by Tusi Tala, Staff Writer
At the commencement of the Forum Economic Ministers Meeting (FEMM) in Suva today, the Finance Minister of Tonga, who also serves as the chair, emphasized the importance of capitalizing on growth opportunities. According to PACNEWS, discussions over the next two days will revolve around crucial economic priorities such as technology, connectivity, and the digital economy.
Tiofilusi Tiueti highlighted the ongoing challenges posed by the pandemic, geopolitical tensions, and climate change. He expressed concerns about the uncertain global economic outlook, attributing it to the persistent effects of the pandemic, disruptions in supply chains due to geopolitical tensions, and escalating inflation. Tiueti underscored the existential threat of climate change to the Pacific region, referring to the recent devastating eruption of Hunga Tonga-Hunga Haapai which resulted in significant loss and damage amounting to 36 percent of Tonga’s GDP.
Using this event as a poignant illustration, Tiueti emphasized the imperative for Pacific nations to fortify their resilience in the face of such adversities. While commending the support extended by the Pacific community following the eruption, he acknowledged areas that require enhancement in collective response mechanisms. He also highlighted the potential of technological advancements and ocean resources in driving economic prosperity, citing their role in climate adaptation, financial inclusion, and sustainable development.
Discussing labor mobility schemes, Tiueti noted that over 50,000 Pacific Islanders are currently engaged in such programs, emphasizing the importance of remittances while also highlighting the challenges faced by domestic economies. Biman Prasad, Fiji’s Finance Minister and a former economics professor, cautioned about ongoing international economic challenges and identified the upcoming COP29 conference in Baku, Azerbaijan as a pivotal event for the region.
Steve Pollard, a Pacific researcher and economist, drew attention to the significant population decline in certain parts of the region, particularly in the Federated States of Micronesia and the Marshall Islands where populations have decreased by 30 percent and 20 percent respectively over the past decade. Pollard emphasized the need for economic ministers to address the implications of such population declines on the countries’ ability to achieve their development objectives, stressing the importance of strategies to retain populations and sustain social development amidst stagnant growth.
