Economic Development Methods for Pacific Island States and Their Alternatives

Island States are extremely vulnerable – limited natural resources, territories and populations, along with external shocks and climate change, call into question the existence of these countries. For a stable existence and minimizing the damage from external shocks, these countries must find alternative ways of economic development – more stable and diversified. This article provides a comprehensive analysis of the economic development paths of Pacific Island states and explores solutions for overcoming their structural vulnerabilities. The study reveals the limitations of dominant development models (tourism, commodity exports, and financial aid) and demonstrates their inadequacy in the face of external shocks at the beginning of the 21st century. Based on practical examples, the author suggests alternative scenarios for diversification: the development of the “blue economy”, digital services and climate finance. In conclusion, it is concluded that the proposed methods of diversifying the economies of island states can significantly increase structural stability to external shocks, reduce the carbon footprint and stimulate economic growth, but this will require a large amount of funds that, without outside help, the countries of the region do not have.