Small States in a Global Economy

Chapter 6 focuses on case studies of small states’ pursuit of their goals in the realm of international political economy. There is considerable debate about small states’ positions in the global economy. While they are often treated as dependent and highly vulnerable to the whims of global markets, small states have also shown considerable resilience and ability to thrive in economic niches. This chapter’s cases examine specific economic issues in small states’ relationships with larger powers. The chapter pairs successful and unsuccessful cases by region (Africa, Asia, the Americas, and Europe). It covers issues like international aid, debt negotiations, and foreign investment in natural resources and infrastructure. The cases include major power relations with Rwanda, Zambia, Bolivia, Paraguay, Malaysia, Myanmar, Portugal, and Greece. These states’ success varied, but robust and well-supported plans, maintaining multiple partners, and advancing a persuasive narrative helped several achieve important goals.