Small island economies have been experiencing structural difficulties of competitiveness associated with their own characteristics. In order to cope with this situation, the political authorities of New Caledonia and French Polynesia have resorted to active economic policies that can be listed into three categories: investment aids, protection of local production, and direct intervention in the production of goods and services. So far, in terms of improving the competitiveness of these overseas economies, results of these interventions have provided mixed feelings. However, the development of this intervention led to build and/or strengthen economic systems that create many side effects on competition and contestability of market positions, general price level and the consideration of the general interest at the expense of sectorial, private or individual interests.
