May I first congratulate Mr. John Ashe on his election to the presidency at the current session. I am sure that his wisdom and experience will guide our deliberations on the many challenges that the world faces today. Also, allow me to commend His Excellency Mr. Vuk Jeremi. for his excellent leadership during the sixty-seventh session. The President knows better than most the unique combination of challenges faced by small island developing States. We are being battered from all sides, both literally and figuratively. Over the past decade, we have faced a flood of crises with a genesis far from our shores that have stretched our capacity to protect and improve the health and prosperity of our people. The near collapse of the global financial system and spikes in food and energy prices have caused enormous difficulties for our small and vulnerable economy. A severe drought caused additional hardship and foreshadowed the much more difficult future we will face in a warming world. At the same time, the flow of official development assistance and climate financing have begun to stagnate. Thankfully, we are presented with an unprecedented opportunity over the next few years to transform how the international system supports sustainable development. We will be continuing work on a number of important processes over the next year., They include the crafting of sustainable development goals and the post-2015 development agenda, the work of the High- level Political Forum on Sustainable Development and — of particular importance to my country — the proceedings of the third Global Conference on the Sustainable Development of Small Island Developing States. In addition, we must make rapid progress towards a new climate-change agreement in 2015, which will obviously have enormous implications for the sustainable development prospects of small islands. We must work in a coordinated fashion so that those processes are mutually reinforcing and deliver concrete results, rather than produce the usual rhetoric. It will be a challenge, but under the President’s skilled leadership, I am confident we can succeed. However, I fear we will come up short of our ambitions for transformational change if we shy away from making fundamental reforms in the way the global economy works. We began a promising conversation on the matter back in 2008 when the financial crisis was still fresh in our minds, but as stock prices have rebounded, our attention has wandered. Let us not forget that most of the problems that caused the previous crisis have not been fixed. Those same problems also undermine sustainable development in many countries and communities around the world. In 2009, the Commission of Experts on Reforms of the International Monetary and Financial System submitted a report (A/63/838) to this body in which it indicated that finance, which should be the servant of the economy, had been promoted to be its master. The rules of economic governance had been increasingly written to serve the interests of a shrinking few as they pursued risky ventures — ventures that often played havoc with people’s lives and livelihoods. We are very familiar with some of the results of that system: stock-market bubbles, currency bubbles and property bubbles. When they burst, they leave behind enormous hardship. Even worse, investments in risky activities of that type compete with more productive investments in basic infrastructure, renewable energy, health services and the like — investments that contribute to true sustainable development. Our reckless inaction is demonstrated by the inflation of the latest bubble: the carbon bubble. At least two thirds of known fossil fuel reserves cannot be burned if we are to limit the rise in global temperatures to below two degrees. The cost of renewable energy has fallen considerably in the past decade. By any measure, fossil fuels are a very bad long-term investment, yet that has not prevented trillions of dollars in private investment and fossil fuel subsidies from pouring into new infrastructure for the exploration, extraction and consumption of fossil fuels. The size of the recent housing bubble has been estimated at $4 trillion. The carbon bubble could be more than five times larger. That should be an issue of serious international concern. How do we allow trillions of dollars to flow into destructive activities while the most basic needs of millions go unmet? The reasons are complicated, but make no mistake that this is a choice. It is a choice made by international policymakers to prioritize profits over people. As the President said earlier this week, “it is time for us to concede that our efforts at reforming and revitalizing our Organization need new impetus” (A/68/PV.5, p. 5). Reclaiming the global economic system and putting it to work for the good of the people will be a long and difficult process, but it may be the only way to reach our sustainable development goals. The Commission’s 2009 report made many good recommendations for our consideration, and the first step must be to bring more transparency and democratic oversight to economic governance. The most important decisions are not made in universal bodies, such as the General Assembly, but rather far away from the small, the isolated and the vulnerable. Is it any surprise that the system has failed to meet our needs?To address that problem, we should start by relaunching the discussion on global economic governance here in the General Assembly, as well as by reforming the governance of the Bretton Woods institutions, so that they are more inclusive. The systemic barriers to sustainable development are formidable, but that has not stopped Nauru from seeking practical solutions that can be readily implemented in the short term. An example is the recently completed Nauru case study on climate change financing. The study identified a number of steps my Government and our development partners can take to make official development assistance more effective. For example, project-based financing was found to be markedly less effective than more flexible modalities, such as general budgetary support. Another key finding concerned the need for domestic institution-building. Accessing many sources of multilateral finance is, quite frankly, beyond the capacity of my Government, and the traditional strategy of conducting regional workshops has simply not worked. We hope to collaborate with development partners to design sustained programmes with a significant in-country component, so that there is a durable transfer of the skills necessary to benefit from international support mechanisms. Nauru has also made its best efforts to contribute at the international level. We have the tremendous honour of presiding over the Alliance of Small Island States (AOSlS), a group that has been a leading advocate for climate action for more than two decades. The upcoming nineteenth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP-19), to be held in Warsaw, will be important to laying the foundation for an ambitious agreement in 2015. A key priority for the COP-19 will be jump-starting near-term mitigation action through the launch of a process guided by more technical expertise and focused on energy efficiency and renewable energy. AOSIS has proposed a very practical and collaborative approach to rapidly scale up the implementation of policies and the deployment of technologies that not only reduce greenhouse gas emissions but also advance domestic sustainable development priorities. In the view of AOSIS, that technical process can prepare the ground for a much more ambitious post-2020 agreement. The proposal in no way relieves developed countries of their international obligation to take the lead in addressing climate change. They should be held accountable for fully implementing best practices to reduce their own emissions, while also providing the means for implementing adaptation and mitigation actions in developing countries. The AOSlS proposal indicates the way to accomplish those objectives. Establishing an international mechanism to address loss and damage is also a key priority for AOSlS, as is mobilizing climate financing and making sure the Green Climate Fund is ready to accept donor contributions in 2014. Climate change is the greatest challenge to the sustainable development of small islands. We must come to terms with the fact that, owing to our delay, some grave impacts are now unavoidable. Some will have security implications. Addressing the security implications of climate change remains a key priority for Nauru and the Pacific small island developing States. I would like to reiterate our proposals for moving forward. First, we are calling for the appointment of a special representative on climate and security to help expand our understanding of the security dimensions of climate change. The special representative would regularly report to the General Assembly and the Security Council on emerging climate-related security threats and would facilitate regional cooperation on cross-border issues. Vulnerable developing countries in particular could benefit from a special representative equipped to help them evaluate their security situations and develop action plans to increase the resilience of their institutions. At some point in the future, the special representative could become an invaluable asset in preventive diplomacy efforts and post-conflict situations. Secondly, we are requesting the Secretary-General to lead a joint task force of all the relevant organs and specialized agencies to immediately assess the capacity and resources of the United Nations system to respond to the anticipated security implications of climate change. We have heard in countless forums about the potentially destabilizing effects of climate change, yet we have only the vaguest idea of what an international response to those effects would look like. That needs to change. We must start preparing for the challenges that lie ahead. As the Secretary-General said at the High- level Political Forum on Sustainable Development, “We must strengthen the interface between science and policy”. The world’s attention is now focused on the immense suffering in Syria. On behalf of the people of Nauru, I would like to offer my condolences to the millions of people whose lives have been affected by the Syrian conflict. We are horrified by the scale of human atrocity there. I am compelled to ask: Do we always have to wait for well over 100,000 people to be killed before we can find solutions to restore peace and security? As the President observed, the mandate of this body has limitations, and we cannot issue resolutions that bind countries. The United Nations invests enormous power in the hands of a tiny minority of five, which is not so different from global economic governance being dictated primarily by eight. Nauru is always striving to improve bilateral relations. I would like to express my gratitude to Australia, which has always been an important partner. We look forward to our continued work with the new Government as we continue to collaborate on joint projects that are delivering important benefits in my country. Nauru is gratified to note that, with solid international support and cross-Strait rapprochement, the Republic of China on Taiwan has increased its meaningful participation in United Nations specialized agencies and mechanisms. We continue to encourage the positive interaction between the two sides of the Taiwan Strait in the international arena. Furthermore, I would like to recognize the contributions that Taiwan has made to helping my country make progress towards the Millennium Development Goals. We also express our gratitude to the Governments of New Zealand, the Russian Federation, Japan, the Republic of Korea and India; they are all invaluable partners in our joint effort to bring sustainable development to my island. As the President of the General Assembly aptly described in his opening statement, setting the stage for sustainable development will require introspection, frank discussion and coming to terms with some hard truths about the nature of the challenges we face and the institutions we have at hand to respond. Only by correctly diagnosing the problems and choosing the appropriate tools to begin our work will we be able to reach satisfactory outcomes that benefit us all.