The Alliance of Small Island States (AOSIS) has called for revision of eligibility criteria for concessional financing. Most Small Island Developing States (SIDS) do not fit into the traditional development models, and remain trapped in the middle-income trap, Minister of Foreign Affairs Dr. Mohamed Asim highlighted speaking for AOSIS.
Foreign Minister Asim noted SIDS are also seeing reversal in development gains due to external shocks, and environmental degradation caused by climate change. As countries that have structural vulnerabilities, there is a need to revisit the idea of gross income levels as sole indicators of development assistance, said the Maldivian Foreign Minister.
Furthermore, Minister Asim welcomed the third United Nations Economic and Social Council (ECOSOC) Forum on Financing for Development follow-up and highlighted several important issues for SIDS, such as high debt burdens, and decline in correspondent banking relationships. The ECOSOC Forum on Financing for Development is being held from April 23 to 26 in New York. Minister Asim is taking part in the Ministerial Segment of the Forum. The Maldives is serving its fourth year as Chair of AOSIS.