Deputy Prime Minister Professor Biman Prasad welcomed World Bank Group President Ajay Banga during his first visit to Fiji and emphasized significant challenges facing the Pacific region.
Professor Prasad noted that the Small Island Developing States (SIDS) of the Pacific encounter distinct development hurdles that are often difficult to express in standard reports and presentations. He expressed gratitude to Mr. Banga for taking the opportunity to witness the pressing challenges that Fiji and its neighboring islands face.
He pointed out that the Pacific region experiences the highest costs in banking, digital connectivity, air travel, and shipping globally, with populations dispersed across numerous islands. The Fiji-Tuvalu airlink, for example, is marked by particularly high overhead costs.
Moreover, he stated that the region’s remoteness from key markets hampers its competitiveness and that some nations are nearing an economic collapse due to their susceptibility to climate change.
Professor Prasad also highlighted the ongoing “hollowing out” of Pacific states, as skilled workers increasingly migrate to developed countries. He expressed concerns over the rising costs associated with accessing global markets for essential products like sugar and kava, which adversely affect farming communities.
Additionally, he mentioned the migration of Pacific tuna to cooler waters, severely impacting economies dependent on this fish as their primary export.
“The infrastructure we have is held hostage by climate change—excessive rain, storm surges, frequent and unseasonal floods, and increasing surface temperatures, compounded by high debt levels, limit our capacity to respond,” Professor Prasad remarked.
He reported that the expenses related to repairing schools, health facilities, roads, airports, jetties, and wharves are escalating rapidly.
“A significant portion of our investment budgets is consumed by emergency responses and rebuilding efforts following cyclones,” he added.
Professor Prasad concluded by stating that the narrow economic drivers of the region are vulnerable to deglobalization, geopolitical issues, and the impacts of climate change.