Fulfilling the promise of Small Island Developing States

In 1992, the world gathered in Rio de Janeiro for the Earth Summit and took a historic step by recognizing a group of nations as uniquely vulnerable to environmental and economic shocks: the Small Island Developing States, or SIDS. Comprising 39 UN-recognised members and 18 associate members, SIDS span the Caribbean, the Pacific, the Atlantic, Indian Ocean, and South China Sea. What united them was a shared set of structural challenges: limited land, geographic isolation, narrow economies, and disproportionate exposure to climate change.

More than three decades later, the recognition of SIDS stands as one of the most progressive acknowledgments of global vulnerability. But acknowledgment is not action. And while some milestones have been achieved, the promise made to SIDS remains largely unfulfilled. If the international community is serious about equity, sustainability, and resilience, it must recommit to the future of SIDS-this time with justice, investment, and genuine partnership.

The global elevation of SIDS has led to some tangible outcomes. The establishment of the Barbados Programme of Action (1994) and the SAMOA Pathway (2014) provided dedicated frameworks for development cooperation. The SIDS agenda is now a standing item at major UN forums, and the Alliance of Small Island States (AOSIS) is one of the most influential negotiating blocs in climate diplomacy.

Despite contributing less than 1% of global greenhouse gas emissions, SIDS have become the moral conscience of the climate movement. Their advocacy was critical in shaping the Paris Agreement, and in securing a landmark victory at COP27: the agreement to establish a Loss and Damage Fund for nations suffering irreversible climate impacts.

Some SIDS have also demonstrated innovative paths to resilience. Barbados has pioneered debt-for-nature swaps and promoted climate-smart financing under Prime Minister Mia Mottley's Bridgetown Initiative. Fiji and Samoa have developed comprehensive climate adaptation strategies. The Maldives and Seychelles are investing in blue carbon and marine conservation zones. These are not merely policy experiments-they are survival strategies.

Yet these achievements are not enough. Many SIDS are now more economically fragile than they were 30 years ago. The COVID-19 pandemic devastated tourism-dependent economies, wiping out more than 30 per cent of gross domestic product (GDP) in some states. Recovery has been slow, and many SIDS are now heavily indebted, with over 40 per cent at high risk of debt distress. Without fiscal space, investments in education, health, and infrastructure have stagnated.

Despite their unique vulnerabilities, many SIDS no longer qualify for concessional finance due to outdated income-based classification systems. A middle-income SIDS like Antigua or Mauritius may appear statistically prosperous, yet one hurricane can erase decades of development gains.

Climate financecontinues to under-deliver in reality. Accessing the Green Climate Fund (GCF) or Adaptation Fund is an arduous process for countries with limited bureaucratic capacity. According to the OECD, only 3 per cent of total climate finance in 2021 went directly to SIDS. Meanwhile, insurance premiums for climate disasters are skyrocketing, forcing many governments to divert precious development funds into risk coverage.

On top of that, SIDS are contending with rising sea levels, ocean acidification, biodiversity loss, and saline intrusion into freshwater systems. These are today's realities.

Therefore, supporting SIDS is not just an act of charity-it is a matter of global justice, strategic foresight, and environmental necessity.

SIDS are biodiversity hotspots, custodians of 30% of the world's oceans, and front-line stewards of marine ecosystems that regulate global climate. The survival of SIDS is intertwined with the planet's environmental balance.

Moreover, SIDS are bellwethers. What happens to them will eventually happen to others. When a nation disappears under rising seas, or an entire island's economy collapses under climate debt, it is a warning to the rest of the world: no place is immune.

By investing in SIDS, we invest in innovation. These nations are becoming laboratories for renewable energy, sustainable tourism, and ecosystem-based adaptation. Their experiences can help shape the future of global resilience.

We need a new compact with island nations. If the international community is sincere in its commitment to SIDS, three urgent shifts must take place.

First, rethink the eligibility and financing criteria. The current income-based metrics used to determine development assistance are outdated and unjust. A Multidimensional Vulnerability Index (MVI) that includes exposure to climate risks, economic volatility, and geographic isolation must be adopted to ensure SIDS retain access to concessional finance and debt relief.

Development banks and multilateral institutions must simplify and fast-track access to climate finance for SIDS. Small countries with small bureaucracies should not have to hire global consulting firms just to apply for funding.

Second, enable debt sustainability and green growth. Debt-for-climate and debt-for-nature swaps must be scaled up and institutionalised. Countries like Barbados are showing that creative financial instruments can simultaneously reduce debt burdens and finance climate action. These tools must become mainstream-not rare exceptions.

Moreover, SIDS must be supported in diversifying their economies. Tourism and fisheries cannot be the sole pillars of resilience. Support for knowledge economies, digital innovation, and the blue economy must be increased through technical assistance, investment, and market access.

Third, SIDS deserve more than occasional recognition-they deserve seats at the decision-making table. Whether in the GCF boardrooms, WTO negotiations, or IMF governance structures, their perspectives must be institutionalized, not invited ad hoc.

The Loss and Damage Fund, a hard-won victory, must not become another underfunded mechanism. It should be operationalised with clear disbursement criteria that prioritise SIDS and ensure direct access.

Imagine a world ten years from now, where every island has access to clean energy, digital connectivity, and early warning systems. Where coastal communities are protected by mangroves, not concrete walls. Where young people do not migrate out of necessity, but stay out of opportunity.

That world is possible-but only if we move from admiration to action, from commitment to delivery.

The promise of SIDS was never about exemption-it was about recognition and fairness. Thirty years later, the world has spoken many words of solidarity. Now it is time to turn those words into infrastructure, investments, and inclusive governance.

Let us act-so that the next generation of islanders inherits dignity, prosperity, and hope.

Manmohan Parkash is a former Senior Advisor, Office of the President, and Deputy Director General, South Asia, Asian Development Bank (ADB). manmohanparkash@gmail.com