University of Malta. Islands and Small States Institute
Abstract
Against a historical background of institutional development planning, strategic (yet
pragmatic) flexibility is a crucial component of small state governance. A “strategy of flexible
adaptation” is deemed to be the best management and leadership style capable of securing the
best achievable outcomes in the evolving or abruptly changing scenarios that characterise small
states. The smaller the state or territory, the greater the likelihood that its domestic, internal
affairs will be dominated, responsive to and driven by exogenous factors (including terms of
trade, tourism trends, migration flows, remittances, aid and other ‘rents’). Governments and
institutions in small states need to suggest leadership and foresight in the trajectory of
development while being agile and nimble at grasping opportunities, if and when they may
arise. This paper first traces the manner in which ‘flexible specialisation’ dictates and drives a
considerable amount of actions and decisions in small jurisdictions. It then explores how these
structural obligations nevertheless transform themselves into the nurturing and maintenance of
competitive niches, each of which comes along with specific skill set and infrastructural
requests.peer-reviewe
