Economic Growth and Sustainable Development in the Pacific Island Countries

Abstract

Exports of the Pacific island countries (PICs) have increased by 169%, reaching $9.6 billion in the past 20 years. Given the lack of economies of scale as a result of their small sizes, the PICs need to establish “niche markets,” targeting high-end products or services. Lack of interconnectivity among the PICs because of inefficient transport infrastructure and a dearth of skilled labor remain key concerns in developing these niche markets. About 13% of the PIC population is either unemployed or underemployed, prompting them to seek work in Australia, New Zealand, and the neighboring countries, and the remittances they send form a critical slice of the countries’ gross domestic product. With the number of people over 60 years old increasing by 400 million in the next 15 years in Asia, the demand for skilled care workers is slated to increase, making the PICs a possible location for tropical retirement homes for Asia’s burgeoning middle class.