Small States and the Changing Global Order: What Small State Theory Can Offer New Zealand Foreign Policymaking

Abstract

The aim of this chapter is to show what small state literature has to offer policy-makers in small states in their attempt to survive and prosper in an uncertain world. It provides a framework on the practical literature, as well as a case study, Iceland, which demonstrates how policy-makers in small states can evaluate their policy options in the new security and economic environment. Initially, small states were seen as domestically and internationally weak. Many of these hypotheses have been proven wrong, with small states now being seen as economically and administratively smart, salient, resilient, and more fit to adjust to global competition and other challenges. However, in the light of the latest financial crisis and the changing security environment, small state studies analysis has returned to its core concepts, with an increased focus by many scholars on the importance for small states to form alliances with larger states. They argue that small states must seek political, economic, and societal shelter which is provided by larger states and multilateral organizations. The chapter argues that the case of Iceland, and the experience of small EU member states and New Zealand, indicates that a protection by a single power is less reliable than shelter provided by a multilateral framework.