Brussels Rural Development Briefings A series of meetings on ACP-EU development issues

Small Island Economies: Vulnerabilities and Opportunities1

Prepared by Isolina Boto (Head of CTA Brussels Office) and Ronalee Biasca (Young researcher at the CTA Brussels Office) Small Island Economies: from Vulnerabilities to Opportunities

Prepared by Isolina Boto (Head of Briefing no. 27 CTA Brussels Office) and Ronalee Biasca (Young researcher at the CTA Brussels Office)

Small Island 1This Reader is not intended to exhaustively cover the issue of Economies: from the challenges facing ACP Small Vulnerabilities to island economies, but to provide 1 some background information and Opportunities selected information resources, focusing on the implications for rural development. The Reader and most of the resources are available on Brussels, 4th April 2012 http://brusselsbriefings.net Small Island Economies: from Vulnerabilities to Opportunities

Index

1. Context of the Small Islands Development States (SIDS) ...... 4

1.1. SIDS: a diverse group...... 4

1.2. International recognition...... 6

1.3. The definition problem...... 7

2.The vulnerability of SIDS...... 8

2.1. The concept of vulnerability...... 9

2.2. The measurement of vulnerability ...... 9

2.3. Economic vulnerability of SIDS...... 9

2.4. Environmental vulnerability of SIDS...... 11

3. From vulnerability to resilience...... 15

3.1. The need to strengthen resilience...... 15

3.2. Strengthening sustainable economic development ...... 16

3.3. Developing resilience through better understanding of vulnerability...... 17

3.4. New potentialities in growing sectors...... 18

3.5. Financing the development of SIDS...... 20

The way forward...... 21

Selected Resources...... 22

Websites...... 27

Acronyms...... 29

Footnotes...... 33

3 Small Island Economies: from Vulnerabilities to Opportunities

1. Context of the Small Island Developing States

1.1. SIDS: a diverse List of Small island Developing States group ( UN Members) 1 Antigua and Barbuda 20 Federated States of Micronesia Small Island Developing States (SIDS) comprise small islands 2 Bahamas 21 Mauritius and low-lying coastal countries 3 Bahrain 22 Nauru that represent a diverse group in a number respects.2 The United 4 Barbados 23 Palau Nations currently classifies 52 5 Belize 24 Papua New Guinea countries and territories as SIDS. More than 50 million people live in 6 Cape Verde* 25 Samoa* these countries. They are located 7 Comoros* 26 São Tomé and Principe* across the Indian, Pacific and Atlantic Oceans with the highest 8 Cuba 27 Singapore concentration of SIDS in the 9 Dominica 28 St. Kitts and Nevis Caribbean and southwest Pacific3 - forty-three of them are located in the 10 Dominican Republic 29 St. Lucia Caribbean and the Pacific regions. 11 Fiji 30 St. Vincent and the Grenadines The group includes countries that are relatively rich by developing 12 Grenada 31 Seychelles country standards, such as Singapore and Bahamas, but also some of 13 Guinea-Bissau* 32 Solomon Islands* the poorest countries in the world, 14 Guyana 33 Suriname including Comoros, Haiti, Kiribati and Timor-Leste. 15 Haiti* 34 Timor-Lesté* 16 Jamaica 35 Tonga SIDS also face a greater risk of marginalization from the global 17 Kiribati* 36 Trinidad and Tobago economy than many other 18 Maldives* 37 Tuvalu* developing countries as a result of their small size, remoteness from 19 Marshall Islands 38 Vanuatu* large markets, and high economic vulnerability to economic and natural List of Small island Developing States shocks beyond domestic control. (Non-UN Members/Associate Members of the Regional Commissions) With their fragile ecosystems, 1 American Samoa 8 Guam SIDS are also highly vulnerable to domestic pollution factors and 2 Anguilla 9 Montserrat globally-induced phenomena, such 3 Aruba 10 Netherlands Antilles as sea level rise. 4 British Virgin Islands 11 New Calendonia

5 Commonwealth of 12 Niue Northern Marianas

6 Cook Islands 13 Puerto Rico

7 French Polynesia 14 US Virgin Islands

* Also LDCs

4 Small Island Economies: from Vulnerabilities to Opportunities

Major environmental and socio-economic challenges in SIDS

• Productive sectors heavily dependent on their limited natural resource base (e.g., agriculture, forestry, fishing, tourism). • Susceptibility to the vagaries of international trade. • High transportation and communication costs. • Serious vulnerability to extreme climate events and other natural disasters. • Scarce land resources. • Increasing pressures on coastal and marine environments and resources. • Small domestic markets. • Limited ability to develop economies of scale. • High import content (especially of strategic imports such as food and fuel). • Limited economic diversification possibilities. • Limited extent to which domestic competition policy can be applied. • Dependence on a narrow range of export products. • Inability to influence international prices. • Uncertainties of supply due to remoteness or insularity. • Shifting rainfall patterns and cyclones, typhoons and hurricanes. Source : UNEP 2005, UNFCC 2007b

As Figure 1 shows (comparing GDP per capita in the Caribbean and Pacific), GDP per capita ranges from $US 28,000 in Singapore to only $US 369 in the Comoros. Caribbean Pacific

Bahamas 18, 380 Tonga 8,177 Barbados 17,297 Trinidad & Tobago 14,603 Somao 6,170 St Kitts & Nevis 13,307 Fiji Antigua & Barbuda 12,500 6,049 Dominican Rep. 8,217 Vanuata 3,225 Grenada 7,843 Suriname 7,722 Pacific 2,894 Caribbean 7,722 Belize 7,109 PNG 2,563 St. Lucia 6,707

St. Vincent & Grenadines 6,568 Solomon Islands 2,031 Dominica 6,393 Guyana 4,508 Marshall Islands 1,970 Jamaica 4,291 Kiribati Haiti 1,663 1,475 0 5,000 10,000 15,000 20,000 0 2,000 4,000 6,000 8,000 10,000

Source: Adapted from Naudé, McGillivray and Santos-Paulino, eds. Vulnerability in Developing Countries, Chapter 10

5 Small Island Economies: from Vulnerabilities to Opportunities

1.2. International Commission (IOC). There are also development, consumption and sub-regional organizations for similar production. It also highlighted the recognition purposes. implications of globalization and trade liberalization for SIDS in Small Island Developing States The United Nations has been addition to the difficulties being (SIDS)4 were recognized as a distinct assisting and extending cooperation experienced by SIDS in integrating group of developing countries to SIDS in their sustainable into the global economy.10 The UN- facing specific social, economic development efforts through OHRLLS mandate from the General and environmental vulnerabilities the Programme of Action for the Assembly calls upon the Office to at the United Nations Conference Sustainable Development of Small engage in advocacy and mobilization on Environment and Development Island Developing States finalized of international support and (UNCED), also known as the Earth at the Global Conference held in resources for the implementation of Summit, held in Rio de Janeiro, Brazil Barbados in 1994, known also as the Programme of Action for SIDS11. (3-14 June 1992). This recognition the Barbados Programme of Action was made specifically in the context (BPOA). The BPOA highlights the UN recognition of the problems of of Agenda 21 (Chapter 17 G). The vulnerabilities of SIDS and outlines small island developing States United Nations recognizes the 38 their responsibility for their own UN Member States belonging to sustainable development as well as The United Nations has recognized the Alliance of Small Island States the need for regional cooperation the particular problems of Small (AOSIS)5, an ad hoc negotiating and the role of the international Island Developing States (SIDS) body established by SIDS at the community in supporting the since 1994, after UNCTAD had United Nations. AOSIS also includes sustainable development of SIDS.7 advocated the special consideration other island entities that are non- The BPOA recommends that, in of ‘island developing countries’ UN Member States or are not self- order for SIDS to achieve sustained for two decades. It was the first governing or non-independent economic growth and sustainable body to recognize the necessity territories that are members of UN development, it is necessary to of supporting these countries and regional commissions. It should be develop overseas markets for value- bring the international community’s noted that Bahrain is not a member added exports in areas in which they attention to the importance of of AOSIS. are internationally competitive.8 economic vulnerability as a more Prior to the BPOA small islands meaningful criterion for guiding In the Cotonou Agreement signed issues, challenges and vulnerabilities development partners in their in 2000 between the European were marginal to international treatment of SIDS.12 However, the Union and ACP countries, island environmental diplomacy.9 UN never established criteria to countries continue to be mentioned determine an official list of SIDS. and the 26 island ACP countries are This programme was reviewed In this context, UNCTAD uses referred to in Annex VI, Article 4, and revamped at the five-year an unofficial list of 29 SIDS, for including larger island states, such review held at the twenty-second analytical purposes only. as Haiti, the Dominican Republic and special session of the General Madagascar.6 Assembly in 1999, and the ten- The Mauritius Strategy recognizes year review held in Mauritius the seriousness of the disadvantages Three geographical regions have (10-14 January 2005). The latter most SIDS suffer from in the global been identified for the location of outcome is known as the Mauritius economy, and implicitly, the need SIDS, namely, the Caribbean, the Strategy for Implementation of for a range of answers to these Pacific and the Atlantic, Indian the Programme of Action for the problems. Since 1985, the World Ocean, Mediterranean and South Sustainable Development of Small Bank has maintained a ‘small island China Sea (AIMS). Each of these Island Developing States (MSI) which exception’ in its policy of eligibility regions has regional bodies to which further strengthened the social and for IDA concessionary treatment. the respective SIDS may belong for economic dimensions for the BPOA In the WTO, proposals for special purposes of regional cooperation. by placing a more targeted emphasis treatment modalities of interest to These are the Caribbean Community on certain issues, such as culture, SIDS have been considered under (CARICOM), the Pacific Islands health and knowledge management, a “Work Programme on Small Forum (PIF) and the Indian Ocean education for sustainable Economies” since 2002.13 Thus, there

6 Small Island Economies: from Vulnerabilities to Opportunities

has not been a lack of reference to by the Commonwealth Secretariat what category is actually under the vulnerability of SIDS nor has and reflected in the report of the consideration is invariably a reason there been a lack of declaration in Commonwealth Secretariat/World or pretext for decision makers not to favor of SIDS, but there has been Bank Joint Task Force on Small take the issue seriously. an absence of response to the States. recognized problems, and skepticism The absence of a definition of the remains among many development A more recent definition of a ‘small SIDS category has been the most partners about the legitimacy of economy’ relates to trade issues. fundamental reason for which SIDS as a category requiring special It is the ‘share of world trade’, as countries that claimed to fall in attention.14 suggested by Michael Davenport15 that category were not able to who envisaged a threshold of 0.02% gain special treatment on grounds Small island nations are singled out of overall merchandise trade, thereby of ‘small islandness’. Historically, for special mention in the Millennium accepting a group of 42 ‘small and there has been external support Development Goals (MDGs) of the vulnerable States’. While it makes to most SIDS in the framework United Nations. Under Goal 8, the sense, in trade negotiations, to define of international cooperation, development of global partnership smallness through the share of global essentially by virtue of North- for development, Target 14 is said trade, it should be noted that this South arrangements such as those to address the special needs of variable is only weakly correlated maintained by the European Union landlocked countries and small with the population size criterion, to benefit ACP countries, or by the island developing states (through and would generate a different set of United States in favor of specific the Programme of Action for the countries. regions involving island states Sustainable Development of Small (e.g. through the Caribbean Basin Island Developing States). In any case, neither the definition Initiative)16. based on the population criterion nor any other definition of smallness has However, little has been done by 1.3. The definition ever been formally validated by an development partners to translate problem intergovernmental body. the recognition of SIDS-specific issues into genuine SIDS-specific One of the main conceptual Defining ‘smallness’ is, in itself, concessions, although this specificity problems underlying the question problematic, but the interchangeable has been advocated and sought by of the definition of SIDS hinges use of, or loose reference to, terms SIDS. Considering the exceptional on how to define ‘small’. Different such as “small island developing economic disadvantages faced definitions of smallness have been States” (Barbados 1994), “small by most small island developing envisaged in the relevant literature, economies”, “small and vulnerable economies as a result of their with criteria ranging from population economies” (Doha 2001), or permanent handicaps, the notion of to land area, national income, “structurally weak, vulnerable, special treatment by virtue of SIDS or the share of world trade. The and small economies” (São Paulo status is important to genuine SIDS most commonly used criterion, in 2004) gives rise to a great deal in the multilateral trading system recent years, has been a population of confusion. In any particular and in the area of development threshold of 1.5 million, as proposed forum, the lack of clarity about financing.17

7 Small Island Economies: from Vulnerabilities to Opportunities

2. The vulnerability of SIDS

There are many disadvantages that -- heavy dependence on coastal transportation and communication derive from small size, which are and marine resource for their costs.21 magnified by the fact that many livelihood including food security island states are not only small but There has been an ongoing interest are themselves made up of a number -- heavy dependence on tourism in the consequences of country of small islands. Their disadvantages which can be easily impacted size on the socio-economic include: by climate change and natural development of newly emerging disasters developing countries in both the -- a narrow range of resources, academic and policy-making fora.22 which forces undue specialization -- limited land resulting in land This interest emanates from a degradation, which affects waste number of circumstances, including -- excessive dependence on management18 the challenges of independence, international trade and globalization and the need to hence vulnerability to global -- frequently poorly developed promote sustainable development. developments infrastructure (except for major During the early post-independence foreign exchange-earning sectors period the principal focus of -- high population density, which such as tourism)19 attention was on the economic increases the pressure on already viability of small developing states limited resources Many small island developing and their capacity and capability to States are entirely or predominantly survive as sovereign states. In the -- overuse of resources and coastal entities. Due to the small last 15 years after the 1992 Earth premature depletion size, isolation and fragility of Summit in Rio where the international island ecosystems, their renowned community acknowledged in Chapter -- relatively small watersheds and biological diversity is among the 17 of Agenda 21 that small islands threatened supplies of fresh water most threatened in the world. developing states are a special case This requires that in pursuing and important part of the diversity of -- costly public administration development special attention nations, the challenges of sustainable and infrastructure, including must be paid to protecting development have featured high on transportation and the environment and people’s these nations development agenda . communication livelihoods. It also requires the integrated management of resources. The Rio Summit highlighted that -- limited institutional capacities and small islands and low lying coastal domestic markets, which are too Although SIDS vary in their developing states shared structural small to provide significant scale geography, climate, culture and state characteristics that made them economies, while their limited of economic development, they economically, environmentally export volumes, sometimes have several common characteristics and socially vulnerable to shocks from remote locations, lead to that highlight their vulnerability, over which they have little or no high freight costs and reduced particularly relating to sustainable control, placing them at a distinct competitiveness development and climate change.20 disadvantage in the global economic SIDS share a number of socio- system. This recognition led to the -- the tendency to have high economic challenges, such as heavy convening in 1994 of the United degrees of endemism and levels dependence upon the natural Nations Global Conference on of biodiversity, but the relatively resources base (agriculture, forestry, Small Island Developing States small numbers of the various fishing, tourism, mining and light in Bridgetown, Barbados and the species impose high risks of manufacturing), susceptibility to Barbados Programme of Action extinction and create a need for the vagaries of international trade, (BPOA), which outlines a blueprint protection lack of economies of scale, high for action.

8 Small Island Economies: from Vulnerabilities to Opportunities

2.1. The concept of structural circumstances contribute developing states in relation to a vulnerability to the vulnerability of SIDS, which is host of available socioeconomic reflected in the high volatility of the indicators. Faced with these rate of growth of Gross Domestic challenges, he suggests that further The concept of vulnerability Product (GDP). As a consequence of statistical investigation is required to relates to ecological fragility, these characteristics, the economic determine a manageable cluster of proneness to natural disasters growth in many SIDS is often indicators that would provide useful and concentration of exports on unstable and there is uncertainty over benchmarks for decision making a limited range of products and investment and development plans. in SIDS. This is critically important markets. These characteristics were to demonstrate the level of policy stressed,between 1974 and 1994, by ownership in SIDS and the tasks in numerous UNCTAD reports and UN 2.2. The measurement sequencing policy implementation. General Assembly resolutions on of vulnerability island developing countries. The work of Liou and Ding (2002) To measure the vulnerability of SIDS has created a data set working with Generally, SIDS have small the 1998 pioneering work of the 25 key indicators.26 Using cluster populations and limited resources Commonwealth Secretariat24 and the analysis they have underscored a that are already heavily stressed23, World Bank provided a benchmark number of factors that lead to the small domestic markets, a high for important policy analysis. These vulnerability of SIDS and create the concentration on a few export institutions, using mainly economic basis for designing policy. products and a high dependence data, designed an index which on intermediate imports. These attempts to explain the volatility The macro vulnerability of SIDS situations are often further of the rate of economic growth has been an increasing concern for compounded by rigidities in factor by the impacts of external shocks the international community, which markets, which prolongs the on the basis of the concentration has resulted in the design of an cost of adjustment to changing and dependence on exports and economic vulnerability index (EVI), circumstances. Many of these by the effects of natural disasters set up at the United Nations by the countries also face problems expressed in terms of the percentage Committee for Development Policy associated with their isolation which of the affected population. The to assess the structural economic translates into high unit costs of response capacity to external shocks vulnerability resulting from natural or transport, uncertainty of supplies was estimated on the basis of the external shocks faced by countries of necessary goods and services, GDP. Other studies using similar and from their exposure to these high stocks and financial costs. SIDS methodological approaches have shocks.27 However, Thomas has are also characterized by limited concluded that small developing underscored the importance that public and private institutional countries are more vulnerable small developing states do not capacity, few qualified human than larger countries and have confuse the circumstances relating to resources as well as the tendency attempted to outline policy options their vulnerability with those based to be perpetually affected by to ameliorate external shocks.25 on other characteristics. natural hazards which destroy the productive infrastructure and cause Thomas (2004) has indicated loss of human life. This situation is that the measurement of the 2.3. Economic further compounded by the greater vulnerability of SIDS poses a vulnerability of SIDS pressure on the environment and number of complex problems. natural resources, particularly, the Among the most significant are the All SIDS are vulnerable to economic greater use of coastal resources, high classification of small developing shocks and natural hazards to a levels of competition for land use and states and the usefulness of the degree that few other countries water as a result of a greater level concept for decision-making as a or regions are and this is reflected of demographic pressures. These result of the heterogeneity of small in the volatility of SIDS GDP

9 Small Island Economies: from Vulnerabilities to Opportunities

growth. SIDS located in the Pacific to 7.56 and 8.80 for DCs and LDCs systems like beaches, reefs and other region record the lowest average respectively.28 coastal resources that are often over- and by far the most volatile GDP exploited as tourism products.30 With growth. Pacific SIDS growth rates Several SIDS are single commodity regard to the Caribbean, travel and range from 2.0 to 9.1 percent and exporters and rely heavily on export tourism accounts for 14.8 percent of the volatility, as measured by the earnings. This external dependence GDP, 12.9 percent of employment coefficient of variation, is more than increases their vulnerability to and 14.6 percent of total exports, twice that of all developing countries external economic threats and and much higher fractions for some and the SIDS group as a whole. shocks.29 High unit costs of islands.31 Tourism is the life-blood Volatility in GDP growth rates is also producing goods and services and of many Caribbean economies, higher in SIDS located in Africa and high transportation costs result in which will shrink with the estimated the Caribbean, respectively, than in non-competitive prices. impacts of climate change, although all developed countries. Caribbean nations have contributed Their costs of importing and little to the release of greenhouse SIDS rely heavily on trade to drive exporting goods are further gases that drive climate change.32 growth, hence the volatility of increased because of extended Relative to its size, the island their growth. Work carried out periods required for storing their population of the Caribbean is more for WIDER, for instance, shows imports and exports because of the dependent on income from tourism that in the Caribbean the top five infrequency of their shipping and than that of any other part of the export commodities represent air transport. Furthermore, market world. 33 between 70 and 96 per cent of competition is frequently lacking in the regions’ exports. This creates international transport to remote The Pacific has a similar economic economic vulnerability to changes island communities so that monopoly profile with GDP shares of travel and in export demand and commodity charges may apply to such transport. tourism at 11.7 percent, employment prices. Trade flows, expressed as Economies of scale in relation to shares at 12.4 percent, and export the sum of commodity exports the volume of trade often result in shares at 16.9 percent of GDP. and imports relative to GDP, are it being uneconomic for more than However, for both regions ten- far higher in SIDS than in all other one carrier (or a couple at most) to year forecasts (2018) by the World Developing Countries (DCs) and service an international transport Travel and Tourism Council (2008) Least Developed Country (LDCs). route for such small nations. Within suggest declining contributions Commodity exports and imports as these economies themselves, from travel and tourism to GDP and a percentage of GDP in any one year there also tends to be business employment, but not to exports. were no less than 95 and as high concentration in the economic as 141 per cent, and averaged 110 distribution of imports and also in SIDS, which generally are long-haul per cent over the period of 1980 to many of their industries. destinations from key source markets 2007. The equivalent numbers for like North America and Europe, all developing countries were 64, 94 Tourism - a double-edged sword have raised concerns regarding and 78 per cent, respectively. the potential adverse impact of The travel and tourism sector is the prospective climate regulation of More pertinent is volatility in key economic sector for SIDS in the air travel and shipping sectors trade given its implications for terms of earnings and jobs. Indeed, and consumer preferences shifting vulnerability to external shocks. many SIDS are highly dependent in favor of short-haul destinations. Indeed, SIDS trade is more volatile upon revenue gained from tourist Some governments and companies than for other developing countries. arrivals and through tourist-related have also adopted environmentally The coefficient of variation for SIDS activities. Tourism is the largest friendly charges, levies and trade relative to GDP for the period foreign exchange for many SIDS, technologies, some of which have 1980 to 2007 is 10.23, compared focusing primarily on fragile biotic caused the cost of travel and

10 Small Island Economies: from Vulnerabilities to Opportunities

transportation to increase. Such cost bureaucracies. With growing Environmental vulnerability is increases will likely have adverse globalization, the migration and related to the risk of damage to a effects on travel and tourism to remittance component of the MIRAB country’s natural capital. The series SIDS. On the other hand, the cost model has increased in relative of environmental vulnerabilities faced of inaction on climate change could importance for many South Pacific by SIDS includes be even more dismal. According to island countries. As foreign aid a recent study34, in the case of the to these countries is falling, many -- natural hazards (e.g. hurricanes, Caribbean, the cost of inaction would governments have introduced value earthquakes, tsunamis and amount to added taxes (VAT or GST). This volcanic eruptions) provides their government indirectly -- 22 percent of GDP for the with income from remittances from -- internal anthropogenic hazards Caribbean as a whole by 2100 overseas when these are spent by (e.g. deforestation), which over recipients on commodities in these time reduce intrinsic ecosystem -- the costs of inaction will reach an economies. resilience astonishing 75 percent or more of GDP by 2100 in Dominica, -- externally driven, anthropogenic Grenada, Haiti, St. Kitts & Nevis 2.4. Environmental hazards (e.g. transport of toxic and Turks & Caicos vulnerability of waste) SIDS -- the Caribbean’s largest island, -- global climate change, the effects Cuba, faces a nearly 13 percent of which are particularly severe economic hit by mid-century, and SIDS are located among the most on SIDS (UNEP 2005) a 27 percent loss by 2100, unless vulnerable regions in the world in there is swift action to address relation to the intensity, frequency Although SIDS contribute less climate change. and increasing impact of natural than one percent of global GHGs and environmental disasters and, emissions (UNFCCC 2007a), they In addition to export dependency, thus, face disproportionately high already experience adverse effects external vulnerability is accentuated economic social and environmental of climate change, including sea level by the fact that for most households consequences.35 In contrast to rise, tropical cyclones/hurricanes, in SIDS, remittances from abroad is larger countries, a natural disaster droughts, increasing sea surface a very important source of income. occurring in a small island developing temperatures, coral bleaching and While this creates a vulnerability state can lead to a complete other adverse phenomena. towards global downturns, when breakdown of economic processes, remittances decline (as during the extensive environmental damage and The fourth Assessment Report of the recent global financial crisis) it also substantial and extensive disruptions Intergovernmental Panel on Climate acts as a buffer in the case of local in the social fabric of the island Change (IPCC) identified small states hazards – it is often found that states in question. Furthermore, as being the most vulnerable to the remittances to SIDS increase in the a complete inundation of some adverse impacts of climate change38 wake of a natural disaster. islands due to sea level rise is a real and concluded in 2007 that a sea- possibility.36 level rise resulting from a global In the 1980s, Bertram and Watters temperature increase of 4 degrees (1985, 1986) characterized South Economic losses resulting from the Celsius would completely submerge Pacific micro-states as MIRAB negative effects of climate change low-lying island states like Tuvalu, economics, that is, economies relying on agriculture will vary among island Kiribati and the Maldives.39 on overseas migration (MI) which in states, for example Fiji’s costs could turn generates remittances (R) for range from US $23 to 52 million per SIDS are particularly vulnerable their residents and foreign aid (A) year by 2050 and Tarawa, Kiribati 8 – to global climate change, climate used to support their government 16 million.37 variability and sea level rise. As

11 Small Island Economies: from Vulnerabilities to Opportunities

their population, agricultural land 2 754 people dead, 298 926 suffering In the 1990s, for example, the cost of and infrastructure tend to be negative effects, and caused extreme events in the Pacific Island concentrated in the coastal zone, any extensive destruction of property region is estimated to have exceeded rise in sea level will have significant and livelihoods (UNEP 2005). US$1 billion (Bettencourt and and profound effects on their Warrick, 2000). This included the economies and living conditions; In August 2007, Hurricane Dean cost of Cyclones Ofa and Val, which the very survival of certain low- caused 42 fatalities - 39 direct, 3 hit Samoa in 1990/91, causing losses lying countries will be threatened. indirect – and damage of US $3.8 of US$440 million, which was greater 40 Inundation of outlying islands and billion (2007), affecting St. Lucia, than the country’s average annual loss of land above the high-tide mark Martinique Dominica, Puerto Rico, gross domestic product (GDP) in may result in the loss of exclusive Dominican Republic, Haiti, Jamaica, recent years. In Niue, Cyclone Heta is economic rights over extensive areas Cayman Islands, Belize, Mexico, and estimated to have caused an impact and in the destruction of existing some regions in Central America. of about NZ$37.7 million, which is economic infrastructure as well Most of the natural disasters were approximately 25 percent of its GDP as of existing human settlements. climate-related: floods, drought, (McKenzie et al., 2005). In 2006, Global climate change may damage landslides and hurricanes. There has typhoon Cyclone Val hit Samoa in coral reefs, alter the distribution of been a noticeable upward trend in December 1991, the worst storm to zones of upwelling and affect both losses, particularly in the past two hit the island in over 100 years, and subsistence and commercial fisheries decades (Trotz 2004). In 2008, destroyed over half of the coconut production. Furthermore, it may since the 15th August 2008, the palms. The country was devastated affect vegetation and saline intrusion Caribbean region has been affected by a tropical cyclone again in 1998. may adversely affect freshwater successively by the tropical storm However, serious damage from resources. The increased frequency Fay, hurricanes “Gustav”, “Hanna” typhoons is not limited to less and intensity of storm events that and “Ike” that claimed more than developed countries. In August may result from climate change will 350 lives so far, affecting more than 2009, Typhoon Morakot struck also have profound effects on both 2,8 million persons and damaging Taiwan, leaving hundreds dead, and the economies and the environments more than 600,000 houses while many were buried alive or trapped of SIDS.41 assessments are still ongoing. by mudslides and floods. In Cuba, some 500,000 houses Increase in Tropical Cyclone Intensity were damaged of which 63,000 In February 2008, Fiji incurred in result completely destroyed. The excess of FJ$45 million in damages One of the fears of global infrastructure and the agriculture to agriculture (excluding the sugar warming is that it might result in have sustained significant damage. industry), infrastructure, utilities and an increase in the frequency and As a consequence of these impacts, properties as a result of Cyclone intensity of tropical cyclones due the vulnerability throughout the Gene. In addition, the government to the increases in surface sea Caribbean has increased dramatically had to provide FJ$1.7 million worth temperatures.42 In the Caribbean, (OCHA 2008). of food rations.44 Hurricane Ivan devastated Grenada in 2004 (losses amounting to 200 Due to their unique geophysical Other foreseen impacts include: per cent of the GDP), damaging features, social, economic and or destroying over 90 per cent of unique cultural characteristics, -- A shortening of the sugarcane hotel guest rooms, 80 per cent of Pacific Island countries are growing season in Guyana the island’s nutmeg trees (both particularly vulnerable to the would result in an acceleration the island’s main foreign exchange effects of global warming, including of maturation and would reduce earners) and causing massive more frequent and intense natural yields by 29.8 per cent. damage to the country’s socio- disasters, such as cyclones, floods economic infrastructure.43 Also in and land droughts – as has recently -- In St. Kitts and Nevis the climate 2004, in Haiti Hurricane Jeannie left been experienced. would be too dry for rain-fed

12 Small Island Economies: from Vulnerabilities to Opportunities

Natural disaster economic damages in the Caribbean Billion US$ 9 2004

8 Damages caused mainly by severe storms Data is incomplete 7 1998

6

5

4

3

2 2007

1

0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 1955 2000 2010 Source: www.em-dat.net The OFDA/CRED international Disaster Database. Universite Catholic de Louvain, Brussels, Belguim

Economic damages due to natural disasters in the Caribbean have increased between 1950-2007. The highest economic losses were experienced in 2004 (over US$8,000 millions).

agriculture making it economically mangrove forests would be lost Disappearing islands unfeasible and there would with a one meter rise in sea level. be a 20 per cent decrease in The same rise in sea level , it is The long-term survival of Atoll productivity in St. Vincent and the predicted, would cause a complete Island States45 is compromised, as Grenadines. collapse of the Port Royal they could become submerged in mangrove wetland in Jamaica the course of the next century by -- Mangrove accretion on land may because this system has shown a combination of sea level rise and or may not be able to keep pace little capacity to migrate over the coastal erosion resulting from higher with rising sea levels, depending last 300 years. A 50 cm rise in sea levels of tropical cyclone activity. on the composition of the level could lead to 60 per cent of As a result some of these Island forest, tidal range and sediment beaches in some areas of Grenada States might lose one of the basic supply. Three per cent of Cuba’s being lost (UNFCCC 2007a). requirements to be a state: their

13 Small Island Economies: from Vulnerabilities to Opportunities

own territory. This potential problem extremely vulnerable to tropical in many small islands (for example, raises a number of questions cyclone damage. Furthermore, the tourism provides more than one-fifth regarding the sovereignty of these tourist installations from which many of the GDP of Kiribati and 28 per islands and the status of their current of these islands extract a large part cent of that of the Maldives46), and inhabitants. of their revenues are often also that the effects of climate change are located near the coastline and hence likely to be direct and indirect, and Most of the infrastructure and houses are vulnerable to coastal erosion. The largely negative, especially for those tend to be located close to the IPCC notes how tourism is a major in low latitudes (such as atolls).47 sea, making these types of islands contributor to GDP and employment

14 Small Island Economies: from Vulnerabilities to Opportunities

3. From vulnerability to resilience

3.1. The need to on accelerating the reform process, the Solomon Islands and PNG have strengthen including the creation of a conducive experienced timber harvesting on an resilience investment climate, empowering unsustainable basis and there is a risk and improving the quality, health of tuna stocks being over exploited and safety of their human resources, in the Pacific by distant water fishing Building resilience to growth enhancing regional cooperation, nations. In the past, countries such volatility and external shocks building environmental and other as Nauru and Kiribati have had their requires appropriate trade policies resilience mechanisms specifically only important mineral deposit, alongside measures to stabilize designed to offset their unique phosphate, completely mined out. earnings and strategic import vulnerabilities and improving the Although British authorities provided dependence. Developing the quality of international assistance some compensatory funds after the capacities of SIDS to diversify and aid designed to support these event to the countries concerned, production, enhance productivity efforts.49 Nauru now faces considerable and add value to exports requires economic difficulties because of indigenous capacities to innovate Resilience is often constrained by the unwise investment of these funds.50 and develop new technologies and fact that the quality of governance absorb adaptation and mitigation varies tremendously among SIDS Services and Tourism technologies.48 and many are prone to state failure – SIDS are over-represented in the In order to move from a position More needs to be done in articulating fragile state category countries. of vulnerability and dependence to and implementing natural disaster This is made worse by evidence that one of resilience, policy tools within mitigation and insurance measures fragile and failing states are less able the international trade arena can be as well as progressing in adjustment to absorb aid effectively. used to boost the capacity of SIDS. and fiscal reform, and governance The services sector, and in particular still remains weak. This would entail The economic wealth of South tourism, represent a genuine an increased emphasis on efforts to Pacific island countries lies mainly opportunity for SIDS to expand their exploit and create comparative and in their natural resources, and economic activity while earning competitive advantage in the service those are their main sources for foreign currency.51 sectors, including tourism, finance, earning foreign exchange. The insurance, health, education, internet ways in which these resources In addition, SIDS can seek to services and e-commerce, while at are exploited have important liberalize trade in energy efficient the same time not neglecting scope implications for the sustainability goods in a bid to decrease their for competitiveness in other sectors, of their economies. Some Pacific collective carbon footprint. This including agriculture and niche island nations have depended or policy could include both tax markets. Indeed, service sectors are now depend on exploitation of non- incentives and zero-tariff measures less vulnerable to high transport and renewable mineral resources to a for the import of environmentally other infrastructure costs faced by large extent, and most have a large friendly products. The trade arena many remote small states and have degree of dependence on living could also facilitate the transfer robust long-term market prospects. natural resources, such as fisheries. of technologies that contribute These resources are renewable to the development of capacity Due to their small size, individual but can also be depleted if over among service providers. This small states will be unable to deliver utilized. With a huge market demand can indeed be particularly useful all the necessary government policy, for such resources in a global as practitioners from SIDS within regulatory and service functions economy, there is always a risk that the tourism industry (and other required of a modern state and these resources will be exploited industries as well) sometimes find to service the needs of a vibrant at a higher and faster rate than is the cost of technological devices to private sector. Success will depend desirable. For example, the forests of be prohibitive.

15 Small Island Economies: from Vulnerabilities to Opportunities

Technology transfer can also be hand, and members of the European processed or preserved organic important for environmentally- Union on the other. Some countries products.55 SIDS should be assisted friendly technologies for local demonstrate trade preferences in exploring niche markets for industries, and meteorological towards SIDS, for example Canada environmentally preferable products technology to inform tourists and or Australia and New Zealand, which and eco-tourism, which can be two industry officials of impending bad given their geographical location, are precious diversification avenues for weather, especially severe natural important markets for SIDS.52 island economies. hazards, enabling officials to take pre-emptive action to ensure the International trade negotiations in In this context, the need to win safety of citizens and tourists. WTO are pursued under the Doha acceptance for the principle of development agenda, which includes Special and Differential Treatment specific provisions concerning trade in the global trading negotiations 3.2. Strengthening related issues relevant to small and is of great significance due to the sustainable vulnerable economies.53 fact that individually, and more economic importantly as a group, Small Changes in global markets and loss Developing States’ participation in development of preferential market access for total world trade is small. traditional products, such as sugar, SIDS are beneficiaries of a variety bananas, rice as a consequence The future of Caribbean agriculture of trade preferences, many of of WTO processes, have caused lies in production of value-added which overlap with one another. a further marginalization of many goods and services, and to achieve Several SIDS are heavily dependent SIDS, putting them under increased this, it is necessary to ensure on international trade in services, pressure. This factor exacerbates that producers receive the right while others export goods under the vulnerability of SIDS to climate incentives, and that governments “most favoured nation” (MFN) duty- change by adversely affecting their make strategic investments of an free conditions. Thus, some SIDS economies, and therefore their institutional and infrastructural are not much threatened by the resilience and adaptive capacity.54 type that will bolster the potential phenomenon of preference erosion of the sector and assist with its in the context of trade liberalization. In order to have productivity transformation.56 growth that comes from larger- There is no special trade preference scale activities, these countries Certification by virtue of SIDS status. However, must participate in international all SIDS qualify for at least one trade, however they cannot Resorts in several SIDS (mostly in preference scheme. While SIDS that achieve the scale necessary the Caribbean: Antigua and Barbuda, fall within the LDC category benefit to compete internationally in the Bahamas, Barbados, Dominica, from LDC-specific preferences, standardized, low-value products Jamaica, St. Lucia) have obtained all other SIDS — a majority — are such as undifferentiated agricultural the Green Globe 21 environmental beneficiaries of preferences through products. Thus, they must establish certification label. The investment special programmes such as the niche markets that will allow them and training needed to comply Caribbean Basin Initiative of the to charge prices that will cover their with commercial environmental United States, Caribcan of Canada, high international trade costs. For certification has meant that only or SPARTECA of Australia and New this to happen they must be open to large hotel chains have so far been Zealand. The European Union grants trade and investment to allow access able to obtain this certification. special trade preferences to a large to global technological development However, organizations such as the majority of SIDS by virtue of the and to new ideas from overseas, Caribbean Alliance for Sustainable Cotonou Partnership Agreement tourism is the exploitation of a Tourism are actively helping between African, Caribbean and market niche, for example Dominica small- and medium-sized tourism Pacific (ACP) countries on the one has developed a niche market for enterprises and tour operators to

16 Small Island Economies: from Vulnerabilities to Opportunities

obtain internationally recognized climate, agro-climate, and sea level The energy sector: the example of environmental certification. A is vital for SIDS. Improved rescue SIDS DOCK 57 number of hotels in the Maldives and data inventories are needed, and Mauritius have also obtained and better use should be made of Sustainable development in SIDS has certification. The Government of geospatial information to increase to be built on a sustainable energy Fiji endorsed the Green Globe 21 data access as well as to integrate foundation. Despite international programme in early 2003. high-resolution downscaling models. support for implementation of It is equally important to bridge the the Barbados Programme of gap between assessing, planning and Action (BPOA) for the Sustainable 3.3. Developing implementing adaptation as well as Development of SIDS and the resilience community needs and national and Mauritius Strategy for the Further through better sectorial planning. Implementation of the BPOA (MSI), there is currently no mechanism that understanding of SIDS must have a better is in place to help SIDS transform vulnerability understanding of their current climate their energy sector. There is also no vulnerability and how to manage mechanism to facilitate the sharing There is a need to ensure that risks (for instance by developing of experiences, pursuing of mutual models, tools and methodologies and implementing early warning goals, and sharing resources across are available that are appropriate systems). Increased collaboration regions. So despite having, in the for making assessments in SIDS, as between the climate change and vast majority of cases, abundant well as the training and technical disaster risk reduction community on endowments of renewable energy support needed to be able to use applying and exchanging methods resources, SIDS remain dependent them. Vulnerability and adaptation and tools can help, as well as more on imported fuels. High energy cost (V&A) assessments are vital tools to public awareness through education. in SIDS is a combination of small help SIDS to evaluate and implement New technologies and strategies volume, high transportation cost responses to climate change. Efforts should be used, building codes and and low levels of energy efficiency. to improve and reduce the cost of standards need to be improved so SIDS DOCK was developed to be adaptation assessments are also that key sectors and areas such as the institutional mechanism that vital. Socio-economic information the agriculture sector, water, health, will support transformation of their needs to be better integrated into infrastructure and biodiversity are energy sectors. V&A assessments. This includes included. linking climate vulnerability to SIDS DOCK has been developed socio-economic studies, long- Although many adaptation measures jointly by the Caribbean Community term periodic and socio-economic can be implemented at a low Climate Change Centre (5Cs) assessments, studies on coping cost, comprehensive estimates on and the Secretariat of the strategies, and gender specific adaptation costs and benefits are Pacific Regional Environment vulnerability assessment. Top-down currently lacking. Furthermore, Programme (SPREP), the two (scenario-based) and bottom- adaptive capacity is uneven across regional government institutions up (based on analysis of current and within countries. To remedy this with foremost responsibility for vulnerability) approaches as well as situation, institutional development assisting the SIDS in the Pacific and consideration of community-based and technical assistance to Caribbean regions to address the participatory approaches, need to be respond to climate change must be impacts of climate change, working complementary. strengthened, and the SIDS must in cooperation with Alliance of continue to focus on improving Small Island States (AOSIS). It is an Sustainable high-quality and long- knowledge about regional climate initiative among member countries term observational monitoring of trends and their projected impacts. of AOSIS[1] to provide SIDS with a

17 Small Island Economies: from Vulnerabilities to Opportunities

collective institutional mechanism the Pacific Island countries – 80% of thereby affecting nutrient supply, to assist them in transforming the workforce in Papua New Guinea lagoon flushing, coastal erosion, their national energy sectors into a and the Solomon Islands - yet and possibly ocean acidity and catalyst for sustainable economic agriculture is still operating below coral bleaching (SPREP and PIFs, development and help generate its potential with infrastructure 2007). These will affect both the financial resources to address and limited access to the latest reef-building capacity of corals adaptation to climate change. technology and market information as well as the spawning cycles being a particularly important of reef fishes and invertebrates. constraint for agricultural growth.60 Increased incidences of ciguatera fish 3.4. New potentialities poisoning will also be seen (Adger, in growing Future food security would depend et al., 2007). Given that coastal sectors in many countries on access to land. fisheries provide a significant source Already, agricultural development of food and economic security for experts in the Pacific are concerned coastal populations (most Pacific Agriculture and fisheries that changing development priorities Islanders are coastal dwellers), have seen the loss of arable climate change poses a serious Agriculture has been the mainstay agricultural land to housing, tourism threat to the livelihood of the Pacific for survival and economic developments and industries. In populations.64 development in many SIDS. Papua New Guinea, large tracts of Subsistence agriculture provides forests are being cleared to make In the Caribbean, fish provides a vital local food security, while cash crop way for palm oil production, which is resource for poor communities in agriculture has enabled SIDS to proving to be the next generation of terms of food security, employment earn export revenue and participate fuels developed in many developing and income. It is estimated that in world trade. An increase in countries for global markets. more than 200,000 people in the atmospheric carbon dioxide may region are directly employed as benefit agriculture, but these positive There is a worrying trend throughout fishers, some 100,000 work in the effects are likely to be negated by the Pacific today that demand for processing and marketing of fish thermal and water stress associated food is increasingly being serviced and many others in net-making, with climate change, along with by imports. Basic staples such as boat-building and other supporting changes in pests’ voracity and rice and wheat for flour are key industries.65 A combination of weeds’ growth, loss of soil fertility, substitutes of traditional diets that increasing temperatures and sea- increasing coastal inundation, are now part and parcel of a Pacific level rise will result in changes to salinization and erosion. This may Islander’s daily diet. This is a critical coastal circulation patterns, thereby contaminate and reduce the size of situation in terms of food security affecting nutrient supply, lagoon productive agricultural lands, thereby and nutritional security, given the flushing, coastal erosion and possibly threatening the sustainability of volatility of international commodity ocean acidity and coral bleaching66, both subsistence and commercial prices.61 resulting in a large gap in the fish agriculture as well as of food security needed for food security.67 at the household and local levels.58 Fisheries are the most significant renewable resource that Pacific Green economy In some countries large-scale Island countries and territories deforestation has led to monoculture have for food security, livelihoods Many SIDS have identified the crop production solely aimed at and economic growth.62 Per capita development of sustainable energy earning foreign exchange, which consumption of fish in the Pacific is systems as a priority, for example the has led to higher prices of locally very high by global standards with an Pacific Islands have set as a priority produced crops compared to average of 70 kg of fish consumed the development of technology imported goods such as rich and per person per year in the early for moderate-scale production of flour. Many urban populations are 1990s.63 clean, renewable energy to initially now very much dependent on complement and eventually replace cheap foreign imports for their daily Fisheries are bound to be affected existing sources of energy.68 The sustenance.59 by climate change. The combination green economy or green growth of increasing temperatures and approach is based on improving Agriculture provides more sea-level rise will result in changes human well-being and social employment than any other sector in to coastal circulation patterns, equity, that significantly reduces

18 Small Island Economies: from Vulnerabilities to Opportunities

environmental risks and ecological -- improving ocean governance, and aquaculture with fair and scarcities. It recognizes the value particularly the capacity to responsible tenure systems. of and invests in natural capital: enforce internationally agreed Greater investments in research biodiversity, natural assets, such as fisheries rules on the high seas, and development are needed to forests, lakes, wetlands and river monitoring and surveillance of support technical advances and basins, which are vital in ensuring IMO standards to ensure maritime enable rapid progression in marine- the stability of the water cycle safety, security and marine based renewable energy. Investing and its benefits to agriculture and environment protection in green tourism can reduce costs households.69 and enhance the value of ecosystems -- a new international programme and cultural heritage. In that context, The term ‘blue economy’ has to address reducing the impacts the private sector must be mobilized emerged to refer to sustainability of climate change, promoting to support sustainable tourism and equitable benefit-sharing renewable energy and energy and needs access to financing for towards the development and efficiency, coastal protection and investing in greening practices.73 management of the ocean and the re-vegetation, the conservation coasts. This term has been used to of wetlands and mangroves, the In recent years, many countries ensure that the health and vitality of expansion of Marine Protected around the world have begun the marine environment and ocean Areas, improved management of to recognize the important role resources are featured prominently land-based activities and sources of low-carbon development in the agenda of the upcoming Rio of pollution, combating invasive as a means by which they can +20 in June 2012. 70 This Conference species as a key threat to the reduce dependence on fossil fuels will mark the twentieth anniversary health of the oceans particularly and manage forests and other of the 1992 United Nations from ballast water and hull fouling ecosystems sustainably, while still Conference on Environment and pursuing economic growth and Development (UNCED) and the -- sustainable development and development. Although substantial tenth anniversary of the 2002 World management of ocean resources, investment will be required to Summit on Sustainable Development including fisheries, which is by build the technologies and skills (WWSD). The Conference will far the largest use of ocean needed to support low-carbon provide an opportunity to review resources in the region, more development, such investment the institutional framework for the equitable sharing of the benefits will open up new markets, create sustainable development of SIDS and of fisheries within the region, jobs and economic growth, as well seeks to appeal for a more coherent tourism as a major industry for as stimulate innovation. For low- UN institutional structure that caters SIDS, most of which takes place income countries, the challenge is to the needs of SIDS and reflects on or is related to the coast and to reconcile the goals of economic their sustainable development ocean, sustainable alternative development and poverty alleviation priorities. It is expected that concrete sources of aggregate (sand and with the need to adapt to and actions based on national and gravel) and exploration of coastal mitigate climate change. Developing regional priorities and the provision and offshore oil and gas under countries will require support in of adequate financial resources to suitable precautionary principles the form of transfer of technology facilitate the transition to sustainable and in line with best international and skills as well as funding from green economies will be met.71 The practices 72 the developed world in order to aims are to pursue the following build low-carbon, climate-resilient priorities: Greening the fisheries and economies. aquaculture sectors will require -- the use of existing regional a comprehensive governance Guyana’s Low-Carbon Development roadmaps, such as the Pacific Plan framework, implementing an Strategy (LDCS) is a development or the Pacific Islands Ocean Policy ecosystem approach to fisheries model that is both pioneering and

19 Small Island Economies: from Vulnerabilities to Opportunities

opportune, and could set the country fragile and failing states are less able a relaxation of coastal setback on a path to realize the benefits of to absorb aid effectively.75 regulations, laws preventing the use low-carbon growth, while playing of recycled water for hotels and an an important role in mitigating Adapting to the changing climate absence of comprehensive coastal climate change. Guyana’s LDCS is an and rising sea level is already a major zone management and planning.77 innovative approach to combating economic cost to SIDS; additional climate change while simultaneously changes in climate and increases in A popular tool to help SIDS manage promoting economic growth and seal level rise will require increasing climate change risks and build development. The LDCS sets out amounts of financial resources. With resilient economies has been the how, given appropriate economic many SIDS already highly indebted, use of insurance, particularly for incentives, Guyana can avoid reducing outflows of funds to pay coastal communities and tourism. significant emissions of greenhouse for energy imports represent the In the Caribbean, the Catastrophe gases from deforestation that would best option of generating additional Risk Insurance Facility (CCRIF) has occur following an economically resources to address climate change. been established, which provides rational development path. These participating governments with incentives will be generated through Adaptation costs can be devastating. immediate access o liquidity if hit by interim payments for the carbon Adaptation measures include a hurricane or earthquake. The CCRIF storage service provided by Guyana’s adjustments of natural or human capacity to service claims is based on forests from Guyana’s partnership systems in response to actual its own reserves, combined with the with the Norwegian government and or expected climatic stimuli, financial capacity or the international other sources, and ultimately through their effects and impacts that financial markets. 78 a REDD+ mechanism established moderate harm or exploit beneficial under the United Nations Framework opportunities associated with There should be an international Convention on Climate Change climate change, such as relocation, insurance mechanism to help SIDS (UNFCCC). These payments will be prevention and spread of losses manage climate risk and build risk used to expand economic growth through insurance or government resilient economies for which an and will enable Guyana’s economy relief, research and monitoring, internationally sourced pool of funds to be realigned along a low-carbon public awareness and sensitization. 76 is needed. Collective loss sharing development trajectory. This will mechanisms and international catalyze Guyana’s efforts to diversify Adaptation is the only option, in solidarity funds could address high its economy and provide new order for SIDS to be able to cope impact extreme events that are economic opportunities, employment with the effects of climate change. beyond the scope of even subsidized and more efficient use of resources, Many SIDS have already started insurance mechanisms. An while maintaining the valuable forest implementing adaptation strategies international insurance mechanism ecosystem.74 on a local scale, often in an ad hoc can use internationally-agreed manner, for instance by placing triggers for payments to countries concrete blocks on top of zinc roods and communities, based on wind 3.5. Financing the to prevent them from being blown speed, flood levels, a drought index, development of away during hurricanes. In Vanuatu, and sea level rise. SIDS where frequent flooding and erosion has made some settlements Most SIDS lack the technical and uninhabitable, the South Pacific human capacity and resources to SIDS will not be able to build Regional Environmental Programme integrate climate change concerns economic resilience and competitive has moved 100 villagers living in the into their development activities economies without the support Lateu settlement to higher ground and to implement the necessary of their development partners. – 600 meters from the coast and 15 adaptation actions. For example an Resilience is often constrained by the meters above current sea level. estimated US$71 million are needed fact that the quality of governance for Antigua and US$50 million in varies tremendously among SIDS Adaptation can also occur through St Kitts and Nevis. Although there and many are prone to state failure the prevention and removal are some global funds to assist – SIDS are over-represented in the of maladaptive practices that this group of countries, such as the fragile state category countries. inadvertently increase vulnerability Adaptation Fund, which obtains This is made worse by evidence that to climatic stimuli, for example its resources through a 2% levy on

20 Small Island Economies: from Vulnerabilities to Opportunities

the Clean Development Mechanism However, Doing Business in Small Mauritius, for instance, has become projects mandated by the Kyoto Island Developing States 200984 a middle-income country due to Protocol, there is no specific fund finds that a third of SIDS introduced proper economic and social policies that addresses the climate change regulatory reform to make doing that have reduced the vulnerability concerns of SIDS.79 Thus, funds for business easier in the past year. of Mauritius to external factors, adaptation need to be increased from At the same time, island nations and increased its resilience to both international financial institutions and currently boast some of the world’s economic and political shocks.87 multilateral organizations.80 most efficient practices. The report is the second in a series to examine SIDS are also advancing a proactive Furthermore, adaptation can only the performance of 33 small island agenda looking at adaptation be successful if it is integrated with states—from Antigua and Barbuda and mitigation in tandem, urging other policies, such as disaster to Vanuatu—using Doing Business the development, dissemination preparedness, land-use planning, indicators. The report finds that small and transfer of efficient energy environmental conservation, coastal economies can attain a relatively technologies that can assist planning and national plans for high level of GDP per capita if they developing countries in mitigating sustainable development.81 adopt appropriate policy stances, the effects of climate change. a phenomenon described as the Overall, developed and developing Thus, there is a need for the ‘Singapore Paradox’. Singapore, nations tend to respond to the continuous development of climate although highly exposed to threat of climate change in a way change research and modeling, in exogenous shocks, has managed that is consistent with international order to produce more relevant to register high rates of economic consensus (as expressed through information for regional and national growth and attain a high GDP per the UNFCCC), where nations take studies and to overcome the capita due to its ability to build measures to protect the earth’s limitations of existing results.82 resilience in the face of external ecological system through policies shocks.85 and instruments that reflect The way forward their common but differentiated The economic vulnerability of small responsibility. Equitable and sustainable island states can never be fully development in SIDS will face prevented, as their economies and SIDS will have to collect data on new challenges.83 Many crucial but populations are too small to allow the effects and implications of unresolved issues remain. Many for a large manufacturing sector. climate change and sea-level rise, global uncertainties, amongst which As a result, they should pursue to improve public understanding of global climate change, rising oil and their comparative advantage by the issue, to promote more efficient food prices, and changing patterns exporting raw or semi processed energy use and to formulate their of south-south trade, are of rising materials, tourism and the filling own comprehensive adjustment and concern to SIDS. The importance of niche markets. The best way mitigation policies to be able to cope of strengthening governance, they can protect themselves is by with and respond to climate change. establishing political stability, good economic management.86 In this context, the role of the implementing better macro-economic Regional integration and sharing international community is crucial to policies and building human capital of best practices within region and the future development of SIDS. are immediate priorities. across regions will be determinant.

21 Small Island Economies: from Vulnerabilities to Opportunities

Selected resources available online

(English and French) En italique les documents disponibles en français

Asian Development Bank. Climate http://eeas.europa.eu/delegations/ Climate Change [Solomon, S., D. Change in the Pacific. Stepping Up mauritius/documents/press_ Qin, M. Manning, Z. Chen, M. Maquis, Responses in the Face of Rising corner/051211_peid_speech_final_ K.B. Averyt, M. Tignor and H.L. Miller Impacts. 2010. version.pdf (eds.)]. Cambridge University Press, http://www.adb.org/sites/default/ Cambridge, United Kingdom and files/climate-change-pac.pdf European Commission. Supporting New York, NY, USA. a Climate for Change. The EU and http://www.ipcc.ch/pdf/assessment- Asian Development Bank. Fisheries Developing Countries Working report/ar4/wg1/ar4-wg1-spm.pdf in the Economies of the Pacific Island Together. 2010. Countries and Territories. Pacific http://eeas.europa.eu/delegations/ IPCC. Climate Change 2007: Impacts, Studies Series. Robert Gillett. 2009. vietnam/documents/supporting_a_ Adaptation and Vulnerability. http://www.adb.org/sites/default/ climate_for_change_en.pdf Contribution of Working Group II to files/pub/2009/pacific-fisheries.pdf the Fourth Assessment Report of the European Commission & Global Intergovernmental Panel on Climate Commonwealth Secretariat. Briefing Climate Change Alliance. Using Change. M. L. Parry, O.F. Canziani, Note – Small States. Innovative and Effective Approaches J.P. Palutikof, P. J. van der Linden http://www.thecommonwealth.org/ to Deliver Climate Change Support and C. E. Hanson (eds.). Cambridge files/216535/FileName/ComSec%20 to Developing Countries. 2011. University Press, Cambridge UK. Briefing%20-%20Small%20States.pdf http://ec.europa.eu/europeaid/ http://www.ipcc.ch/publications_ what/environment/documents/ and_data/publications_ipcc_ Commonwealth Secretariat/World gcca_brochure_en.pdf fourth_assessment_report_wg2_ Bank Joint Task Force on Small report_impacts_adaptation_and_ States. Small States: Meeting Chal- FAO Sub-Regional Office for the vulnerability.htm lenges in the Global Economy. 2000. Caribbean, Barbados. Regional http://siteresources.worldbank.org/ Consultation on Policy and IPCC Special Report. Managing PROJECTS/Resources/meetingchal- Programmatic Actions to Address the Risks of Extreme Events and lengeinglobaleconomyl.pdf High Food Prices in the Caribbean. Disasters to Advance Climate Port of Spain, Trinidad and Tobago. Change Adaptation (SREX). Commonwealth IAESD Group. Summary of Proceedings. 2011. Intergovernmental Panel on Climate Rethinking the Institutional http://www.fao.org/fileadmin/ Change; World Meteorological Framework for the Implementation user_upload/ISFP/Caribbean_ Organization; United Nations of the Programme of Action for the Regional_Consultation_on_ Environment Programme - Geneva Sustainable Development of Small Policy_and_Programmatic_ [Switzerland]: IPCC, 2012 Island Developing States (BPOA) and Actions_t%E2%80%A6.pdf http://www.ipcc-wg2.gov/SREX/ the Mauritius Strategy for the Further images/uploads/SREX-All_FINAL.pdf Implementaiton of the BPOA (MS/ FAO, FIAT, PANIS Climate Change BPOA). 2012. and Food Security in Pacific Island Mauritius Strategy for the further Countries. 2008. Implementation of Programme European External Action Service. http://www.fao.org/ of Action for the Sustainable Programme for the Implementation climatechange/17003-02529d2a5afe Development of Small Island of the Mauritius Strategy for Small e62cce0e70d2d38e1e273.pdf Developing States. 2005. http:// Island Developing States of the www.un.org/special-rep/ohrlls/sid/ Eastern and Southern Africa- IPCC. 2007: Summary for MIM/A-conf.207-crp.7-Mauritius%20 Indian Ocean Region. Ceremony Policymakers. In: Climate Change Strategy%20paper.pdf of Signature of the Contribution 2007: The Physical Science Basis. Agreement with the United Nations Contribution of Working Group I. Department of Economic and Social to the Fourth Assessment Report Affairs (UN DESA). 2011. of the Intergovernmental Panel on

22 Small Island Economies: from Vulnerabilities to Opportunities

UNCTAD. United Nations http://www.unescap.org/EPOC/ UNFCCC, 2007. Report on the Conference on Trade and pdf/Greening-the-Economy-USP- expert meeting on adaptation Development. UNCTAD XIII Conference-David-Smith.pdf for Small Island Developing pre-Conference event: Expert States FCCC/SBI/2007/11. Group Meeting on Addressing UNESCAP. Rio+20 Pacific Climate Change Secretariat, Bonn, the Vulnerabilities of Small Island Preparatory Meeting. The “Blue Germany, May 2007. Developing States (SIDS) More Economy”: A Pacific Small Island http://unfccc.int/resource/ Effectively. 2012. Developing States Perspective. 2011. docs/2007/sbi/eng/11.pdf http://www.unctad.org/meetings/ http://www.unescap.org/epoc/pdf/ en/SessionalDocuments/td451_ Rio+20-Pacific-Paper-2-2-Blue%20 UNEP. United Nations Environment en.pdf Economy-Pacific-SIDS-Perspective. Programme. Green Economy in a pdf Blue World. Synthesis Report. 2012 UNCTAD. Framework for Small http://www.unep.org/pdf/green_ States. Extract from Small UNECLAC. United Nations economy_blue.pdf States: Meeting Challenges in the Economic Commission for Latin Global Economy, Report of the America and the Caribbean Green UNEP. United Nations Environment Commonwealth Secretariat/World Economy in SIDS. An Analysis of Programme. Regional Office for Bank Joint Task Force on Small Challenges and Opportunities. Latin America and the Caribbean. States. 2000. http://www.eclac.org/portofspain/ Climate Change in the Caribbean and http://siteresources. noticias/paginas/1/44351/Green_ the Challenge of Adaptation. 2008. worldbank.org/PROJECTS/ Economy_in_SIDS_Challenges_ http://www.pnuma.org/deat1/pdf/ Resources/40940-1118776867573/ Opportunities_2011.pdf Climate_Change_in_the_Caribbean_ FrameworkUNCTAD.pdf Final_LOW20oct.pdf United Nations Conference on UNCTAD. Is a Special Treatment Environment and Development. UNEP. United Nations Environment of Small Island Developing States Barbados Programme of Action for Programme. Towards a Green Possible? 2004. the Sustainable Development of Economy. Pathways to Sustainable http://archive.unctad.org/en/docs/ Small Island Developing States. 1994 Development and Poverty ldc20041_en.pdf http://www.unohrlls.org/ Eradication. A Synthesis for Policy UserFiles/File/SIDS%20 Makers. 2011. United Nations Department of documents/Barbados.pdf http://www.oecd.org/ Economic and Social Affairs. Division dataoecd/20/60/47678910.pdf of Sustainable Development. UNFCCC, 2007. “Vulnerability and Resources. adaptation to climate change in UN-OHRLLS. The Impact of Climate http://www.un.org/esa/dsd/ small Island Developing State”. Change on the Development resources/res_publcorepubli.shtml Background paper for the UNFCCC Prospects of the Least Developed Expert Meeting on Adaptation for Countries and Small Island UNESCAP. United Nations Economic Small Island Developing States Developing States. 2009. and Social Commission for Asia (SIDS) Part I -Caribbean and Atlantic http://www.unohrlls.org/UserFiles/ and the Pacific. Smith, David J.E. Ocean SIDS, Jamaica, February 2007. File/LDC%20Documents/The%20 2010. Greening the Economy: http://unfccc.int/files/adaptation/ impact%20of%20CC%20on%20 Shifting the Growth Paradigm to adverse_effects_and_response_ LDCs%20and%20SIDS%20for%20 be more inclusive and sustainable. measures_art_48/application/ web.pdf International Conference on pdf/200702_sids_adaptation_bg.pdf Renewable Energy and Climate Change: Focus on the Pacific 2010.

23 Small Island Economies: from Vulnerabilities to Opportunities

UN-OHRLLS. United Nations Office Island Developing States. Small Nations Unies. Examen quinquinnel of the High Representative for Islands Big(ger) Stakes. de la Stratégie de Maurice pour la the Least Developed Countries, http://www.unohrlls.org/ poursuite de la mise on œuvre du Landlocked Developing Countries UserFiles/File/UN_SIDS_ Programme d’action pour le déve- and Small Island Developing States. booklet_5x6-5_062811_web.pdf loppement durable des petits États Official Development Statistics insulaires en développement. 2010. for Small Island Developing States United Nations General Assembly. http://www.iom.int/jahia/webdav/ (Updated 7/2010) Outcome Document of the shared/shared/mainsite/policy_and_ http://www.unohrlls.org/UserFiles/ High-Level Review Meeting on research/un/65/A_65_115_F.pdf File/Elle%20Wang%20Uploads/ the Implementaiton of the ODA%20for%20Sids%2006-08.pdf Mauritius Strategy for the Further United Nations. Rio+20 Conference Implementation of the Programme on Sustainable Development. The UN-OHRLLS. United of Action for the Sustainable Future We Want. 2012. Nations Office of the High Development of Small Island http://www.uncsd2012.org/rio20/ Representative for the Developing States. 2010. content/documents/370The%20 Least Developed Countries, http://www.un.org/ga/search/ Future%20We%20Want%20 Landlocked Developing view_doc.asp?symbol=A/ 10Jan%20clean.pdf Countries and Small Island RES/65/2&Lang=E Developing States. Reports. Research http://www.unohrlls.org/en/ United Nations World Summit on sids/183/ Sustainable Development. Small Barnet, J. Food Security and Climate States and Sustainable Development: Change in the South Pacific. Pacific UN-OHRLLS. United Nations Bridging the Gap. Background Paper Ecologist 14. Winter 2007. Office of the High Representative No. 9. 2002. for the Least Developed http://www.johannesburgsummit. Becken, S, How Tourists and Tourism Countries, Landlocked org/html/documents/summit_ Experts Perceive Climate Change Developing Countries and docs/background_papers/3108_ and Climate Offsetting Schemes. Small Island Developing States. background_paper9.pdf Resolutions. Briguglio, Lino. Directing EU De- http://www.unohrlls.org/en/ United Nations. International Meeting velopment Aid Towards Resilience sids/184/ to Review the Implementation of Building. Occasional Papers on Is- the Programme of Action for the lands and Small States. Islands and UN-OHRLLS .United Nations Sustainable Development of Small Small States Institute. 2010. Office of the High Representative Island Developing States. Mauritius http://www.um.edu. for the Least Developed 2005. mt/__data/assets/pdf_ Countries, Landlocked http://www.un.org/special-rep/ file/0014/120713/2010_2.pdf Developing Countries and ohrlls/sid/MIM/A-conf.207-L.6- Small Island Developing States. Mauritius%20Declaration.pdf Briguglio, L, Gordon Cordina, Nadia Resolutions. Publications. Farrugia and Stephanie Vella. http://www.unohrlls.org/en/ United Nations. Report of the Global 2009. ‘Economic Vulnerability publications/ Conference on the Sustainable and Resilience: Concepts and Development of Small Island Measurements’. Oxford Development UN-OHRLLS. UN Office of the Developing States. Barbados. 1994. Studies 37: 3, pp 229 – 247. High Representative for the Least http://www.un.org/ga/search/view_ http://www.um.edu.mt/__data/ Developed Countries, Landlocked doc.asp?symbol=A/CONF.167/9 assets/pdf_file/0010/130024/ Developing Countries and Small Resilience_paper_in_Oxford_ Island Developing States. Small Economic_Studies.pdf

24 Small Island Economies: from Vulnerabilities to Opportunities

Briguglio L., Bishnodat Persaud and Document de Travail de la Série: Global Economy, Grenada. Richard Stern. 2006. Small States Études et Documents. http://www.ctrc.sice.oas.org/ Forum. Toward an Outward-Oriented http://publi.cerdi.org/ geograph/caribbean/Jossling.pdf Development Strategy for Small ed/2009/2009.13.pdf States: Issues, Opportunities and Koshy. K, Lal. M and Mataki. M. Resilience Building. A Review of the Downes, Andrew S. Market Reform 2005. Sustainable Development Small States Agenda Proposed in the and Resilience Building in Small and the Pacific Island Countries, Commonwealth/World Bank Joint Developing Countries. 2005. Pacific Centre for Environment and Task Force Panel of April 2000. http://www.cavehill.uwi.edu/salises/ Sustainable Development, University http://siteresources. Market%20reform%20and%20 of the South Pacific, Suva, Fiji. worldbank.org/PROJECTS/ resilence.pdf Resources/40940-1118776867573/ McKenzie, E. Kaloumaira, A. and FinalReportSmallStatesAug9-06.pdf Duncan, Ron and Haruo Nakagawa. Chand, B. 2005. The Economic Obstacles to Economic Growth in Six Impacts of Natural Disasters in the Briguglio, Lino and Eugene Buttigieg. Pacific Island Countries. 2006. Pacific. Technical Report, University Competition Constraints in Small Ju- http://siteresources.worldbank. of the South Pacific (USP) and the risdictions. Bank of Valletta Review. org/INTDEBTDEPT/Resources South Pacific Applied Geoscience No. 30, Autumn 2004. / 468980-1206974166266 / Commission (SOPAC), Suva. A Binger, http://www.bov.com/filebank/docu- 4833916-1206989877225 / A. and Duncan, C.F.N. 2007 reported ments/BR30%20Compconstraint- DuncanNakagawaObstacles.pdf that the cost of Cyclone Heta was sinsmalljurisdictions.pdf over NZ$50 m, or about 200 years of ICTSD-International Centre for Trade Niue’s annual export value. Bueno Ramón, Herzfeld Cornelia, and Sustainable Development. Trade, Stanton Elizabetha, Ackerman Economic Vulnerabiltiy, Resilience Mimura, N., L. Nurse, R.F. McLean, J. Frank.2008 “The Caribbean and and the Implications of Climate Agard, L. Briguglio, P. Lefale, R. Payet Climate Change: the cost of inaction. Change in Small Island and Literal and G. Sem. 2007. Small Islands. Tufts University. Developing Economies. 2009. Climate Chane 2007: Impacts, http://ase.tufts.edu/gdae/Pubs/rp/ http://ictsd.org/ Adaptation and Vulnerability. Caribbean-full-Eng-lowres.pdf downloads/2010/07/trade- Contribution of Working Group II to economic-vulnerability-resilience- the Fourth Assessment Report of the Carment, David, Stewart Prest and and-the-implications-of-climate- Intergovernmental Panel on Climate Yiagadeesen Samy. Assessing Small change-in-sildes.pdf Change. M.L. Parry, O.F. Canziani, J.P. Island Developing State Fragility. Palutikof, P.J. van der Linden and C.E. A chapter prepared for the volume International Policy Centre for Hanson, Eds., Cambridge University on Economic Vulnerability and Inclusive Growth. Sustaining Press, Cambridge UK. Resilience of Small States. Briguglio, Development and Resilience in SIDS: http://www.ipcc.ch/pdf/ Lino and Eliawony J. Kisanga (ed.). Beyond Crisis Management. One assessment-report/ar4/wg2/ar4- http://www4.carleton.ca/cifp/app/ Pager. No. 113. 2010. wg2-chapter16.pdf serve.php/1020.pdf http://www.ipc-undp.org/pub/ IPCOnePager113.pdf Nurse, Keith. 2008. Climate Change, Centre d’Études et de Recherches Tourism and Services in Small Island sur le Développement International. Jossling, Tim. 1998. Trade Policy in Developing Economies. http:// Guillaumont, Patrick. Assessing the Small Island Economies: Agricultural ictsd.org/downloads/bioresreview/ Economic Vulnerability of Small Trade Dilemmas for the OECS. biores2-4.pdf (pp. 6 - 7) Island Developing States and the Paper prepared for the IICA/NCFAP Least Developed Countries. 2009. Workshop on Small Economies in the

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Nurse, L., 2007. “Findings of The Johnson and Alistair J Hobday (eds.) Paper prepared for DFID Renewable IPCC Fourth Assessment Report 2011. Natural Resources and Agriculture *Implications for Adaptation in Small http://www.spc.int/climate-change/ Team. London: ODI. Vulnerable Communities”. Presentation fisheries/assessment/main-book.html http://www.odi.org.uk/resources/ at the Many Strong Voices Workshop, docs/1850.pdf Belize City, 28-30 May 2007 Sem. G (2007), Vulnerability and Adaptation to Climate Change in Tisdell, Clem. Economic Prospects for Pacific Islands Forum Fisheries Small Island Developing States Small Island Economies, Particularly Agency. Gillett, Robert and Ian Background paper for the expert in the South Pacific, in a Globalising Cartwright. The Future of Pacific meeting on adaptation for small World. Working Paper No. 43. The Island Fisheries. 2010. island developing States. United University of Queensland. 2006. Nations Framework Convention on http://ageconsearch.umn.edu/ Pacific Islands Forum. Towards a Climate Change. bitstream/90547/2/WP%2043.pdf Food Secure Pacific. Framework for Action on Food Security in the Slater, R. 2007. Climate Change: Pacific. 2011. Implications for DFID’s Agriculture http://www.foodsecurepacific. Policy. Paper prepared for FID org/ documents/ FINAL%20 Renewable Natural Resources and TOWARDS%20A%20FOOD%20 Agriculture Team. London: ODI SECURE%20 PACIFIC_June1.pdf http://www.odi.org.uk/resources/ docs/1880.pdf Secretariat of the Pacific Community. Vulnerability of Tropical Pacific Slater, R. and Peskett, L. 2007 Fisheries and Aquaculture to Climate Climate Change, Agricultural Change. Johan D Bell, Johanna E Growth and Poverty Reduction.

26 Small Island Economies: from Vulnerabilities to Opportunities

Websites (English and French)

AOSIS -Alliance of Small island FAO- Petits Etats insulaires en OTN - Office of Trade Negotiations- States développement CARICOM http://aosis.info/ http://www.fao.org/SIDS/index_ http://www.crnm.org/ fr.asp CARICOM- PACE-SD - Pacific Centre for http://www.caricom.org GCCA - Global Climate Change Environment and Sustainable Alliance Development CBI – Caribbean basin Initiative http://www.gcca.eu/pages/1_2- http://www.usp.ac.fj/index. http://ctrc.sice.oas.org/prefar_e.ASP Home.html php?id=570

CCCCC - Caribbean Community Alliance Mondiale contre le PIFS- Pacific Island Forum Climate Change Centre Changement Climatique Secretariat http://www.caricom.org/ http://www.gcca.eu/pages/1_1- http://www.forumsec.org/ jsp/community/ccccc. Accueil.html jsp?menu=community SIDSnet - Small Islands Developing GIN – Global Island Network Network CIMH - Caribbean Institute for http://www.globalislands.net/ http://www.sidsnet.org/ Meteorology and Hydrology http://www.cimh.edu.bb IICA. Inter-American Institute for SOPAC- Applied Science & Cooperation on Agriculture. Technology Division - SPC Climate Funds Update http://www.iica.int/eng http://www.sopac.org/ http://www.climatefundsupdate.org/ InfoDEV. Case Studies on Business SPC- Secretariat of the Pacific CMO - Caribbean Meteorological Incubation in Small Island Developing Community Organization (CMO) States (SIDS) http://www.spc.int/ http://www.cmo.org.tt/ http://www.infodev.org/en/ Project.26.html SPREP – Secretariat of the Pacific CRFM – Caribbean Regional Fisheries Regional Environment Programme Mechanism IOC- COI Indian Ocean Commission- http://www.sprep.org/ http://www.caricom-fisheries.com/ Commission de l’Océan Indien http://www.coi-ioc.org/ UNESCAP – United Nations CTA Economic and Social Commissions http://www.cta.int/ IPCC - The Intergovernmental Panel for Asia & the Pacific http://www.cta.int/fr/ on Climate Change http://www.unescap.org/ http://brusselsbriefings.net http://www.ipcc.ch http://bruxellesbriefings.net/ UNFCCC - The United Nation’s Groupe d’experts Framework Convention on Climate DIREKT. Small Developing Island intergouvernemental sur l’évolution Change Secretariat Renewable Energy Knowledge du climat (GIEC) http://unfccc.int/2860.php and Technology Transfer Network. http://www.ipcc.ch/home_ http://www.direkt-project.eu/ languages_main_french.shtml Convention-Cadre des Nations Unies sur les Changements Climatiques FAO – Small Islands Development OECS – Organisation of Eastern http://unfccc.int/portal_ States Caribbean States francophone/items/3072.php http://www.fao.org/sids http://www.oecs.org/

27 Small Island Economies: from Vulnerabilities to Opportunities

UN Office of the High Representative OMT- Organisation Mondiale du WMO - World Meteorological for the Least Developed Countries, Tourisme Organization Landlocked Developing Countries http://unwto.org/fr http://www.wmo.int/pages/index_ and Small Island Developing States en.html http://www.un.org/ohrlls/ USP – University of the South Pacific http://www.usp.ac.fj/ Organisation météorologique Bureau du Haut représentant pour mondiale les pays les moins avancés, les pays World Bank. Carbon Finance at the http://www.wmo.int/pages/index_ en développement sans littoral World Bank. fr.html et les petits Etats insulaires en http://web.worldbank.org/ développement des Nations Unies WBSITE/EXTERNAL/TOPICS/ The World Climate Research http://www.un.org/ohrlls/ ENVIRONMENT/EXTCARBONFINA Programme NCE/0,,menuPK:4125909~pagePK http://www.wcrp-climate.org UNWTO- World Tourism :64168427~piPK:64168435~theSite Organisation PK:4125853,00.html http://unwto.org/

28 Small Island Economies: from Vulnerabilities to Opportunities

Acronyms

ACCPIR Adaptation to Climate Change in the Pacific Islands Region

ACP African, Caribbean, and Pacific

ACS Association Alliance of the Caribbean States

ADB Asian Development Bank

AOSIS Alliance of Small Island States

APN Asia Pacific Network for Global Change Research

BPOA Barbados Programme of Action

CARICOM Caribbean Community

CARIFORUM Caribbean Community and the Dominican Republic

CASDEC Caribbean Sustainable Development Centre

CBI Caribbean Basin Initiative

CCA Climate change adaptation

CCCCC Caribbean Community Climate Change Centre

CDERA Caribbean Disaster Emergency Response Agency

CMO Caribbean Meteorological Organization

COTED Council for Trade and the Economic Development

CRFM Caribbean Regional Fisheries Mechanism

CRNM Caribbean Regional Negotiating Machinery

CROP Council of Regional Organisations of the Pacific

CSME Caribbean single market and economy

CVI Commonwealth Vulnerability Index

DRR Disaster risk reduction

DSAP Development of Sustainable Agriculture in the Pacific

EBA Everything but Arms

29 Small Island Economies: from Vulnerabilities to Opportunities

ECCB Eastern Caribbean Central Bank

ECLAC Economic Commission for Latin America and the Caribbean

EEZ Exclusive Economic Zone

EPA Economic Partnership Agreement

EVI Economic Vulnerability Index

FAO Food and Agriculture Organization

FDI Foreign direct investment

GATT General Agreement on Tariffs and Trade

GCCA Global Climate change Alliance (GCCA)

GDP Gross domestic product

GEF Global Environment Facility

GHG Greenhouse gas

GIN Global Islands Network

GIS Geographical information system

GNI Gross national income

GSP Generalized System of Preferences

HIPC Heavily-indebted poor country

IAESD International Architecture for Environment and Sustainable Development

IATA International Air Transportation Association

IOC Indian Ocean Commission

IPCC Intergovernmental Panel on Climate Change

LDCs Least Developing Countries

MDG Millennium development goal

MEAs Multilateral Environmental Agreements

30 Small Island Economies: from Vulnerabilities to Opportunities

MSI Mauritius Strategy for the further Implementation for the Barbados Programme of Action

NAP National Action Plan for Disaster risk reduction and disaster risk management

NGO Nongovernmental organization

ODA Official Development Assistance

OECS Organization of Eastern Caribbean States

PACE-SD Pacific Centre for Environmental and Sustainable Development

PACC Pacific Adaptation to Climate Change

PCIDRR Pacific Community focused Integrated Disaster Risk Reduction

PIC Pacific islands countries

PIF Pacific Islands Forum

PIFACC Pacific Islands Framework for Action on Climate Change

PIFS Pacific Islands Forum Secretariat

PIGCOS Pacific Islands Climate Observing System

PIREP Pacific Islands Renewable Energy Programme

PISLM Partnership Initiative for Sustainable Land Management

RCM Regional Coordinating Mechanism for the Implementation Mauritius

SDT Special and differential treatment

SIDS Small Island Developing States

SOPAC Pacific Islands Applied Geoscience Commission

SPC Secretariat of the Pacific Community

SPREP South Pacific Regional Environmental Programme

UNCED United Nations commission of Environment and Development

UNCED United Nations Conference on Environment and Development

UNCLOS United Nation Convention on the Law of the Sea

31 Small Island Economies: from Vulnerabilities to Opportunities

UNCTAD United Nations Conference on Trade and Development

UNDP United Nations Development Programme

UNECLAC United Nations economic Commission for Latin America and the Caribbean

UNEP United Nations Environment Programme

UNESCAP United Nations Economic and Social Commission for Asia and the Pacific

UNFCCC United Nations Framework Convention on Climate Change

UNISDR United Nations International Strategy for Disaster Reduction

USP University of the South Pacific

UWI University of the West Indies

WAMIS World Agricultural Meteorology Information Service

WHO World Health Organisation

WMO World Meteorological Organization

WTO World Trade Organisation

WWSD World Summit on Sustainable Development

32 Small Island Economies: from Vulnerabilities to Opportunities

Footnotes

2. UN-OHRLLS. 2009. The Impact of Climate Change 21. UNEP. Regional Office for Latin America and the 39. UN-OHRLLS. 2009. ‘The Impact of Climate Change on the Development Prospects of the Least Caribbean. 2008. Climate Change in the Caribbean on the Development Prospects of the Least Developed Countries and Small Island Developing and the Challenge of Adaptation (p. 6) Developed Countries and SIDS States. http://www.unohrlls.org/UserFiles/File/ LDC%20Documents/The%20impact%20of%20 22. See: Briguglio and E.J. Kisanga (2004); 40. Ibid. CC%20on%20LDCs%20and%20SIDS%20for%20web. Commonwealth Secretariat and World Bank (2000); pdf (p. 8) Downes A.S. (2001); Emmanuel P. 41. Plan of action: http://www.unohrlls.org/UserFiles/ File/SIDS%20documents/Barbados.pdf 3. Ibid. 23. UN-OHRLLS. 2009. ‘The Impact of Climate Change on the Development Prospects of the Least 42. Knutson, T. R., J. L. McBride, J. Chan, K. Emanuel, G. 4. List of SIDs: http://www.unctad.org/Templates/ Developed Countries and SIDS Holland C., Landsea, I. Held, J. P. Kossin, A. K. Page.asp?intItemID=3645&lang=1 24. Atkins, J P, Mazzi, S, and Easter, C D (2000), A 43. Srivastava,and M. Sugi, (2010): Tropical Cyclones 5. The AOSIS is an ad hoc lobby and negotiating voice Commonwealth Vulnerability Index for Developing and Climate Change. Nature Geoscience, Review for SIDS within the UN system http://www.aosis.info Countries: the Position of Small States, Economic Article, 21. February 2010, DOI: 10.1038/NGEO779. Paper, No. 40, Commonwealth Secretariat, London. 6. Hein, Philippe. United Nations Conference on Trade 44. Mimura et al. Small Islands. Climate Change 2007, and Development. 2004. Is a special treatment of 25. See: Briguglio L. (2004); and Crowards T. (2000). Impacts, Adaptation and Vulnerability. Contribution Small Island Developing States possible? (p. 22) of Working Group II to the 4th Assessment Report 26. Population; GDP per capita growth rate; Export of the Intergovernmental Panel on Climate Change, 7. Caribinvest (W.I.) Limited, Singh A. et al. (2012) dependency ;Import openness; Share of service Cambridge University Press. ‘Rethinking the Institutional Framework for the exports; External debt ratio; Debt service ratio; Implementation of the Programme of Action for the Output volatility; Vulnerability to natural disasters; 45. FAO. Climate change and food security in Pacific Sustainable Development of Small Island Developing ODA per capita; FDI per capita; Export instability Islands. 2008 States (BPOA) and the Mauritius Strategy for the index; Export diversification index; Commodity Further Implementation of the BPOA (MS/BPOA)’. export concentration; Industry’s share of GDP; 46. Atolls are islands made from dead corals, enclosing Commonwealth Secretariat and Caribinvest (W.I.) Agriculture’s share of GDP; Proportion of tourism a central lagoon and surrounded by an annular coral Limited (p. 2) receipts of export earnings; Percentage of tourism reef ecosystem. Most of them are located in the receipts of GDP; PPP adjusted GDP per capita; Life Pacific Ocean, although they exist also in the Indian 8. Vossenaar, Rene. 2004. Is a special treatment of expectancy at birth; Adult literacy rate; Combined and Atlantic Oceans. Small Island Developing States possible? United school enrollment ; Infant mortality rate; Under-five 47. CIA Fact book, www.cia.gov, Retrieved 19th July Nations Conference on Trade and Development. mortality rate; Total fertility rate. (p. 57) 2010. 27. Guillaumont, Patrick. 2009. Assessing the Economic 48. Mimura et al. Small Islands. Climate Change 2007, 9. Caribinvest (W.I.) Limited, Singh A. et al. (2012) Vulnerability of Small Island Developing States and Impacts, Adaptation and Vulnerability. Contribution ‘Rethinking the Institutional Framework for the the Least Developed Countries. Centre d’Etudes et of Working Group II to the 4th Assessment Report Implementation of the Programme of Action for the de recherche sur le devéloppement international of the Intergovernmental Panel on Climate Change, Sustainable Development of Small Island Developing (p. 2) States (BPOA) and the Mauritius Strategy for the Cambridge University Press. Further Implementation of the BPOA (MS/BPOA)’. 28. Naudé, Mark McGillivray and Amelia U. Santos- 49. Read, Robert. 2010. Trade, Economic Vulnerability, Commonwealth Secretariat and Caribinvest (W.I.) The Challenge of Small Island Developing Paulino. Resilience and the Implications of Climate Change Limited (p. 1) States. Wim UNU-WIDER.2012 in Small Island and Littoral Developing Economies. 10. Ibid, p.2 29. United Nations. International Meeting to Review ICTSD (International Centre for Trade and Sustainable the Implementation of the Programme of Action Development) Programme on Competitiveness and 11. UN-OHRLLS. About SIDS. http://www.unohrlls.org/ for the Sustainable Development of Small Island Sustainable Development (p. vii) en/sids/43/ Developing States. http://www.unctad.org/en/docs/ 50. Briguglio, Lino, Bishnodat Persaud and Richard aconf207d7a2_en.pdf 12. Vossenaar, Rene. 2004. Is a special treatment of Stern. 2006. Toward an Outward-oriented Small Island Developing States possible? United 30. UNEP. 2011. Green Economy in a Blue World. development strategy for small states: Issues, Nations Conference on Trade and Development. Synthesis Report (p. 20) Opportunities and Resilience Building. A Review (p. v) of the Small States Agenda Proposed in the 31. Bueno, Ramon, Cornelia Herzfeld, Elizabeth A. Commonwealth-World Bank Joint Task Force 13. UNCTAD. http://www.unctad.org/Templates/Page. Stanton, Frank Ackerman (2008) ‘The Caribbean Report of April 2000 (p. v) asp?intItemID=3620&lang=1 and climate change: the costs of inaction’. Tufts University (p. 9) 51. Clem Tisdell . Economic Prospects for Small Island 14. Hein, Philippe. United Nations Conference on Trade Economies, Particularly in the South Pacific, in and Development. 2004. Is a special treatment of 32. Ibid a Globalising World. School of Economics, The Small Island Developing States possible? (p. 22) University of Queensland November 2006 . http:// 33. UNEP. Regional Office for Latin America and the ageconsearch.umn.edu/bitstream/90547/2/WP%20 15. Davenport, M. (2001), A Study of Alternative Special Caribbean. 2008. Climate Change in the Caribbean 43.pdf and Differential Arrangements for Small Economies, and the Challenge of Adaptation Interim Report, Commonwealth Secretariat. 52. Ramón Bueno, Cornelia Herzfeld, Elizabeth A. 34. Bueno, Ramon, Cornelia Herzfeld, Elizabeth A. Stanton, and Frank Ackerman. The Caribbean 16. More on the Caribbean Basin Initiative : http://ctrc. Stanton, Frank Ackerman (2008) ‘The Caribbean and Climate Change: The Costs of Inaction. Tufts sice.oas.org/prefar_e.ASP and climate change: the costs of inaction’. University, May 2008. Available at http://ase.tufts. Tufts University (p. 2). http://www.gdae.org/ edu/gdae/Pubs/rp/Caribbean-full-Eng.pdf 17. Pierre Encontre. SIDS as a category: adopting CaribbeanClimate.html criteria would enhance credibility. 53. Inama, Stefano. United Nations Conference on Trade 35. SIDSnet. http://www.sidsnet.org/about-sids and Development. 2004. Is a special treatment of 18. SIDSnet. http://www.sidsnet.org/about-sids Small Island Developing States possible? (p. 32 -36) 36. UN-OHRLLS. 2009. ‘The Impact of Climate Change 19. UN-OHRLLS. 2009. ‘The Impact of Climate Change on the Development Prospects of the Least 54. 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