Deputy Prime Minister Professor Biman Prasad recently received World Bank Group President Ajay Banga during his first visit to Fiji, where they discussed significant challenges facing the region.
Professor Prasad emphasized that Small Island Developing States (SIDS) in the Pacific encounter unique developmental issues that are often difficult to represent in conventional reports and presentations. He expressed gratitude to Mr. Banga for taking the opportunity to witness the serious challenges that Fiji and surrounding Pacific islands are experiencing.
He noted that the region suffers from the highest costs of banking, digital connectivity, air travel, and shipping globally, compounded by the dispersion of populations across numerous islands. The Fiji-Tuvalu air link, for instance, endures exceptionally high overhead costs.
Additionally, Professor Prasad pointed out that the remoteness of the Pacific from major markets hampers economic competitiveness, with some countries on the brink of economic collapse due to climate change vulnerabilities.
He indicated that ongoing emigration of skilled and professional workers to developed nations is further weakening the Pacific states. The escalating costs associated with accessing global markets for key products like sugar, kava, and other agricultural goods are significantly impacting the livelihoods of rural communities.
Moreover, the Deputy Prime Minister addressed the migration of tuna to cooler waters, which adversely affects nations that depend on it as their primary export.
“Our infrastructure is increasingly threatened by climate change,” stated Professor Prasad, highlighting issues such as extreme rainfall, storm surges, unpredictable flooding, and rising temperatures which are leading to mounting debt and complicating recovery efforts.
He acknowledged that the expenses related to repairing essential infrastructure like schools, healthcare centers, roads, and airports are rising dramatically. “A considerable portion of our investment budgets are consumed by emergencies and recovery efforts post-cyclones,” he said, emphasizing the extent to which Pacific countries’ economies are vulnerable to global disruptions, geopolitical tensions, and climate change consequences.