Deputy Prime Minister Professor Biman Prasad greeted World Bank Group President Ajay Banga during his first visit to Fiji, discussing significant challenges faced by the region.
Professor Prasad pointed out that the Pacific Small Island Developing States (SIDS) encounter unique developmental hurdles that are often hard to accurately represent in reports and presentations. He expressed gratitude to Mr. Banga for his willingness to witness firsthand the severe issues confronting Fiji and the Pacific islands.
The Deputy Prime Minister emphasized that the Pacific region suffers from the highest costs related to banking, digital connectivity, air travel, and shipping globally. This burden is exacerbated by the region’s widespread island populations, with the Fiji-Tuvalu air link reportedly having some of the highest overhead costs.
He remarked that the considerable distance from markets hampers the region’s competitive edge, with some countries on the brink of economic collapse due to their susceptibility to climate change.
Professor Prasad also mentioned that Pacific nations are experiencing a brain drain, as skilled and professional workers continue to migrate to developed countries. Furthermore, he indicated that increasing costs of accessing global markets for commodities such as sugar and kava severely impact the livelihoods of agricultural and rural communities.
The migration of tuna to cooler waters has also posed a significant threat to nations that depend solely on this fish for export.
“All our infrastructure is at the mercy of climate change. Excessive rainfall, storm surges, frequent and unexpected flooding, rising surface temperatures, and high debt levels hinder our ability to respond,” noted Professor Prasad.
He warned that the expenses associated with repairing schools, health centers, roads, airports, jetties, and wharves are growing at an alarming rate, with a significant portion of investment budgets directed towards emergency responses and rebuilding after cyclones.
“The narrow economic drivers we rely on are all at risk due to deglobalization, geopolitical pressures, and climate change,” he concluded.