Commonwealth small and vulnerable economies (SVEs) are inherently vulnerable to exogenous shocks and face high debt burdens, yet the adequacy and scope of the policy response by international institutions to address their debt and other financing issues has not fully met or supported their development needs. This book provides comprehensive, in-depth reviews of concessional finance, the design of loans, shock facilities and other instruments used to support developing countries in times of crisis, and analysis concerning SVE debt sustainability. The analyses and discussion are further supported by primary data collected in Commonwealth countries in the Caribbean, Africa and Pacific regions. This publication is essential reading for anyone working towards the reforms that are essential to ensuring that international financing mechanisms effectively meet the unique needs of small and vulnerable economies.
1. Overview of SVEs and Debt Challenges 2. Analysis of Instruments to Help Countries Cope with Unforeseen Shocks: The Case of the CCL by Stephany Griffith-Jones 3. A Critical Review of the Joint Bank-Fund Debt Sustainability Framework by Machiko Nissanke 4. Exogenous Shocks - Dealing with the Only Certainty: Uncertainty by Stephany Griffith-Jones with Ricardo Gottschalk 5. Non-concessional Financing for Development in Low-income Countries by Development Finance International 6. Strengthening the International Financial Architecture: Establishment of an Automatic Shock Facility by Stephany Griffith-Jones and Judith Tyson 7. Conclusions and Policy Recommendations