Size does create constraints, but effective policies can help - TopicsExpress

Size does create constraints, but effective policies can help small states overcome them. For example, Mauritius—a small, remote island state off the coast of eastern Africa—was deemed a strong candidate for failure by Nobel Prize–winning economist James Meade in the 1960s. It depended on one crop, sugar; was prone to terms-of-trade shocks; had high levels of unemployment; and lacked natural resources. But the country proved Meade wrong. It progressed to a well-diversified middle-income economy that earns revenues from tourism, finance, textiles, and advanced technology—as well as sugar. Whether measured by per capita income, human development indicators, or governance indicators, Mauritius is among the top African countries. The prudent policies Mauritius adopted fueled its transformation. For example, it attracted foreign direct investment to help spur its industries and built strong institutions to support growth.­

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