Donor Involvement in Resilience Building for SIDS Jagdish Koonjul International Conference on Small States and Economic Resilience April 2007.

Donor Involvement in Donor Involvement in Resilience Building for SIDSResilience Building for SIDS

Jagdish KoonjulJagdish Koonjul

International Conference on International Conference on Small States and Economic ResilienceSmall States and Economic Resilience

April 2007April 2007

This presentation will highlightThis presentation will highlight

• reference to the work done in the area of resilience reference to the work done in the area of resilience building in the context of the Mauritius International building in the context of the Mauritius International Meeting on the further implementation of the BPoA. Meeting on the further implementation of the BPoA.

• inclusion of resilience building as a major concept in the inclusion of resilience building as a major concept in the Mauritius Strategy adopted by the Mauritius International Mauritius Strategy adopted by the Mauritius International Meeting in 2005Meeting in 2005

• SIDS expectations from the Donor Community as a SIDS expectations from the Donor Community as a result of the elaboration of the index and more result of the elaboration of the index and more importantly SIDS and small states generally would want importantly SIDS and small states generally would want to ensure that the Donor Community to ensure that the Donor Community does notdoes not do. do.

Vulnerability of SIDSVulnerability of SIDS

SIDS tend to be particularly vulnerable because of SIDS tend to be particularly vulnerable because of their small size and insularitytheir small size and insularity

SIDS have:SIDS have:• a small domestic marketa small domestic market • a lack of natural resourcesa lack of natural resources • limitations for diversificationlimitations for diversification• limitations in resources for exportlimitations in resources for export

Vulnerability of SIDS Vulnerability of SIDS (cont.)(cont.)

Additional constraints include: Additional constraints include:

• limitations of SIDS to reap the benefits of limitations of SIDS to reap the benefits of economies of scaleeconomies of scale

• high infrastructure, administrative and other high infrastructure, administrative and other overhead costs overhead costs

• additional constraints, such as limited attraction additional constraints, such as limited attraction for foreign direct investmentfor foreign direct investment

Vulnerability of SIDS Vulnerability of SIDS (cont.)(cont.)

SIDS face natural vulnerabilities such as: SIDS face natural vulnerabilities such as: • cyclones cyclones • tsunamistsunamis• rising sea levelsrising sea levels• flooding flooding • droughtsdroughts

Vulnerabilities are attractive alongside the Vulnerabilities are attractive alongside the remoteness and smallness.remoteness and smallness.

They make the island worth living on and worth They make the island worth living on and worth saving.saving.

From Vulnerability to Resilience BuildingFrom Vulnerability to Resilience Building

Something needs to be done.Something needs to be done.

So So the issue of resilience crops up.the issue of resilience crops up.

Resilience is the coping ability of a vulnerable country.Resilience is the coping ability of a vulnerable country.

Characteristics of vulnerability might not necessarily be Characteristics of vulnerability might not necessarily be handicaps to economic growth.handicaps to economic growth.

Vulnerability is the potential to suffer from future shocks.Vulnerability is the potential to suffer from future shocks.

A handicap to growth could equally increase or decrease A handicap to growth could equally increase or decrease vulnerability.vulnerability.

ResilienceResilience

Resilience may be inherent or nurtured. Resilience may be inherent or nurtured.

The inherent aspect of resilience can be seen as the The inherent aspect of resilience can be seen as the other aspect of vulnerability – countries with a high other aspect of vulnerability – countries with a high degree of resilience have a decreased economic degree of resilience have a decreased economic vulnerability.vulnerability.

A country can also nurture its resilience through A country can also nurture its resilience through deliberate policy or through adaptive action. deliberate policy or through adaptive action.

Resilience and Sustainable DevelopmentResilience and Sustainable Development

In the lead up to the MIM, SIDS had a series of In the lead up to the MIM, SIDS had a series of preparatory meetings during which a consensus preparatory meetings during which a consensus emerged that sustainable development of SIDS would emerged that sustainable development of SIDS would not be achieved unless they engage in building social, not be achieved unless they engage in building social, economic and environmental resilience. economic and environmental resilience.

It was agreed that SIDS will require support from the It was agreed that SIDS will require support from the International Community to undertake resilience International Community to undertake resilience building measures. building measures.

Energy and Economic ResilienceEnergy and Economic Resilience

SIDS can become economically resilient if they: SIDS can become economically resilient if they:

• use more of their own natural resources more use more of their own natural resources more efficientlyefficiently

• move to renewable energy and upgrade production move to renewable energy and upgrade production and transmission systemsand transmission systems

• lower the cost of energy, allowing lower costs for lower the cost of energy, allowing lower costs for domestic production and services, thereby improving domestic production and services, thereby improving their competitiveness and ability to export goods and their competitiveness and ability to export goods and services. services.

Energy and Social VulnerabilityEnergy and Social Vulnerability

Social vulnerability is increased with:Social vulnerability is increased with:• an uncertain energy supply and an uncertain energy supply and • by lack of access to affordable energyby lack of access to affordable energy

This leads to a socially unstable situation of haves and This leads to a socially unstable situation of haves and have-nots. have-nots.

Energy and Social ResilienceEnergy and Social Resilience

Social resilience would be built: Social resilience would be built:

• by improving the accessibility and affordability of by improving the accessibility and affordability of energy, and energy, and

• by creating new employment in local industries by creating new employment in local industries focussed on domestic energy resources. focussed on domestic energy resources.

Energy and Environmental VulnerabilityEnergy and Environmental Vulnerability

Environmental vulnerability is increased by risks such Environmental vulnerability is increased by risks such as: as: • a fossil fuel spilla fossil fuel spill• particulates in the air from poorly combusted fuels.particulates in the air from poorly combusted fuels.

In the longer term this contributes to climate change.In the longer term this contributes to climate change.

Albeit from the SIDS this is as a very minor Albeit from the SIDS this is as a very minor contribution. contribution.

Energy and Environmental ResilienceEnergy and Environmental Resilience

Environmental resilience would be built by: Environmental resilience would be built by:

• having a domestically produced less polluting having a domestically produced less polluting source of energysource of energy

• combating land degradation by planting “energy combating land degradation by planting “energy crops” on degraded or unused land, or by creating crops” on degraded or unused land, or by creating restored coconut groves.restored coconut groves.

The Fiji Biofuels IndustryThe Fiji Biofuels Industry

The Fiji biofuels industry presents an interesting case study.The Fiji biofuels industry presents an interesting case study.

There was an urgent need to address issues that have There was an urgent need to address issues that have contributed to growing vulnerability in the Fiji economy resulting contributed to growing vulnerability in the Fiji economy resulting from:from:

fluctuations and uncertainties in Fiji’s sugar market fluctuations and uncertainties in Fiji’s sugar market (including the loss of preferential access to the European (including the loss of preferential access to the European Union) in 2007; Union) in 2007; the increasing cost and volatility of petroleum supplies; from the increasing cost and volatility of petroleum supplies; from increasing climate variability and global climate change.increasing climate variability and global climate change.

Proactive approach taken by the Fiji Permanent Representative Proactive approach taken by the Fiji Permanent Representative to the United Nations in seeking primarily a solution to the loss to the United Nations in seeking primarily a solution to the loss of sugar preferences.of sugar preferences.

The Mauritius International MeetingThe Mauritius International Meeting

The Mauritius International Meeting drew particular attention The Mauritius International Meeting drew particular attention to the need to develop:to the need to develop:

• • means of recovery from natural environmental disasters and means of recovery from natural environmental disasters and external economic shocksexternal economic shocks

• • innovative modalities for mobilizing resources and financing innovative modalities for mobilizing resources and financing for developmentfor development

• • mechanisms for evaluation and follow-upmechanisms for evaluation and follow-up• • sustainable solutions to energy concernssustainable solutions to energy concerns• • new information and communications technologiesnew information and communications technologies• • partnerships among Governments, civil society, the private partnerships among Governments, civil society, the private

sector and the international communitysector and the international community• • the establishment and/or strengthening of early warning the establishment and/or strengthening of early warning

systemssystems• • strategies for National security.strategies for National security.

The Mauritius International Meeting The Mauritius International Meeting (cont.)(cont.)

The Mauritius International Meeting recommended that The Mauritius International Meeting recommended that governments of SIDS can and should take steps to:governments of SIDS can and should take steps to:

• • integrate economic, environmental, social, and cultural integrate economic, environmental, social, and cultural considerations into disaster-management plansconsiderations into disaster-management plans

• • diversify trade activities and develop strategies for coping with diversify trade activities and develop strategies for coping with economic instabilityeconomic instability

• • manage in an inclusive and integrated way the environmental manage in an inclusive and integrated way the environmental resources that sustain the economies of small island resources that sustain the economies of small island developing Statesdeveloping States

• • include civil society in the formulation and implementation of include civil society in the formulation and implementation of public policy in meaningful ways to strengthen capacity for public policy in meaningful ways to strengthen capacity for resilience.resilience.

The Mauritius International Meeting The Mauritius International Meeting (cont.)(cont.)

Major groups and civil society should play an Major groups and civil society should play an important role in resilience-building by:important role in resilience-building by:

• increasing capacity through training, education and increasing capacity through training, education and research research

• developing global information-sharing systemsdeveloping global information-sharing systems• raising awareness on indigenous issues.raising awareness on indigenous issues.

The Mauritius International Meeting The Mauritius International Meeting (cont.)(cont.)

It urged the international community and development It urged the international community and development partners to support SIDS in building resilience and achieving partners to support SIDS in building resilience and achieving sustainable development by:sustainable development by:

• rapid mobilization of resources for disaster relief and rapid mobilization of resources for disaster relief and reconstructionreconstruction

• strengthening capacities of small island developing States to strengthening capacities of small island developing States to work at the regional and subregional levelswork at the regional and subregional levels

• supporting and improving strategies to develop collaborative supporting and improving strategies to develop collaborative partnershipspartnerships

• revising the use of GDI/GDP as criteria when considering revising the use of GDI/GDP as criteria when considering SIDS economies within the framework of financing for SIDS economies within the framework of financing for developmentdevelopment

• funding scientific research and community-based initiatives funding scientific research and community-based initiatives for sustainable development in SIDS.for sustainable development in SIDS.

The Mauritius International Meeting The Mauritius International Meeting (cont.)(cont.)

The Mauritius International Meeting also made specific The Mauritius International Meeting also made specific proposals relating to: proposals relating to:

• energyenergy• waterwater• waste food, and waste food, and • capacity building capacity building

which will consolidate the resilience of SIDS. which will consolidate the resilience of SIDS.

The Resilience IndexThe Resilience Index

The resilience index is a tool: The resilience index is a tool:

• to measure the degree of success in diminishing or mitigating to measure the degree of success in diminishing or mitigating the adverse effects of their vulnerabilities. the adverse effects of their vulnerabilities.

• to enable them take informed decisions to address their to enable them take informed decisions to address their vulnerability.vulnerability.

Minister Frendo yesterday referred to it as Minister Frendo yesterday referred to it as a tool useful in setting targets and benchmarks, or a means to a tool useful in setting targets and benchmarks, or a means to exchange good practices as well as an indicator as to what a exchange good practices as well as an indicator as to what a country can and should be doing. country can and should be doing.

The Resilience Index The Resilience Index (cont.)(cont.)

Resource mobilisation Resource mobilisation

the tool could be used to persuade donors aboutthe tool could be used to persuade donors about• the viability of a strategy the viability of a strategy • the commitment of a country to take measures for the commitment of a country to take measures for

resilience building.resilience building.

The ResilienceThe Resilience Index Index (cont.)(cont.)

Economic resilience on its own will not give the results that we Economic resilience on its own will not give the results that we expect. expect.

Unless action is taken in the areas of economic, social and Unless action is taken in the areas of economic, social and environmental vulnerabilities, resilience will remain elusive. environmental vulnerabilities, resilience will remain elusive.

A serious exercise of putting together all the work done in A serious exercise of putting together all the work done in respect of the various indices should be undertaken. This respect of the various indices should be undertaken. This integrated approach will help measure more efficiently and integrated approach will help measure more efficiently and more effectively the resilience level of a small state. more effectively the resilience level of a small state.

Work should include all that has been done in the social, Work should include all that has been done in the social, economic and environmental areas with linkages to the human economic and environmental areas with linkages to the human development index as well. development index as well.

Resilience and the Donor CommunityResilience and the Donor Community

The international community has a responsibility to help SIDS The international community has a responsibility to help SIDS overcome vulnerability.overcome vulnerability.

vulnerability should be a global concernvulnerability should be a global concern

The resilience index can be a good tool: The resilience index can be a good tool: • to engage the donor community to get a commitmentto engage the donor community to get a commitment• to use the index to determine the urgency and to use the index to determine the urgency and

appropriateness of funding the projects and strategies which appropriateness of funding the projects and strategies which will help towards resilience building.will help towards resilience building.

The donor community is The donor community is to provide resources for resilience to provide resources for resilience building by way of early warning systems and insurance and building by way of early warning systems and insurance and reinsurances which are more likely to save lives and mitigate reinsurances which are more likely to save lives and mitigate the effects of natural disasters. the effects of natural disasters.

Resilience and the Donor CommunityResilience and the Donor Community (cont.)(cont.)

The donor community should not:The donor community should not:

• look at small islands states vulnerabilities as something that look at small islands states vulnerabilities as something that does not require any particular attentiondoes not require any particular attention

• consider that vulnerabilities as long as they do not cause any consider that vulnerabilities as long as they do not cause any tangible damage should not be addressedtangible damage should not be addressed

• use it determine that in case a country has reached a level of use it determine that in case a country has reached a level of resilience it no longer requires any assistance.resilience it no longer requires any assistance.

ConclusionsConclusions

Resilience building is very important to SIDS, and it is Resilience building is very important to SIDS, and it is recommended that donor countries embrace elements of this recommended that donor countries embrace elements of this approach in their work with SIDS. approach in their work with SIDS.

To date only the Commonwealth Secretariat and the UNDP To date only the Commonwealth Secretariat and the UNDP have taken an in-depth look at how resilience building can be have taken an in-depth look at how resilience building can be planned and financed. planned and financed.

While there have been a number of donor which manifested While there have been a number of donor which manifested themselves at the Mauritius Meeting we are yet to see a themselves at the Mauritius Meeting we are yet to see a coordinated approach to resource mobilisation towards coordinated approach to resource mobilisation towards resilience building. resilience building.

SIDS have to come up with appropriate strategies which can be SIDS have to come up with appropriate strategies which can be presented to donors.presented to donors.