Enhancing the Security of Small States

1. Enhancing the Security of Small States Presentation by Secretariat for Integral Development to Committee on Hemispheric Security March 31, 2011

2. Challenges • Security of small states threatened by: • Exposure to external price shocks (commodities and energy) • Thin and under-developed domestic and regional markets • Vulnerability to natural hazards • Social vulnerability • Absence of adequate social safety nets • Fragile geo-physical environments

3. Challenges • Energy price shocks ($12 pb in 1999 to $150 in 7/08 to $105 in 3/11 (Petrocaribe support) • High debt to GDP ratios • Impact of natural disasters on economic growth • 2004 G’da (212%); JA (8%) Haiti (4.5%) • Global financial shocks • Sharp declines in tourism arrivals, remittances, forex earnings and FDI • No fiscal space to respond

4. Debt to GDP Ratios

5. Strategic Approach • Reduce economic, social and environmental vulnerability by strengthening economic, social and environmental resilience. Supporting: • the integration of domestic production and marketing arrangements • trade facilitation • sustainable development, (economic/environment) • sustainable energy • risk management • corporate social responsibility

6. Select Current Activities • Social Vulnerability • PUENTE (Chile model and support - IASPN • Launched in 2007; (B’dos, JA, SLU, T&T, SKN, SUR, SVG) • Aims at protecting families at risk by reducing vulnerability and increasing income/security • 20 + workshops/200+ stakeholders • 15 + virtual training activities; • Training of 20 program participants • Internships in Chile

7. Sustainable Development • Energy policies and plans in SLU, DCA, SKN, SVG, A&B (under CSEP Project) • Support for power purchase agreement 5.4MW wind farm in SKN and 1.1MW wind farm in Nevis; 10MW GT plants in Nevis • Energy policy forums - ECPA • Energy Study Tour of Europe • ECPA Clearinghouse • Emergency Legislation • Climate Change Adaptation • Risk management and tourism

8. Economic Development • Corporate social responsibility • Support for CARICOM-Canada trade negotiations • Implementation of the CARIFORUM/EU EPA • Post-graduate training of trade professionals at UWI (Masters level) • Enhancing the competitiveness of SME’s • Tourism and disaster mitigation • Young Americas Business Trust – CSR/SMEs • ICT’s for SMMEs • Intellectual property value capture

9. Proposed Initiatives - DSD • OAS Technical Cooperation Facility for the Caribbean (OAS/TCFC) Goal: Provide a cost-effective and responsive mechanism for south-south transfer of critical skills and expertise in sustainable development to small island states

10. Proposed Initiatives Focus Areas of OAS/TCFC • Integrated Water Resources Management • Sustainable Land Management • Disaster Risk Management • Chemicals Management • Coastal and Marine Resources Management • Climate Change Adaptation • Sustainable Energy • ICT

11. Proposed Initiatives DSD • Reduce Risk of Critical Facilities to Natural Hazards • Transfer lessons and best practice used in the CDMP and Grenada TQA projects to risk reduction of critical social and economic infrastructure. • Strengthen the legal and institutional underpinnings for effective risk reduction through the development of legally-supported occupational standards for contractors, subcontractors and tradesmen; • train relevant personnel to develop risk profiles for critical public facilities.

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