such decisions and policies, for that reason, must be considered in a much broader light than only immediate financial gain or success. The work of the United Nations and, in particular, of this Committee on macroeconomic policy questions should, therefore, ponder carefully the ethical implications, to achieve economic prosperity for all in order to allow every person to thrive and for countries to live in peace and stability. My Delegation offers the following thoughts on the agenda item under discussion.
Financial inclusion and sustainable development more broadly has been gravely affected by the COVID-19 pandemic. Throughout the world, it has had a devastating impact on the economy, on employment, on sustainable production, on international and national commerce and trade. The words of the Secretary-General’s note are sobering: “The economic and social disruptions caused by COVID-19 brought about an unprecedented collapse of international trade in the first half of 2020.”[1]
From States to families and individuals, almost no one has escaped the economic hardship due to the consequences of the virus and these will stay with us for years to come. Although the pandemic has affected us all, the impact on some people and some countries are much more notable, both in the short and long term. Developing countries, for example, are being hit by a triple economic shock of collapsing export demand, falling commodity prices and unprecedented capital flight, while also having to manage the pandemic with often inadequate health systems. In order to overcome this global economic recession, we must work together to ensure that “the recovery packages being developed and deployed at global, regional and national levels” are “regeneration packages” [2] serving the common good.
Two sectors should be given particular attention in the recovery efforts. The first is micro, small and medium businesses. To revive an economy sinking into a deep recession, it is essential that funding reaches the large number of medium and small business enterprises that comprise the backbone of economies in both developed and developing countries. The second concerns workers in ‘informal’ employment. Men and women are being laid off from jobs in construction, catering and hospitality, domestic service, retail and part-time or seasonal occupations, and are no longer able to meet rent payments or put food on the table. Many of these workers are migrants, without proper documentation, and unable to file for benefits. They turn to charitable organizations and religious institutions for survival while living on the peripheries of society. We have a particular responsibility to attend to their daily needs.
There is extensive evidence that developing States, due to the demands imposed on them by debt servicing and the economic impact of the pandemic, are obliged to divert scarce national resources from fundamental programs of education, health and infrastructure to debt payments[3]. In the long-term, such debt-related financial obligations and the choices they necessitate undermine integral development, weaken healthcare and education systems, as well as reduce the capacity of States to create the conditions for the realization of fundamental human rights. In these circumstances, the rights to education, health, adequate housing, and work are placed under threat or violated, and millions face poorer and extreme living conditions. External debt sustainability and development unites social and financial justice with integral human development. In light of this, the Holy See would like to encourage the international community to address the growing economic imbalances among States by way of debt restructuring and ultimately the “cancellation of the debt of the most vulnerable countries, in recognition of the severe impacts of the medical, social and economic crises they face as a result of COVID-19.”[4]
While tackling the economic impact of the pandemic, both for countries and individuals, advancing international cooperation to combat illicit financial flows (IFFs) must remain high on our common agenda. IFFs constitute a serious challenge to development because, by diverting resources from public spending and by cutting the capital available for private investment, they deprive countries of the desperately needed resources to provide public services, fund poverty-reduction programs and improve infrastructure. Illegal flows also encourage criminal activity and undermine the rule of law and political stability. Their widespread prevalence indicates, in fact, the presence of transnational crime, corruption, money laundering, tax evasion, weak institutions and lack of accountability.
Macroeconomic policy is not only about numbers, as we see readily in the faces of migrant workers left without jobs and needing to decide between an evening meal or sending remittances to their families as well as in the dilemma of national governments having to choose between anti-corruption efforts, vocational training or COVID relief efforts. The Holy See encourages this Committee to find ways to stress the broader and ethical implications of economic activity in the years to come and to the need to transform the economy to be genuinely at the service of the human person[5].
Thank you, Mr. Chair.
[1] A/75/225.
[2] Pope Francis, Message for the World Day of Prayer for the Care of Creation, 1 September 2020.
[3] Cf. the Secretary General’s report A/75/268.
[4] Pope Francis, Message for the World Day of Prayer for the Care of Creation, 1 September 2020.
[5] Cf. Pope Francis, pre-recorded Message during the General Debate of the Seventy-Fifth Session of the United Nations General Assembly, 25 September 2020.