THE CONSTRUCTION OF ECONOMIC RESILIENCE IN SMALL STATES
Keywords:mall states, economies of scale, economic vulnerability, economic resilience, openness, export concentration, macroeconomic stability and external shocks.
While small states are very heterogeneous, several macroeconomic problems characterize them starting from a high level of public debt and week institutional capacities, poor fiscal balance, insufficient development of financial sector, to the imperfect banking market and a need for establishing adequate political and legal framework. There are two conventional ways for defining small states and those are the quantitative and qualitative approach. Nevertheless, we can say that there is no single definition of small state because the size is relative notion. Because of their small size, these countries cannot take advantage of economies of scale. Despite their heterogeneity and their differences, they share a number of common features and significant development challenges such as distance and isolation, vulnerability to natural disasters, economy openness, and the difficult access to foreign capital, poverty, high fixed costs in public and private sectors, high trade costs, relatively narrow and shallow financial sector and others. They are also characterized by a high degree of economic openness, export concentration and high dependence on strategic imports such as imports of food, fuel and industrial goods. These factors are in relation to their economic vulnerability, as well as to their weaker economic resilience compared...
2. Briguglio, L. (2014a). Small States and the Resilience/Competitiveness Nexus. Occasional Papers on Islands and Small States, No. 3, Island and Small States Institute, University of Malta, Malta.
3. Briguglio, L. (2014b). A Vulnerability and Resilience Framework for Small States. Preuzeto 23. decembra 2016. sa sajta:
4. Briguglio, L. (n.d.). Resilience Building in Vulnerable Small States. Preuzeto 2. decembra 2016. sa sajta: https://www.um.edu.mt/__data/assets/pdf_file/0012/205104/Briguglio_Resilience_Article_for_Comsec_Yearbook_13Jan13.pdf.
5. Commonwealth Secretariat and World Bank Joint Task Force on Small States (2000). Small States: Meeting Challenges in the Global Economy, Washington, D.C.: Commonwealth Secretariat and World Bank Joint Task Force on Small States.
6. International Monetary Fund (2013). Macroeconomic Issues in Small States and Implications for Fund Engagement, IMF. Preuzeto 15. decembra 2016. sa sajta: https://www.imf.org/external/np/pp/eng/2013/022013.pdf .
7. Lee, M. (2006). How Do Small States Affect the Future Development of the E.U. New York: Nova Science Publishers, Inc.
8. Schwab, K. (ed.) (2015). The Global Competitiveness Report 2015-2016, Geneva: World Economic Forum.
9. World Bank Group (2016). World Bank Group Engagement with Small States: The Cases of the OECS, PICs, Cabo Verde, Djibouti, Mauritius, and the Seychelles, Washington, DC.: International Bank for Reconstruction and Development and the World Bank.
10. Zaman, G., i Vasile, V. (2014). Conceptual framework of economic resilience and vulnerability at national and regional levels. Romanian Journal of Economics, vol. 39, issue 2(48), 5-18.