Practical steps for profiling economies in terms of vulnerability and resilience

Abstract

As explained in the previous chapter, studies that produce indices of economic vulnerability and resilience are cross-sectional approaches, aimed at benchmarking countries within a global context. For the purposes of policy formulation and implementation, benchmarking within an international context is often merely a starting point which needs to be followed by more in-depth investigation of issues within the specific context of the country and its circumstances. A project towards this end was conducted by the Commonwealth Secretariat in collaboration with the University of Malta. This project led to the to the development of a conceptual approach for profiling an individual country in terms of vulnerability and resilience, as described in the previous chapter. Importantly, the project also led to the profiling of three small states namely St Lucia, Seychelles and Vanuatu, in terms of economic vulnerability and resilience. This chapter puts forward a practical guide as to how the conceptual approach described in the previous chapter can be applied.