Development and Stabilization in Small Open Economies explains the nature of the economies of small countries and territories. It includes an assessment of material prosperity in 41 small open economies worldwide, with case studies focusing on the Caribbean and Central America, with a review of the development of their economies in recent decades. The volume recommends a suite of economic policy tools for the management of these economies, demonstrating how these may best be employed in economies that live and breathe through international commerce; while government policies affect international competitiveness and a small country’s growth prospects, more important is how governments use additional resources to improve the quality of health and educational services.