Seychelles: Selected Issues

IMF Staff Country Reports, June 20, 2017

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This Selected Issues paper discusses measures to enhance resilience to climate and natural disasters in Seychelles.
Key climate risks identified: rising sea levels, changing rainfall patterns, increasingly intense and frequent tropical cyclones, and massive coral bleaching, which are compounding economic and social risks in Seychelles.
Recommended strategic approach: a policy mix focused on combining adaptation and mitigation strategies that are aligned with Seychelles’ Nationally Determined Contribution and with the technical and financial capacity of the government.
Where adaptation and mitigation measures are inadequate, the paper recommends exploiting insurance policies and innovative financial instruments further.
Experience from other small states indicates that small policy changes can still have a significant impact.

Climate and natural disaster risks listed:
- Rising sea levels
- Changing rainfall patterns
- Increasingly intense and frequent tropical cyclones
- Massive coral bleaching
Economic and social implications: these climate phenomena are compounding economic and social risks in Seychelles.
Policy alignment requirement: proposed policies should be aligned with Seychelles’ Nationally Determined Contribution and the government’s technical and financial capacity.
Lessons from peers: small policy changes in other small states have produced significant impacts.

Combine adaptation and mitigation strategies in a cohesive policy mix.
Align policies with Seychelles’ Nationally Determined Contribution.
Design policies consistent with the government’s technical and financial capacity.
Further exploit insurance policies and innovative financial instruments when adaptation and mitigation measures are inadequate.
Consider incremental reforms reflecting experience from other small states, recognizing that small changes can yield significant benefits.