On the Convergence of Small Island Economies with Their Metropolitan Patrons

Bertram, Geoff

doi:10.1016/j.worlddev.2003.08.004

Cited by 84 publications

(53 citation statements)

References 16 publications

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“…This relationship appears to have been initially investigated by Bertram (2004). This hypothesis has subsequently been supported by the research of Dunn (2011) and by McElroy and Parry (2012).…”

Section: The Political Status Of Island Communities and Their Economimentioning

confidence: 79%

Models of the International Economic Dependence of Pacific Microstates: A Critical Review With Important Implications for International Policies and Relations

Tisdell

2016

J. Self-Gov. Manag. Econ.

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ABSTRACT. Most (but not all) Pacific island communities achieved self-government in the last half of the 20 th century. However, they still remain highly dependent economically on larger and wealthier patron-nations. Drawing on the available literature, this paper critically examines competing models of their dependence and its governance implications. In doing so, it gives particular attention to the MIRAB model. The MIRAB model of Pacific island micro-economies was developed in the mid-1980s by the New Zealand academics, Bertram and Watters, and dominated the literature on the economics of small island nations and economies until alternative models were proposed two decades later. Nevertheless, it is still an influential theory. MIRAB is an acronym for migration (MI), remittance (R) and foreign aid (A) and the public bureaucracy (B); the components of the MIRAB model. The nature of this model is explained and the importance of distinguishing between the two processes involved in it (one based on foreign aid and the other on overseas remittance) is emphasized. Evidence is given of the importance of migration and overseas remittance for the functioning of some Pacific island microstates, such as Tonga. Yet, it is argued that no single model adequately typifies the economic situations of Pacific microstates and micro-economies because of their diversity. Even economies that have been classified as MIRAB economies can be very different. The newer TOURAB, SITE and PROFIT models have similar limitations. In order to understand adequately the economic situation of Pacific island microstates (including their economic vulnerability, their sustainability, and political susceptibilities), it is necessary to adopt a more holistic approach which takes account of historical, cultural and environmental factors. This is illustrated by the case of Nauru. It is shown that the international economic dependence of Pacific island microstates and their environmental vulnerabilities have made them susceptible to political influence by patron nations. This has important implications for international affairs. Furthermore, new patron nations, such as China, are emerging, as traditional donors reduce their aid to 8 Pacific island nations. This concerns their traditional donor countries. Reasons for relevant changes in international relations in the Pacific are suggested, and the impact of political independence on the economic fortunes of microstates is considered. Despite the limitations of existing models of the external economic and political dependence of microstates, it is found that they are useful starting points for selectively assessing external economic relations and changes in these. JEL codes: P4; O1; O2

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Section: The Political Status Of Island Communities and Their Economimentioning

confidence: 79%

Models of the International Economic Dependence of Pacific Microstates: A Critical Review With Important Implications for International Policies and Relations

Tisdell

2016

J. Self-Gov. Manag. Econ.

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“…However, despite some significant cuts in the 1990s as a result of neoliberal-inspired policies, aid to the region (especially from the patron donors) has proved to be remarkably well maintained (see Figure Three below for Niue): arguably a much more long-term and sustainable revenue stream than, for example, export earnings. Bertram (2004) has analysed the relationship between political independence/dependence and development in the Pacific and concluded that, indeed, those countries and territories with closer political ties and greater dependence on a patron do have higher incomes and better welfare provision. He also concluded that such an outcome is particularly the result of migration and remittances and integration of labour markets, not just that of explicit financial aid.…”

Section: Sovereignty and Marginalitymentioning

confidence: 99%

Marginality in the South Pacific – the Example of Niue

Overton

Murray

2014

Hrv. geogr. glas.

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This paper examines the case of Niue, a small raised atoll with a population of under 1500 that is self-governing in free association with New Zealand. Its marginality in terms of physical and economic isolation, small size and harsh environment is pronounced. However, it has survived with relatively high living standards and a range of livelihood options for its population. The paper assesses Niue's marginality and analyses its strategies for survival and development, focusing on the manner in which it has negotiated sovereignty.

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“…In the mid 1980s Bertram and Watters suggested that several Pacific Island countries could be classified as mirab states (Bertram and Watters, 1985;Bertram, 2004;, that is that their economies were dominated by migration, remittances, aid and bureaucracy. These small states, with few natural resources and no economies of scale had bleak prospects for autonomous growth in an increasingly globalised economy.…”

Section: What Is Aid?mentioning

confidence: 99%