RESILIENCE: ITS MEANING AND ITS RELEVANCE FOR SMALL ISLAND DEVELOPING STATES Lino Briguglio Islands and Small States Institute of the University of Malta.

Slides:



Advertisements
Similar presentations
Sustainable Livelihoods and Poverty Reduction
Advertisements

African Union Commission Economic Report on Africa 2011 Economic Report on Africa 2011 Governing development in Africa – the role of the state in economic.
Moving Out of Aid Dependency Michael Atingi-Ego 2 nd Committee Panel Discussion United Nations, New York 16 November 2007.
SOME PRACTICAL ISSUES IN COMPOSITE INDEX CONSTRUCTION Lino Briguglio and Nadia Farrugia Department of Economics, University of Malta Prepared for the INTERNATIONAL.
A Conceptual Framework for Economic Resiliency in the Context of Resistive Economics Reza Hosnavi Reza Hosnavi, Associate professor, Malek Ashtar University.
1 ECONOMIC VULNERABILITY AND RESILIENCE WITH SPECIAL REFERENCE TO SMALL ISLAND DEVELOPING STATES Prepared by LINO BRIGUGLIO, Small States Network for Economic.
Macroeconomic Stability and Economic Resilience:
Donor Involvement in Resilience Building for SIDS Jagdish Koonjul International Conference on Small States and Economic Resilience April 2007.
Saving, growth and the current account Daan Steenkamp ERSA / SASI Savings workshop August 2009.
Economic Growth in Mozambique Experience & Policy Challenges Crispolti, V. (AFR) Vitek, F. (SPR)
Vulnerability and Global Change. Vulnerability Defencelessness, insecurity (internal vulnerability); exposure to risk, shock (external vulnerability)
ECONOMIC VULNERABILITY AND RESILIENCE OF SMALL STATES By Lino Briguglio and Gordon Cordina University of Malta Prepared for the conference “Small States.
Macro Policies in Developing Countries Rise up, study the economic forces which oppress you... They have emerged from the hand of man just as the gods.
Session 1 World Bank Institute Ricardo Zapata Marti UN ECLAC
Economic Resilience and Market Efficiency in Small States Gordon Cordina University of Malta April 2007.
Building the Resilience of Small States Forum on the Future of the Caribbean 5 – 7 May 2015.
Sustainable Development as the Global Framework
TOPICS 1. FINANCIAL DECISIONS, INVESTMENT DECISIONS AND DIVIDEND DECISIONS 2. FINANCIAL MANAGEMENT PROCESS 3.PROFIT MAXIMIZATION AND WEALTH MAXIMIZATION.
Debt Sustainability: A Practitioner’s view. Emerging Markets Analysis & Multilateral Organisations a situation in which a borrower is expected to be able.
ECONOMIC SECURITY FOR LESS DEVELOPED COUNTRIES: Implications for Bangladesh Joseph Stiglitz Dhaka 13 August 2003.
1 INTRODUCTION TO DAMAGE AND NEEDS ASSESSMENT METHODOLOGY AND BASIC CONCEPTS Ricardo Zapata Marti UN ECLAC.
The food security synthesis report Andre Croppenstedt, FAO.
Globalization Presented By: Syed Ali Zakir Hashmi – Maham Asif Baig
THE VULNERABILITY INDEX Lino Briguglio University of Malta Inter-regional Preparatory Meeting for the World Summit for Sustainable Development Singapore,
1 THE ECONOMIC VULNERABILITY INDEX AND SMALL ISLAND DEVELOPING STATES A REVIEW OF CONCEPTUAL AND METHODOLOGICAL ISSUES Lino Briguglio University of Malta.
Building Resilience to Social Vulnerability A SIDS Perspective.
Alcides Costa Vaz VU University, Amsterdam, Jan.16, 2012.
 1960 constitution  Economic planning framework  Started in 1960 and lasted in its proper sense until 1980  The coverege of plans are specified 
Development Economics: An Overview based on Cypher and Dietz The Process of Economic Development Ch. 1.
Climate Resilience in Fragile and Conflict-Affected Societies Workshop on Climate Sceince Needed to Support Robust Adaptation Decisions Georgia Tech, Atlanta,
From relief to development Geneva, Transforming crisis into opportunities for sustainable development UN-HABITAT.
Vulnerability reduction and Mitigation: Social Sector Dynamics ECONOMIC COMMISSION FOR LATIN AMERICA AND THE CARIBBEAN Subregional Headquarters for the.
PARTNERSHIPS IN SUPPORT OF CAADP Progress Report Brief Progress Report AUC Page 1 of 14.
COUNTRY RISK ANALYSIS The concept evolved in 1960s and 1970s in response to the banking sector's efforts to define and measure its loss exposure in cross-border.
Work Stoppages in Social Economy Organizations: A First Look Kunle Akingbola & Jack Quarter University of Toronto.
Domestic barriers to economic growth & development.
Integrating Gender issues into Climate Change Adaptation: National and Regional policy making and planning ECOWAS Regional Ministerial Dialogue on Climate.
TOWARDS BETTER REGULATION: THE ROLE OF IMPACT ASSESSMENT COLIN KIRKPATRICK IMPACT ASSESSMENT RESEARCH CENTRE UNIVERSITY OF MANCHESTER, UK UNECE Symposium.
Building Resilience for Sustainable Development in Small Island Economies Robert Read Lancaster University Management School UK.
1 AID FOR TRADE ARCHITECTURE MAURITIUS VIEW. 2 EXPECTATIONS FROM AFT Type of assistance: Non-debt increasing Type of assistance: Non-debt increasing Eligibility:
International Recovery Forum 2014 ~ The Role of Private Sector in Disaster Recovery ~ 21 January 2014 Kobe, Japan Dr Janet L. Asherson THE LINK BETWEEN.
VULNERABILITY AND SMALL ISLAND DEVELOPING STATES: VULNERABILITY AND SMALL ISLAND DEVELOPING STATES: CHALLENGE OF BUILDING GREATER RESILIENCE by Albert.
1 TOWARD AN OUTWARD-ORIENTED DEVELOPMENT STRATEGY FOR SMALL STATES: ISSUES, OPPORTUNITIES, AND RESILIENCE BUILDING A REVIEW OF THE SMALL STATES AGENDA.
THE LINKS BETWEEN ECONOMIC AND SOCIAL POLICIES JOSÉ ANTONIO OCAMPO UNDER-SECRETARY GENERAL ECONOMIC AND SOCIAL AFFAIRS.
Soobin Kang Second Committee Intern.  Issues relating to economic growth and development - macroeconomic policy questions including international trade,
1/7/2014 The domestic foundations of economic resilience: Size, ethnic diversity and the politics of economic adjustment Tony Heron and Julia Smith University.
Overcoming the Resource Curse in African States: Examining the Effectiveness of the Developmental State Framework on Economic Development in Resource-Rich.
Local Disaster Risk Reduction Action Plan (LDRRAP): Principles and Practice.
Kyrgyzstan at the Cross-Roads The Economic Situation in the Kyrgyz Republic Chris Lovelace Country Manager The World Bank March 3, 2006 Oxford, UK.
Summary of Endogenous Growth Theories applied to ‘East Asian Miracles’
African Economic Conference 2007, Addis Ababa 1. 2 Presentation Outline What wisdom have we gained so far to explain growth in Africa?  Several explanations.
1 of 15 C limate Change Adaptation Strategies for W A ter Resources and Human Livelihood S in the C oastal Zones of Small Isl A nd D eveloping Stat E s.
BY DENNY H KALYALYA, PHD GOVERNOR BANK OF ZAMBIA ’22 ND AFREXIMBANK GENERAL MEETING’ LUSAKA 11 JUNE 2015 DEALING WITH COMMODITY PRICE SHOCKS IN AFRICA.
MODULE 1. Understanding the investment climate: European approach CO-FINANCED BY EUROPEAN UNION JEAN MONNET MODULES, project " Good governance, strong.
The way forward: Recommendations on improving cooperation between RIGOs and CSOs A Private Sector’s View Gilberto Marin Quintero, President of the Board.
PEET STRYDOM COLLOQUIUM EMERGING MARKETS, GROWTH RESILIENCE OR HITTING A LOW GROWTH TRAP?
PAKISTAN DEVELOPMENT FORUM 2010 RELIEF, EARLY RECOVERY AND DISASTER RISK REDUCTION BY LT GEN (R) NADEEM AHMED CHAIRMAN NDMA 14 NOVEMBER 2010.
The future of the capital markets in Guyana
DISASTER VULNERABILITY, RISK AND CAPACITY
PERSPECTIVES ON ENHANCING AGRICULTURAL PRODUCTIVITY AND ADOPTION OF TECHNOLOGY THROUGH MARKET ACCESS INTRODUCTION.
Sendai Framework for Disaster Risk Reduction
European Commission Communication on Social Protection in EU Development Cooperation Brussels, 3rd December 2012.
CONCEPTUALISING AND MEASURING ECONOMIC VULNERABILITY AND RESILIENCE
Economic Vulnerability
Liberalization and Privatization in India
Overview of recent economic and social conditions in Africa
Private sector development and SDGs in Albania
TOPIC 1:TECTONIC PROCESSES AND HAZARDS (Lesson 19)
What’s holding back the private sector in MENA?
MKUZA II SUCCESSOR STRATEGY
Presentation transcript:

RESILIENCE: ITS MEANING AND ITS RELEVANCE FOR SMALL ISLAND DEVELOPING STATES Lino Briguglio Islands and Small States Institute of the University of Malta Commonwealth People's Forum Corinthia Hotel, Malta 23 November 2015

The meaning of resilience Resilience originates from the Latin resilire or to rise again, in layman’s terms referring to the ability to withstand or recover quickly from difficult situations. The term has become a buzz-word in recent years, and is used in different senses. I, personally, may have contributed to its frequent usage, as since 2000 I have written on the need for small states, particularly small island developing states (SIDS), to build their economic resilience, in view of the fact that these states tend to be highly exposed to external shocks. In my writings, I associate resilience building with policy- induced measures leading to good economic governance. Small Island Developing States and Resilience Building 1

Layout of this presentation In this presentation, I will argue that small island developing states tend to be highly economically vulnerable, but many of them adopt resilience-building policies that enable them to attain economic success. I shall argue that social development and social cohesion are important aspects of resilience building. The main conclusion of this presentation is that small island developing states that aim to enhance their ability to withstand external economic shocks should assign major importance to the social aspects of development, including education, health, gender equality and income distribution – aspects that at the same time usher in inclusive growth. Small Island Developing States and Resilience Building 2

The vulnerability of small states Small Island Developing States and Resilience Building 3 Small states tend to be highly economically vulnerable because they are highly exposed to external economic shocks. This is due to their inherent characteristics, mostly associated with trade openness. These states have a small domestic market and must rely on exports of goods and services, including tourism, for economic development. At the same time these states tend to have limited natural resources endowments and must therefore relay highly on imports. Hence their very high degree of trade openness. This exposure to shocks is exacerbated in many small states by their high export concentration and high dependence on strategic imports, including food and fuel. Many small states are also prone to natural disasters, and when these occur they often generate severe shocks to their economy.

Economic Vulnerability Trade openness Export concent- ration Dependence on strategic Imports Proneness to natural disasters The economic vulnerability index (EVI) This figure summarises the components of the Economic Vulnerability Index proposed and constructed in Briguglio (2014) on the basis of which the author found that small states tend to be more economically vulnerable than other groups of countries. Small Island Developing States and Resilience Building 4

Economic resilience building The high exposure to economic shocks faced by small states pose serious limitations on their economic development. However, in spite of these setbacks, many small states perform very well economically. This paradox can be explained by the possibility that small states can, with the right policies, perform well economically in spite of the fact that it they are highly economically vulnerable and face small-size constraints. Small Island Developing States and Resilience Building 5

Policy-induced measures for resilience MALL STATES AND THE RESILIENCE/COMPETITIVENESS NEXUS 6. Implications for Small States As stated, I define economic resilience as the policy-induced ability of a country to withstand or reduce the harm associated with economic vulnerability. These set of policies are associated with: Macroeconomic stability, which allows policy manoeuvre following an external shock. Prudent market flexibility, enabling the economy to adjust following external shocks, without excessive risks. Good political governance, which is essential for an economic system to function properly. Social development and cohesion, which enable the economy to function without the hindrance of civil unrest. Environmental management, which generates stability through enforceable rules Small Island Developing States and Resilience Building 6

The economic resilience index (ERI) This figure summarises the components of the Economic Resilience Index proposed in Briguglio (2014) on the basis of which the author found that a number of small states score highly on this index. Economic Resilience Macro- economic stability Market flexibility Good political governance Social Develop- ment Environ- mental management Small Island Developing States and Resilience Building 7

The V&R Framework Briguglio (2014) fitted the scores of the vulnerability and resilience indices, into a scheme of what has come to be known as the vulnerability/ resilience (V&R) framework. In this scheme economic vulnerability is considered as an enhancer of the risk of a country being harmed by external shocks and economic resilience as a reducer of such risk. Small Island Developing States and Resilience Building 8

The importance of social development It can be seen that the resilience index constructed by Briguglio et al (2009) contains a component relating to social development, implying policies the improve health, education, gender equality and income distribution. In fact we can have countries that are not inherently exposed to external shocks, but due to their bad social governance, they self inflict considerable instability. Conversely, there are small stats countries which are inherently highly economically vulnerable, but which do not experience much instability, partly due to their social development. Small Island Developing States and Resilience Building 9

Social development and social cohesion Social development and social cohesion are essential components of economic resilience, as these indicate the extent to which relations within a society are properly developed, enabling an effective functioning of the economic apparatus without the hindrance of civil unrest. Social development and social cohesion are positively related, as these are both associated with the extent to which effective social dialogue takes place in an economy which, in turn, would enable collaborative approaches towards the undertaking of corrective measures in the face of adverse shocks. Small Island Developing States and Resilience Building 10

Social development and economic growth Social development and social cohesion can be conducive to economic growth. The reasons for this include: (a)the reduction of transaction costs—for example, in the case of violent conflict between different sections of society, the costs will include policing, crime prevention and private security services. These costs may be such as to render unprofitable economic transactions at the margin, (b)social development and social cohesion facilitate collective action, and this may generate positive externalities. (c)there is a high cost to intergroup violence as a result of capital disaccumulation caused by the destruction of physical infrastructure, and the ‘brain drain’ (loss of human capital). Small Island Developing States and Resilience Building 11

The main message of this presentation In brief, economic resilience building requires social development and social cohesion, apart from the normal requirements of economic good governance. The main message of this presentation is that small island developing states that aim to enhance their ability to withstand external economic shocks should assign major importance to the social aspects of development, including education, health, gender equality and income distribution – aspects that at the same time usher in inclusive growth. Small Island Developing States and Resilience Building 12

The end Thank you for your attention.