The Chair of the Executive Council of SIDS DOCK, the international organisation created to build sustainable energy and climate change resilience in small island countries, today warned that island economies could be collateral damage of the fighting in Ukraine.
SIDS DOCK, the Small Island Developing States (SIDS) sustainable energy and climate resilience organisation is worried that SIDS economies, struggling to recover from the battering by the COVID-19 pandemic, could be devastated by oil prices spiked by the war in Ukraine. Noting that small economies are 90 per cent dependent on already expensive oil imports, the SIDS DOCK Chair, His Excellency Mr. Ronald Jumeau, Ambassador and former Permanent Representative of the Republic of Seychelles to the United Nations (UN) and the SIDS DOCK Roving Ambassador for Oceans, said the war in Europe could sink SIDS economies, “as well as their hopes and efforts to recover from the COVID-19 pandemic, which ravaged their islands.” He said SIDS, dispersed far from Ukraine, “will experience exploding and uncontrollable energy prices the longer the shooting continues.”
SIDS already have a 90 per cent dependency on petroleum fuels for commercial energy costing more than $220 billion per year, pre-COVID-19. They will now see a significant escalation in the cost of imports, particularly food, as almost all small islands import 60 per cent or more of their food needs, Ambassador Jumeau forecasted.
The COVID-19 pandemic, he added, “had already pushed several SIDS to the brink of economic collapse; they suffered disruptions in supply chains and international trade, flight cancellations, slowdowns in the shipping industry and logistics bottlenecks.”
Oil is over $120 per barrel compared to under $30 per barrel, two years ago. Moreover, due to the small size of their economies and the limited number of goods and services, primarily tourism, agriculture, and fisheries that they provide to the global economy, SIDS are very vulnerable to external shocks such as the war in central Europe.
Recalling the energy market disruptions and the explosion of oil prices to US$150 per barrel in 2008, he asserted, “SIDS today remain the most indebted group of countries in the world, per capita, with some saddled with debt that is more than 100 per cent of their gross domestic product (GDP). They also have the highest energy and communication costs of any group of countries.”
Highlighting the particular vulnerability of small islands, he lamented that SIDS were the first to see dramatic increases in oil and food prices due to the war in Ukraine: “This is not unexpected of the most vulnerable group in the United Nations system. The question is, how long will the war go on, and how high will the price of oil rise?”
SIDS DOCK is a United Nations (UN)-recognised international organisation established in 2015, with all the rights and privileges for addressing climate change, resilience, and energy security in small islands. SIDS DOCK represents 32 small islands and low-lying developing states across the globe, and is so named because it is designed as a “DOCKing station,” to connect the energy sector in SIDS with the global markets for finance and sustainable energy technologies. The organisation’s work is coordinated by the Secretariat, in Belmopan, Belize.
We talk about Russia and Ukraine making them our main concern and focus. Showing off our “paste and post” pseudo intelligence. Meanwhile, we’ve been suffering under a damn Skerrit who hold our feet to the fire and burying the future of our children. To all of you spineless snails 🐌 I say 4-Q. Until you all are prepared to get to Roseau in large numbers in a sustainable way…Your words are lighter than a breath. I’m so damn tired of reading all of these KISSMEEA.S SHI…., that I’m beginning to lose hope in Dominica and thinking of pulling my entire family out. Even my grand parents. Shame us people. Before Henderson was pulled into this grand bay thing…I watched men flexing muscle saying how they are going to block the entrance to grand bay, and this vote will never happen. Haha…It was the smoothest election I’d ever witnessed. There was no disruption of any kind. News media made a full of themselves asking trivial questions. Give me a break. DA has become disgraceful.
Ukraine this…Ukraine that…when is it time for our revolution, Dominica? How long do we just sit there & do nothing, while corrupt politicians stay in power? #MakeDominicaGreatAgain
Listen Bwoi you sounding so frustrated so why don’t you take the initiative to change things here. Nobody stopping you taking the lead in that, no need to wait for somebody else. You think Skerrit really cares about the noise you making. Action speaks louder than words.
Where is YOUR action. I see YOU making noise on a daily basis on DNO. You asking others to do your ‘dirty’ work but you keep on acting as a laptop rebel.
The whole world is focusing on Ukraine right now…f**k Ukraine. We got our own problems that need dealing with #MakeDominicaGreatAgain
As the saying goes ‘ No man is an island ‘. The war in Ukraine makes all of the world more volatile. Gas and oil prices are going through the roof partly because of it. Dominica has no control of that regardless of who is the prime minister.
Do you know what else may sink Small Island economies? Roosevelt Skerrit. Get rid of him. MAKE D/A GREAT AGAIN!!!
Give it a break; enough of the continuing political venom. The election has been over a long time now and guess who the Dominican people chose? If you and yours are really serious about making Dominica great, develop a credible plan and convince the Dominican people to elect your group in the next election, then go from there. In the meantime, give us a break from the constant political diatribe.
Very well stated! It’s high time for him to go.
I do hope that this article will help the stubborn people in our country to understand the CBI funds are not being used wisely, and the consequences are going to be dire. The majority of Dominicans continue to foolishly think that receiving a free apartment is the sign of good leadership. People it is not. Wonder what is going to happen when the CBI program eventually dies, because that where it’s headed. You all will be stuck in your brand new apartments with no employment an unable to migrate with your Dominican passport.
See beyond the tip of your noses. Please remove the government. One group of people are the beneficiaries of the state resources while the majority are heading for disaster. My pleading is not for me. It’s for you. Help yourselves.
Very well spoken indeed. When will Dominicans wake up and see what this PM does to them…
I am afraid that SIDS do not have a longterm future as sovereign, independent states if they are dependent on other nations for covering their bills. Certainly not if they have no strategic importance. It is a common, but unspoken truth, that larger players, with developed economies are getting tired of small nations prostituting their votes in the U.N. while holding up their hands for more aid meanwhile kicking their donors shins, when that aid largely disappears in the pockets of disreputable politicians and their Ali Baba gang members. If you want an equal place at the dinner table, make sure you can pay part of the bill and stop being a freeloader. If you are unable to do that, at the very least, show some respect to those, who help you.
Russia fired de first shot in Ukraine…… Russia initiated this action that puts small island economies at risk…….we should NEVER FORGET THAT!
we made some serious visible moves with Petro caribe
We did not open a renewable energy fund with all of the CBI millions!
And lest we forget……. there are/were oil tankers carrying commonwealth of Dominica flags travelling the Mediterranean……de oil wasn’t headed to Dominica!
De Skerrit DLP vision for Dominica
Many of you are nervous with insomnia and anxiety at your highest peak. It would be very good to see that the war would unravel all of the financial corruption in the Caribbean and Latin America. Most of you are to corrupt.
Ukraine has been an eye opener to Dictatorships and their greed for power and of course money. What happens in Ukraine now give me hope that greedy leaders will learn that no matter how large and powerful their armies the little man with a boozii made of gas with styrofoam pieces dispersed in it can literally stall any army.
To every dark cloud there is always a silver lining and I know all who have the opportunity to watch what’s happening in Ukraine are a lot smarter today. God bless Ukraine and its resilient people. More boozii for Putin and his gang!
If the current Russian – Ukraine crisis worsens, the rest of the world will most certainly feel the pain of an econmic crisis that will extend well beyond the confines of the conflict. Simply put, if Russia continues to sneeze, the rest of the world will definitely catch a cold and possibly hell.
no need to panic look oil prices dropping already UAE and other countries announced they will increase oil output to fill the void of Russia
No one can predict with scientific accuracy where oil prices will reach. The persons who will suffer most through this crisis are always the poorest among us. The sad reality is that not many people care about the poor man, woman or child.