Deputy Prime Minister Professor Biman Prasad welcomed World Bank Group President Ajay Banga during his inaugural visit to Fiji, emphasizing the critical challenges faced by the Pacific region.
Prof Prasad pointed out that Pacific Small Island Developing States (SIDS) encounter unique development obstacles that are often difficult to effectively communicate through standard reports and presentations. He expressed gratitude to Mr. Banga for his willingness to observe firsthand the significant difficulties confronting Fiji and the surrounding islands.
He noted that the Pacific region bears the highest costs in banking, digital connectivity, air travel, and shipping worldwide, which is particularly challenging given the vast number of islands involved. The Fiji-Tuvalu air link, for instance, has some of the highest overhead costs in the world.
Additionally, the geographical distance of the Pacific from major markets affects its competitiveness, with some nations now facing near-total economic collapse as a result of their vulnerability to climate change.
Prof Prasad highlighted that Pacific states are being adversely affected by a continuous brain drain, with skilled and professional workers leaving for developed countries. He also pointed out that the increasing costs associated with accessing global markets for essential goods like sugar and kava are negatively impacting the livelihoods of farming and rural communities.
He warned that the migration of Pacific tuna to cooler waters has created serious consequences for nations that depend on this fishery as their primary export.
“All our infrastructure remains vulnerable to climate change – excessive rainfall, storm surges, frequent and unseasonal flooding, and rising temperatures, compounded by our debt levels, limit our ability to respond,” Prof Prasad stated.
He lamented the soaring costs associated with repairing crucial facilities such as schools, health centers, roads, airports, jetties, and wharves. He noted that a significant portion of investment budgets is consumed by emergencies and recovery efforts following cyclones.
The Deputy PM concluded by stating that the narrow economic bases of Pacific island nations are increasingly threatened by trends such as deglobalization, geopolitical tensions, and the impacts of climate change.