Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book deals with all small states at the global level, generally in an attempt to compare them with larger states with regard to a particular issue. It measures country size in terms of their population, which is the most common indicator of countries size used in the literature. The book examines the experience of 36 small states covering the period 1980-2016, and assesses the role of international reserves as a cushion against large external shocks. It also deals with financial flows into small states, in the form of official development assistance (ODA) and foreign direct investment (FDI). The book discusses the strengths and weaknesses of different reform models in small island states and highlights the size of the electricity market as an important determinant of what type of regulatory approach is appropriate.