Abstract

It is well-known that small states, because of their size, tend to be less endowed with natural resources than big ones. This makes small states vulnerable and raises the question if specific policies can be implemented to offset the drawbacks of their small size and to increase resilience. We address this question in this paper, thereby focusing on the role of connectivity – between states, organisations, parties, or otherwise – in understanding a country’s vulnerability and resilience. Here ‘policies’ are interpreted as ‘institutions’ in the sense of Douglass C. North (1990), i.e. as ‘humanly devised constraints that structure political, economic and social interaction’. We focus on the Caribbean area, which is characterised by a wide variety of small states, each with its own set of rules and regulations. Within this area, we concentrate on the relationship between three Dutch Caribbean islands, i.e., Aruba, Curaçao, and Sint Maarten, on the one hand, and the Netherlands, the former colonizer, on the other hand. As a first step we have measured the economic vulnerability and resilience of 17 Caribbean island states, both dependent and independent, employing the theoretical framework proposed by Lino Briguglio. The outcomes show that the three Dutch island states are performing comparatively well, although there are individual differences. We provide a first effort to explain this outcome in terms of the continuing interest of the three island states to keep their ties to the former colonizer viable. Here the presence of ‘systemic interest’ as shown by the stakeholders appears to be a most important variable.Supplementary InformationThe online version contains supplementary material available at 10.1007/s11067-021-09533-w.

Highlights

  • In this paper we examine the economic vulnerability and economic resilience of Caribbean small island states

  • In this paper we have examined the overall exposure of Caribbean small island states to exogenous shocks by using a holistic approach for measuring their economic vulnerability and resilience

  • We have explored the relationship between political sovereignty and economic resilience by focusing on sovereign as well as dependent Caribbean small island states

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Summary

Introduction

In this paper we examine the economic vulnerability and economic resilience of Caribbean small island states. In this context, economic vulnerability refers to the exposure of the economy to exogenous shocks, while economic resilience refers to the policy-induced ability of an economy to withstand or recover from the effects of such shocks (Briguglio et al 2009). This economic connectivity could be an asset, depending on the quality of the connections It may provide specific benefits for these small states, such as offering them a worldwide marketplace for their products (Kolb 2008) and knowledge spillovers from their connected countries (Gould et al 2018). Connectivity could imply a high dependence on external economic conditions, thereby increasing the economic vulnerability of small states

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