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Purpose

The main purpose of this paper is to provide an overview of the main institutional and governance issues facing the Pacific Island countries (PIC) and to point out how they affect their economic performance. The paper also provides a description of the key characteristics of the PIC and points out why these characteristics may present special challenges to achieving sustainable levels of growth.

Design/methodology/approach

This paper discusses the issues of governance, institutions and economic growth in the PICs.

Findings

The main conclusion of the paper is that PICs would have to align their policies so that appropriate and better economic integration is achieved not only regionally but also globally.

Practical implications

This paper allows policy makers to take note of the main issues in governance and institution building.

Originality/value

This paper provides policymakers and scholars an overview of the institutional and governance issues facing the PICs.

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