Globalisation, development and poverty in the Pacific Islands : The situation of the least developed nations

Using the United Nations’ definition of least developed nations, examines the socioeconomic situation of the least developed Pacific island nations, namely the Melanesian countries – the Solomon Islands and Vanuatu, the Polynesian countries – Samoa and Tuvalu, and the Micronesian country – Kiribati, and critically discusses the type of development policy advice given to these nations by Bretton Woods’ institutions and their “relatives”. Suggests that the emphasis of these institutions and many donor countries on the desirability of business‐led development, structural adjustment policies and the globalisation of these economies has paid insufficient attention to the cultural background, institutional and other constraints encountered by these economies and may have added to political instability in this region, as well as the occurrence of poverty and growing inequality. A different set of policy proposals would have emerged if greater account had been taken of the general views of Myrdal rather than relying almost exclusively on the neoclassical economic paradigm. This is especially unfortunate because severe poverty (even more so than in much of Asia) exists in several of these least developed nations e.g. the Solomon Islands and Vanuatu.