Industrial Development Planning: its Role and Application in the Pacific Islands

Abstract

The paper begins with a broad review of relevant theoretical issues underlying the process of industrialisation in developing countries. Wherever possible, attention is drawn to the importance of each issue in relation to the particular conditions and constraints of small island economies. In Section 2, the strategies and experience of some selected industrialising countries in Southeast Asia are surveyed. These countries are chosen not only as interesting or outstanding examples of the implementation of industrial planning and policies, but also because their experience and achievements have some direct influence on the policies and objectives of their small island neighbours. Sections 3 and 4 of this paper deal directly with the economies of the South Pacific - with special attention being paid to Papua New Guinea, Western Samoa, and Tonga - and examine their strategies, experience, achievements and failures in the industrial sector. Comparisons are drawn between these countries and those surveyed in Section 2 in order to identify the important components of more appropriate strategies for the establishment of industry in the region. In the final section, some judgements are made on the importance of industrial development in the future economic growth of these countries and consideration is given to some of the non-economic constraints on the planning and implementation of their industrialisation programmes.