Viable Economies, Flexible Livelihoods?

Economic development is limited by small size, intervening opportunities and distance from markets (including tourism markets). Productive SIDS economies are centred around fisheries and, to a lesser extent, agriculture despite some successful niche activities, such as kava and the supply of local markets, as states and households seek economic diversification. Conventional agricultural commodities have lost ground in this century. Coastal fisheries are under severe pressure from growing coastal populations. In the Pacific, a group of eight SIDS, several with few other economic options, have achieved great success through the Parties to the Nauru Agreement (PNA) generating income through leasing their Exclusive Economic Zones for distant tuna fishing fleets. Food security has rarely improved as local production has declined and imports increased, contributing to a greater incidence of non-communicable diseases. Manufacturing is largely absent beyond food processing. Passport sales and other ventures have been short-lived. The emergence of a blue economy offers possibilities but could deteriorate into ‘ocean grabbing’, while Pacific states face the uncertain future of deep-sea mining with its economic and environmental consequences.