Pacific Island countries have considerable potential for development, especially in the areas of tourism, fisheries, forestry, mining and agriculture. However, they also face many challenges in developing their economies and raising living standards, including their small size, distance from major markets, and vulnerability to natural disasters. This publication assesses key regional economic issues for sustainable development and sets out country case studies (covering Fiji, Kiribati, Marshall Islands, Micronesia, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu) which examine the main factors affecting their economic performance since independence and the main challenges that lie ahead.