Asia and Pacific Small States - Raising Potential Growth and Enhancing Resilience to Shocks
Policy Papers, February 20, 2013
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- Asia and Pacific Small States - Raising Potential Growth and Enhancing Resilience to Shocks
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Bibliographic details
- Published: February 20, 2013
- Series: Policy Papers
Summary findings
- The small states of the Asia and Pacific region face unique challenges in raising growth potential and living standards.
- Key vulnerabilities identified:
- Small populations, geographical isolation and dispersion.
- Narrow export and production bases.
- Lack of economies of scale.
- Limited access to international capital markets.
- Exposure to shocks (including climate change).
- Heavy reliance on aid.
- Public service provision implications:
- Higher fixed government costs relative to other states because public services must be provided regardless of small population size.
- Financial sector and capacity constraints:
- Low access to credit by the private sector impedes inclusive growth.
- Capacity constraints are a key challenge.
- Five out of 13 countries do not have a central bank.
- Economic structure and policy space:
- Scope for diversifying economies is narrow.
- Given large development needs, fiscal policies have been, at times, pro-cyclical.
- Heterogeneity within the group:
- Within the Asia-Pacific small states group, the micro states are subject to more vulnerability and macroeconomic volatility than the rest of the Asia-Pacific small states.
Policy implications and priorities
- Strengthen resilience to external shocks, including climate-related risks.
- Expand access to international capital markets where feasible.
- Address financial inclusion to improve private sector access to credit.
- Build institutional and implementation capacity to manage public services efficiently given high fixed costs.
- Pursue fiscal policies that consider development needs while avoiding pro-cyclicality.
- Consider the differing needs of micro states within the group when designing policy support and surveillance.
Key statistics and metadata preserved from source
- Publication date: February 20, 2013
- eLibrary size statement: over 25,000 IMF publications in multiple formats.
- Citation preview: Asia and Pacific Small States - Raising Potential Growth and Enhancing Resilience to Shocks, (USA: International Monetary Fund, 0) accessed 9/18/2026
- Group numeric detail: Five out of 13 countries do not have a central bank.
Source: Asia and Pacific Small States - Raising Potential Growth and Enhancing Resilience to Shocks (IMF web landing page).
Content in this bundle
- _022013a - Executive Summary