This report describes the general development trends in the Pacific, highlighting how these trends affect, or are modified by, the small island characteristics of the countries of the region. The report measures human development, not only in terms of GDP, employment and other economic indicators but also by social standards such as longevity, adult literary, access to health services and safe drinking water and women's participation. For the first time, the Human Poverty Index used in the UNDP Global Report is introduced in the Pacific and the Vulnerability Index for Small Island States is being developed. The report argues that good governance is crucial to achieving human development. This will require, among other measures, increasing the amount and quality of information available on social and economic change to ensure that policies and programmes are effective. It will also involve developing sound political and administrative structures that facilitate informed decision-making and policy implementation.