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

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.

This paper addresses the issues of S&DT for small and vulnerable countries from the perspective of the Situational Approach. Chapter 1 briefly discusses the framework in which the ICTSD studies on competitiveness and vulnerability were conducted, introducing the fundamentals of the Situational Approach and the Trade-supported Strategies for Sustainable Development. Chapter 2 summarizes the process of negotiations that have taken place on S&DT for small and vulnerable countries according to the Doha mandate, highlighting the “Characteristics Approach” that the proponents devised in the negotiations and its similarities with the Situational Approach. Finally, Chapter 3 presents the most important findings and conclusions of the studies conducted by ICTSD on the vulnerability of small economies, as well as on competitiveness situations which affect many developing countries, including the SVEs. It includes a discussion on the extent to which the SVEs conform a group of countries that have relevant common features in terms of development and trade, as well as ideas on how to best define the lists of countries that should have access to additional benefits in the Situations-based S&DT, and the kinds of such additional benefits. Finally, this chapter also presents recommendations on further research that should be undertaken on the issues of vulnerability, competitiveness and trade-supported strategies for sustainable development.

LINK (EN): http://www.ictsd.org/issarea/competitiveness/Publication/ICTSD-SVEs-low_res.pdf