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Vulnerability, Trade, Financial Flows and State Failure in Small Island Developing States

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  • Mark McGillivray
  • Wim Naude
  • Amelia Santos-Paulino

Abstract

Small Island Developing States (SIDS) are very different to other developing countries. Relative to GDP they have the highest levels of foreign trade and aid receipts of all developing countries. Remittances from abroad are a far more important source of income for SIDS, and some depend very heavily on export revenues. The quality of governance varies tremendously among SIDS, they are over-represented among countries classified as fragile states and many are prone to state failure. These and other factors combine to make SIDS highly vulnerable to external economic shocks. Achieving development in SIDS is as a consequence an especially complex task that requires an understanding of the roles played by aid, trade, remittances and governance in these countries. This paper looks at these issues, along with providing various stylised facts about SIDS. In so doing it serves as a background and broad contextual setting for the papers that follow in this Special Issue on 'Fragility and Development in Small Island Developing States'.

Suggested Citation

  • Mark McGillivray & Wim Naude & Amelia Santos-Paulino, 2010. "Vulnerability, Trade, Financial Flows and State Failure in Small Island Developing States," Journal of Development Studies, Taylor & Francis Journals, vol. 46(5), pages 815-827.
    • Handle: RePEc:taf:jdevst:v:46:y:2010:i:5:p:815-827
    DOI: 10.1080/00220381003623822
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    1. Mark McGillivray, 2006. "Aid Allocation and Fragile States," WIDER Working Paper Series DP2006-01, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Angeon, Valérie & Bates, Samuel, 2015. "Reviewing Composite Vulnerability and Resilience Indexes: A Sustainable Approach and Application," World Development, Elsevier, vol. 72(C), pages 140-162.
    2. Keyu Qin & Haijun Huang & Jingya Liu & Liwen Yan & Yanxia Liu & Haibo Bi & Zehua Zhang & Yi Zhang, 2021. "Impact Mechanism of the Ecological Vulnerability of Highly Developed Islands Based on the Bayesian Network Model—Applied to the Changshan Islands," IJERPH, MDPI, vol. 18(8), pages 1-24, April.
    3. Feeny, Simon & Iamsiraroj, Sasi & McGillivray, Mark, 2014. "Growth and Foreign Direct Investment in the Pacific Island countries," Economic Modelling, Elsevier, vol. 37(C), pages 332-339.

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