The Organization of the Eastern Caribbean States (OECS) was formed in 1981 to promote unity and solidarity among its member states and contribute to their sustainable development. Today, those countries face special developmental challenges due to their inherent vulnerability, as small island developing states. They are vulnerable to external shocks, including natural disasters, limited economic diversification opportunities, high dependence on international trade, high cost of public service provision due to diseconomies of scale, and limited capacity in public and private sectors. Exposure to any of these factors can cause high volatility in national and (hence household) incomes. These challenges have been further compounded by the countries’ fiscal imbalances and high debt ratios which have been felt more acutely in the wake of the global economic and financial crisis since the last quarter of 2008.

Download 8-page brief:
Reducing Vulnerability and Supporting Growth and Competitiveness - August 2009 (PDF)