Breaking out of the MIRAB mould: historical evidence from Norfolk Island

Abstract

The MIRAB model offers an explanation of the evolution and operation of some tiny Pacific island economies. Proponents of the model have argued that it describes an economic system that is durable and persistent. Using an historical approach, this paper explores whether and how an economy of the MIRAB type can break out of its structural mould without regressing to an earlier stage of development. After establishing that Norfolk Island possessed strong MIRAB characteristics from the end of World War II until the early 1960s, the paper analyses the tourism-dominated economic growth that erased these characteristics, or at least reduced them to insignificance. It concludes that the island has achieved a sustained break-out from the MIRAB mould, although not without incurring some social costs.

Managing the hinterland beyond: Two ideal-type strategies of economic development for small island territories

“…Tourism comes along with 'genuine comparative advantages' for island microstates (Connell, 1991: 265). Treadgold (1999) has argued that tourism has helped to break Norfolk Island, a previously classic MIRAB case, out of this structural mould. Tourism has now 'erased' Norfolk island's MIRAB characteristics or rendered them insignificant, it is claimed.…”

“…In spite of a number of suggested alterations (MIRAGE by H.C. Brookfield, 1986, quoted in Connell, 1988aMURAB by Munro, 1990;MIRTAB by Ogden, 1993; TouRAB by Guthunz and Von Krosigk, 1996), the MIRAB concept remains steadfast and, perhaps, has even assumed of late the stature of a self-fulfilling prophecy, especially in the South Pacific. It is not only a welfare-maximising strategy in line with the theory of competitive advantage (Poirine, 1998: 91); it now may, or may be seen to, legitimise, justify and lock-in such an economic development strategy in the long term (Treadgold, 1999). As long as sources of revenue remain secure, and as long as the shifting fortunes of any such 'external' source is adequately compensated for by any other similar 'external' source, existing or new, then that is, in practice, all that really matters -an unorthodox but effective sense of sustainability and entrepreneurship (Bertram and Watters, 1985: 512;Bertram, 1993: 257).…”

Surfers of the ocean waves: Change management, intersectoral migration and the economic development of small island states

“…Given the volatility, openness and elasticity of small economies, the nature of these clusters, and their respective size, is bound to change in response to various political, fiscal and market forces, and is liable to do so suddenly, rapidly and totally. At their most striking transformations, ‘MIRAB economies’ have been heralded as having transited/graduated to SITE/PROFIT economies: think Norfolk Island (Treadgold, 1999); or formerly more self‐sustaining economies have had their ignominious descent to MIRAB status highlighted: think Nauru (Connell, 2006). But these are gross oversimplifications of more complex and nuanced behaviours, transitions and trends (Bertram, 2006).…”

International Migration from Tonga, South Pacific: A Behavioral Approach

“…However, McCall (1996, Hau'ofa (1993) and Laplagne (1997) criticize the conti nentalists' views of migration focused on the South Pacific islands as misinterpretation. Other studies include Cook and Kirkpatrick (1998) on Micronesia, Treadgold (1999) on Nor folk Island exemplifying the possibility of get ting out of the MIRAB situation and the hopes of boosting agricultural yields and fisheries pro duction to attain greater economic autonomy for Kiribati (Thomas 2002).…”