|
Small Island Developing States (SIDS) include some of the world’s smallest and most remote states in the world. Though they differ in population size, geographical spread and development progress, they share challenges and vulnerabilities: high exposure to natural disasters, climate change, and global economic shocks, as well as small or unstable domestic revenues and limited borrowing opportunities. These prevent them from investing in resilient development and seriously hinder their growth prospects. 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 tailored financial instruments and approaches. In view of the challenges facing SIDS, a Technical Advisory Group of SIDS, donors, and international organisations set up a virtual Secretariat (composed of OECD and UN) in 2021 to develop guidance on improving the effectiveness and impact of international co-operation in the specific context of SIDS. |
Financing for SIDSSIDS are highly vulnerable developing countries that suffer from low economic diversification, often characterised by high dependence on tourism and remittances, volatility due to fluctuations in private income flows and the prices of raw materials, and debt stress situations. 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 impacts of climate change. Key facts
More resources: |
When do SIDS ‘graduate’ from official development assistance?Most SIDS that are ODA-eligible are currently upper middle income countries. ODA rules stipulate that when a country surpasses the high income threshold for three consecutive years (at the time of the triennial review), it can graduate from the list, i.e. flows to them from DAC members can no longer be counted as ODA. Since the beginning of the DAC (1961), the following SIDS have graduated from the DAC recipients list: Guadeloupe, Martinique, Réunion and Saint Pierre and Miquelon (1992); Bahamas and Singapore (1996); Bermuda, Cayman Islands, Cyprus and Falkland Islands (Malvinas), (1997); Aruba, the British Virgin Islands, French Polynesia, Netherlands Antilles, New Caledonia and the Northern Marianas Islands (2000); Malta (2003); Turks and Caicos Islands (2008), Barbados, Mayotte and Trinidad and Tobago (2011); Anguilla and Saint Kitts and Nevis (2014); Seychelles (2018); Cook Islands (2020); and Antigua and Barbuda (2022). SIDS which are preparing to graduate from the DAC list of ODA recipients can use the following three scenarios on the evolution of their GNI per capita until 2030. > Scenario 1 > Scenario 2 > Scenario 3 Note: the above scenarios are hypothetical projections and do not reflect an OECD position. More resources: |
Further reading
|
Related work |
Related Documents