Small island developing states (SIDS) face multiple challenges to their economic development. They typically have small land areas, small populations and limited natural resource endowments at their disposal. Their small economies, with limited productive capacity, are often structured narrowly on fisheries, tourism or a few other services. While SIDS depend heavily on trade, especially for imports of staples and inputs, their geographic isolation and dispersion makes inter-island commerce costly and undermines their export competitiveness.

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