Deputy Prime Minister Professor Biman Prasad recently welcomed World Bank President Ajay Banga during his first visit to Fiji, addressing significant challenges that the region faces.
Professor Prasad emphasized that Pacific Small Island Developing States (SIDS) encounter distinct developmental hurdles, which are often challenging to articulate in formal reports and presentations. He appreciated Mr. Banga for taking the time to witness the pressing issues confronting Fiji and its neighboring islands.
He remarked that the Pacific region experiences the highest costs related to banking, digital connectivity, air travel, and shipping globally, complicating economic activities for populations scattered across numerous islands, with the Fiji-Tuvalu air link displaying particularly high overhead expenses.
The Deputy Prime Minister also pointed out that the region’s remoteness from major markets limits its competitiveness, with certain nations facing potential economic collapse due to their susceptibility to climate change impacts. He highlighted concerns about skilled workers departing for developed countries, which he described as causing the “hollowing out” of Pacific states.
Furthermore, Prasad addressed the rising expenses associated with accessing global markets for key products like sugar, kava, and other agricultural goods, which threaten the welfare of farming and rural communities.
He noted that the migration of tuna to cooler waters poses a significant challenge for countries that depend heavily on it as their primary export.
“All our infrastructure is at the mercy of climate change – excessive rainfall, storm surges, unseasonable flooding, and rising temperatures complicate our financial ability to respond,” he stated.
He highlighted the increasing costs of maintaining schools, health facilities, roads, airports, jetties, and wharves, noting that a considerable portion of investment budgets is dedicated to addressing emergencies and rebuilding after cyclones.
“Our limited economic resources are all affected by deglobalization, geopolitical tensions, and climate change,” Prasad concluded.