The Blue Economy, encompassing sustainable ocean-based economic activities, offers transformative opportunities for Small Island Developing States (SIDS) like St. Vincent and the Grenadines (SVG). This research article examines the relevance of the Blue Economy for small states, with a specific focus on SVG’s efforts to leverage its marine resources for economic diversification, climate resilience, and social inclusion. Drawing on recent studies and regional initiatives, such as the Caribbean Regional Oceanscape Project (CROP) and Unleashing the Blue Economy in the Caribbean (UBEC), the article evaluates SVG’s progress in integrating Blue Economy principles into national policies, particularly in tourism, fisheries, and waste management. It also explores challenges, including resource constraints and climate vulnerabilities, and aligns these efforts with the United Nations Sustainable Development Goals (SDGs), notably SDG 14 (Life Below Water) and SDG 8 (Decent Work and Economic Growth).

Introduction

Small Island Developing States (SIDS) face unique economic and environmental challenges, including limited land resources, high dependence on imports, and vulnerability to climate change. The Blue Economy, defined by the World Bank as the “sustainable and integrated development of oceanic sectors in healthy oceans,” presents a pathway for SIDS to harness their vast marine spaces for economic growth while preserving ecosystems. St. Vincent and the Grenadines (SVG), with an Exclusive Economic Zone (EEZ) of approximately 13,900 square miles—over 90 times its land area—exemplifies this potential. This article analyzes the relevance of the Blue Economy for small states, focusing on SVG’s marine-based sectors, policy frameworks, and alignment with global sustainability goals.

The Blue Economy and Small States

The Blue Economy encompasses sectors such as tourism, fisheries, aquaculture, marine renewable energy, and waste management, all of which rely on healthy marine ecosystems. For SIDS, whose economies are often tourism- and agriculture-dependent, the Blue Economy offers opportunities to:

• Diversify Economies: Reduce reliance on single sectors like agriculture or tourism.
• Enhance Resilience: Mitigate climate risks through sustainable resource management.
• Promote Inclusion: Create jobs and empower marginalized groups, including women and youth.

SVG’s economy, heavily reliant on agriculture (bananas, arrowroot) and tourism (28.6% of GDP in 2019), is vulnerable to external shocks, as evidenced by a 7% GDP contraction in 2020 due to the COVID-19 pandemic. The Blue Economy provides a framework to address these vulnerabilities by leveraging SVG’s marine assets, including coral reefs, mangroves, and fisheries.

St. Vincent and the Grenadines: Blue Economy Context

SVG’s marine space supports critical economic activities, with tourism dominating through yachting, ecotourism, and cruise ship arrivals in the Grenadines. Fisheries, though a smaller GDP contributor, are vital for food security and livelihoods. However, challenges such as overfishing, marine pollution (80% land-based), and coral reef degradation (80% lost in 50 years) threaten these sectors. Recent initiatives, supported by the Organisation of Eastern Caribbean States (OECS) and the World Bank, aim to address these issues through sustainable ocean governance.

Policy and Institutional Frameworks

SVG has made strides in embedding Blue Economy principles into its governance framework:

• National Ocean Policy (NOP): Revised under the CROP (2017–2021), SVG’s NOP aligns with SDG 14, emphasizing sustainable marine resource use and climate resilience.
• Coastal and Marine Spatial Plans (CMSPs): Developed through CROP, these plans guide resource allocation and conflict resolution among tourism, fisheries, and mariculture.
• Unleashing the Blue Economy in the Caribbean (UBEC): A $60 million project (2022–2027) supports SVG, Grenada, and Saint Lucia in strengthening policies, financing micro, small, and medium enterprises (MSMEs), and enhancing regional coordination. UBEC’s focus on fisheries, tourism, and waste management aligns with SVG’s economic diversification goals.
• Environmental Regulations: SVG’s ban on single-use plastics and Styrofoam, supported by World Bank development policy credits, reduces marine pollution, contributing to SDG 14.

These frameworks reflect SVG’s shift from viewing itself as a “small island state” to a “large ocean state,” as articulated by Minister Camillo Gonsalves, emphasizing the potential of its 500,000 km² marine seascape within the OECS region.

Key Blue Economy Sectors in SVG

1. Tourism

Tourism, contributing 19.9% of formal employment in 2019, is SVG’s economic backbone. The Grenadines, with coral reefs and beaches, attract yachting and ecotourism. The opening of Argyle International Airport in 2017 and cruise ship berths in Kingstown have boosted arrivals, with 202,109 visitors in 1998, primarily from the Caribbean and UK. Blue Economy initiatives, such as UBEC’s support for sustainable tourism policies, aim to enhance resilience by targeting niche markets (e.g., eco-resorts) and improving environmental management.

2. Fisheries and Aquaculture

Fisheries provide food security and jobs but face challenges from overfishing and data gaps. A 2024 study explored sustainable mariculture, identifying Pinctada imbricata (pearl oyster) and Hippospongia lachne (sponge) as viable species for cultivation in Ashton Lagoon, Union Island. This initiative, supported by stakeholder collaboration and legal frameworks, could diversify SVG’s economy and reduce pressure on wild stocks, aligning with SDG 8.

3. Waste Management

Marine pollution, primarily from untreated wastewater and plastics, threatens SVG’s ecosystems. The UBEC project supports waste management improvements, building on SVG’s plastic ban to reduce coastal litter, which exceeds global averages. These efforts enhance ecosystem health, supporting tourism and fisheries while advancing SDG 14.

Alignment with Sustainable Development Goals

SVG’s Blue Economy initiatives contribute to multiple SDGs:

• SDG 14 (Life Below Water): Marine spatial planning, plastic bans, and mariculture protect marine ecosystems.
• SDG 8 (Decent Work and Economic Growth): MSME financing and job creation in tourism and fisheries promote inclusive growth.
• SDG 13 (Climate Action): Coastal protection and climate-resilient policies mitigate sea-level rise and storm impacts.
• SDG 17 (Partnerships for the Goals): Regional collaboration through OECS and international support from the World Bank and UNDP strengthen governance.

The UBEC project’s recognition with the UN SIDS Partnerships Award in 2022 underscores SVG’s role in modeling Blue Economy strategies for SIDS globally.

Challenges and Limitations

Despite progress, SVG faces significant hurdles:

• Resource Constraints: Limited financial and institutional capacity hinders policy implementation.
• Climate Vulnerability: SVG’s susceptibility to natural disasters, like the 2021 La Soufrière eruption, diverts resources from Blue Economy investments.
• Data Gaps: Inadequate marine data impedes effective fisheries management and ecosystem monitoring.
• Stakeholder Inclusion: Ensuring equitable participation of women, youth, and local communities remains a challenge.

These constraints highlight the need for sustained international support and capacity building, as emphasized in UNDP’s Blue Economy financing initiatives.

Opportunities and Recommendations

SVG can maximize its Blue Economy potential by:

1. Scaling Mariculture: Expand pearl oyster and sponge farming with private-sector investment, building on the Ashton Lagoon pilot.
2. Enhancing Data Systems: Invest in marine data collection to support fisheries management and spatial planning.
3. Promoting Blue Growth: Adopt a “Blue Growth” framework, as suggested by UNDP, to prioritize social equity alongside economic gains.
4. Strengthening Regional Cooperation: Leverage OECS platforms for transboundary issues like fisheries and pollution.
5. Attracting Investment: Use Invest SVG to promote eco-friendly resorts and agro-processing tied to marine resources.

These strategies can enhance SVG’s resilience and economic diversification, positioning it as a Blue Economy leader among SIDS.

Conclusion

The Blue Economy is highly relevant for small states like SVG, offering a pathway to sustainable growth amidst economic and environmental challenges. SVG’s advancements in tourism, fisheries, and waste management, supported by CROP, UBEC, and national policies, demonstrate its commitment to harnessing marine resources responsibly. By addressing resource constraints, enhancing data systems, and prioritizing equity, SVG can fully realize its potential as a “large ocean state.” These efforts align with SDGs, reinforcing SVG’s role in global sustainability and providing a model for other SIDS to emulate.

References

• Caribbean Regional Oceanscape Project (CROP). World Bank, 2022.
• Providence, K. A. (2024). Advancing The Blue Economy Through Sustainable Mariculture. University of Southern Mississippi.
• Unleashing the Blue Economy in the Caribbean (UBEC). OECS Commission, 2023.
• World Bank. (2021). Investment Climate Statements: Saint Vincent and the Grenadines. U.S. Department of State.
• James, C. (2023). Blue Economy Must Be Integrated In Region’s Governance Policy Framework. St. Vincent Times.
• UNDP. (2022). Financing Blue Growth in the Eastern Caribbean. United Nations Development Programme.