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Causes of Debt Accumulation in SIDS

In: Debt and Development in Small Island Developing States

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  • Damien King

Abstract

This chapter investigates the drivers of debt accumulation in Small Island Developing States (SIDS). The question of what drives small economies to accumulate debt on the scale observed in the last quarter century remains an open one in the face of both commonalities and differences in the circumstances and characteristics of these economies. The islands in the Caribbean share a relatively small geographical space—the latitudes of the Caribbean islands span only some 2,200 kilometers— and so are exposed to common climatic and other natural conditions. The geographical proximity also explains the similarities in the economic structures. Most of the islands are dependent on tourism and primary commodities. In contrast the islands of the AIMS region are dispersed across a latitudinal span, from Cabo Verde to Singapore, of roughly 14,000 kilometers. Their natural and economic conditions vary widely.

Suggested Citation

  • Damien King, 2014. "Causes of Debt Accumulation in SIDS," Palgrave Macmillan Books, in: Debt and Development in Small Island Developing States, chapter 0, pages 157-172, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-39278-7_7
    DOI: 10.1057/9781137392787_7
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