Deputy Prime Minister Professor Biman Prasad welcomed World Bank Group President Ajay Banga during his first visit to Fiji, emphasizing significant challenges the region faces.
Professor Prasad pointed out that Pacific Small Island Developing States (SIDS) encounter specific developmental obstacles that are often difficult to articulate in reports and presentations. He expressed gratitude to Mr. Banga for taking the time to witness the serious issues confronting Fiji and the Pacific islands.
The Deputy Prime Minister highlighted that the Pacific region has the highest banking, digital connectivity, air travel, and shipping costs globally. He noted that with populations spread across numerous islands, the Fiji-Tuvalu airlink experiences one of the highest operational costs.
He also mentioned that the region’s geographical distance from major markets hampers competitiveness, leading to some countries nearing total economic collapse due to their vulnerability to climate change.
Professor Prasad stated that the continued emigration of skilled workers from Pacific states to developed nations is “hollowing out” the region. Moreover, he pointed out that rising costs in accessing global markets for sugar, kava, and other agricultural products are harming the livelihoods of farmers and rural communities.
He added that the migration of Pacific tuna to cooler waters severely impacts nations that depend on it as their primary export.
“All our infrastructure is held hostage to climate change – excessive rains, storm surges, frequent and unseasonal floods, and higher surface temperatures mean that debt levels constrain our ability to respond,” Professor Prasad explained.
He noted, “The expenses related to repairing our schools, health centers, roads, airports, jetties, and wharves are skyrocketing. A significant portion of our investment budgets is drained by emergencies and rebuilding after cyclones. Our narrow economic drivers are all vulnerable to deglobalization, geopolitics, and climate change.”