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Enhancing the Security of Enhancing the Security of Small StatesSmall States

Presentation by Presentation by Secretariat for Integral Development Secretariat for Integral Development

to Committee on Hemispheric Security to Committee on Hemispheric Security March 31, 2011March 31, 2011

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Challenges Challenges

Security of small states threatened by:Security of small states threatened by:– Exposure to external price shocks Exposure to external price shocks

(commodities and energy)(commodities and energy)– Thin and under-developed domestic and Thin and under-developed domestic and

regional markets regional markets – Vulnerability to natural hazardsVulnerability to natural hazards– Social vulnerability Social vulnerability – Absence of adequate social safety netsAbsence of adequate social safety nets– Fragile geo-physical environmentsFragile geo-physical environments

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ChallengesChallenges

Energy price shocks ($12 pb in 1999 to $150 in Energy price shocks ($12 pb in 1999 to $150 in 7/08 to $105 in 3/11 (Petrocaribe support)7/08 to $105 in 3/11 (Petrocaribe support)

High debt to GDP ratiosHigh debt to GDP ratios

Impact of natural disasters on economic growth Impact of natural disasters on economic growth – 2004 G’da (212%); JA (8%) Haiti (4.5%) 2004 G’da (212%); JA (8%) Haiti (4.5%)

Global financial shocksGlobal financial shocks– Sharp declines in tourism arrivals, remittances, forex Sharp declines in tourism arrivals, remittances, forex

earnings and FDI earnings and FDI – No fiscal space to respondNo fiscal space to respond

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Debt to GDP RatiosDebt to GDP Ratios

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Strategic Approach Strategic Approach

Reduce economic, social and environmental Reduce economic, social and environmental vulnerability by strengthening economic, social vulnerability by strengthening economic, social and environmental resilience.and environmental resilience.Supporting: Supporting: – the integration of domestic production and marketing the integration of domestic production and marketing

arrangementsarrangements– trade facilitationtrade facilitation– sustainable development, (economic/environment)sustainable development, (economic/environment)– sustainable energy sustainable energy – risk management risk management – corporate social responsibilitycorporate social responsibility

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Select Current Activities Select Current Activities

Social VulnerabilitySocial Vulnerability– PUENTEPUENTE (Chile model and support - IASPN (Chile model and support - IASPN

Launched in 2007; (B’dos, JA, SLU, T&T, SKN, Launched in 2007; (B’dos, JA, SLU, T&T, SKN, SUR, SVG)SUR, SVG)

Aims at protecting families at risk by reducing Aims at protecting families at risk by reducing vulnerability and increasing income/securityvulnerability and increasing income/security

20 + workshops/200+ stakeholders20 + workshops/200+ stakeholders

15 + virtual training activities; 15 + virtual training activities;

Training of 20 program participantsTraining of 20 program participants

Internships in Chile Internships in Chile

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Sustainable DevelopmentSustainable Development

Energy policies and plans in SLU, DCA, SKN, Energy policies and plans in SLU, DCA, SKN, SVG, A&B (under CSEP Project)SVG, A&B (under CSEP Project)Support for power purchase agreement 5.4MW Support for power purchase agreement 5.4MW wind farm in SKN and 1.1MW wind farm in wind farm in SKN and 1.1MW wind farm in Nevis; 10MW GT plants in NevisNevis; 10MW GT plants in NevisEnergy policy forums - ECPAEnergy policy forums - ECPAEnergy Study Tour of Europe Energy Study Tour of Europe ECPA ClearinghouseECPA ClearinghouseEmergency LegislationEmergency LegislationClimate Change Adaptation Climate Change Adaptation Risk management and tourismRisk management and tourism

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Economic Development Economic Development

Corporate social responsibility Corporate social responsibility Support for CARICOM-Canada trade negotiationsSupport for CARICOM-Canada trade negotiationsImplementation of the CARIFORUM/EU EPAImplementation of the CARIFORUM/EU EPAPost-graduate training of trade professionals at UWI Post-graduate training of trade professionals at UWI (Masters level)(Masters level)Enhancing the competitiveness of SME’sEnhancing the competitiveness of SME’sTourism and disaster mitigation Tourism and disaster mitigation Young Americas Business Trust – CSR/SMEsYoung Americas Business Trust – CSR/SMEsICT’s for SMMEsICT’s for SMMEsIntellectual property value captureIntellectual property value capture

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Proposed Initiatives - DSDProposed Initiatives - DSD

OAS Technical Cooperation Facility for OAS Technical Cooperation Facility for the Caribbean (OAS/TCFC)the Caribbean (OAS/TCFC)

Goal: Provide a cost-effective and responsive Goal: Provide a cost-effective and responsive

mechanism for south-south transfer of critical mechanism for south-south transfer of critical skills and expertise in sustainable skills and expertise in sustainable development to small island statesdevelopment to small island states

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Proposed Initiatives Proposed Initiatives

Focus Areas of OAS/TCFCFocus Areas of OAS/TCFCIntegrated Water Resources Management Integrated Water Resources Management

Sustainable Land Management Sustainable Land Management Disaster Risk Management Disaster Risk Management Chemicals Management Chemicals Management Coastal and Marine Resources Coastal and Marine Resources Management Management Climate Change Adaptation Climate Change Adaptation Sustainable Energy Sustainable Energy ICT ICT

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Proposed Initiatives DSDProposed Initiatives DSD

Reduce Risk of Critical Facilities to Natural Reduce Risk of Critical Facilities to Natural HazardsHazards Transfer lessons and best practice used in the Transfer lessons and best practice used in the CDMP and Grenada TQA projects to risk CDMP and Grenada TQA projects to risk reduction of critical social and economic reduction of critical social and economic infrastructure. infrastructure. – Strengthen the legal and institutional underpinnings Strengthen the legal and institutional underpinnings

for effective risk reduction through the development of for effective risk reduction through the development of legally-supported occupational standards for legally-supported occupational standards for contractors, subcontractors and tradesmen; contractors, subcontractors and tradesmen;

– train relevant personnel to develop risk profiles for train relevant personnel to develop risk profiles for critical public facilities. critical public facilities.

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Proposed Initiatives - DSDProposed Initiatives - DSD

Hazard-Resilient Housing in the Caribbean ($6M)Hazard-Resilient Housing in the Caribbean ($6M)Preventing Land Degradation through Sustainable Preventing Land Degradation through Sustainable Land Management Land Management ($6M)($6M)Greening Government OperationsGreening Government OperationsSupport improvements in Governance within the Support improvements in Governance within the water sector to better cope with natural hazard water sector to better cope with natural hazard shocks ($2M)shocks ($2M)Build Capacity Building for Effective Management of Build Capacity Building for Effective Management of Chemicals through a cradle-to-the-grave approach Chemicals through a cradle-to-the-grave approach ($2 million) ($2 million) Building community resilience to a changing climate Building community resilience to a changing climate ($6M)($6M)