ABSTRACT
Small states have always been more vulnerable in the global economy. This is not only because trade comprises a larger proportion of their economic activity than it does in large states (Table 13.1), but because they lack the power to set any of the terms or make any of the rules that govern globalization. Yet studies of small states tend to focus on the nature of their vulnerabilities, without considering that these countries have managed external pressures in different ways (Amstrup 1976). Moreover, smallness need not always be a liability. Globalization brings opportunities as well as risks, and a more integrated global economy may enable smaller, more ‘nimble’ states to adapt quickly to changing conditions, and more readily to identify and pursue strategic development policies.
