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Marjorie Straw | Skills for Resilience: The New economic imperative for small states in a climate-disrupted world

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Marjorie Straw

Small Island Developing States (SIDS) remain acutely vulnerable to climate change, external shocks and economic volatility. Yet the conversation on resilience has often focused narrowly on physical infrastructure and disaster-risk financing. These are essential, but insufficient.

Resilience in SIDS is equally dependent on the strength, adaptability and mobility of their people. Skills are not ancillary to climate response or economic competitiveness. They are foundational to both.

In a future where climate shocks are more frequent and recovery windows more compressed, skills must be understood and financed as a core pillar of national resilience strategies.

1. The resilience challenge facing SIDS

The scale of climate-related disruption in SIDS is significant and persistent. According to the UN Office for Disaster Risk Reduction, an estimated 18 per cent of the population in SIDS is affected after each disaster, compared with just 6 per cent in non-SIDS countries. Between 1970 and 2019, SIDS experienced USD 153 billion in losses from weather, climate and water-related hazards.

Analysis from the Payne Institute finds that when hazard impacts are averaged over time, SIDS face disaster costs equivalent to around 18 per cent of GDP, while the global average is approximately 3 per cent.

These events occur against a backdrop of constrained fiscal space. In many SIDS, external debt service absorbs a large portion of public revenue, growing faster than spending on education, health and capital investment.

This means every disaster imposes not only physical losses but an opportunity cost: governments must redirect limited resources to urgent recovery, potentially delaying long-term investments in productivity, human capital and diversification.

Satellite view of Major Hurricane Melissa churning in the Caribbean. (Photo: © NOAA CIRA)

2. Hurricane Melissa: a case study in repeated disruption

Hurricane Melissa, one of the strongest storms ever recorded in the Atlantic, swept through parts of the Caribbean in October 2025, bringing winds of approximately 185 mph and severe flooding. It caused extensive damage across Jamaica, Cuba, Haiti and The Bahamas.In Jamaica alone, losses are estimated at USD 10 billion, roughly 30 per cent of GDP, with nearly 200,000 buildings damaged or destroyed. Despite prudent fiscal management and existing disaster-financing tools, Jamaica now faces a reconstruction gap of about USD 9.5 billion.

A coalition of international partners including the World Bank, IDB, IMF, CAF and CDB has committed up to USD 6.7 billion to support reconstruction over the medium term.

Melissa illustrates a broader pattern familiar to SIDS:

  • severe damage to schools, hospitals and productive sectors;
  • interruptions in learning and health services;
  • displacement of workers;
  • reduced fiscal space for human capital investments;
  • pressure to reprogramme existing development projects; and
  • increased reliance on the same workforce to drive recovery while coping with personal loss.

Recovery is not solely a matter of repairing buildings. It depends on teachers who stabilise learning, health workers who manage surges in demand, and engineers who design resilient reconstruction, and logistics and digital professionals who restore systems.

3. Skills as economic infrastructure

Most resilience discussions prioritise physical infrastructure, disaster financing and climate-smart investment. These are vital. But they overlook a structural reality in SIDS: recovery, continuity and long-term competitiveness depend as much on people as on physical assets.

The World Bank’s work on 360° resilience in the Caribbean underscores the need for multi- dimensional approaches that integrate human capability, social protection, infrastructure, and macro-fiscal policy. UNCTAD’s analysis of productive capacities in SIDS highlights structural vulnerabilities, including narrow export bases and limited diversification, which are directly linked to the skills profile of the workforce.

Research from the Overseas Development Institute (ODI) on capacity in small states further shows that institutional capability often develops more slowly than project cycles and that fragmented, one-off interventions rarely embed lasting skills.

This evidence suggests a clear conclusion: Skills development must be treated as a central component of resilience policy. To avoid any implication of equivalence with the profound losses caused by disasters, the argument is this: Skills development should be integrated into resilience planning with the same level of strategic attention given to physical infrastructure, recognising that recovery depends on both.

4. The skills small states need for resilience

Climate resilience and economic transformation require a specific set of skills that extend beyond traditional training programmes.

4.1 Digital and data skills

Digital skills underpin service continuity, remote education, e-commerce, digital payments and early warning systems. World Bank research on climate-smart agriculture and fisheries in the Caribbean highlights the importance of digital tools and data-driven decision-making for resilience.

4.2 Climate-smart construction and infrastructure skills

SIDS require engineers, builders and project managers trained in resilient standards, hazard modelling, drainage, coastal protection and infrastructure lifecycle planning. The World Bank’s work on resilient transport in SIDS reinforces this need.

4.3 Health system and emergency response skills

The Lancet’s 2024 SIDS report documents the growing demand for emergency medicine, public health preparedness, epidemiology and surveillance in increasingly climate-stressed environments.

4.4 Education system resilience

Teachers need skills in blended instruction, psychosocial support and learning continuity, especially where school infrastructure is repeatedly disrupted.

4.5 Skills for diversification and competitiveness

UNCTAD emphasises that long-term resilience requires structural transformation. This points to growing demand for skills in agro-processing, logistics, business services, digital services andthe creative industries.

5. Demographic pressure and the narrowing window for action

UN DESA projections indicate that SIDS will reach a population of 85.4 million by 2050, with uneven geographic distribution. Several Caribbean SIDS face stagnating or declining working-age populations. At the same time, UNDP highlights heightened vulnerability stemming from heavy import dependence, limited fiscal space and exposure to repeated shocks.

These trends reinforce the urgency of building a skilled, adaptable workforce capable of absorbing and responding to disruptions while sustaining economic activity.

6. What SIDS and their partners can do differently

6.1 Integrate skills into climate and resilience planning

National adaptation plans, DRR strategies and climate investment frameworks should explicitly identify workforce needs across key sectors.

6.2 Use ODA to finance skills for resilience not only physical reconstruction

International commitments such as the USD 6.7 billion pledged after Hurricane Melissa can include targeted support for training, certification, curriculum development and workforce mobility aligned with reconstruction and diversification priorities.

6.3 Establish public–private skills councils focused on resilience sectors

Sector-specific councils can align industry demand, training programmes and development partner support around clear occupational priorities.

6.4 Align development partner training with national systems

To avoid fragmentation and parallel structures: Strengthen existing national training institutions through deeper partnerships with industry and development partners, ensuring that externally funded training is consolidated into coherent programmes rather than fragmented across short-term projects.

This respects institutional mandates while addressing the challenges identified in ODI’s small- state capacity research.

6.5 Protect core skills programmes during disaster recovery

Resilience requires continuity. Identifying priority training initiatives that remain protected even when fiscal pressures rise helps sustain long-term capability.

7. A new narrative: skills as the first line of economic defence

In Jamaica, unemployment reached a historic low of 3.3 per cent in April 2025, reflecting a decade of sustained recovery. Yet Melissa showed how quickly labour markets can be disrupted and how essential skilled workers are to recovery. Other SIDS face similar or more acute pressures. As climate events intensify, skills policy cannot remain a peripheral component of development planning.

For SIDS, skills are not merely a route to employment; they are a resilience asset. Governments that integrate skills into resilience frameworks, development partners that finance them as part of climate adaptation, and private sector leaders that treat workforce development as a competitiveness and continuity strategy will be better positioned to navigate the complexity ahead.

In a climate-disrupted world, the most resilient small states will be those that treat skills as strategic infrastructure and invest accordingly.


Marjorie Straw is a strategic advisor and skills development specialist focused on workforce transformation, institutional delivery, and resilience in small states. She works with governments and partner institutions across the Caribbean on skills frameworks, competitiveness, and the execution of development initiatives.

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