A Fresh Consideration of Development Strategies for Smaller Island States and Territories

Abstract

Much of the literature on the development prospects of small, often island, ­jurisdictions is steeped in pessimism, driven by a serious concern as to the ability of such players to exploit the opportunities of an increasingly globalised world and its emergent liberalised trade rules (e.g. Briguglio 1995: 1615–1620; Encontre 1999: 265; UNCTAD 2004; WTO 1999). It is common to argue that small size, islandness, vulnerability, and a low governance capacity conspire to exacerbate the existing marginalisation of small economies, and is a condition which therefore justifies calls for special treatment. These arguments, however, “… are by no means uncontentious, and are part of an ongoing debate” (Horscroft 2005: 41). This paper aligns itself with a more optimistic view of the prospects for these territories and their citizens, who continue to exploit opportunities and maximise economic gains in a turbulent and dynamic external environment (e.g. Streeten 1993; Easterly and Kraay 2000; Page and Kleen 2004: 82, 89–90). Unable to reap economies of scale, they practise economies of scope. They do so also by keeping alive a portfolio of skills and revenue streams which enables these actors to migrate both inter-sectorally, as well as trans-nationally.