Issue 25 | November 2020

Moments of crisis are often the most effective catalysts for innovation, powering new ideas from lesser heard sources as well as creative ways of both accelerating development and safeguarding community values. As SIDS seek to build recovery and long-term resilience, they are turning to the leadership of local voices, particularly young people, women and indigenous communities, to build the future that they want, progressing island priorities for island success. Within their borders, SIDS are taking crucial steps forward, implementing reimagined tourism models, designing risk-informed infrastructure and digitalizing social service processes, for example. This change in narrative has also extended beyond island territories, as SIDS are appealing to international leaders to rethink requirements for accessing finance and championing revolutionary financing mechanisms like blue bonds. 

UNDP is supporting SIDS in this mindset, improving our own systems to better serve community partners. On a macro level, with the implementation of a new Strategic Innovation Unit, UNDP is asking new questions to guide transformation from a systems perspective rather than a lens of isolated incidents, and our recent UNDP and the Future e-discussion opened the door for a collaborative vision of development in a post-COVID world. Likewise, Rising Up for SIDS will require a complete reassessment of what "normal" looks like — implementing new financing methods and partnerships for climate action, blue economy and digital transformation for both resilience and prosperity in SIDS.

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Image: Romainville Island in Seychelles

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At more than 30% of GDP in most SIDS, tourism has long been a core driver of economic development. Small Island Developing States (SIDS) have experienced great success in expanding their tourism industries, particularly over the past 10 years. The industry is an economic lifeline and driver of development for many SIDS. Their rich biodiversity and beautiful ecosystems attracted around 44 million visitors in 2019. However, global travel restrictions imposed as a result of the COVID-19 pandemic have devastated SIDS’ economies. It is a vital source of revenue for community livelihoods, disaster recovery, biodiversity and cultural heritage preservation. While it is a driver of economic development, the sector has also historically contributed to the greatest crisis SIDS face: climate change. As island states fight the twin threats of economic depression and climate change, they can transform their robust tourism infrastructure for green recovery. The crisis has forced us to reimagine existing practices and systems. As many have proclaimed, this pivotal moment presents an opportunity to rethink the way tourism interacts with societies, economies and ecosystems. So, how can we create a tourism economy that thrives in harmony with nature — a model which is integrated into national economies, promotes inclusivity and preserves the cultural and ecological dignity of islands? Explore three pathways that will support green recovery and catalyse transformational change.
 
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Country Corner
Image: UNCDF in the Pacific via Flickr

As the world has become increasingly online-based, hard-to-reach populations have become increasingly separated from public service providers and educators. This has motivated key actors to rethink the traditional methods of service provision, and thus, island leaders are expanding mobile and digital capabilities to deliver inclusive support. Through the Rights, Empowerment and Cohesion (REACH) initiative in the Pacific, experts are raising awareness for social, economic and legal rights by focusing on mobile service delivery, supporting both government and non-governmental service providers in connecting with communities, no matter the distance. In the past, this initiative has held events in local communities, even participating in UN Women's Markets for Change to connect in-person with locals, essentially delivering services to people's "doorsteps" and ensuring that vulnerable populations are given equal access to support. Now, in line with the goals of UNDP's Rising Up for SIDS Offer, Fiji and Tonga are adopting digital solutions towards these objectives. With support from UNDP, the Fiji Competition and Consumer Commission (FCCC) is developing their online platforms as well as an app that will allow easy access to pricing, market information and complaint filing systems for consumers and vendors, encouraging self-guided knowledge of legal and business rights and responsibilities for a fairer market. In Tonga, the Women’s Affairs and Gender Equality Division of Tonga’s Ministry of Internal Affairs (MIA) received a variety of new devices, including laptop computers, conference speakerphone and external hard drives to aid in collaboration with teams across international borders to better coordinate the growth the REACH operation. Increased availability of digital tools are key to ensuring that no one is left behind in recovery from COVID-19, and through a focus on both external and internal technological innovation, SIDS are accelerating community-based development.
 
Young leaders at the revitalization workshops in Guadalcanal Province, Image: UNDP Solomon Islands

Youth-led initiatives are a central force for achieving the SDGs and driving the priorities of the SAMOA Pathway, especially when it comes to reimagining new ways of carrying out essential community functions, a process that has proved essential amid the uncertainty of the pandemic. Through initiatives like the Youth Co:Lab in Asia and the Pacific, young people in SIDS are asserting their leadership in solving the region's evolving challenges through entrepreneurship. Right now, applications for the Youth Co:Lab Innovation Challenge in Timor-Leste, focused on solutions for unemployment, health and malnutrition, are open. Similarly, in Guinea-Bissau, the Accountability Lab, along with UNDP Guinea-Bissau and the Observatory for Democracy and Governance (ODG), is seeking applications from youth on accountability solutions in responding to COVID-19. It is become clear that without the vision of young people, island states will not be able to fully maximize their progress in a quickly evolving world. In that spirit, The Solomon Islands National Youth Congress (NYC) and the Ministry of Women, Youth, Children and Family Affairs are pursuing the revitalizing of Provincial Youth Councils and recently conducted workshops for 65 young leaders in Guadalcanal, culminating in the election of an executive for the Guadalcanal Youth Council to work closely with the NYC in advocating on the interests of local youth. This is the third council to be revitalized after Western and Malaita Provinces. In Tonga, youth are taking initiative in the development of disaster risk mitigation for the progression of the Sendai Framework as the Tonga National Youth Congress is actively working alongside government leaders and UNDP to provide training to women and youth regarding disaster risk management in communities affected by Tropical Cyclone Harold. As proven, the voices of youth are a critical guiding force in building forward beyond COVID-19. Island states are recognizing this value and are rightfully amplifying their platform.
 
Image: @UNDP- Jean-Yan Norbert

As the current state of the global market exacerbated instability of energy imports, SIDS are seeking to accelerate their transition towards self-sufficient, renewable energy systems. In Vanuatu it is estimated that 87% of electricity demand could be met by renewables by 2030, and in the Dominican Republic 63% of real-time demand could be met by wind and solar energy by the same year. These efforts have been further supported with innovative financial mechanisms, such as the Climate Investment Platform, which streamlines multi-partner funding for large-scale renewable energy initiatives. SIDS have demonstrated impressive leadership in this area, and Fiji even recently announced its plans to develop the Pacific's largest solar project. The macro benefits of such investment are clear catalysts for adaptation at the national level, but the local, community-based benefits of Climate Action are equally as important. In Mauritius, women entrepreneurs received training on solar PV systems through the Mauritius Renewable Energy Agency (MARENA) and the Central Electricity Board (CEB), supported by UNDP and GCF. The course, in which more than 800 women participated, included an overview of basic operational concepts as well as the benefits of renewable energy for micro, small and medium enterprises (MSMEs). These initiatives are part of UNDP's SIDS Offer, Rising Up for SIDS, that seeks to support island states in expanding energy access and increasing shares of renewables in their power mixes. Efforts such as this demonstrate SIDS' multi-faceted approach to the energy transition, working to achieve large-scale development without neglecting the inclusion of vulnerable community members, such as women and MSMEs in its progress.
 
Image: UNDP Dominican Republic

Rural communities have felt deeply the exacerbated challenges of COVID-19 and climate change, impacting profitability and crop yields of the agricultural sector. To tackle this increased vulnerability of rural populations and communities and safeguard their agricultural sectors, SIDS are seeking to transform food systems through inclusive and resilient recovery. Only it is crucial that these systems be innovated at every level of process to ensure their long-term proliferation and safeguard the livelihoods of those involved. The World Bank has even identified efficient cold chains, facilities to maintain ideal storage conditions for perishable foods, can be improved to lessen hunger and protect livelihoods, proving that every step of the agriculture system should be subject to revaluation during this time. SIDS have led numerous successful initiatives for multi-level progress — organizing agribusiness groups in Timor-Leste to collectively implement sustainable farming techniques and empowering women in the Solomon Islands with agricultural tools to adapt to climate change. And now in the Dominican Republic, authorities, local leaders and cocoa exporting companies from 23 communities are developing a joint strategy for socioeconomic recovery from COVID-19 as part of the greater work of the Cocoa Life Program of Mondelēz International and its partners, the National Confederation of Dominican Cocoa Farmers (CONACADO) and the Foundation for Social Assistance, Recovery and Organic Management of Cocoa Plantations (FUPAROCA). Socioeconomic impacts will be evaluated, and the Cocoa Life program will assist in financing recovery based on community development plans to support vulnerable cocoa farming communities. The livelihood of a farmer involves a great deal of risk depending on crop yields and temperamental market prices; since 1980, the inflation-adjusted global price of cocoa has halved. Protecting their welfare is key to eradicating poverty and accelerating national development. Transforming food systems to become more sustainable and resilient necessary for safeguarding livelihoods of local populations. Innovation drives these transformations, the Global Center for Technology, Innovation and Sustainable Development in Singapore is investing in developing solutions and systems to solving the most pressing challenges of global food systems, solutions that can become powerful tools to accelerate SIDS' progress towards sustainable development.
In the News
 
The growth of the Blue Economy, pairing the maximization of marine-based activities with the critical conservation of ocean resources, is essential for the sustainable development of island states. Within this framework, conservation has the opportunity to power economic success by increasing the capacity of a sector with an estimated global value of US$ 2.5 trillion. Protecting just 5% more of the ocean can increase fishery yields by 20%. SIDS have repeatedly called for increased innovation in funding mechanisms on the world stage, including notable comments at the UNGA 75 as well as the September release of the Organisation of Eastern Caribbean States' (OECS) Blue Economy Investment Portfolio, which outlines opportunities for investment within the region. Within this theme, Blue bonds are emerging as a potential mechanism for financially powering the protection of ocean resources and closing the existing funding gap in some SIDS. This system, which taps into capital markets to fund ocean-related environmental projects, has shown remarkable success in Seychelles where the government has refinanced $21 million of the country's debt. Currently, UNDP as part of their SIDS Offer is working to support the governments of Fiji and the Maldives to develop blue bond instruments, further work is being done to support SIDS in employing other innovative financial mechanisms including facilitating SDG Programmatic Bonds and developing risk insurance schemes. Blue bonds show a great deal of promise if it were to be replicated in other states, benefiting investors with regular loan payments and governments with financial relief and the long-term influence of healthy ecosystems. Their growing popularity was further emphasized in a webinar from the UN Global Compact entitled Blue Bonds: Accelerating Issuance to Fund Sustainable Ocean Business where stakeholders outlined the opportunities of a growing sustainable bond market.
 

With their small sizes and strong political will for change, SIDS are becoming incubators of innovation. Island states are taking initiative to deepen the integration of digital tools in everyday life to foster inclusive development, overcoming geographic and systematic challenges. COVID-19 recovery presents a prime opportunity to advance digitalization, and removing barriers to cash transfers through digital processes has long been a shared goal among SIDS. UNDP has served island states in realizing this goal through important initiatives such as the Pacific Financial Inclusion Programme, a partnership with UNCDF. In a significant step forward in intranational cash transfers, the Central Bank of the Bahamas has announced the successful launch of the world's first Central Bank Digital Currency (CBDC), appropriately named the Sand Dollar. This country is a prime environment for such an innovative initiative with one of the highest per capita incomes in the Americas and a 90% penetration for mobile devices. The CBDC initiative consists of a digital version of the Bahamian dollar as well as an ecosystem of Authorized Financial Institutions (AFI), made up of money transmitter businesses, payment service providers and commercial banks, that provide services to retail customers, such as KYC/AML checks, wallet services and custodial services. AFIs can develop their own version of the Sand Dollar app, encouraging the use of digital wallets for payment transfers. The CBDC will work to accelerate financial inclusion through reduced delivery costs and transactional efficiency as well as increase resilience by creating a payment system independent of vulnerable electrical infrastructure. Similar initiatives are in the works in Mauritius and the Marshall Islands.
 
Image: ©UNDP Tuvalu/Aurélia Rusek

The costs of destruction SIDS experience due to intensifying extreme weather events is pushing their economies over the edge. In 2017, Hurricane Maria left Dominica with losses amounting to 226 % of GDP. With many SIDS, especially Caribbean states, grappling with extraordinarily high debt-to-GDP ratios with some over 100%, financing these losses and the necessary changes needed to increase resilience is a massive challenge. Closing the climate finance gap forces us to rethink frameworks and systems, a 2009 commitment to mobilizing US$ 100 billion per year in climate finance for developing countries by 2020 has failed. A recent report has shown that 80% of climate finance is in the form of loans not grants, with their high debt burdens, loans to finance resilience just will not suffice for many SIDS. Closing the finance gap will require universal changes — along these lines SIDS have appealed for developing solutions to overcoming the barriers many of them face in accessing concessional financing. A recent Devex piece outlines important mindset improvements that could help SIDS advance their resilience agendas: strategically defined resilience agendas in SIDS for enhanced negotiating, development finance that intentionally maximizes financing for those priorities, dramatically increasing resilience funding from donors, and better coordination between development partners. While this approach certainly involves taking risks, it will also serve to mitigate weather-related crises and prevent the escalation of climate change by facilitating the energy transition and building adaptive infrastructure.
Resources
Image: Papua New Guinea, David Doubilet, Nat Geo Image collection
 
SIDS' unparalleled biodiversity is renowned throughout the world, driving a massive tourism industry that attracted 44 million visitors in 2019. Still, even as that industry has been slowed to a near halt, island states are garnering recognition for the awe-inspiring ecosystems. Of the significant homes of their rich biodiversity is SIDS large ocean areas, Palau's coral reefs have the highest coral cover — at 45%, reaching 60 or 70% in some marine protected areas — observed on the Global Reef Expedition, according to the Khaled bin Sultan Living Oceans Foundation, which recently undertook the largest coral reef survey and mapping expedition in history. Comoros, Maldives and Trinidad and Tobago have recently added UNESCO biosphere reserves to their national framework. Now, such regions of biodiversity are being deemed by financial powerhouses as worthy investment opportunities for reasons that expand beyond touristic value. More than two thirds of global GDP is dependent on biodiversity and it is estimated that addressing biodiversity issues could create 395 million jobs globally, yet destruction of biodiversity is amounting to an economic toll of US$ 20 trillion a year. This report suggests focusing on these three opportunities for maximum impact for the planet and investors: stringent certification for growth in geospatial data services, regenerative farming for increased profitability and preservation, and planet-compatible consumption for appealing to a sustainably-minded market. This report is indicative of an important shift in the traditional investment structure to involve new actors into their mix. UNDP itself is accelerating this integration through the involvement of diverse partners in the implementation of the Global Fund for Coral Reefs, which streamlines investment in the preservation and restoration of coral reef ecosystems. In the area of sustainable farming.
 
As SIDS stand particularly exposed to the elements of climate events, their coastlines are an essential component of their few natural barriers against destruction. Coastal zones are of significant importance to livelihoods across SIDS, being at the core  In addition to being crucial barriers to weather-related hazards, coastlines are also home to thriving communities dependent on marine resources. Additionally, scientists and experts around the world are innovating new ways to preserve and store coral reefs — implementing methods like 3D printing and organizing multilateral institutions — to save these import barriers from weather-related disasters. To keep the resilience of coastal areas top of mind, the High-Level Panel for Sustainable Ocean Economy, or Ocean Panel, has developed a paper highlighting four opportunities for sustainable coasts: building ecosystem resilience; enhancing community resilience, equity and access; mitigating impacts of terrestrial and extractive activities on coastal ecosystems; and advancing sustainable, climate-ready blue infrastructure. As rising rates of urbanization and climate change compound in conflict with the natural health of these regions, strategic policy will be crucial in determining the long-term well-being of both people and planet. Across SIDS, UNDP is supporting the development of innovative solutions to boost resilience and restore coastal ecosystems, including using drone technology to map eroded or threatened coastal zones in the Maldives.
 
Image: UNDP Latin America and the Caribbean

Caribbean SIDS have long played a significant role in innovating creative solutions for dire regional and global challenges. UNDP's Accelerator Lab in the Barbados and Eastern Caribbean Multi-Country Office is actively harnessing that very quality to propel local leadership in problem-solving by providing technical support and crucial partnerships for propelling the blue economy, such as the creation of bioplastic from sargassum seaweed. Just last week, in a meeting with Caribbean Community (CARICOM) officials, Secretary-General António Guterres expressed the importance of Caribbean voices in current relief efforts and recognized their leadership in combating challenges regarding regional economies, tourism sector, trade and remittances. However, according to IMF predictions, the Caribbean region will be the hardest region as a result of the COVID-19 pandemic, with drastic socioeconomic impacts regarding unemployment and a rapid increase in poverty The heavy debt burdens, and fiscal pressures they face are threatening the future of their economies. In a report from UNDP Latin America and the Caribbean, the most recent installment in the COVID-19 Policy Document Series, outlines specific steps to a "sustainable post-pandemic recovery." These involve utilizing goal-oriented recovery packages to propel impactful public investment as well as taking into account the importance of debt restructuring, innovative financing mechanisms and a critical focus on environmental impact. These steps encourage decision-makers to think beyond the confines of traditional disaster mitigation to adeptly handle the complicated nature of the current situation, using the region's historical strengths to their advantage.
 
Further Resources
Past methods to assess the world's coral reefs have not always been entirely accurate, interfering with efficient conversation and management. However, researchers from the Arizona State University Center for Global Discovery and Conservation Science (GDCS) has created an online coral reef map using a single methodology capable of predicting the location of shallow coral reefs with nearly 90% accuracy, a highly useful tool for SIDS. For an overview of this valuable resource click here.
 
Produced through a variety of local and international stakeholders, this publication provides guidelines for illustrates standards for residential construction in the Bahamas, reflecting on Hurrican Dorian, which caused an estimated US$ 100 million to residences. One of the most meaningful ways that SIDS can ensure long-term resilience is through infrastructure that adapts to climate risks and maximizes disaster preparedness. These new standards will help the Bahamas build back better, lessening the community impact of future disasters. Read the report here
 
This week's episode of Frontier Dialogues features Hulwa Khaleel, Project Coordinator for IDEAS NGO, a recipient of UNDP and the Global Environment Facility (GEF) Small Grants Programme (SGP) fund, highlighting the organization's recent work to build food security through the mangroves of Kelaa as well as efforts to map the biodiversity and document the cultural significance of these areas. The GEF SGP has been an influential instrument for environmental conservation through investment in local ideas and projects. Listen to one example here
Upcoming Opportunities
 
The second Ocean Sustainability Bergen Conference is will focus on ocean resources and how these may include solutions for a growing population and livelihood for coastal communities.

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Join the Seychelles Conservation and Climate Adaptation Trust (SeyCCAT) in highlighting program success as well as crucial partnerships.
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Recognizing that the Caribbean is a region poised for growth, 'The Case for SDG Investment in the Caribbean' presents investable opportunities in the Caribbean with a coherent and intentional focus on sustainable development. Given the impacts and relevance of COVID-19, the report makes an explicit effort to identify investable opportunities within the context of the pandemic as well as opportunities that arise within a post-pandemic Caribbean. This event will feature panel discussions, breakout sessions, and opportunities for virtual networking with attendees and stakeholders.
 
 
 

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