Despite the paradise myth, Pacific economies are in many ways propped up by development assistance. Most of the countries in the Region are heavily aid dependent with perhaps the exceptions being Fiji and Nauru. With regard to aid, the Pacific Islands have behaved like a drunk in a brewery . This has not produced stable, steady socio-economic performance but has instead been associated with unsteady, unimpressive underdevelopment. The 1999 Pacific Human Development Report reveals that eleven of the fourteen Pacific Island states have Human Development Index rankings of over 100 with Papua New Guinea, the most resource rich nation, scoring a miserable 164.
Aid seems to have made no difference.
Some argue that aid has been inappropriate while others believe that it has largely been wasted by ineffectual or corrupt governments. Others believe that development was never possible given the isolation and resource poverty of the Region. There is evidence to support all viewpoints. The truth probably lies buried somewhere in the middle of this murky pool of rhetoric. We just need understanding .