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

This presentation will highlight reference to the work done in the area of resilience building in the context of the Mauritius International Meeting on the further implementation of the BPoA. reference to the work done in the area of resilience building in the context of the Mauritius International Meeting on the further implementation of the BPoA. inclusion of resilience building as a major concept in the Mauritius Strategy adopted by the Mauritius International Meeting in 2005 inclusion of resilience building as a major concept in the Mauritius Strategy adopted by the Mauritius International Meeting in 2005 SIDS expectations from the Donor Community as a result of the elaboration of the index and more importantly SIDS and small states generally would want to ensure that the Donor Community does not do. SIDS expectations from the Donor Community as a result of the elaboration of the index and more importantly SIDS and small states generally would want to ensure that the Donor Community does not do.

Vulnerability of SIDS SIDS tend to be particularly vulnerable because of their small size and insularity SIDS have: a small domestic market a small domestic market a lack of natural resources a lack of natural resources limitations for diversification limitations for diversification limitations in resources for export limitations in resources for export

Vulnerability of SIDS (cont.) Additional constraints include: limitations of SIDS to reap the benefits of economies of scale limitations of SIDS to reap the benefits of economies of scale high infrastructure, administrative and other overhead costs high infrastructure, administrative and other overhead costs additional constraints, such as limited attraction for foreign direct investment additional constraints, such as limited attraction for foreign direct investment

Vulnerability of SIDS (cont.) SIDS face natural vulnerabilities such as: cyclones cyclones tsunamis tsunamis rising sea levels rising sea levels flooding flooding droughts droughts Vulnerabilities are attractive alongside the remoteness and smallness. They make the island worth living on and worth saving.

From Vulnerability to Resilience Building Something needs to be done. So the issue of resilience crops up. Resilience is the coping ability of a vulnerable country. Characteristics of vulnerability might not necessarily be handicaps to economic growth. Vulnerability is the potential to suffer from future shocks. A handicap to growth could equally increase or decrease vulnerability.

Resilience Resilience may be inherent or nurtured. The inherent aspect of resilience can be seen as the other aspect of vulnerability – countries with a high degree of resilience have a decreased economic vulnerability. A country can also nurture its resilience through deliberate policy or through adaptive action.

Resilience and Sustainable Development In the lead up to the MIM, SIDS had a series of preparatory meetings during which a consensus emerged that sustainable development of SIDS would not be achieved unless they engage in building social, economic and environmental resilience. It was agreed that SIDS will require support from the International Community to undertake resilience building measures.

Energy and Economic Resilience SIDS can become economically resilient if they: use more of their own natural resources more efficiently use more of their own natural resources more efficiently move to renewable energy and upgrade production and transmission systems move to renewable energy and upgrade production and transmission systems lower the cost of energy, allowing lower costs for domestic production and services, thereby improving their competitiveness and ability to export goods and services. lower the cost of energy, allowing lower costs for domestic production and services, thereby improving their competitiveness and ability to export goods and services.

Energy and Social Vulnerability Social vulnerability is increased with: an uncertain energy supply and an uncertain energy supply and by lack of access to affordable energy by lack of access to affordable energy This leads to a socially unstable situation of haves and have-nots.

Energy and Social Resilience Social resilience would be built: by improving the accessibility and affordability of energy, and by improving the accessibility and affordability of energy, and by creating new employment in local industries focussed on domestic energy resources. by creating new employment in local industries focussed on domestic energy resources.

Energy and Environmental Vulnerability Environmental vulnerability is increased by risks such as: a fossil fuel spill a 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. Albeit from the SIDS this is as a very minor contribution.

Energy and Environmental Resilience Environmental resilience would be built by: having a domestically produced less polluting source of energy having a domestically produced less polluting source of energy combating land degradation by planting “energy crops” on degraded or unused land, or by creating restored coconut groves. combating land degradation by planting “energy crops” on degraded or unused land, or by creating restored coconut groves.

The Fiji Biofuels Industry The Fiji biofuels industry presents an interesting case study. There was an urgent need to address issues that have contributed to growing vulnerability in the Fiji economy resulting from: fluctuations and uncertainties in Fiji’s sugar market (including the loss of preferential access to the European Union) in 2007; the increasing cost and volatility of petroleum supplies; from increasing climate variability and global climate change. Proactive approach taken by the Fiji Permanent Representative to the United Nations in seeking primarily a solution to the loss of sugar preferences.

The Mauritius International Meeting The Mauritius International Meeting drew particular attention to the need to develop: means of recovery from natural environmental disasters and external economic shocks means of recovery from natural environmental disasters and external economic shocks innovative modalities for mobilizing resources and financing for development innovative modalities for mobilizing resources and financing for development mechanisms for evaluation and follow-up mechanisms for evaluation and follow-up sustainable solutions to energy concerns sustainable solutions to energy concerns new information and communications technologies new information and communications technologies partnerships among Governments, civil society, the private sector and the international community partnerships among Governments, civil society, the private sector and the international community the establishment and/or strengthening of early warning systems the establishment and/or strengthening of early warning systems strategies for National security. strategies for National security.

The Mauritius International Meeting (cont.) The Mauritius International Meeting recommended that governments of SIDS can and should take steps to: integrate economic, environmental, social, and cultural considerations into disaster-management plans integrate economic, environmental, social, and cultural considerations into disaster-management plans diversify trade activities and develop strategies for coping with economic instability diversify trade activities and develop strategies for coping with economic instability manage in an inclusive and integrated way the environmental resources that sustain the economies of small island developing States manage in an inclusive and integrated way the environmental resources that sustain the economies of small island developing States include civil society in the formulation and implementation of public policy in meaningful ways to strengthen capacity for resilience. include civil society in the formulation and implementation of public policy in meaningful ways to strengthen capacity for resilience.

The Mauritius International Meeting (cont.) Major groups and civil society should play an important role in resilience-building by: increasing capacity through training, education and research increasing capacity through training, education and research developing global information-sharing systems developing global information-sharing systems raising awareness on indigenous issues. raising awareness on indigenous issues.

The Mauritius International Meeting (cont.) It urged the international community and development partners to support SIDS in building resilience and achieving sustainable development by: rapid mobilization of resources for disaster relief and reconstruction rapid mobilization of resources for disaster relief and reconstruction strengthening capacities of small island developing States to work at the regional and subregional levels strengthening capacities of small island developing States to work at the regional and subregional levels supporting and improving strategies to develop collaborative partnerships supporting and improving strategies to develop collaborative partnerships revising the use of GDI/GDP as criteria when considering SIDS economies within the framework of financing for development revising the use of GDI/GDP as criteria when considering SIDS economies within the framework of financing for development funding scientific research and community-based initiatives for sustainable development in SIDS. funding scientific research and community-based initiatives for sustainable development in SIDS.

The Mauritius International Meeting (cont.) The Mauritius International Meeting also made specific proposals relating to: energy energy water water waste food, and waste food, and capacity building capacity building which will consolidate the resilience of SIDS.

The Resilience Index The resilience index is a tool: to measure the degree of success in diminishing or mitigating the adverse effects of their vulnerabilities. to measure the degree of success in diminishing or mitigating the adverse effects of their vulnerabilities. to enable them take informed decisions to address their vulnerability. to enable them take informed decisions to address their vulnerability. Minister Frendo yesterday referred to it as a tool useful in setting targets and benchmarks, or a means to exchange good practices as well as an indicator as to what a country can and should be doing.

The Resilience Index (cont.) Resource mobilisation the 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 resilience building. the commitment of a country to take measures for resilience building.

The Resilience Index (cont.) Economic resilience on its own will not give the results that we expect. Unless action is taken in the areas of economic, social and environmental vulnerabilities, resilience will remain elusive. A serious exercise of putting together all the work done in respect of the various indices should be undertaken. This integrated approach will help measure more efficiently and more effectively the resilience level of a small state. Work should include all that has been done in the social, economic and environmental areas with linkages to the human development index as well.

Resilience and the Donor Community The international community has a responsibility to help SIDS overcome vulnerability. vulnerability should be a global concern vulnerability should be a global concern The resilience index can be a good tool: to engage the donor community to get a commitment to engage the donor community to get a commitment to use the index to determine the urgency and appropriateness of funding the projects and strategies which will help towards resilience building. to use the index to determine the urgency and appropriateness of funding the projects and strategies which will help towards resilience building. The donor community is to provide resources for resilience building by way of early warning systems and insurance and reinsurances which are more likely to save lives and mitigate the effects of natural disasters.

Resilience and the Donor Community (cont.) The donor community should not: look at small islands states vulnerabilities as something that does not require any particular attention look at small islands states vulnerabilities as something that does not require any particular attention consider that vulnerabilities as long as they do not cause any tangible damage should not be addressed consider that vulnerabilities as long as they do not cause any tangible damage should not be addressed use it determine that in case a country has reached a level of resilience it no longer requires any assistance. use it determine that in case a country has reached a level of resilience it no longer requires any assistance.

Conclusions Resilience building is very important to SIDS, and it is recommended that donor countries embrace elements of this approach in their work with SIDS. To date only the Commonwealth Secretariat and the UNDP have taken an in-depth look at how resilience building can be planned and financed. While there have been a number of donor which manifested themselves at the Mauritius Meeting we are yet to see a coordinated approach to resource mobilisation towards resilience building. SIDS have to come up with appropriate strategies which can be presented to donors.