Pacific economic ministers urged to seize opportunity

photo: AFP

The Tonga’s Finance Minister, who chairs the Forum Economic Ministers’ Meeting (FEMM) which kicks off in Suva today, says it is important to seize opportunities for growth.

PACNEWS reports that over the next two days, ministers will focus on key economic issues, including technology, connectivity and the digital economy.

Tiofilusi Tiueti noted the ongoing impact of the pandemic, geopolitical tensions and climate change.

“The global economic outlook remains uncertain, with the impact of the pandemic lingering, geopolitical tensions disrupting supply chains, and inflation rising. Climate change continues to pose an existential threat to our blue Pacific continent,” he said.

He also recalled the devastating volcanic eruption of the Hunga Tonga-Hungahapai volcano more than two years ago, and said the damage caused by the eruption was equivalent to 36% of Tonga’s GDP.

The Minister used this as an example of the stark reality facing Pacific nations and why building resilience for change is not an option but a necessity.

Ti Uti praised the Pacific community for its support to Tonga following the eruption, but acknowledged the collective response could still be improved.

He also noted that technological advances and ocean resources have the potential to drive economic prosperity.

“Technological advances offer innovative solutions for climate adaptation, financial inclusion and sustainable development. The vast marine resources of the Pacific offer important opportunities to unlock economic prosperity,” said Tiéti.

He spoke about labour mobility programmes, saying more than 50,000 Pacific Islanders were currently participating in those programmes and while remittances were important, the domestic economy was struggling.

Fiji’s Finance Minister and former economics professor Biman Prasad warned that international economic headwinds remain a concern.

He noted that the COP29 conference in Baku, Azerbaijan later this year will be a key event in the region.

“Pacific economic ministers are looking forward to working towards a foundational framework that will enable Pacific countries to access the critical climate finance they need for development and to address the fundamental challenges posed by climate change,” he said.

Population decline

Pacific researcher and economist Steve Pollard said economic ministers needed to consider the impact of a sharp population decline in parts of the region.

While much of the Pacific has seen little population growth for years, Steve Pollard said the population of the Federated States of Micronesia has fallen by 30 percent over the past decade and that of the Marshall Islands by 20 percent.

Both countries are open to the United States.

While Pollard said the issue was not new, ministers should consider the impact of such losses on the country’s ability to achieve its development goals.

“This is nothing new, it’s been going on for a while. I’m just concerned that this is something for the future,” he said.

“What is the country developing to keep these people? As an economist, I see the economic problems there and I see the lack of economic growth and therefore the lack of the ability of society to self-finance its development.”

-RNZ/PACNEWS