Introduction

International trade and economic reform is driving rapid growth and poverty reduction, in absolute terms, across the Asia-Pacific region. Unfortunately, much of this growth has by-passed the small and vulnerable economies (SVEs) of the region, for a range of practical reasons such as their small economic size and geographical isolation. However, these small economies may now have a unique opportunity to harness the benefits of massive regional growth by undertaking reforms that will result in closer economic integration with the markets of Asia and Oceania. Rapid growth in the region, even in the face of global recessionary trends, creates opportunities for small and fragile states to achieve increased levels of trade and sustainable development opportunities that constitute the most viable path to economic and political self-reliance. However, navigating this path is challenging for all economies, let alone SVEs.

Developed nations, in particular those in the region, have a direct interest in providing technology and support to assist SVEs through this journey. The cost of failed states and political instability is significant in terms of economic welfare and strategic security issues. A robust and more prosperous region is not only good for developing nations in the region, but it's also good for developed ones as well. An overriding imperative, therefore, must be to ensure that no one in the region suffers unnecessarily from preventable poverty, for humanitarian reasons, but also as a means of reducing poverty-related instability and insecurity.