PACIFIC island countries need a jobs strategy built around three pillars: reliable infrastructure, stronger private-sector lending and better use of available capital.
World Bank Lead Economist for Papua New Guinea and the Pacific Islands, Ralph van Doorn, said the region faced structural limits that governments cannot change.
“There’s the cost of remoteness, the cost of smallness, the cost of being in a dispersed archipelago,” he said, adding that climate risk adds another layer of pressure.
Within those constraints, he said policy should focus first on what he called the foundations of growth: physical capital, human capital and digital foundations.
“That means resilient infrastructure to connect people to markets, education, skills and health, as well as reliable energy, clean water, transport and digital connectivity.”
He also pointed to migration as an underused economic asset.
“Pacific workers who leave for seasonal or other jobs often return with new skills, raising the question of “how can you harness the skills and experience that they have acquired there?”
The second pillar, he said, is the private sector. With public debt high across much of the region, he shared that domestic firms, especially micro, small and medium-sized enterprises, will need better access to finance if they are to create jobs.
“How can you connect the banks and the aspiring firms?” he asked.
Doorn said countries can also improve the business environment by lowering the cost of doing business and expanding access to larger markets.
Because domestic markets are small, he said, governments should look toward tourism, digital services and exports to nearby economies.
“Several countries have already launched online business registration platforms, and the Pacific Islands Forum has developed a regional trade facilitation strategy to reduce the costs and time required for trade.
“It cannot reduce the distance, but it can reduce the cost of distance,” he said.
The third pillar is liquidity, including remittances and private capital that could be directed into productive investment.
He added development partners are working with banks to reduce the risk of lending to small businesses through first-loss guarantee frameworks.
He also stressed the importance of maintaining cross-border banking relationships to support remittances, trade and grants.
The remarks also pointed to sector opportunities in tourism, agribusiness, fisheries, resilient infrastructure, health and care services and digitally delivered work.
But Doorn advised that Pacific economies should not chase volume at the expense of capacity.
In tourism, for example, he said countries often want “more revenue per tourist” without adding too many visitors that could strain infrastructure and the environment.
He cited niche attractions such as whale watching in Tonga and volcano tourism in Vanuatu as examples of how Pacific countries can move up the value chain and create better jobs.
“The same logic applies to infrastructure and energy systems, where resilience will require more maintenance, more digital management and new technical skills.
“The bottom line is there has to be coordination, and the governments, employers, financiers and training systems will need to align if the region is to ‘move up this jobs ladder at its own pace.”
