Small Island Developing States (SIDS) include some of the world’s smallest and most remote states in the world. They are a diverse group of countries, differing in terms of population size and densities, geographical spread and relative development progress. Yet, they share common challenges and vulnerabilities that prevent them from investing in resilient development and seriously hinder their growth prospects. These include: high exposure to natural disasters and climate change, high exposure to global economic shocks, small or unstable domestic revenues and limited borrowing opportunities.
The OECD provides statistical data and policy analysis on external finance to Small Island Developing States (SIDS) to enhance access to and quality of development co-operation, and to support the development of financial instruments and approaches that are tailored to countries’ specific circumstances and needs.
In view of the challenges facing SIDS, a Technical Advisory Group of SIDS, donors, and international organisations set up a new virtual Secretariat in 2021 to improve the effectiveness and impact of international cooperation targeting SIDS. This Secretariat, provided by the OECD/UN, is developing advisory guidance and shared principles on effective development co-operation in SIDS contexts. |
Financing for SIDSWith small and remote economies, exposed to economic and natural shocks, SIDS are highly vulnerable developing countries. They suffer from low economic diversification (some are highly dependent on tourism, others are subject to fluctuations in the prices of the raw materials on which their economies depend); high dependence on remittances; debt stress situations, as well as volatility of private income flows. Furthermore, SIDS make up two thirds of the countries that suffer the highest relative losses – between 1% and 9% of their GDP each year – from natural disasters and are acutely vulnerable to the increasing impacts of climate change. Key facts
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Making Development Co-operation Work for Small Island Developing States
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