MIRAB is a concept used to describe the economic structure and social conditions in the Pacific Islands. It is an acronym for migration remittance aid bureaucracy. The term represents the general economic structure of Pacific nations, where they send labor migrants abroad and rely on their remittances and foreign economic aid as their primary sources of income. The bureaucracy functions as a conduit for the distribution of this economic aid. [1]
The term MIRAB was coined by economist Geoff Bertram and geographer Ray Watters, through their 1984 research project on New Zealand's policy towards the Pacific Islands. They argued that the economies of the Pacific Islands (Cook Islands, Niue, Tokelau, Kiribati, and Tuvalu) are based primarily on external capital, such as migrant remittances and development aid, making it difficult to apply a traditional economic approach to the region, which emphasizes export industries and private enterprise. [2] [3]
MIRAB is more prominent in Polynesia and Micronesia, and less applicable to Melanesia. This is due to the fact that Melanesia is relatively rich in population and natural resources compared to other regions in the Pacific. On the other hand, the structure of migration and remittances in the island-mainland relationship in Melanesia is similar to that between Polynesia and the overseas countries. [2]
Bertram and his colleagues gave a positive assessment of the Pacific Islands' economy, which depends on aid and remittances. [2] They criticized conventional economic theories and argued that the MIRAB economy was effective enough to realistically sustain local economies in microstates such as the Pacific Islands, where autonomous development is difficult. [4] In this discussion, it was also noted that the Pacific Islands have established subsistence activities based on traditional community systems, and that the MIRAB economy, which does not involve domestic industrial development, has the merit of not destroying such a subsistence economic system. In conventional economic theory, such economic conditions were understood as unhealthy, implying "subordination" to other countries, but in the same discussion, "subordination" and "independence" in the Pacific countries were understood as cooperative rather than antagonistic. This perspective was not found in conventional economic development theory. [5]
Some researchers suggest that the MIRAB exists outside the Pacific Islands. Examples include Cape Verde, St. Helena, and São Tomé and Príncipe in the Atlantic; the U.S. Virgin Islands, St. Pierre and Miquelon, Guadeloupe, and Martinique in the Caribbean; and Comoros, Mayotte in the Indian Ocean. Some have also suggested that MIRAB could be applied to small landlocked countries such as Lesotho. [3]
Although MIRAB has become a popular model in Pacific studies, these economic systems have not proven to be sustainable. [6] Counterarguments to the positive assessment of MIRAB include that the negative impact of aid on village economies has not been properly assessed, that MIRAB model ignores the development potential of agricultural economies, and that the ethnographic evidence is incomplete. [2] Jon Fraenkel argues that while the MIRAB model is useful for describing some island economies, it is inadequate for discussing future economic development and is not clear enough to be used for policy recommendations. [3]
From the perspective that the MIRAB model cannot fully explain the economic structure of all island states, alternative and complementary models have also been developed. For example, in 2006, Jerome L. McElroy coined a term SITEs (small island tourist economies) to describe island economies that rely heavily on inbound tourism. In the same year, Godfrey Baldacchino proposed the "PROFIT" model. This is an acronym for people considerations, resource management, overseas engagement, finance, insurance and taxation, and transportation. [7] The model is useful in describing islands that have offshore banks, tax havens, flag of convenience and military bases as their economic base. [3] However, some are wary of the use of these acronyms. Eric Clark argues that such categorization simplifies the political context of each region. [8]
Oceania is a geographical region including Australasia, Melanesia, Micronesia, and Polynesia. Outside of the English-speaking world, Oceania is generally considered a continent, while Mainland Australia is regarded as its continental landmass. Spanning the Eastern and Western hemispheres, at the centre of the water hemisphere, Oceania is estimated to have a land area of about 9,000,000 square kilometres (3,500,000 sq mi) and a population of around 44.4 million as of 2022. Oceania is the smallest continent in land area and the second-least populated after Antarctica.
Tuvalu is a Polynesian island nation located in the Pacific Ocean, midway between Hawaii and Australia, with a population of 11,192 per the 2017 census. The economy of Tuvalu is constrained by its remoteness and lack of economies of scale. Government revenues largely come from fishing licences ; direct grants from international donors ; and income from the Tuvalu Trust Fund. The lease of its highly fortuitous .tv Top Level Domain (TLD) also contributes revenue. The sale of stamps since the independence of Tuvalu in 1976 has been an important source of revenue for the country and government. However, such revenue has significantly declined in recent years. Tuvalu has hardly any tourism. It has no tour guides, tour operators, or organised activities, and no cruise ships visit.
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Dependency theory is the idea that resources flow from a "periphery" of poor and exploited states to a "core" of wealthy states, enriching the latter at the expense of the former. A central contention of dependency theory is that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system". This theory was officially developed in the late 1960s following World War II, as scholars searched for the root issue in the lack of development in Latin America.
Development aid is a type of aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries. It is distinguished from humanitarian aid by aiming at a sustained improvement in the conditions in a developing country, rather than short-term relief. The overarching term is foreign aid. The amount of foreign aid is measured though official development assistance (ODA). This is a category used by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) to measure foreign aid.
A dual economy is the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand. The concept was originally created by Julius Herman Boeke to describe the coexistence of modern and traditional economic sectors in a colonial economy.
A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their home country or homeland. Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries. Workers' remittances are a significant part of international capital flows, especially with regard to labor-exporting countries.
Development theory is a collection of theories about how desirable change in society is best achieved. Such theories draw on a variety of social science disciplines and approaches. In this article, multiple theories are discussed, as are recent developments with regard to these theories. Depending on which theory that is being looked at, there are different explanations to the process of development and their inequalities.
The New Zealand Aid Programme is the New Zealand Government's international aid and development agency. The New Zealand Aid Programme is managed by the Pacific and Development Group in the New Zealand Ministry of Foreign Affairs and Trade (MFAT). Previously a semi-autonomous body known as the New Zealand Agency for International Development (NZAID), it was reintegrated back into MFAT as the International Development Group following a restructure in 2009. Its Māori name is Nga Hoe Tuputupu-mai-tawhiti – the paddles that bring growth from afar. The Head of the New Zealand Aid Programme is Jonathan Kings, a lawyer and public servant. According to the OECD, New Zealand’s total official development assistance (ODA) decreased in 2022 due to fewer disbursements within its three-year budget cycle and represented 0.23% of gross national income (GNI).
Degrowth is an academic and social movement critical of the concept of growth in gross domestic product as a measure of human and economic development. The idea of degrowth is based on ideas and research from economic anthropology, ecological economics, environmental sciences, and development studies. It argues that modern capitalism's unitary focus on growth causes widespread ecological damage and is unnecessary for the further increase of human living standards. Degrowth theory has been met with both academic acclaim and considerable criticism.
Polynesia is a subregion of Oceania, made up of more than 1,000 islands scattered over the central and southern Pacific Ocean. The indigenous people who inhabit the islands of Polynesia are called Polynesians. They have many things in common, including linguistic relations, cultural practices, and traditional beliefs. In centuries past, they had a strong shared tradition of sailing and using stars to navigate at night.
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