Offshore financial centres and internal developments in the Pacific Islands

Abstract

This paper provides an overview of how hosting offshore financial centres affects the internal development of Pacific island countries. While offshore financial centres have been attractive development options for many regional ?lites, none has become fully functional and the returns have often disappointed the island politicians who sponsored them. While there is some synergy with up-market tourism, construction, and telecommunications, financial centre development has also increased island countries? contacts with criminals, increased their conflicts with metropolitan states and international organisations, and increased their dependence on unstable financial flows.