Deputy Prime Minister Professor Biman Prasad welcomed Ajay Banga, President of the World Bank Group, during his first visit to Fiji and discussed significant challenges within the region.
Prof Prasad pointed out that Pacific Small Island Developing States (SIDS) are confronted with unique developmental issues that are often difficult to accurately represent in formal documentation. He expressed appreciation to Mr Banga for witnessing the serious challenges faced by Fiji and other Pacific islands firsthand.
He highlighted that the Pacific region experiences the highest costs in banking, digital connectivity, air travel, and shipping globally, affecting populations scattered across numerous islands. He cited the Fiji-Tuvalu airlink as an example of an area with particularly high overhead costs.
Prof Prasad further explained that the region’s geographical distance from major markets hampers its competitiveness, with some countries nearing economic collapse due to their vulnerability to climate change.
He noted that the ongoing migration of skilled workers from the Pacific states to developed nations is depleting local expertise. Additionally, the rising costs of accessing global markets for key exports such as sugar and kava are detrimental to the livelihoods of farming communities.
Furthermore, the Deputy PM pointed out that the migration of Pacific tuna towards cooler waters is severely impacting countries that depend on it as their primary export.
“The infrastructure in our region is at the mercy of climate change—excessive rainfall, storm surges, unseasonal floods, and rising temperatures are exacerbating our predicament, while high debt levels hinder our response capabilities,” Prof Prasad stated.
He noted that expenses related to repairing essential infrastructure such as schools, healthcare facilities, roads, airports, and wharves are soaring.
“A significant portion of our investment budgets is spent on emergencies and post-cyclone recovery. Our limited economic resources are vulnerable to the effects of deglobalization, geopolitical tensions, and climate change,” he added.