Small states and the pillars of economic resilience

In some small island developing states (SIDS) income distribution is becoming more unequal and poverty concentrated in small pockets in urban areas and remote rural areas. Income inequality is often exacerbated by and enhanced through urban bias and inadequate access to education and health services. Social problems have followed. Constraints to trade, other than in some services, have resulted in small states emphasising the need for migration. International migration has increased in volume and range, and, as a result, scarce skills have been lost. However, also as a result, remittances have grown substantially (especially in the Pacific) and these tended to reduce inequality. The chapter will discuss the possible economic benefits of remittances, arguing that at the national level the economic future of several small states partly hinges on the continued flow of remittances, and hence on continuity of migration. In turn this can have a positive effect on economic resilience.peer-reviewe