Author:Gail Hurley
Subject: Poverty and Inequality
" /> Abstract: Many small island developing states (SIDS) have struggled to address increasing levels of public debt over the past decade. Most small islands are disproportionately exposed to and impacted by external economic shocks because of structural weaknesses, such as limited natural resources, a dependence on one or two exports, lack of economies of scale, distance from markets, heavy dependence on imports, the high unit cost of service provision and a reliance on tourism and remittances for foreign exchange. This is combined with vulnerability to extreme weather conditions, such as hurricanes, which can wipe out entire communities and entail substantial reconstruction costs. These factors, in conjunction with lower levels of overseas development assistance for most SIDS, have left governments excessively reliant on domestic and external credit to meet fiscal deficits and to fund development.

keywords: Addressing Unsustainable Debt in Small Island Developing States
Date Publication: 02/15/2011 (All day)
Type/Issue: One Pager / 123
Language: English