Development co-operation must be tailored to the specific contexts, characteristics, and vulnerabilities of Small Island Developing States (SIDS): geographical remoteness, small populations, exposure to climatic and other external shocks. The SIDS Principles provide practical guidance, based on what to focus on and how to ensure effective delivery through the Effectiveness Principles for development co-operation.
Co‑operation with small island developing states
Abstract
For decades, United Nations and other global processes have recognised the unique environmental and development vulnerabilities of Small Island Developing States (SIDS). They occupy strategic geopolitical positions and oversee marine areas on average 28 times greater than their land mass, making them custodians of vast ocean expanses that connect the world.
Their untapped reserves of deep-seabed minerals, offshore oil and gas, fish stocks, marine algae and micro-organisms could have significant long-term social and environmental impacts for the planet and must be explored responsibly.
Though they contribute less than 1% of global greenhouse gas emissions, SIDS are on the frontlines of climate change impacts yet struggle to access critical finance and experience significant disbursement delays from global climate funds. Relative to other developing countries, their higher average level of per capita income masks unique vulnerabilities. The COVID-19 pandemic illustrated this clearly, as average GDP in 2020 dropped significantly more in SIDS (-8.1%) than in fragile contexts (-1.9%), landlocked developing countries (-1.8%), and least developed countries (-0.5%).
SIDS’ common challenges as well as the differences between countries require context-specific approaches for development co-operation.
The SIDS Principles developed by a multistakeholder group provide practical advice for delivering development co-operation in SIDS most effectively. Their two sections spell out how the four Effectiveness Principles for development co-operation can be applied to SIDS.
Note: Guidance for decision-making by OECD Development Assistance Committee (DAC) members (Policy Foundation A.2) in the OECD DAC Peer Review Analytical Framework recommends that geographic, thematic, and sectoral allocations be consistent with the member’s policy commitments and strategic priorities, including in SIDS.
1. Addressing vulnerabilities: For example, build the blue economy to increase economic diversification and strengthen resilience against economic shocks.
Australia and the Wildlife Conservation Society provide financial support to the Women in Fisheries Network-Fiji, which trains and empowers women to develop Fiji’s fisheries sector sustainably.
2. Mobilising resources: For example, explore untapped tax revenue sources, improve tax collection and budget alleviation.
The Asian Development Bank provided policy advice and technical assistance to the Maldives’ tax reform, doubling the country’s tax-to-GDP ratio in five years.
New Zealand mobilised emergency fiscal budget support to support Pacific SIDS' economic stability during COVID-19 and launched a Seasonal Worker Superannuation Administration Service to help workers remit money home more easily and cheaply.
3. Managing resources: For example, reinforce public expenditure management.
Canada supports the Climate Finance Access Network (CFAN), which deploys advisors to improve developing-country governments' capacities to access climate finance, such as through in-country trainings for civil servants, including in SIDS.
4. Addressing cross-cutting issues: For example, strengthen governments' capacities to lead development efforts.
Portugal and the Efrican Foundation help fund and implement, the Roadmap for Carbon Sustainability, a locally developed decision-making tool in the Autonomous Region of Príncipe to manage natural resources and comply with Article 4 of the Paris Agreement on climate-change mitigation.
New Zealand is developing capacities in the production, use, interpretation, and analysis of official statistics throughout the Pacific, and integrating partner-generated data into its results-based management practices. This includes establishing a Pacific Data Hub in collaboration with the Secretariat of the Pacific Community.
1. Country ownership: For example, align co-operation with national priorities and respond to country needs.
Despite higher transaction costs, the Asian Development Bank sequenced implementation of a road improvement project in the Solomon Islands to generate greater employment opportunities and increase the number of national contractors, strengthening local capacity and accommodating the country’s limited absorption capabilities.
2. Focus on results: For example, use Results-Focused Approaches and draw on the SDGs.
Australia and New Zealand co-ordinated alignment with and investment in the Samoa Education Sector Support Program to improve results-based management and contribute to better monitoring of education quality (SDG 4).
3. Inclusive partnerships: For example, use collective efforts by diverse stakeholders to address the scale and complexity of the challenges faced by SIDS.
Deploying triangular co-operation modalities, Luxembourg financed the participation of more than 30 health experts from Cuba to support the COVID-19 emergency response in Cabo Verde.
The Australian Infrastructure Financing Facility Partnership (AIFFP) partners with governments and the private sector in the Pacific to finance projects in areas such as transport, energy, telecommunications, and water – with a strong focus on infrastructure quality and resilience.
4. Transparency and mutual accountability: For example, strengthen accountability mechanisms to improve efficiency and effectiveness in development activities.
Members of the Alliance of Small Island States and the OECD DAC jointly developed a Partnership for Action that identifies five areas for collaboration. The Partnership was co-created and will be co-implemented with a jointly developed monitoring framework.
How do we know if DAC Members are moving in the right direction?
SIDS’ economies grow sustainably and avoid ‘reinstatement’ on the DAC List of Official Development Assistance (ODA) Recipients after having been graduated.
Provider programming is informed by, and allocations align with SIDS’ vulnerabilities.
Engagement focuses on diversifying SIDS’ economies, with an eye toward sustainability and strengthening domestic resource mobilisation.
Development partners adopt tailored approaches that accept higher transaction costs in contexts with small administrations and limited capacity.
4 Principles for Development Effectiveness, Global Partnership for Effective Development Co-operation.
Improving development impact in Small Island Developing States: Implementing effectiveness principles, Government of Canada.
Helping Small Island Developing States graduate to success, OECD Publishing, Paris.
Capacity Development for Climate Change in Small Island Developing States, OECD Publishing, Paris.
SIDS’ Access to Green Funds, Development Co-operation Directorate.
Sustainable Ocean for All: Harnessing the Benefits of Sustainable Ocean Economies for Developing Countries, OECD Publishing, Paris.
Making Development Co-operation Work for Small Island Developing States, OECD Publishing, Paris.
More Framework principles are available on Development Co-operation TIPs • Tools Insights Practices.
