Malta to host Small States Network for Economic Development

The Government's proposal for Malta to host a Small States Network for Economic Development has won the strong endorsement of the Commonwealth Finance Ministers' Meeting in Colombo, Sri Lanka last week.

The meeting's final communiqué issued on Thursday affirmed that "Ministers welcomed and supported the generous proposal of the Government of Malta to host a Small States Network for Economic Development (SSNED). They looked forward to the proposal receiving the endorsement of the World Bank's Small States Forum. In this regard, they noted that the network should complement and reinforce ongoing work on small states."

Twenty per cent of the world's nations are small states, while 32 of the Commonwealth's 53 members have populations of under 1.5 million.

The 41-nation World Bank Forum, which already welcomed Malta's proposal for this Network last year, convenes tomorrow at the annual meetings of the International Monetary Fund and the World Bank in Singapore - which bring together the world's finance ministers and central bankers. The Forum's agenda indicates that "participants would seek to refine the scope of such a network and to set its agenda for the coming year". A Forum background document states that the SSNED would be under the joint auspices of the Commonwealth Secretariat and the World Bank.

The CHOGM 2005 Final Communiqué issued in Malta on November 27 last year reaffirmed the Commonwealth Heads of Government commitment to small states, recognising their particular challenges and vulnerabilities, with more detailed support declared under the accompanying Gozo Statement on Vulnerable Small States.

The original SSNED proposal was drafted in 2005 by Professor Lino Briguglio, director of the Islands and Small States Institute of the University of Malta. Two meetings held earlier this year in Valletta between representatives of the World Bank, the Malta Ministry of Finance and the Central Bank of Malta agreed that there was potential demand for the proposed Network's services. Malta offered to play a leadership role in collaboration with interested small states and host the network's permanent secretariat.

Key activities of the proposed network would include acting as a clearing house for the exchange of development good practices and building an inventory of experts. Twinning arrangements would permit experts from successful small states to share their expertise to help other small states in their development projects, and to promote competitiveness and resilience-building.

The proposal before tomorrow's Forum in Singapore also states that "Malta is an example of a small state that has been successful in development, in participating in regional integration, and in networking of expertise and technology. Malta is also at the forefront of promoting small states issues in academic circles, and currently serves as the Chair of the Commonwealth."

The Parliamentary Secretary at the Ministry of Finance, Tonio Fenech, was scheduled to represent Malta at the finance ministers' meeting in Sri Lanka and then the IMF/World Bank. However, The Sunday Times was subsequently informed that due to time constraints related to the 2007 Budget preparation, Dr Joseph Bugeja, director of International Economic Relations in the Ministry's Economic Policy Division, would represent Malta at the Sri Lanka conference, and that Alfred Camilleri, permanent secretary at the Ministry, would attend the IMF/World Bank. Central Bank Governor Michael Bonello is also in Singapore.