INTERVENTION ON BEHALF OF THE ALLIANCE OF SMALL ISLAND STATES
(AOSIS)

Multi-Stakeholder Round Table 6: Reforming the international financial architecture and
addressing systemic issues

3 July 2025

Thank you Co-Chairs,
I have the honor to deliver these remarks on behalf of the Alliance of Small Island States
(AOSIS).

Small Island Developing States remain on the frontline of overlapping global crises, climate
change, economic shocks, and geopolitical disruptions. Yet, the international financial system
continues to operate on assumptions that do not reflect our lived realities.
To put it simply, the current system was not built for us.

The Compromiso de Sevilla rightly calls for urgent reform. However, its commitments is a floor,
not the ceiling.

In this regard, we reiterate our long-standing call to move beyond income-based eligibility
criteria. Income per capita tells you nothing about a country’s exposure to climate disasters,
narrow economic base, or capacity to absorb external shocks. This is why AOSIS supports
the use of the Multidimensional Vulnerability Index to guide access to finance and
development support more fairly.

Second, finance must also be sufficient, predictable and accessible. Our countries require
scaled-up, grant-based support. Financing windows across the international system must be
tailored to the scale and urgency of SIDS, with simplified procedures for SIDS.

Third, we need a real seat at the table. Voting shares matter, but so does meaningful
participation in decision-making, governance, and crisis response. Our voices have to shape
the system in a meaningful way, through enhanced representation at all levels of the system,
including management positions.

Lastly, we require a more nuanced approach to sovereign credit ratings. The current regime
is expensive, biased towards wealthier countries, and does not consider our unique
vulnerabilities. Without ratings, borrowing costs for SIDS are high, making it harder to invest
in resilience. And when crises hit, those with ratings hesitate to seek debt relief for fear of
being downgraded.

Indeed, the current international financial architecture was not built for us; but we are ready
to help build one that serves all.

Thank you.