Nothing in the literature suggests that debt management practices that work well in large states will not work equally well in small ones. The fact that small states have already demonstrated their ability to perform well in some dimensions of debt management bears this out. It is recognized that small states may, on account of their size and other specific features, be impeded by institutional and manpower constraints that it may not be possible to change significantly, or to change only over an extended timeframe. However, these cannot be viewed as insurmountable obstacles (or justification for) resulting in poor debt management and must be simply regarded as constraints that must be factored in to the structure of the debt management processes and addressed in the formulation of debt management objectives, strategies and reform programs. In short, small states must find ways to minimize any of the inherent disadvantages they face. It is also important not to overlook the fact that small size brings with it some advantages. When only a limited number of institutions and staff are engaged in debt management the process of coordination between the different dimensions of debt management, and with fiscal and monetary policy, is greatly simplified. Also, small states typically have public debt portfolios made up of a limited number of instruments and, therefore, relatively easy to monitor.

There are number of practical and, often relatively simple steps, small states can take to improve debt management capacity and many of them are likely to have a rapid payoff. These include (a) benefitting from the experience of other developing countries; (b) tackling the easiest problems first, i.e. picking the low hanging fruit; (c) pooling resources through regional cooperation; (d) maximizing the gains of information technology; (e) realizing the full benefits of staff training; and (f) widening financing options through the development of domestic debt markets.

# **_Benefitting from the experience of other developing countries_**

Instituting new debt management policies or enhancing existing ones can often seem like a daunting process but small states may avoid many of the pitfalls of false starts and failed policies by drawing not just on the debt management literature but also the experience of others. At risk of stating the obvious, there is no better guide for policymakers as to what works well and why than firsthand knowledge and practical experience of their peers in other small states and developing countries. The regular debt managers’ forum sponsored by institutions like the World Bank, the Commonwealth Secretariat and UNCTAD as well as ministerial meetings, annual meetings of regional organizations and central banks and multiple debt management seminars offer ample opportunity for discussion and exchange of views: as also the recently set up Debt Management Network (using adobe connect to peer network with debt managers and share experiences). Similarly the DeMPA reports that countries have made public, posted on the World Bank website, offer a rich source of information on what makes for robust debt management capacity, how other countries have met the challenge of instituting sound debt 19