Historical Conditions of the World’s Smallest Economies and Modern Times

This chapter provides a historical overview of the 93 smallest economies in the world (WSE). The aim of this historical analysis is to evaluate the impact of historical events on the economic growth and development of these countries. To this end, a typology was constructed, classifying the countries into three subgroups based on historical similarities. The first subgroup comprises those countries that were colonized, the second includes those that were socialist, and the third consists of those that had operated autonomously for centuries. An analysis was conducted on the smallest economies that were colonized during the period of the great geographical discoveries, when European colonial powers initiated their exploration of the regions that are currently occupied by the world’s smallest economies, up to the point of their independence. The examination of the world’s smallest economies (WSE) that experienced socialism was conducted starting from the first half of the twentieth century, when the USSR imposed a centrally planned economy, to its collapse and the independence of the socialist WSE. The history of the world’s smallest independent economies was also examined. Despite repeated invasions by larger countries, they have managed to maintain their independence and distinctiveness. An examination of the historical context of the 93 smallest economies in the world offers valuable insights into the factors behind their current divergent economic development, while highlighting the disparities among them.