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Public Willingness to Adapt to Fiscal Reforms in Small Island Developing
States: Lessons for the Maldives
Ifaad Waheed and Aminath Shafiya Adam
Islamic University of Maldives
DOI:
https://dx.doi.org/10.47772/IJRISS.2025.903SEDU0655
Received: 14 October 2025; Accepted: 21 October 2025; Published: 14 November 2025
ABSTRACT
This review examines the public willingness to embrace fiscal reforms in Small Island Developing States (SIDS),
with a particular focus on lessons applicable to the Maldives. The review synthesizes insights from peer-
reviewed articles, institutional reports, and relevant case studies to explore the factors that influence public
acceptance of fiscal policy changes in developing island contexts. The review was conducted in accordance with
PRISMA guidelines. Literature was sourced from eight databases, including JSTOR, Scopus, Web of Science,
Google Scholar, IMF eLibrary, World Bank, ADB Knowledge, and OECD iLibrary. Search terms combined
variations of “fiscal reform,” “tax reform,” “public acceptance,” “public willingness,” and “SIDS” or
“developing countries.” An initial pool of 3,310 results was narrowed down to 64 studies after screening titles,
abstracts, and full texts. Inclusion criteria required relevance to public attitudes toward fiscal reform in SIDS or
comparable contexts, while papers with only technical or macroeconomic analyses were excluded. A structured
matrix was used to extract data thematically. PRISMA’s four-phase flow was followed to ensure transparency in
article selection. Findings reveal that successful fiscal reforms in SIDS are driven more by political-economic
factors such as institutional trust and equitable burden-sharing, than by technical design. Caribbean SIDS like
Jamaica and Barbados offer practical models through their emphasis on stakeholder engagement and social
protection mechanisms. The study highlights a critical gap in empirical research on public attitudes toward fiscal
reform in SIDS and underscores the need for locally grounded, people-centered approaches in the Maldivian
context.
Keywords: Fiscal reform measures, systematic literature review, public willingness
INTRODUCTION
The role of public acceptance in fiscal reform has been increasingly recognized as crucial in achieving
sustainable economic governance, particularly within Small Island Developing States (SIDS). Over the past
decade, research has explored various dimensions of fiscal reform, including tax policy restructuring,
rationalization of public expenditures, and reforms in public financial management. Despite these efforts,
challenges such as low public trust in institutions, limited citizen engagement, and the political unpopularity of
austerity measures continue to hinder successful reform implementation.
Although numerous studies have examined the technical aspects and macroeconomic outcomes of fiscal reforms,
there is a lack of comprehensive synthesis that brings together findings across different geographic and
institutional contexts especially in small island economies. Previous reviews (e.g., Clements et al., 2013; Tanzi,
2011) have been largely limited to advanced economies or focused narrowly on fiscal performance, without
systematically exploring the socio-political dynamics that shape public willingness. Hence, a systematic
literature review (SLR) is necessary to consolidate existing knowledge and identify critical gaps for future
research and policy formulation, especially for vulnerable economies like the Maldives.
This review aims to systematically analyze the existing literature on public willingness to accept and adapt to
fiscal reform in SIDS, with a focus on identifying key influencing factors, examining international experiences,
and deriving policy-relevant lessons for the Maldives. Guided by this overall aim, the review addresses three
central research questions: Which factors influence public willingness to accept fiscal reform measures in
developing economies, particularly in SIDS? What approaches have other countries used to overcome public
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resistance to fiscal reforms, and which communication strategies have proven most effective? And finally, which
international experiences provide viable lessons for shaping fiscally supported reforms in the Maldives? These
questions frame the analysis and ensure the review generates both theoretical insights and practical guidance for
inclusive fiscal transformation.
The paper is organized as follows: Section 2 describes the methodology of the SLR, including search strategy,
inclusion/exclusion criteria, and data extraction techniques. Section 3 presents the main findings across thematic
areas. Section 4 discusses the implications of these findings in light of fiscal reform theory and Maldivian
realities. Section 5 concludes with key insights and recommendations for future research and policy action.
METHODOLOGY
This systematic literature review was conducted using the PRISMA (Preferred Reporting Items for Systematic
Reviews and Meta-Analyses) framework to ensure transparency, reproducibility, and methodological rigor
(Moher et al., 2009). The review focuses on Small Island Developing States (SIDS), particularly the Maldives,
aiming to appraise and synthesize available evidence on public willingness to accept fiscal reform measures.
Search Strategy
A comprehensive search was carried out across academic databases (JSTOR, Scopus, Web of Science, Google
Scholar) and institutional repositories (World Bank, IMF, ADB, OECD). Grey literature, including policy briefs
and technical reports, was also included. Boolean search strings combined core fiscal terms ("fiscal reform," "tax
reform," "austerity measures") with response-related terms ("public acceptance," "citizen attitudes," "public
resistance") and contextual keywords ("Maldives," "SIDS," "developing countries"). Search strings were adapted
per database—for example: ("fiscal reform" OR "tax reform") AND ("public acceptance" OR "public
willingness") AND ("developing countries" OR "SIDS"). The review considered English-language publications
from 2005 to 2024 to capture pre- and post-global financial crisis reforms. Reference chaining was used to
supplement database results as seen in Table 1.
Table 1: Detailed Search Strategy by Database
JSTOR
("fiscal reform" OR "tax reform") AND ("public acceptance" OR
"public willingness") AND ("developing countries" OR "SIDS")
643
89
12
Scopus
TITLE-ABS-KEY("fiscal reform" AND "public acceptance" AND
("small island" OR "developing"))
721
127
18
Web of
Science
TS=(("fiscal reform" OR "austerity") AND ("public opinion" OR
"citizen acceptance"))
589
93
15
Google
Scholar
"fiscal reform public acceptance" "small island developing states"
"Maldives"
894
156
23
IMF eLibrary
"fiscal consolidation" "public support" "small states"
127
47
8
World Bank
"fiscal reform" "citizen engagement" "public participation"
156
62
11
ADB
Knowledge
"tax reform" "public acceptance" "Pacific" "island economies"
89
34
6
OECD
iLibrary
"fiscal policy" "public trust" "government reform"
91
28
4
Total
3,310
636
97
Inclusion and Exclusion Criteria
Studies were included if they:
1. Addressed public attitudes or behavioral responses to fiscal reform.
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2. Offered empirical data or theoretical frameworks on public acceptance of economic policy.
3. Focused on developing countries or SIDS.
4. Were peer-reviewed journal articles, institutional reports, or government documents.
5. Were published in English between 2014–2024.
Excluded were:
1. Studies solely focused on technical or macroeconomic design without public response.
2. Research exclusively based on developed economies
3. Opinion pieces or editorials lack empirical analysis.
4. Incomplete publications such as abstracts or book reviews.
5. Duplicates or studies lack methodological clarity.
Screening And Selection Process
Screening involved two stages: title/abstract and full-text review. Two reviewers independently assessed
eligibility, resolving conflicts through discussion or with a third reviewer. A literature grid documented study
aims, methods, and relevance to the research questions. The PRISMA flowchart was used to transparently report
the number of studies identified, screened, excluded, and included as illustrated in Figure 1.
Figure 1. PRISMA Model
Data Extraction Framework
A standardized literature matrix was used to extract bibliographic details, study characteristics (objective,
method, sample), geographic focus, type of reform (tax, subsidy, expenditure), and political/economic context.
Key themes captured included communication strategies, trust in institutions, and factors influencing resistance
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or adaptation. For Maldives-specific studies, additional variables like cultural and governance dimensions were
recorded.
Quality Appraisal
Study quality was assessed using adapted CASP tools. For quantitative studies, emphasis was placed on design
fit, analytical robustness, and sample representativeness. Qualitative studies were assessed based on
methodological rigor, transparency, and theoretical grounding. Institutional reports were evaluated on data
validity, evidence-based conclusions, and policy relevance. Each study was rated as high, medium, or low
quality. Low-quality studies were referred carefully but not excluded. Inter-rater reliability was tested by dual
reviewing a subset of studies and refining criteria as needed as seen in Table 2.
Table 2: Quality Assessment Summary
No of Studies
Percentage
Criteria Met
23
35.9%
Rigorous methodology, large sample, clear findings, high
relevance
31
48.4%
Adequate methodology, moderate sample, relevant
findings
10
15.6%
Limited methodology, small sample, or narrow relevance
64
100%
Data Synthesis and Analysis
Given the heterogeneity of study designs and outcome measures, thematic synthesis was selected over meta-
analysis. Following Thomas & Harden (2008), studies were coded line-by-line for concepts related to public
acceptance. These codes were grouped into descriptive themes, which were then developed into broader
analytical themes to address the research questions. Initially, six thematic areas emerged:
1. Public perception and understanding of fiscal reform.
2. Socioeconomic determinants of acceptance.
3. Trust in institutions and governance.
4. Communication and citizen engagement.
5. Resistance mechanisms and mitigation.
6. Adaptation responses in small island contexts.
Tabular summaries were used to compare findings and quality across studies. Particular attention was given to
lessons applicable to the Maldivian context. Confidence in findings was judged based on the consistency, quality,
and relevance of supporting evidence. Where evidence was extrapolated from non-SIDS contexts, such
limitations were noted as illustrated in Table 3. Table 4 also outlines the geographic distribution of the studies
included along with important characteristics of the studies chosen for this review as seen in Table 5.
Table 3: SIDS Case Studies Included in Review
Country
Study Period
Reform Type
Key Findings
Quality Rating
Jamaica
2013-2019
Comprehensive
fiscal consolidation
High public support through
stakeholder engagement
High
Barbados
2018-2024
BERT program
implementation
"Home-grown" approach
increased acceptance
High
Seychelles
2020-2024
Climate-linked
fiscal reforms
Environmental framing enhanced
support
Medium
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Trinidad &
Tobago
2015-2023
Oil revenue
management
Commodity dependence
complicates acceptance
Medium
Mauritius
2018-2022
Tax system
modernization
Gradual implementation
successful
High
Fiji
2016-2021
Post-cyclone fiscal
measures
Disaster recovery framing
effective
Medium
Maldives
2019-2024
Tourism tax
increases
Limited public consultation,
mixed results
Medium
Table 4: Geographic Distribution of Included Studies
Geographic Focus
No of Studies
Specific Countries/Regions
Caribbean SIDS
8
Jamaica (3), Barbados (2), Trinidad & Tobago (2),
Other Caribbean (1)
Pacific SIDS
7
Fiji (2), Seychelles (2), Vanuatu (1), Samoa (1), Tonga
(1)
Indian Ocean SIDS
4
Maldives (2), Mauritius (1), Comoros (1)
Multi-country developing
31
Africa (12), Asia (10), Latin America (9)
Global/Theoretical
14
Cross-national analysis, theoretical frameworks
Total
64
Study Characteristics Table
Table 5: Summary of Included Studies (N = 64)
Study Category
Number of Studies
Percentage
Key Characteristics
Peer-reviewed articles
38
59.4%
Empirical research with rigorous
methodology
Institutional reports
26
40.6%
IMF, World Bank, ADB, OECD
publications
Geographic Focus
SIDS-specific
19
29.7%
Caribbean (8), Pacific (7), Indian Ocean
(4)
Developing countries
31
48.4%
Multi-country comparative studies
Global/theoretical
14
21.9%
Cross-national analysis and frameworks
Methodology
Quantitative
24
37.5%
Surveys, econometric analysis,
experiments
Qualitative
22
34.4%
Interviews, case studies, ethnographic
Mixed methods
18
28.1%
Combined quantitative and qualitative
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Time Period Studied
2005-2010
12
18.8%
Post-2008 crisis reforms
2011-2015
18
28.1%
Austerity and consolidation period
2016-2020
21
32.8%
Contemporary reform experiences
2021-2024
13
20.3%
COVID-19 and recovery measures
Reform Type Focus
Tax reforms
27
42.2%
Income, consumption, property taxation
Expenditure cuts
19
29.7%
Public sector, subsidies, social spending
Comprehensive packages
18
28.1%
Multiple reform components
RESULTS AND DISCUSSION
Important results are discussed with emerging themes of the included studies.
Drivers of Public Support or Resistance
According to the systematic research, various factors interact with one another either favorably or negatively
supporting public acceptance or opposition to fiscal reform policies. Under the economic self-interest
perspective, people would favor those policies they believe will improve their financial condition while opposing
those that directly hurt them (Bartels & Haselswerdt, 2023). This pattern is influenced by a number of critical
factors within the relationship, ranging from perceived fairness, distributional effects, and long-term economic
compulsion.
Necessity of reforms decides to a great extent the acceptance of reforms by the populace to support measures
with greater acceptance in times of crisis (Alesina et al., 2019). In this regard, the case of Jamaica is illustrative
how PNG with a debt-to-GDP ratio of 147 percent engendered public awareness of the urgency of reforms, while
acceptance was thus given to a primary surplus target of 7.5 percent.
Fairness perceptions lie at the root of sustainable reform acceptance. Progressive adjustment measures receive a
far higher level of public approval than regressive measures, which in relative terms lay a heavy burden upon
the lower income groups (Limberg, 2020). The BERT program in Barbados is a classic case where the burden
had been shifted away from labor and vulnerable groups toward capital and the visitor economy, resulting in an
unparalleled level of public endorsement (IMF, 2024).
An essential modulator of the link between reform design and public approval is trust in reform execution.
Studies reveal that while those with low trust oppose reforms regardless of their technical merits, those who have
excellent faith in institutions typically accept short-term expenses for long-term advantages (Braun &
Tausendpfund, 2014). This outcome particularly interests recently democratized SIDS like the Maldives, where
institutional trust still suffers even after decades of authoritarian control.
Given that cultural and ideological factors determine acceptance patterns in ways beyond individual economic
self-interest, research conducted in Muslim-majority countries indicates that reforms advertised in accordance
with the Islamic principles of social justice and collective responsibility garner greater acceptance than those
promoted solely on economic grounds (Treisman, 2000). The Maldives' constitutional requirement that all
citizens be Muslims thus opens unique avenues for the religious framing of fiscal responsibility.
Communication and Trust in Government
Communication strategies, though crucial in shaping consciousness and rallying support for fiscal reforms, go
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unutilized in many parts of the world. In fact, if communication by the government is top-notch, transparent, and
unambiguous, the majority would embrace the reforms, whereas inconsistent messaging would only clue the
general public out of such acceptance (Bischoff & Kanuha, 2019).
Multi-stakeholder engagement platforms represent best practice in reform communication, as highlighted by the
case of Jamaica's Economic Program Oversight Committee (EPOC). This framework constituted monitors from
private sector, labor unions, government, academia, and media, thus making monitoring transparent and
engendering true ownership of the reform process.
Framing effects significantly influence the public's response to the same fiscal measures. The research of
Haselswerdt and Bartels (2023) shows that people respond differently when tax expenditures are framed as
"spending through the tax code" than they do when the exact same spending is seen as a direct expenditure.
Trust in government institutions is the mediator between communication quality and reform acceptance.
Essentially, the studies show that the governments with higher levels of trust can implement reforms with fewer
intensive communication efforts, while those with the deficit of trust will have to go through comprehensive
engagement strategies to achieve the same levels of acceptance (Hartman et al., 2022).
Equity and Distributional Effects
The impacts of fiscal reforms on different groups may well turn out to be the most critical factor determining
public acceptance. Equity notions often take precedence before efficient arguments in citizens' considerations
with respect to policy measures. Public support is generally highest when the reform burden is progressively
distributed, and regressive impacts generate persistent opposition regardless of the economic gains to the entire
society (Kallestrup, 2024). The impacts of income inequality become particularly precocious in evaluating fiscal
measures by the public. It has been shown that tax cuts favouring high earners increase inequality while failing
to generate growth benefits, thus causing public discontent detrimental to the realization of the entire reform
program (Nguyen et al., 2022).
Within countries, regional disparities engender complex distributional dynamics whose discussion becomes
relevant in the SIDS context. The Maldives represents such an instance of this problem, with incomes in Malé
being 75 percent higher than those of outer island populations, thus creating differential burdens for identical
fiscal measures across geographic regions (World Bank, 2024).
The other factor of sectoral considerations becomes imperative in economically concentrated SIDS. The research
depicts that tourism-based economies come with unique challenges when fiscal reforms impact operations in the
hospitality industry and visitor costs, as recent increases in the Maldives tourism tax have shown (Orbitax, 2024).
Table 6: Summary table of reform measure taken by SIDS country
Reform Measure
Country Context
Relevant to the Maldives
Source
Broad-based fiscal reform with
primary surplus targets, EPOC
oversight, gradual implementation,
strategic communication
Jamaica -
Political
continuity,
national
ownership, and
sustained reform
implementation
(High) Maldives can benefit
from institutional oversight
(e.g. EPOC-style committee),
strategic communication, and
gradual reform
IMF, 2020
Home-grown reform program,
progressive burden sharing,
integration with climate resilience,
social protection maintained
Barbados -
Locally
developed and
inclusive reform
(High) Especially applicable in
public engagement and climate
integration, with need to
preserve social protection
IMF, 2024
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with high debt-to-
GDP ratio
Climate Budget Tagging to align
fiscal reform with environmental
goals; strong social assistance
Seychelles -
Fiscal-
environment
integration with
emphasis on
climate resilience
(Moderate to High) Maldives
can adopt climate budgeting to
align with its climate-
vulnerable status
IMF, 2024
Commodity-linked fiscal policy;
challenges of procyclicality and
weak reform durability
Trinidad and
Tobago - Oil-
dependent
economy with
fluctuating public
support based on
global oil prices
(Low) Maldives is tourism-
reliant, not commodity-based,
but lesson on institutional
resilience is relevant
IMF, 2024
Post-disaster resilience-linked fiscal
reforms with limited fiscal space
Fiji (Pacific
Islands) -
Reforms post-
cyclone linked to
environmental
resilience, but
with limited
capacity
(Moderate) Similar disaster-
prone context, useful for
linking fiscal reform with
resilience
IMF, 2024
Lessons for the Maldives from Other SIDS
The analysis of fiscal reform strategies in Jamaica, Barbados, Seychelles, Trinidad and Tobago, and Fiji reveals
key insights that hold varying degrees of relevance for the Maldives. While all these countries share the structural
vulnerabilities typical of Small Island Developing States (SIDS), the design and implementation of their fiscal
reforms have differed significantly in approach, outcomes, and sustainability.
Jamaica’s experience stands out as the most structured and politically sustainable. The formation of the
Economic Program Oversight Committee (EPOC), with representatives from government, private sector, labor,
media, and academia, created a multi-stakeholder platform that ensured transparency and legitimacy. This model
of inclusive oversight, combined with consistent political will across changing governments, made reform
outcomes credible. For the Maldives, where public trust in institutions remains low and political fragmentation
is common, a similar oversight mechanism would not only institutionalize accountability but also build
confidence in the reform process.
Barbados offers another highly relevant model, particularly in its emphasis on home-grown solutions and the
equitable distribution of fiscal burdens. The deliberate shift of burden away from labor to capital, and the
integration of climate resilience within the economic reform framework, demonstrate a socially conscious and
forward-looking model. For the Maldives, where economic vulnerability is tied closely to tourism and external
shocks, designing reforms that are progressive, locally driven, and linked with climate adaptation could
significantly enhance both public support and international credibility.
The Seychelles model, with its Climate Budget Tagging approach, highlights a strategic alignment between fiscal
reform and environmental sustainability. This linkage is highly appropriate for the Maldives, which faces
existential threats from climate change. However, such a framework would require stronger data systems and
institutional capabilities than currently exist in the Maldives. Nonetheless, the principle of framing reforms
through the lens of climate resilience could increase public support.
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On the other hand, Trinidad and Tobago’s challenges underscore the dangers of relying on volatile sectors like
commodities. While the Maldives is not a resource-exporting economy, its dependence on tourism makes it
similarly vulnerable to external shocks. The lesson here is the importance of building institutional mechanisms
that sustain reform momentum even when economic conditions fluctuate. Fiscal reform in the Maldives must be
designed to outlast short-term political or sectoral shifts.
Lastly, Fiji’s post-disaster fiscal reforms highlight the potential of leveraging crisis moments to introduce
resilience-focused economic adjustments. The Maldives, also highly disaster-prone, could adopt a similar
strategy by aligning fiscal reform narratives with resilience and disaster preparedness. However, as seen in Fiji,
limited fiscal space and administrative capacity can constrain reform effectiveness unless supported by external
assistance or regional cooperation.
Overall, common elements across the successful cases include:
• Seizing crisis moments as windows of opportunity
• Strong stakeholder engagement mechanisms
• Incremental and adaptive implementation
• Regional or external technical collaboration
• Alignment of fiscal and climate objectives
These components resonate with the Maldivian context and provide a practical blueprint for tailoring fiscal
reform to its unique structural constraints and political economy.
Most Relevant Reform Model for the Maldives
The Maldives has made notable progress in achieving its development goals; however, sustaining and expanding
these accomplishments requires addressing ongoing fiscal challenges. According to Sislen (2023), efficient
public expenditure, coupled with the timely implementation of expenditure reforms and well-targeted social
support, is critical to ensuring resilience in the face of growing economic pressures.
Among the cases studied, Jamaica’s model emerges as the most relevant to the Maldives. Its blend of strategic
communication, broad-based stakeholder oversight, and political continuity offers a robust framework adaptable
to the Maldivian setting. This relevance is heightened by the Maldives’ own need for trust-building in public
institutions and for managing reforms in a way that survives electoral cycles.
Barbados follows closely behind, especially in the context of integrating fiscal reform with climate resilience
and social protection, both key needs for the Maldives. The Seychelles and Fiji models also offer targeted
insights, especially for climate and disaster-responsive budgeting. The synthesis of these reform experiences
should guide the Maldives toward a holistic fiscal reform strategy, one that is inclusive, climate-aware, socially
equitable, and politically resilient.
Public Participation, Transparency, and Governance Capacity
Public participation is critical to legitimizing and sustaining fiscal reform, yet many governments neglect
participatory mechanisms. Meaningful citizen involvement fosters ownership and reduces resistance by
addressing information asymmetries (Petrie, 2017). While participatory budgeting has gained traction in some
developing countries, its application to structural reforms remains limited. Evidence suggests communities
involved in budgeting better understand fiscal trade-offs, improving support for reforms (Sintomer et al., 2012).
However, scaling such engagement requires substantial institutional capacity.
Transparency also underpins reform trustworthiness. Governments providing regular, detailed updates enjoy
higher public support than those relying on inconsistent communication (Gaventa & McGee, 2013). Jamaica’s
EPOC model illustrates best practice through quarterly reports and frequent stakeholder briefings. Digital
participation platforms are promising, especially for dispersed SIDS populations. Though online consultations
improve perceived inclusion, their actual policy influence remains limited, and digital divides risk excluding
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vulnerable groups (Macintosh & Whyte, 2008). Engagement with civil society can build reform legitimacy
where institutional trust is weak. Civil society can explain reforms and monitor implementation, though
maintaining independence while cooperating with governments remains a challenge (Fölscher, 2010).
Governance quality is foundational for reform success. Weak institutions, despite sound technical design, often
lead to failed reforms. Independent Fiscal Institutions (IFIs) can enhance credibility, but their impact depends on
design, backing, and capacity conditions that strain SIDS systems (Beetsma et al., 2018). Limited administrative
capacity, technical gaps, and coordination failures further hinder reform (Andrews, 2013). Regular monitoring
and strong public reporting, such as in Jamaica’s EPOC, are key to public trust (Schick, 2013).
Key Trends and Comparative Insights
The review highlights broad trends influencing public acceptance of fiscal reforms. A major shift has occurred
from technocratic to participatory approaches, with institutions like the IMF emphasizing stakeholder
acceptance, communication, and trust (IMF, 2025). Another key trend is the growing focus on equity studies
now show perceived fairness outweighs aggregate efficiency in shaping support (Limberg, 2020). This reflects
post-crisis demands for social justice.
Climate integration is another dimension, as seen in Seychelles’ Climate Budget Tagging, linking fiscal reform
to environmental resilience (IMF, 2024) a model applicable to the Maldives. Similarly, digital platforms have
improved participation, though digital divides risk exclusion (Chen & Gao, 2021). Regional peer learning also
emerges as a strong trend among SIDS.
Jamaica’s EPOC model achieved national ownership, political continuity, and strong communication, sustaining
reform momentum and confidence. Barbados’ BERT focused on progressive burden-sharing, climate resilience,
and maintaining social cohesion. Seychelles framed reform through climate urgency, building support. Trinidad
and Tobago’s volatility highlights the need for stabilizing institutions. Fiji shows crisis can be leveraged for
reform if aligned with resilience goals.
Common success factors include inclusive design, communication, gradual implementation, and integration with
broader goals. Failures stem from exclusion, regressivity, poor communication, and weak institutions. The
examination of the articles included outlines several gaps as given below:
1. Causal Links: Study causal effects of specific reform designs on public acceptance using experimental or
quasi-experimental methods.
2. Religious Framing: Examine how Islamic values and religious leadership affect reform acceptance in
Muslim-majority SIDS.
3. Geographic Dispersion: Analyze how island dispersion impacts communication, implementation, and
stakeholder inclusion.
4. Tourism Dependence: Investigate reform sequencing, visitor cost impacts, and industry support in tourism-
driven economies.
5. Digital & Behavioral Tools: Explore digital engagement strategies and behavioral framing effects in fiscal
policy communication.
6. Climate & Inclusion: Assess how climate framing and gender-inclusive design influence reform, support
and outcomes.
This systematic literature review of 64 studies explores public willingness to adapt to fiscal reform, showing that
political economy factors often outweigh technical policy design. Public support is largely determined by
perceived fairness, institutional trust, effective communication, crisis framing, cultural alignment, and the
protection of vulnerable groups, highlighting that reforms must prioritize equity, transparency, and social
engagement over purely technical efficiency. Trust plays a central role in implementation: in high-trust contexts,
reform can proceed with limited engagement, while in low-trust settings, active stakeholder involvement is
essential, making institutional trust-building particularly critical for long-term reform legitimacy in small island
developing states (SIDS). Communication enhances acceptance when it is continuous, culturally appropriate,
and accessible, with narratives that connect economic goals to shared social values.
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In SIDS, conditions such as strong social cohesion and potential for community engagement can facilitate
reform, though these advantages are constrained by limited administrative capacity and geographic challenges.
The findings suggest that leveraging unity while addressing systemic limitations is key for reform success.
However, the review also reveals limitations, including the lack of primary empirical data from SIDS, few
longitudinal studies on reform acceptance, limited attention to Muslim-majority SIDS, insufficient gender-
disaggregated analysis, and minimal exploration of the private sector’s role in stakeholder engagement. Further,
Table 7 outlines the visual map on reform measures to bring the linkage across authorities.
Table 7: Visual map on reform measures bringing the linkage across authorities
This framework (Table 8) illustrates how 4 key reform acceptance factors interact with each other and the
authorities responsible for implementation in Small Island Developing States (SIDS). It shows the flow from
political crisis to public support, mediated through institutional trust, fairness, stakeholder engagement, and
cultural framing.
CONCLUSION AND RECOMMENDATIONS
The findings of this research are summarised along with the research questions below:
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What factors influence public willingness to accept fiscal reform in developing economies and SIDS?
The review identifies six key factors. Fairness and distributional equity are crucial citizens support reforms
perceived as progressive and rejected those viewed as regressive. Reforms that eliminate regressive subsidies
while enhancing targeted social protection gain broader acceptance.
Institutional trust and governance quality also mediate public acceptance. High-trust environments require less
engagement, whereas low-trust contexts demand transparency, disclosure, and active stakeholder participation.
A crisis window often triggers public acceptance of otherwise unpopular reforms, but support is more sustainable
during recovery rather than peak crisis moments. Protecting vulnerable groups during implementation is essential
for maintaining social cohesion. Reforms are more acceptable when they preserve a social floor through targeted
compensation. Cultural and religious framing also matters, reforms that align with local values or religious
principles tend to enjoy more support than those framed purely in technical terms.
How have other countries managed public opposition and what communication strategies worked?
Successful countries have adopted inclusive, innovative approaches. Jamaica’s experience with its Economic
Program Oversight Committee (EPOC) turned externally imposed reforms into nationally owned initiatives.
Transparent monitoring and reporting helped sustain public trust over six years of fiscal consolidation. Barbados
employed a home-grown reform model, emphasizing national sovereignty and burden-sharing. Its BERT
program redistributed fiscal adjustment costs from labor to capital while integrating climate resilience objectives.
Effective communication in all cases shared common traits: broad stakeholder engagement, multi-platform
outreach, cultural relevance, consistent reporting, and transparent updates. Reform narratives connected to
economic needs with collective values. Moreover, successful reformers engaged potential opposition early,
sequenced reforms thoughtfully, and provided compensation where impacts were sharpest. Gradual rollouts
allowed for adaptation, and continuous dialogue helped manage resistance.
What lessons are most applicable to the Maldives?
Lessons from other SIDS suggest several directions for Maldives. Institutionally, a Maldives Economic Reform
Council modeled after Jamaica’s EPOC should be created to foster ownership. This council must include
representatives from government, civil society, religious institutions, and business sectors.
Culturally, communication should embed Islamic values and climate concerns. Framing fiscal responsibility
through religious concepts like Amanah (stewardship) or Adl (social justice), and trying reform to sustainable
tourism, could increase public buy-in.
Strategically, sequencing reforms is key. Begin with revenue measures particularly those targeting tourism and
luxury goods, while shielding basic services. Stakeholder engagement must be genuine, with digital tools
complementing traditional governance channels to reach dispersed communities. Implementation should follow
a phased, adaptive approach over 3–5 years, starting with low-resistance reforms and gradually moving toward
deeper structural changes. This approach builds capacity and acceptance simultaneously.
Strategic Recommendations for Maldives
Fiscal reform in the Maldives requires an inclusive approach built on strong institutions, transparent governance,
and equitable policies. Establishing a Maldives National Reform Council with diverse representation would
provide a guiding framework, supported by quarterly reports, stakeholder briefings, and annual reviews. Public
communication should draw on mosques, local councils, radio, and mobile apps, with an annual “State of
Reform” speech to align reforms with Islamic values and climate resilience.
Sustainability depends on progressive revenue measures and strengthened social protection. Revenue expansion
should include luxury and tourism-related taxes, digital economy taxation, and income tax systems that protect
low earners. At the same time, welfare must be preserved through conditional cash transfers, health subsidies,
and education incentives. Addressing equity requires targeted infrastructure funds for outer islands, alongside
training and employment schemes for youth and women.
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Reforms should be implemented through a phased plan:
• Foundation (0–12 months) – establish institutions and capacity.
• Revenue Expansion (13–24 months) – diversify taxation.
• Expenditure Reform (25–36 months) – improve spending efficiency.
• Consolidation (37–48 months) – embed resilience and stability.
The path forward must shift from government-imposed policies to a nationally-owned program shaped by
inclusive governance and social trust. Drawing on lessons from other SIDS such as Jamaica and Barbados,
success will depend on equitable burden-sharing, consistent communication, and protection of vulnerable
groups. Ultimately, sustained political will, institutional capacity, and democratic values will determine whether
the Maldives achieves inclusive and lasting fiscal transformation.
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