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Assessing the economic vulnerability of small island developing states and least developed countries

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Guillaumont, Patrick

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Abstract Macro vulnerability of the small island developing states (SIDS) as well as of least developed countries (LDCs) has been an increasing concern for the international community. This has led to the design of an economic vulnerability index (EVI) to assess the structural economic vulnerability resulting from natural or external shocks. We first explain how vulnerability affects growth, development and poverty reduction, particularly in small developing countries. We then examine how the EVI has been designed and how it can be used to compare SIDS and LDCs. We argue that EVI is a relevant tool not only for identification of LDCs, but also for geographical aid allocation to favour vulnerable countries, including LDCs and SIDS, even though not all SIDS qualify as LDCs.
Classification International Relations, International Politics, Foreign Affairs, Development Policy; Political Economy
Free Keywords vulnerability; instability; shocks; growth handicaps; least developed countries; small island developing states; aid allocation; F35; N10; I39
Document language English
Publication Year 2010
Page/Pages p. 828-854
Journal Journal of Development Studies, 46 (2010) 5
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)