Coping with Globalization: A Suggested Policy Package for Small Countries

Abstract

This article identifies the specific problems that small countries have to grapple with as a consequence of globalization. It argues that developing countries with limited population size have tended to give inadequate attention to the pressures that globalization places on their institutional structures, particularly with regard to finance. In discussing survival tactics for such nations, the article identifies three possible scenarios that might be adopted. It concludes that small states must play a much more active role than they have in the past in defending their interests in the emerging global economy.