Martín argues that the small territorial size, scarcity of natural and humen resources, dependent economic systems and decision making structures, typical characteristics of small countries, are to be considered as conditions added to the structural problems that underdeveloped peripheric capitalistic countries face to overcome the problems of poverty and lack of economic dynamism. Upon this bases the author formulate a conceptual model that synthetize the main interactions between the components of the economy emphasizing external linkages, productive structure, relationships between domestic and export activities, decision making structure and spatial accessibility. The model is intended both, to gain understanding on how this type of economies work and to provide technical grounds for alternative approaches to development planning.