Small island developing states (SIDS) face severe structural challenges to their sustainable development. Some are among the poorest and most isolated countries in the world, with relatively small populations and narrow endowments of land and natural resources. This Economic Paper builds on the 2014 SIDS Accelerated Modalities of Action Pathway, which provides policy guidance on economic, environmental and social priorities in SIDS. Complementing the vision contained in the Pathway, it offers more detailed analysis and guidance on alternative economic development strategies for SIDS and recommends policies necessary for SIDS to build their competitiveness in new industries.