The Fletcher School is rapidly becoming a leading world forum for the debate on small states, as was evident at the Feb. 1 lecture by Dr. Richard L. Bernal, Ambassador of Jamaica to the United States and Permanent Representative to the Organization of American States. The Fletcher Roundtable on Small States, which is chaired by Professor Alan Henrikson, sponsored the event.

Moreover, these small economies often rely heavily on imports. Therefore, their foreign exchange is largely determined by external factors. Their foreign policies has reflected this economic/financial vulnerability, as small states have put a premium on securing foreign aid in an effort to ensure economic survival, Bernal claimed.

Until the 1960s, the economic structure of most small states reflected imperial arrangements. As colonial economies, they exported a few products to a single market under a preferential agreement with the colonial power. This structure precluded even the desire for an economic foreign policy, since the colonial power could be relied upon to adjust the arrangement in case the colony suffered economic difficulties.

After decolonization, many small states had to face the sudden withdrawal of imperial economic safety nets, according to Bernal. Initially, many small states negotiated substitute agreements with developed countries in the north. These arrangements provided the former colony with favorable returns on what were often uncompetitive goods.

A further initiative designed to address the issue of the small states’ foreign exchange was increased regional cooperation. This type of regionalism, however, was only meant to alleviate economic difficulties, and was, at least initially, not aimed at achieving regional integration, according to Bernal.

Ultimately, small states had to diversify their foreign policies to reflect the growing number of export markets. Moreover, the small states realized that, by grouping together, they could significantly improve their bargaining power vis-à-vis the importing countries of the north. The result was an alliance structure which added a regional pillar to the ex-colonial north-south relationship.

With increasing globalization in the post-Cold War world, small developing countries had to adjust their economic strategies once again. The general trend toward unobstructed trade and the changed security environment undid the rationale for preferential agreements and foreign aid. In addition, the previous cohesion among the least developed countries had already begun to dissipate in the 1960s and 1970s as some countries developed faster and joined the Organization for Economic Cooperation and Development.

At the dawn of the new millennium, the small developing economies confront the need for "Strategic Global Repositioning," according to Bernal. Instead of relying on uncompetitive, mostly agricultural production, they have to invest in new, growing sectors like tourism and services, Bernal asserted.

The new trade policies of small states should be aimed at regional and global trade agreements first, according to Bernal. In particular, such policies must try to influence multilateral trade arrangements in a way that takes the particular characteristics of small developing economies into account.

Secondly, the focus on securing foreign governmental aid should be abandoned completely, according to Bernal. Instead, small developing economies should look at the private money market.

Finally, Bernal asserted that the old north-south and regional paradigms are much too simplistic in today's world and must be supplanted by a new "Global Strategic Alliance."  This partnership will allow the small states to advance their case in an environment in which larger states are increasingly unwilling to grant sympathetic concessions.

However, the unique coalition Bernal proposed would considerably transform the state of the art in international relations by cutting across the traditional concepts of alliance building. He argued that all small entities brought into international politics by globalization (including states, companies, and NGOs) share common interests and should thus ally themselves into multiple small units. The unifying element is their small size, and their resulting vulnerability.

Comments? Write us at letter@fletcherledger.com

[return to News Page]