Rising industries and technologies are having a detrimental effect on the environment. Natural disasters, while unavoidable, are a possible result of the degradation of the environment. •  Close proximities to other Asian nations and the rest of the world has resulted in geopolitical problems. •  Terrorism is a growing problem affecting both locals and visitors to the region. 4.
Factors affecting economic growth in the Pacific Islands  •  The smallness and isolation of the Pacific Islands are a challenge on its own. •  Globalisation has opened up trading barriers and forced small nations to compete for a market for their goods and services internationally.