The MIRAB Economy in South Pacific Microstates

Bertram, I.; Watters, R. (1985). "The MIRAB Economy in South Pacific Microstates". Pacific Viewpoint. 26 (3): 497–519. doi:10.1111/apv.263002. ISSN 2638-4825 0030-8978, 2638-4825 .

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Abstract: “The MIRAB Economy in South Pacific Microstates” by Il. G. Bertram and R. F. Watters outlines the structure and dynamics of MIRAB economies, emphasizing their prevalence in smaller Pacific Island societies. MIRAB stands for Migration, Remittances, Aid, and Bureaucracy, which are identified as key elements shaping the economic environment in these regions.The authors focus on aggregate economic indicators, exploring the balance of costs and benefits associated with out-migration from the perspective of the sending community. They argue that remittances serve as a significant supplement to local incomes and consumption, while a large proportion of government activities is financed by offshore donors.

The paper describes how aid inflows predominantly support local government budgets, allowing for increased public spending beyond what local revenues could sustain. This aid-driven financial structure is crucial for maintaining living standards, which could otherwise be unattainable based solely on local resources. Furthermore, the authors propose that the MIRAB system is capable of self-reproduction, with the international kin-corporation, remittances, and grant aid underpinning its sustainability. They also highlight two aspects of post-colonial politics that affect long-term aid entitlement: ethical obligations of metropolitan states and geopolitical strategies to maintain influence in the region. The paper discusses the emergence of MIRAB economies in small island states, illustrating their dependence on external financial flows and the continuous interaction between modern economic activities and traditional subsistence practices.

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MAG: 162472609
OpenAlex: W162472609
CorpusID: 151071162