www.fao.org/sids The presentation will be made in the context of the Regional Preparatory Meeting for the Caribbean towards the Third International Conference on SIDS 2014. FAO is hosting a special event: "Addressing major threats for improved livelihoods and sustainable development in the Caribbean SIDS"

1. Policy Options & Examples
for Diversified & Resilient Livelihoods
Keeley Holder
July 3rd, 2013
Building Economic Resilience through Agriculture & Trade

2. The BIG Question?
How do we as SIDS each develop a
macro-economic growth strategy that can
be adaptable & responsive to the ever
changing global environment?

3. POLICY DECISION 1
Export goods

4. 5 Reasons to Export Goods
1. Goods producing sector & services sector are
inseparable & complementary.
2. Inter-sectoral relationship between goods
& services generally show asymmetrical dependence.
3. Goods producing sector has a greater multiplier
effect than services.
4. Exporting builds trust & cooperation in
small populations.
5. Exporting volume reduces the cost
of inputs & makes export products
more competitive.

5. Example: Goods-Exporting SIDS
• Singapore
• Malta
What else do they have in common?

6. POLICY DECISION 2
Increase goods competitiveness
by becoming a trans-shipment point

7. What’s Shaping Global Trade?Circum-HemisphericCirculation
 Strait of
Malacca
(Singapore)
 Strait of
Gibraltar & Suez
Canal (Malta)
 Panama Canal
(Caribbean)

8. POLICY DECISION 3
Develop a “smart agriculture” strategy
“New generation of agriculture that is heavily
dependent on information and communication
technologies (ICTs), knowledge management,
mechanisation & skilled professionals.”

9. Why SMART Agriculture?
Singapore & Malta closer to commercial centres & large
landmasses, food security is not as big an issue; most Caribbean
SIDS not as close.
Most Caribbean SIDS not trans-shipment hubs.
Many Caribbean SIDS have competitive advantages in
agriculture that can be easily maximised.
Agriculture can put quick wins on table
in recession.
Health & Wellness MEGA Trend.

10. Smart Agriculture: The Macro Level
1. Separation of commercial growers from backyard
gardeners/subsistence farmers (e.g. Brazil).
• Provide policies, framework & infrastructure for both to
thrive

11. Smart Agriculture: The Macro Level
2. Select 2/3 higher-value products based on competitive
advantage, (e.g. Grenada nutmeg, cocoa), do them well
• Today’s business: market segmentation, niche marketing →
practice price discrimination, enhance opportunities for
growth & retain customers
• Shopping is an EXPERIENCE
• What do consumers VALUE?

12. 2. Export volume, target: domestic market 80%
saturated
Smart Agriculture: The Macro Level

13. 3. Use export products to build competitive agro-
processing industries
• Assures processors abundant supply
of low cost raw materials
• Make sure you’ve worked out kinks in
agricultural production first!
Smart Agriculture: The Macro Level