Is Tonga's MIRAB Economy Sustainable? A View from the Village and a View without It

Abstract

The development implications of the now-classic MIRAB economic pattern for South Pacific microstates (with economies dominated by overseas remittances and foreign aid) have attracted considerable attention. Some scholars argue the MIRAB pattern is well entrenched and can be sustained with a minimum of undesirable social and economic outcomes. Others decry the acceptance of the dependency of South Pacific nations and argue for renewed effort toward the development of self-sustaining economies. I argue that the debate must directly address the underlying social relations that facilitate and shape migration and remittances. In Tonga, the movement of people from rural areas has wide-ranging implications. Not only does the underuse of outer-island resources exacerbate levels of dependency, but the inability of outer-island migrants to participate effectively in traditional exchange activity could cause the deterioration of social ties that channel and promote the remittances on which the Tongan economy depends.