Deputy Prime Minister Professor Biman Prasad welcomed Ajay Banga, the President of the World Bank Group, during his first visit to Fiji and discussed significant issues affecting the region.
Professor Prasad emphasized that Pacific Small Island Developing States (SIDS) encounter distinct development challenges that are often difficult to express in formal reports. He expressed gratitude to Mr. Banga for personally witnessing the severe issues Fiji and its neighboring islands face.
He highlighted that the Pacific region has the highest costs for banking, digital connectivity, air travel, and shipping worldwide, compounded by the spread of its population across numerous islands. He pointed out that the air link between Fiji and Tuvalu holds one of the highest operational costs globally.
Prasad also mentioned that the distance from major markets negatively impacts the region’s competitiveness, with some countries on the verge of economic collapse due to climate change vulnerabilities.
He stated that the ongoing exodus of skilled workers to developed nations is “hollowing out” the Pacific states. Furthermore, the increasing costs of accessing global markets for staple products like sugar and kava are detrimental to farming and rural communities.
The Deputy Prime Minister noted that the migration of tuna to cooler waters poses a serious threat to countries that depend on it as their primary export.
“Climate change holds all our infrastructure hostage,” Prasad remarked, pointing to excessive rainfall, storm surges, and frequent floods that elevate repair costs for schools, health centers, roads, airports, and other facilities.
He emphasized that a significant portion of their investment budgets is consumed by emergency responses and rebuilding efforts after cyclones, stating that their economic drivers are vulnerable to deglobalization, geopolitical tensions, and climate change.