DIFFERENT OPTIONS, DIFFERENT PATHS - ECONOMIC-DEVELOPMENT IN 2 ATOLL STATES

The Republic of the Marshall Islands and the Republic of Kiribati offe r circumstances worthy of comparison in terms of development strategy and outcome. These atoll states share economic characteristics common to the region, including high levels of aid dependency, little export- led economic growth, and social problems related to urbanization. Alth ough the two states are geographically and culturally similar, current measures of income suggest marked differences in standard of living; however, gross domestic product measures of income may not accurately reflect actual levels of the social welfare. An alternative measure, t he Human Development Index, offers a means to assess the impact of dev elopment in these two states. Using this index as a guide, this articl e assesses the impact of economic development on the social welfare. P olicies relevant to the circumstances of these countries are then brie fly outlined.