Small island developing States (SIDS) are facing compounding impacts of climate change and weak productive capacities which exacerbate their persistent and systemic vulnerability to unforeseen shocks. These effects are depleting their limited resources, making SIDS highly susceptible to external shocks, as seen most recently with the COVID-19 pandemic, heavy indebtedness and significant rise in import prices. These vulnerabilities hinder SIDS capacities to produce a range of goods and services as well as getting access to global markets and the benefits available to more advanced economies. 

Against this backdrop, as recognized in the Antigua and Barbuda Agenda for Small Island Developing States (ABAS), the side event emphasizes that for SIDS to achieve sustainable development and resilient prosperity, they must be assisted to foster productive capacities and diversify their economies and build socioeconomic resilience to shocks. 

The side event will focus on the key role of the Productive Capacities Index in shaping and implementing SIDS-specific economic policies, enabling them to integrate into global and regional value chains.