The Sustainable Development Solutions Network (SDSN) published a special edition of its SDG Index to evaluate progress of small island developing States (SIDS) towards the Global Goals. The report also introduces the Multidimensional Structural Vulnerability Index (MSVI) to assess the structural vulnerability of 180 countries, including 33 SIDS.

Released on 15 September 2023, ahead of the SDG Summit and the 2024 Fourth International Conference on SIDS (SIDS4), the Sustainable Development Report for SIDS 2023 explores the extent to which structural vulnerability hinders the ability of countries to achieve sustainable development and proposes targeted financing mechanisms to respond to countries’ specific needs.

The report finds that SIDS are disproportionately exposed to structural vulnerabilities that hold back their development progress. This is due to inherent characteristics such as their small size, remote location, and high levels of exposure to natural hazards and climate change. As a result, SIDS face greater challenges to SDG achievement than the rest of the world, with an average SDG Index score of 61.3, as opposed to the global average of 65.4. Pacific SIDS are the furthest behind in reaching the SDGs, according to the report.

The MSVI tool reveals that on average, SIDS are exposed to the highest levels of structural vulnerability across the economic, structural development, and environmental dimensions. The SIDS in the Pacific region are the worst off in terms of environmental vulnerability.

In addition, SIDS deal with “chronic underfinancing of sustainable development.” While in need of significant external assistance, SIDS struggle to access both concessional and private finance due to reasons that include:

• the use of the gross national income (GNI) per capita criterion to allocate concessional finance across countries; and
• their lack of creditworthiness because of the current commercial credit rating methodologies that are exclusively focused on short-term liquidity risks.

The report recommends that SIDS:

• demand that a measure of vulnerability be added as a criterion to allocate concessional development finance;
• tailor traditional and innovative financing mechanisms to their country-specific vulnerabilities and needs and use them strategically;
• ask for the reform of the credit rating systems to recognize the long-term growth potential of developing and vulnerable countries; and
• overcome local barriers, such as limited statistical and institutional capacity, low degree of digitalization, and weak governance and public expenditure management.

SDSN works under the auspices of the UN Secretary-General to promote integrated approaches to implement the SDGs and the Paris Agreement on climate change through education, research, policy analysis, and global cooperation. [Publication: Sustainable Development Report for SIDS 2023: Addressing structural vulnerability and financing the SDGs in Small Island Developing States] [Publication Landing Page] [SDSN News Release]