Economic vulnerability in the Caribbean in the 1990s : selected cases

Abstract

This chapter attempts to show that Caribbean Small Island Developing States (SIDS) are economically vulnerable due to a number of features, including a high degree of economic openness and a relatively high dependence on a few items of exported goods and services, and relatively high dependence on imports of strategic importance. The SIDS covered in the study are Antigua and Barbuda, Barbados, Dominica, Jamaica, St Lucia and Trinidad and Tobago. The chapter argues that given this reality, the Caribbean SIDS need to build their resilience in order to cope with their inherent vulnerabilities and to benefit adequately from the globalisation process. Four important policy measures are proposed in order to build the resilience of the Caribbean SIDS, namely (a) diversification (b) efficiency in energy use (c) market integration and (d) sustainable development, in order to take account of social and environmental, in addition to the economic dimensions.