Deputy Prime Minister Professor Biman Prasad welcomed Ajay Banga, President of the World Bank Group, during his first visit to Fiji, emphasizing significant issues facing the region.
Professor Prasad noted that the Pacific Small Island Developing States (SIDS) encounter distinctive development challenges that are often difficult to communicate through typical reports and presentations. He expressed gratitude to Mr. Banga for taking the time to witness firsthand the serious obstacles that Fiji and other Pacific islands are dealing with.
He pointed out that the Pacific region has the highest costs worldwide for banking, digital connectivity, air travel, and shipping, which poses significant hurdles given the dispersed populations across numerous islands. For example, the Fiji-Tuvalu airlink experiences some of the highest operational costs.
Prasad mentioned that the region’s isolation from key markets affects its competitiveness, with some nations now teetering on the brink of economic collapse due to their susceptibility to climate change. He remarked that Pacific nations are being significantly impacted by the ongoing exodus of skilled workers to more developed countries.
Furthermore, he highlighted that the increasing costs associated with accessing global markets for products such as sugar and kava disadvantage farming and rural communities. The migration of Pacific tuna to colder waters is another pressing issue, severely affecting countries that depend solely on this resource for export.
“All our infrastructure is vulnerable to the impacts of climate change – excessive rains, storm surges, unseasonal floods, and rising temperatures, all of which limit our capacity to respond,” Prasad stated. “The expenses involved in repairing schools, health centers, roads, airports, jetties, and wharves continue to rise dramatically.”
He also mentioned that a significant portion of the investment budgets is consumed by emergency responses and rebuilding efforts post-cyclones. “Our limited economic drivers are all held hostage to the forces of deglobalization, geopolitical tensions, and climate change.”