The Pacific island region has considerable potential for development, especially in the areas of tourism, fisheries, forestry, mining, and agriculture. With these resources and the expected continued substantial economic assistance from donors traditional way of life can be preserved, even while the processes of development create modern institutions and help to meet changing aspirations. The Pacific island countries face many challenges in developing their economies and raising living standards, including their small size, distance from major markets, and vulnerability to natural disasters. The first half of this book provides an assessment of regional issues that are currently being addressed by economic policymakers. The country-specific chapters, which comprise the second half of the book, provide in each case a broad overview of the main factors affecting the countries' individual economic performance since independence and the main challenges that lie ahead.