The Rich World’s Debt to Island States by Jeffrey D. Sachs and Isabella Massa

As recent disasters have shown, the world’s small island developing states are extremely vulnerable to the ravages of climate change, a problem created almost entirely by rich countries. If the international community takes sustainable development that leaves no one behind seriously, rich countries need to do three things.

ROME – The appearance of Hurricane Elsa in the Caribbean this month, well before the usual start of the hurricane season in the Atlantic, reminds us of what lies ahead for the small island developing States (SIDS) of the world in coming years. These states are already suffering from the devastating effects of climate change and will now have to spend heavily on repairs and resilience-building measures. Rich countries and their fossil fuel companies have largely contributed to the problem, so they should help cover the growing climate costs of SIDS.

Due to their unique circumstances, the 58 SIDS of the world – of which 38 are members of the United Nations – have belonged to a special group within the UN since 1992. In a new study of this cohort for the UN, we identified three overarching structural vulnerabilities facing SIDS today.

First, because most SIDS have small populations (less than one million), their exports are concentrated in only a few activities. When COVID-19 hit, tourism-dependent SIDS were hit much harder than most other countries, especially developed economies. In 2020, the GDP of Barbados, Fiji and the Maldives decreased by 17.6%, 19% and 32.2%, respectively, compared to 3.5% in the United States. Many SIDS have also experienced a sharp decline in international remittances – another key source of livelihood.