1 ECOSOC 2010 General Segment 20 July 2010 Panel discussion: Opportunities for Small Island Developing States Pierre Encontre UNCTAD

2 International services Vulnerability, resilience-building, specialization, services Progress in resilience- building Enhancing specialization Stocktaking Progress made in addressing vulnerabilities of SIDS SIDS denomination

3 Antigua and Barbuda Main exports of goods and services, 2008 $ m

4 Bahamas Main exports of goods and services, 2008 $ m

5 Barbados Main exports of goods and services, 2008 $ m

6 Cape Verde Main exports of goods and services, 2008 $ m

7 Dominica Main exports of goods and services, 2008 $ m

8 Fiji Main exports of goods and services, 2008 $ m

9 Grenada Main exports of goods and services, 2008 $ m

10 Jamaica Main exports of goods and services, 2008 $ m

11 Maldives Main exports of goods and services, 2008 $ m

12 Mauritius Main exports of goods and services, 2008 $ m

13 Papua New Guinea Main exports of goods and services, 2008 $ m

14 St. Kitts and Nevis Main exports of goods and services, 2008 $ m

15 St. Lucia Main exports of goods and services, 2008 $ m

16 St. Vincent and the Grenadines Main exports of goods and services, 2008 $ m

17 Samoa Main exports of goods and services, 2008 $ m

18 Sao Tome & Principe Main exports of goods and services, 2008 $ m

19 Seychelles Main exports of goods and services, 2008 $ m

20 Solomon Islands Main exports of goods and services, 2008 $ m

21 Tonga Main exports of goods and services, 2008 $ m

22 Trinidad and Tobago Main exports of goods and services, 2008 $ m

23 Vanuatu Main exports of goods and services, 2008 $ m TourismTransp. serv. Fin. & offsh. serv. CopraCoconut oil KavaBeef

24 1.Services dominate economic specialization of most SIDS (22 out of 29) 2.Two sectors dominate the international service economy of SIDS: tourism, offshore 3.What matters to most SIDS policy makers: *make existing international service sectors competitive, sustainable, beneficial to all *develop two viable export service pillars, besides one or two competitive merchandise export sectors ("optimum specialization" overall) 4.Sound tourism development: sine qua non for structural progress (UNCTAD axiom) Tourism development = catalyst for infrastructure and human resource development, spur to efficient air transport, with backward linkages as an avenue for poverty reduction 5.Sound offshore specialization: powerful engine for reversing the brain drain *12 of the 16 developing countries that are offshore centres are SIDS *3 key lessons: awareness of (negative) global mood and willingness to comply; sound choice of offshore product specialization; widening notion of offshore service (growing range of outsourced services). UNCTAD assisting Cape Verde. 6.In short: services = wealth of opportunities, but SIDS need to manage the "island paradox" Services: salient points, lessons

25 The "island paradox" Highest vulnerability in the world (EVI) Apparent prosperity Limitations Specialization in services IP Resilience-building is costlyResilience-building is costly Concessionary treatment is no luxuryConcessionary treatment is no luxury Lesser (or denial of) concessionary treatmentLesser (or denial of) concessionary treatment Premature graduation from LDC statusPremature graduation from LDC statusOverestimation

26 Is the UNs SIDS denomination useful ? Need for preferential treatment Need for technical assistance Need for concessionary financing S&DT in the WTO: for LDCs only (SVE has not borne fruit) No technical assistance programme reserved for SIDS SIDS status weighs little in donors decisions Commendable move by ECOSOC in 2009 (E/2009/17) WHATTO DO ? ALLOW UNS SIDS WORK TO EVOLVE FROM A NEBULOUS CONCEPT TO A CREDIBLE DENOMINATION

27 E/2009/17 ECOSOC noted that the UNs SIDS designation is a useful and important tool for recognizing and responding to the particular vulnerabilities and characteristics of SIDS and for assisting them in their pursuit of sustainable development.

28 Thank you P. Encontre Chief, Special Programmes Division for Africa, Least Developed Countries and Special Programmes UNCTAD