Growth and Resilience Dialogue 15/02/2018

The Importance of Resilience Building in SIDS

The presentation shows that small island developing states (SIDS) tend to be highly exposed to external economic shocks because of their inherent characteristics, mostly associated with a high degree of trade openness. The small domestic market of SIDS forces them to rely heavily on exports and their limited natural resources endowments results in high dependence on imports. Some small island states are also highly prone to natural disasters, exacerbating their economic vulnerability, SIDS face additional economic disadvantages associated with limited ability to enjoy the benefits of economies of scale. They also tend to face high international transport costs and uncertainties relating to the delivery of industrial supplies. In addition, a number of small island states are archipelagos, made up of dispersed islands, leading to administrative difficulties.

1. Introduction