Financial management problems in South Pacific Island economies

Abstract

The low-income island states of the South Pacific region may be characterised to a greater or less degree by limited natural resources , limited and or difficult land size, undiversified economies with a low range of economic opportunities, geographic isolation with relatively long distance to external markets, and dependence on imported goods and services. In addition they are economically vulnerable due to their limited export product range with high price volatility of major export items. Balance of payments problems, underemployment and high unemployment in urban centres, restricted access to finance markets and dependence on bilateral and multilateral aid further compound their economic problems. They are all preoccupied with economic development as the most effective means of raising income foreign aid.