Deputy Prime Minister Professor Biman Prasad welcomed World Bank Group President Ajay Banga during his first visit to Fiji and emphasized the significant challenges facing the region.
Prof Prasad highlighted that Pacific Small Island Developing States (SIDS) encounter distinct development obstacles that are often not fully captured in reports and presentations. He expressed gratitude to Mr. Banga for taking the opportunity to witness the pressing issues that Fiji and other Pacific islands are experiencing firsthand.
According to Prof Prasad, the Pacific region deals with the highest costs related to banking, digital connectivity, air travel, and shipping globally, which is further complicated by its dispersed population across many islands. He noted the Fiji-Tuvalu airlink has some of the highest operational costs.
He stated that the region’s remoteness from major markets hampers its competitiveness, while some countries are on the verge of economic collapse due to their vulnerability to climate change.
Prof Prasad pointed out that Pacific states are experiencing a draining of skilled workers, as professionals continue to migrate to developed nations. Additionally, rising costs associated with accessing global markets for sugar, kava, and other agricultural products negatively affect the livelihoods of farming and rural communities.
The Deputy Prime Minister also mentioned the migration of Pacific tuna to cooler waters, which severely impacts countries that depend on it as their primary export.
“All our infrastructure is vulnerable to climate change — excessive rains, storm surges, frequent and unseasonal floods, and rising surface temperatures — while our debt levels limit our ability to respond,” Prof Prasad stated.
He emphasized that the expenses related to repairing schools, health centers, roads, airports, jetties, and wharves are skyrocketing.
“A significant portion of our investment budgets is consumed by emergencies and reconstruction following cyclones. Our narrow economic drivers are all held captive by deglobalization, geopolitics, and climate change.”