The Debt Problem of Small Vulnerable Economies

There has been long standing concern amongst Commonwealth members about the financing and debt challenges facing Commonwealth Small Vulnerable Economies (CSVEs). In 2009, this concern led both Finance Ministers and Heads of Government in the Commonwealth to ask the Secretariat to develop options for addressing these challenges with a view to enhancing economic growth in these countries.

The Secretariat has undertaken an extensive work programme to understand the nature of this challenge and develop possible options for consideration by the international community to address this issue.

The Secretariat’s work programme has centred on two key issues:

- How can CSVEs address the existing solvency issues posed by current debt levels?

- How can CSVEs be financed in the future to ensure that long-term debt sustainability is achieved and maintained in light of their inherent structural vulnerabilities?

This work programme has yielded an extensive range of analysis and background papers. Collectively these represent an important advance in the empirical and analytical foundations required for addressing this complex global challenge.

Debt Data Collection

The Commonwealth Secretariat is collating data from Commonwealth SVEs in order to establish their sovereign debt position. Once this data has been collected credible policy proposals can be developed for these countries to consider.

Expert Meeting June 2010

An expert panel was convened in June 2010 to brainstorm possible policy options to address the looming debt problem of Commonwealth Small Vulnerable Economies.

Policy Development Papers

The Secretariat has worked with a number of leading experts to develop policy options to address the looming debt problem.

Consultative Policy Workshop Jamaica 2010

Senior CSVE officials will meet in Jamaica on 27th September 2010 to examine and discuss proposed policy options to address the looming debt problem.

Contact
For further information please contact Samantha Attridge, Economic Adviser at the Commonwealth Secretariat, on +44(0)20 7747 6325 and s.attridge@commonwealth.int