Small Government Policies

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In conclusion, as you can see size does not have a full effect in the world stage. Small states can counteract for their “size” problems by taking advantage and using what they do have. These small states can prevent volatility with strong policies. For example, revenue volatility can be lessened by reducing dependence on trade taxes. Some small states have started to look at other sources of revenue, and many have successfully adopted value-added taxes. In addition to reducing volatility, small states have a great exposure to external shocks therefore, small states should gather adequate reserves or budget extra spending for potential disasters as well as explore insurance coverage. Small states need effective policies that can help them

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