Decolonization terminated the direct control of island entities by outside powers, but it did not, and could not, restore to Pacific Islanders the level of control over their lives they had exercised prior to the colonial intrusion. One of the ironies of our times is that political power was restored to colonized peoples just when the significance of the sovereign nation-state was declining in the face of unprecedented levels of global interdependence. Contemporary Pacific Island leaders face a herculean task as they pursue the security and welfare of their peoples. In many cases, especially in Melanesia, national institutions have only a weak hold over citizens whose identity and primary loyalty remain firmly rooted at the village or local level. In some cases, ethnic groups actively resist state control, or demand the right to govern themselves.
Economic development poses major difficulties in all Pacific Island entities.
Some places, like Kiribati or Tuvalu, simply lack the resources necessary to support needed economic growth. Others, like Papua New Guinea, have massive natural resources, but development projects are plagued by disputes over the ownership and control of those resources or the distribution of the wealth generated by their exploitation. Development is often a traumatic process that brings with it difficult issues of social and cultural change. Rapid population growth, itself closely associated with transitions in disease patterns and health status, further complicates development problems in certain parts of the region. Pacific Islanders whose homelands were settled by significant numbers of outsiders during the colonial era face a special set of problems.