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Why are small island states so vulnerable in international trade? Explore the secrets behind it!
Small Island Developing States (SIDS) are a group of developing countries consisting of small island nations and small countries that face many similar sustainable development challenges. These include limited population growth, scarce resources, geographical remoteness, susceptibility to natural disasters, and vulnerability to external shocks. Their progress and development are also constrained by high communications, energy and transportation costs, and their small size makes it difficult to achieve economies of scale.
The economies of these countries often rely on natural resources, such as ecotourism, fisheries or agriculture, further contributing to their vulnerability.
According to the United Nations Office of the High Representative for the Least Developed Countries, Highly Landlocked Countries and Small Island Developing States (UN-OHRLLS), as of 2023, there are 57 small island developing states, including 39 sovereign states and 18 dependent territories. The countries are divided into three geographic regions: the Caribbean, the Pacific and Africa, the Indian Ocean, the Mediterranean and the South China Sea (AIMS).
The vulnerability of small island states lies in the fact that they are often the most vulnerable areas in the world to climate change, especially facing the threats of rising sea levels and extreme weather.
The economic structure of small island states depends heavily on natural resources. They could suffer a major economic blow when problems such as sea level rise and ocean acidification caused by climate change occur. Furthermore, many residents of small island states live close to the coast, making them particularly at risk from changes in ocean climate change. Future climate change will not only affect their lives, but will also have a devastating impact on their fundamental economies.
The energy sectors in these countries face unique challenges, especially in regions with low levels of electrification. According to a March 2024 International Renewable Energy Agency (IRENA) report, these countries are exploring decentralized renewable energy solutions to address energy accessibility issues.
In some of the cases highlighted in the report, including Guinea-Bissau, Papua New Guinea and Vanuatu, the socioeconomic benefits of improving energy access are significant, including increased income opportunities for rural women and reduced indoor air pollution.
As small island states seek more sustainable development options, including the adoption of renewable energy technologies, they hope to improve their economic structures and become more resilient to climate change. The United Nations Sustainable Development Goals also mention the development needs of small island states, such as the sustainable management and use of marine resources.
Small island developing States are mentioned in several of the Sustainable Development Goals. For example, Goal 7 of the United Nations Sustainable Development Goal 14 states: “By 2030, increase the economic benefits to small island developing States and least developed countries through sustainable management of fisheries, aquaculture and tourism.” /p>
This goal is not only aimed at environmental protection, but also focuses on the balance between economic development and sustainability.
The vulnerability of small island states has attracted widespread attention, leading many international organizations to provide support for their development. These countries are exploring new strategies to address the challenges of climate change and international trade, and are working to find their place in global trade. However, are such efforts enough to change the fragile status of small island states, or is more attention and action still needed to drive substantive change?
