Pacific Officials Call for New Development Model for Region

Pacific ready to capitalize further on links to fast growing Asia

Infrastructure key to attracting private sector and foreign investors

Partnerships needed to move Pacific from isolation to connectivity

The seminar—on Global Shocks, Near-Term Challenges and Sustainable Growth—held on the sidelines of the IMF-World Bank Annual Meetings in Tokyo, explored how the Pacific islands can enhance their resilience.

Organized as a follow up to a Pacific conference in Samoa in March, the Pacific seminar cohosted by the International Monetary Fund (IMF) and World Bank, gathered finance ministers and central bank heads from 13 Pacific economies, plus representatives of international financing institutions and major development partners.

With much international attention currently focused on Europe, the seminar offered the chance to redirect attention to the challenges faced by small states, said IMF Deputy Managing Director Min Zhu, in his opening remarks.

“We thought that having a joint event at this time would be beneficial, both for our members and also for us in deepening our understanding of the region and increasing synergies in exploring our own comparative advantages,” he said.

“The international institutions and all the stakeholders should work together to bring strong growth in this region. Without growth, it is not possible to achieve fiscal consolidation and rebuild fiscal space,” he added.

Optimism amid risks

With global growth projected at 3.3 percent in 2012 and 3.6 percent in 2013, risks have increased, participants heard. However, with growth in Asia expected to be almost 6 percent in 2013 and almost 7 percent in emerging Asia, there is reason for optimism in the Pacific, said Anoop Singh, Director of the IMF’s Asia and Pacific Department.

“Yes, it’s a difficult global environment,” Singh said. “But the Pacific islands are close to Asia and Asia is a growth leader, and will remain a growth leader. This proximity gives you advantages than other regions do not have.”

While the Pacific’s links with Australia and New Zealand are well established, links with emerging Asia, including China, have also deepened, he pointed out. In the last 10 years, China has become the largest trading partner for some Pacific economies.

But while per capita incomes in East Asia have increased about 650 percent since 1980, incomes in the Pacific have only increased 37 percent, pointed out World Bank Vice-President for Asia and Pacific Pamela Cox.

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