Debt and Development in Small Island Developing States

"The obligation to have to cope with severe and recurring economic and financial crises is an ordinary and familiar circumstance of the typical small island developing state. The emergence of a debt crisis, characterized by the new unenviable status of these nations as among the world's most highly indebted countries, could therefore be seen as just another chapter in the crisis ridden history of small island states. This time it is different. The debt crisis and the measures that have to be used to deal with it, may turn out to be the most imposing constraint on sustainable development in these countries. This book dealing with the debt crisis in small states is therefore timely and of immediate and far reaching relevance. It should be required reading for all policy makers. But above all, it should be required reading for all who have the wellbeing of the people of the Caribbean, Pacific Islands, and other small island regions at heart." - Owen S. Arthur, former Prime Minister, Barbados, 1994-2008

"In the context of the continued global fallout from the triple food, fuel, and financial crisis along with impending and increasingly likely climate change crisis, this book examines a fifth crisis facing SIDS the burden of increasingly unsustainable debt. This is the first book to provide a comprehensive analysis of the debt experiences of SIDS in the Caribbean, Pacific and AIMS regions. The depth of analysis, combined with the richness of the narratives provide much scope for drawing lasting lessons on debt accumulation and management from and for SIDS. The book thoroughly and comprehensively addresses the causes, mechanisms, and consequences of the debt in the most indebted and vulnerable countries in the world, and then proposes a deep and far-reaching set of proposals to deal with the problem. The arguments are presented in a way that fully supports the conclusions and persuades the reader that these recommendations will work. Notwithstanding that this is an edited collection, the contributions have a high degree of coherence and continuity. The articles in this collection encompass both rigorous academic methodologies as well as practical policy experience to provide a holistic perspective on the debt problem. These are accompanied by good, practical policy advice. The book makes a very useful contribution to the literature on debt and it should be of interest to senior finance ministry officials, academics, and economics student in any type of country small island or otherwise." - Lino Briguglio, Professor of Economics and Director, Islands and Small States Institute, University of Malta