ABSTRACT
Although the Pacific Small Island Developing States (SIDS) achieved independence after World War II, their economic development was based on the production of commodities under colonization and a subsistence economy. The main feature of the Pacific SIDS is the so-called “MIRAB” (Migration [MI], Remittance [R], Foreign Aid [A], and the Public Bureaucracy [B]) model. These countries were affected by their small domestic markets and populations, and their remoteness from continents or developed countries. The MIRAB model has been developed into the “TOURAB” (Tourism [TOU], Remittance [R], Foreign aid [A], and the Public Bureaucracy [B]) model and the “SITEs” (Small Island Tourist Economies) model. In this chapter, economic development models of the Pacific SIDS are examined in three periods: postwar independence, the first wave of globalization in the 1990s, when international trade had grown at a much faster pace than before, and the second stage of globalization from the 2000s onwards when international tourism expanded. These changes in the international economic environment have affected the development policies and management of industrial promotion in the Pacific SIDS.
