ABSTRACT
This chapter examines the relative level of aid allocated to small developing states (SDS), the rationale behind a relative high level of such aid, and the possible shortcomings of the modalities of aid allocation to small states. It shows the larger share of overseas development assistance (ODA) received by other groups of countries, such as the least developed countries (LDCs), the landlocked developing countries (LLDCs), or the so-called fragile states. During the 2006–2015 period both SDS and small Island developing states (SIDS) groups received an average of approximately 3% of the total ODA disbursements. There are several handicaps linked to smallness. It should be noted that instability of exports and instability of agricultural production, are components of the UN Economic Vulnerability Index (EVI). Moreover, smallness is often associated with remoteness from the world markets, which generates high transportation costs.
