Some small states have been able to overcome certain size-related challenges by achieving higher levels of such growth determinants as openness, education, and financial development. The key to achieving economic success may be to pursue policies that exploit their advantages and offset their disadvantages.
The slow global recovery is making fiscal adjustment more difficult around the world, but this doesn't mean that little has been accomplished. In fact, significant progress in many countries has been made during the past two years in strengthening their fiscal accounts after the 2008-09 deterioration.