Breaking out of the MIRAB mould: historical evidence from Norfolk Island

Abstract

The MIRAB model offers an explanation of the evolution and operation of some tiny Pacific island economies. Proponents of the model have argued that it describes an economic system that is durable and persistent. Using an historical approach, this paper explores whether and how an economy of the MIRAB type can break out of its structural mould without regressing to an earlier stage of development. After establishing that Norfolk Island possessed strong MIRAB characteristics from the end of World War II until the early 1960s, the paper analyses the tourism‐dominated economic growth that erased these characteristics, or at least reduced them to insignificance. It concludes that the island has achieved a sustained break‐out from the MIRAB mould, although not without incurring some social costs.