The term ‘small island states’ implies countries and areas, which are predominantly neglected in the context of mainstream development. Due to their location, they have to cope with multiple challenges, and one of them regards the field of trade (Belobaba et al., 2015). It is crucial to understand the problems of such states in order to contribute to the prevention of global crises. Therefore, the purpose of this paper is to observe the primary challenges in trade in these regions and propose effective solutions.
The first problem, which may be considered the most evident one, is the fact that some islands are not connected or connected poorly with distant markets. It cannot both obtain products created in remote areas and transport its merchandise there (Belobaba et al., 2015). The problem also implies the prevention of gaining considerable state profit provided by trade operations. For instance, small island production may be successfully sold in distant territories due to its uniqueness. Thus, this issue has a significant negative impact on the GDP of the small countries and, therefore, on the living standards of the population.
In addition, it has become a common sight that tourists willing to visit a small island are incapable of doing it easily and have to cope with multiple problems. Tourism may significantly improve the economics of small states. In some cases, if the location of a country may be attractive for the visitors, it may present a primary source of income. Inbound tourism will definitely increase the number of trade operations (Pearce, 2014). Popular tourist destinations are full of restaurants, souvenir shops, hotels, and other enterprises, which may considerably develop the sphere of trade in this region. Therefore, due to the poor development of transport, the country is deprived of the advantages of tourism.
Another serious problem regards the sensitivity to external shocks, which significantly affect the economics of small island countries. Deane & Pye (2017) mention:
“The continuing global economic and financial crisis, coupled with the uneven pace of insertion into global trade and development processes, have exacerbated the structural vulnerabilities of SIDS and have had dire consequences for their economies” (p. 2). This fact has a negative impact on the local population as well, as they become less financially reliable. This facto causes serious problems with the trade development in these regions. Therefore, a great number of small states are straggling with trade deficits.
In conclusion, it should be highlighted that aviation expansion in the regions described earlier is highly likely to present a sufficient solution for the primary trade problems. First of all, the increase in air connections with other states will allow selling more locally-made products. As a result, the impact on the local economic development may be beneficial, as it implies the establishment of new workplaces and an increase in profit in general. Secondly, improvements in air connection with foreign countries will attract visitors to small islands. The positive influence of this factor cannot be underestimated in the context of coping with multiple trade challenges. Thirdly, this measure may be prosperous in the long run, as it contributes to creating a strong, resilient, and independent economic model. In this case, small states may become more resilient to global crises and other external circumstances.
Therefore, it is evident that developed air communication is an integral part of successful trade at the state level. For this reason, this field should be a priority in the prosperous and fruitful development of these areas.
References
Belobaba, P., Odoni, A., & Barnhart, C. (2015). The Global airline industry. John Wiley & Sons, Incorporated.
Deane, J. P. & Pye, S. (2017). Europe’s ambition for biofuels in aviation – A strategic review of challenges and opportunities. Energy Strategy Reviews, 20, 1- 15. Web.
Pearce, B. (2014). SIDS economic development and the role of air transport. Web.