Small states and the pillars of economic resilience

The performance of an economy is determined by economic, political, legal and institutional frameworks and processes which are in turn affected by governance practice. The economic performance of the Pacific Island Countries over the past decade has been sluggish when compared to other developing countries, and this has been associated with bad governance in the region. This chapter examines the specific issues in Pacific Island Countries that may have an impact on the nature of governance practice and argues that institutional reforms are likely to be resisted strongly by those benefiting from the existing arrangements. The chapter contends that the status quo can only be changed by the involvement of the local stakeholders and by education. However, the international donor community also has a role to play in this regard, by ensuring that aid does not support bad governance.peer-reviewe