Deputy Prime Minister Professor Biman Prasad greeted World Bank Group President Ajay Banga during his first visit to Fiji and emphasized critical challenges facing the region.
Prof Prasad noted that Pacific Small Island Developing States (SIDS) encounter unique and specific development issues that are often challenging to articulate in formal reports and presentations. He expressed gratitude to Mr. Banga for taking the time to observe the severe challenges confronting Fiji and the Pacific islands firsthand.
He pointed out that the Pacific region experiences the world’s highest costs for banking, digital connectivity, air travel, and shipping, compounded by the geographic spread of its population across numerous islands. For example, the airlink between Fiji and Tuvalu has one of the highest operational costs globally.
According to Prof Prasad, the region’s distance from major markets limits its competitiveness, with some countries nearing economic collapse due to their susceptibility to climate change. He highlighted the issue of Pacific states being “hollowed out” by the ongoing outmigration of skilled and professional workers to more developed nations.
Additionally, he addressed how rising costs associated with accessing global markets for sugar, kava, and other agricultural products negatively impact the livelihoods of farming and rural communities.
The Deputy Prime Minister also mentioned the migration of Pacific tuna to cooler waters, which poses a significant threat to nations that depend on tuna as their primary export.
“All our infrastructure is vulnerable to climate change — extreme rainfall, storm surges, frequent and unseasonal flooding, and rising temperatures place immense strain on our financial resources,” Prof Prasad stated.
He noted that the costs associated with repairing schools, healthcare facilities, roads, airports, jetties, and wharves are increasing dramatically.
“A large portion of our investment budgets is consumed by emergency response and reconstruction after cyclones,” he continued.
“Our limited economic sectors are held hostage to deglobalization, geopolitical shifts, and climate change.”