Resilience building in vulnerable small states

Abstract

Small states are characterised by their very high degree of economic openness, export concentration and dependence on strategic imports, such as fuel and food. These factors are associated with economic vulnerability, as they render a country highly exposed to the harmful effects of external shocks.1

In spite of such exposure, many small states register relatively high rates of GDP per capita. Briguglio (2004) has termed this reality “the Singapore paradox” referring to the possibility that a very vulnerable small country could actually be very successful economically. The present article argues that such a seeming contradiction can be explained by the juxtaposition of economic vulnerability and economic resilience.