Special and Differential Treatment for Small and Vulnerable Countries Based on the Situational Approach

by Werner Corrales-Leal, Felipe Barrito, Sarah A. Mohan

Issue Paper 2

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Beyond the general constraints on trade and competitiveness affecting nearly all developing countries, a special class of concerns applies more specifically to the so-called Small and Vulnerable Economies (SVEs). Small economies usually depend more on international trade than other countries and are more exposed to risks resulting from trade-related external shocks. In addition, many of them have encountered disasters related to natural hazards with increasing frequency and impact.

This paper condenses the results of the exercises undertaken between 2004 and 2006 by ICTSD on small and vulnerable economies, as part of its project on a Situational Approach to S&DT (SA). From the outset, the project sought to identify circumstances in relevant areas of trade and development policies, one of which is obviously competitiveness and vulnerability of SVEs, rather than to attach S&DT provisions to country categories. The SA sets out to achieve two goals. The first is guaranteeing access by all developing countries and LDCs to a set of basic S&DT benefits: their respective S&DT acquis and the improvements to it that result from the Doha-mandated review. The second is to create additional S&DT benefits based on specific development situations.

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