Commonwealth Finance Ministers have met to set out ways to tackle the global economic uncertainty amid trade tariffs, inflationary pressures, debt vulnerabilities, and geopolitical fragmentation.
The annual Commonwealth Finance Ministers Meeting (CFMM) is a vital platform for constructive and transparent dialogue between Commonwealth member countries on global and domestic economic issues. The meeting comes at a crucial moment as countries face growing instability.
Malta’s Minister of Finance, Hon Clyde Caruana, chaired this year’s CFMM, which was held during the annual meetings of the International Monetary Fund and World Bank Group in Washington, DC.
Building economic resilience
During the meeting, finance ministers and senior government officials clearly articulated the challenges facing their country but were encouraged by the examples of best practice shared by fellow ministers. One benefit of being a member of the Commonwealth is the ability to learn from peers and tap into the experience of other countries at varying stages of development.
A crucial forum for economic dialogue
CFMM provides a unique forum for Commonwealth states where developed, small, and other vulnerable countries can collaborate and formulate their shared priorities and goals for economic growth. These discussions further enable substantive engagement in other international forums, including with G7 and G20 members.
Addressing the ministers and senior government officials, the Commonwealth Secretary-General, Hon Shirley Botchwey, observed that they were convening at a moment when the global economy is “being tested in a way we have not seen in contemporary times.” She warned that, for many members – particularly small states and least developed countries - the headwinds threaten to “erase hard-won progress and constrain future opportunity.”
In addition, she praised the innovative efforts of member countries to build capacity and enhance economic resilience. The Secretary-General said:
“We have seen the ingenuity of our members in pioneering new tools — from blue bonds for ocean conservation, to catastrophe bonds for disaster resilience, to our Commonwealth Meridian system, now used in 41 countries to strengthen debt management. We have also seen the potential of Commonwealth advocacy in advancing fairer financing, from the Bridgetown Initiative to the recognition of multidimensional vulnerability in debt and finance discussions."
“But our task is larger than any single instrument or initiative. It is to build a global financial architecture that is inclusive, responsive, and structured to ensure shared prosperity. One that recognises vulnerability not only in terms of income, but in terms of exposure to shocks and stalled growth. One that enables governments to invest in their people and in climate resilience without being trapped in cycles of unsustainable debt.”
Read the Secretary-General’s speech
The Commonwealth advantage
The Secretary-General also spoke of the unique advantage that Commonwealth countries have, which will enable them to weather the ongoing storm, noting that intra-Commonwealth trade is cheaper and is increasing despite global uncertainty.
Going forward, finance ministers agreed to:
- Establish a Commonwealth Financial Resilience Hub as a centre for coordinated research, data analysis, and risk monitoring.
- Create a Technical Assistance Fund to support peer-to-peer knowledge sharing and capacity building to promote mutual accountability, knowledge exchange, and collaborative problem-solving.
- Commit to accelerating transformation through the wider adoption of AI and digital infrastructure, including the integration of the Commonwealth Meridian debt management platform into national financial systems.
- Enhance technical support for enabling national fiscal sustainability, through domestic resource mobilisation and economic diversification in such areas as tourism, mining, agriculture, and diaspora investments.
In his speech, CFMM’s Chair, Hon Clyde Caruana, said:
“Honourable Ministers, at a time when the spirit of multilateralism is being tested by growing geopolitical divides and shifting international priorities, the Commonwealth must stand firm in its conviction that only through dialogue and cooperation can we address the challenges we face."
“The Secretary-General reminded us that resilience will not emerge by default. It must be built. I would add — it must also be delivered."
A united Commonwealth can lead on equitable global finance
The CFMM Chair emphasised Malta’s conviction that a diversified and united Commonwealth can be a leader in shaping a global financial system that is more equitable, more inclusive, and more sustainable.
