Deputy Prime Minister Professor Biman Prasad received World Bank Group President Ajay Banga during his first visit to Fiji, emphasizing significant challenges faced by the Pacific region.
Prof Prasad pointed out that the Pacific Small Island Developing States (SIDS) encounter unique development obstacles that are often difficult to express in reports and presentations. He expressed gratitude to Mr. Banga for taking the time to observe the severe challenges that Fiji and other Pacific islands confront.
He noted that the Pacific region experiences the highest costs for banking, digital connectivity, air travel, and shipping globally, with populations spread across numerous islands. The Fiji-Tuvalu airlink, in particular, has one of the highest overhead costs.
Additionally, he mentioned that the region’s remoteness from markets impacts its competitiveness and that some countries are nearing economic collapse due to their vulnerability to climate change.
Prof Prasad also highlighted the issue of skilled workers leaving Pacific states for developed nations, which has led to a “hollowing out” effect. He further discussed how the rising costs of accessing global markets for products like sugar and kava negatively affect the livelihoods of rural communities involved in farming.
The Deputy Prime Minister remarked that Pacific tuna is moving to cooler waters, significantly affecting nations dependent on it as their primary export.
“All our infrastructure is at the mercy of climate change – excessive rainfall, storm surges, frequent floods, and rising temperatures, paired with high debt levels, hinder our response capabilities,” Prof Prasad stated.
He emphasized that the costs associated with repairing infrastructure such as schools, health centers, roads, airports, and wharves are rapidly increasing, with a considerable portion of investment budgets directed towards emergencies and post-cyclone rebuilding efforts.
“Our limited economic drivers are all vulnerable to deglobalization, geopolitical issues, and climate change,” he concluded.