ABSTRACT. Small developing countries are increasingly marginalized in the global system, especially in the
context of global trading. There is a fascination for “bigness” and the global system exerts pressure, at times
challenging the very existence of smaller countries. However, there are several small island economies that have
succeeded in formulating ingenious development policies to overcome their vulnerabilities. Numerous smaller
countries have relatively higher GDP per capita or HDI compared to the rest of the world. One way of overcoming
problems associated with smallness is to find niche products for a sizeable international market. This
article looks into how small-scale informal sector activities in a small island country could prove to be a pacesetter
for a niche product in international trade. It explores the extent to which Fiji’s small-scale farmers have
contributed to the exports of kava, and discusses its impact on their livelihoods and the challenges for the kava
industry. This article also highlights how success could breed failure when growth is unmanaged, quality is not
guaranteed, and domestic product regulation inexistent