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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