Deputy Prime Minister Professor Biman Prasad hosted World Bank Group President Ajay Banga during his first visit to Fiji, drawing attention to critical challenges facing the region.
Professor Prasad emphasized that the Pacific Small Island Developing States (SIDS) encounter distinctive development obstacles that are often difficult to effectively communicate through traditional reports and presentations. He expressed gratitude to Mr. Banga for taking the time to observe the significant challenges that Fiji and other Pacific islands are dealing with.
He noted that the Pacific region contends with the highest costs for banking, digital connectivity, air travel, and shipping globally, compounded by the dispersed population across numerous islands. The airlink between Fiji and Tuvalu, for instance, incurs some of the highest operational costs.
The Deputy Prime Minister also pointed out that the region’s geographical remoteness affects its competitiveness in global markets, with some nations experiencing severe economic downturns due to their vulnerability to climate change impacts.
Professor Prasad raised concerns about the outflow of skilled professionals from Pacific states to developed nations, which he described as an ongoing crisis that is “hollowing out” local talent. Additionally, he highlighted the rising costs for accessing global markets for key exports such as sugar and kava, which negatively impact the livelihoods of farming and rural communities.
He remarked on the migration of Pacific tuna to cooler waters, affecting countries that depend on this resource as their primary export.
“All our infrastructure is vulnerable to climate change — excessive rains, storm surges, frequent and unseasonal floods, and rising surface temperatures are straining our resources and increasing debt levels, limiting our ability to respond,” said Professor Prasad.
He indicated that the expenses associated with repairing schools, health facilities, roads, airports, jetties, and wharves are rising sharply.
“A significant portion of our investment budgets is allocated to emergency responses and rebuilding efforts following cyclones,” he added.
He concluded by stating that the narrow economic opportunities in the region are increasingly threatened by deglobalization, geopolitical tensions, and the ongoing effects of climate change.