Page 44 - Islands Business May-June 2022

Debt and Youth

YOUTH RAISE CONCERNS OVER

DEBT LEVELS

By Leila Parina

“25 years from now – my children, your grandchildren
are at a risk of potential tax and financial burdens that will
be crippling if nothing is done today to reduce our region’s
growing debt.” This was the warning of youth leader Josaia
Tokoni at last month’s Regional Debt Conference.
The conference, the first of its kind, was convened to
enable discussions between Forum Island countries, creditors Josaia Tokoni
and development partners about debt and financing solutions.
It came amid concerns around the level of debt being taken
on by some Pacific Island countries in the wake of the
COVID-19 pandemic.
The conference’s full outcomes are yet to be made public.
They will go to the Forum Economic Ministers Meeting in
Vanuatu later this year.
Youth representatives, Josaia Tokoni and Kim Allen were
among the attendees at last month’s virtual event. Tokoni
represented the Pacific Youth Forum Against Corruption and
Pacific Youth Council, while Allen represented the Pacific
Islands Forum Secretary-General’s Young Climate Leaders
Alliance and the Pacific Resilience Partnership Youth Working Kim Allen
Group. Their networks have members from across the region. earthquakes, drought, floods and cyclones.
The conference convened as the latest Debt Sustainability Allen says while there have been improvements in access to
Assessments by the International Monetary Fund determined health and education, more needs to be done to secure the
that several Pacific Island countries are at high levels of future of young people. “Despite the economic situation and
debt distress due to COVID-19’s impact on revenue, elevated climate impacts, young people are resilient through our social
fiscal deficits and increased pressure on borrowing. Tokoni structures and our subsistent way of life.”
said the debt issue as “generational”, and that spending Allen suggests that Pacific Island member states should
on consumption only leads to an “increased burden” in the “harness the potential of young innovators and creators,
future for young Pacific Islanders. He is concerned that much small and medium enterprises, youth incubation centres
of his generation are unaware of the implications of the high and training programs to create market platforms that allow
debt levels and its impact on their future. economic prosperity and improved livelihoods at community
Tokoni presented six points of concern for young people, levels.” He also called for more support in financial support
including developing credible alternative financial options, systems, mentorship programs and education to empower
green recovery solutions, anti-corruption, inclusion of all young people to be entrepreneurs.
stakeholders, collective bargaining and unity, and innovation. “Young people want to be part of the solution,” he said.
“We can no longer afford to be pawns and create a legacy of Solomon Islands student Coralie Pita said the debt burden is
debt slavery for the next generation.” a big issue in her country. “On the good side it helps improve
Kim Allen shared similar sentiments in his remarks. “The services such as education, health” while also expressing
simple truth is that the future of young people is at risk from concern that if the government continues to borrow, it will
debt implications and the impacts of climate change.” gravely affect future generations.
The young Papua New Guinean said young people are Youth representatives to the aid conference acknowledged
facing financial hardship already, with many young workers the value of being given space to represent the voices of the
complaining that their salaries and wages remained the same Pacific’s young people.
whilst the prices of tax, goods, and services continued to rise. As Allen said, they want to stay engaged. “Together, we
Youth unemployment in the Pacific urban settings is high at can correct our actions toward debt, and become leaders
23% (International Labour Organisation) compared to 12.6% in renewable energy, sustainable agriculture and fisheries
in other parts of the world. The region’s young people face - pathways towards a green and blue economy. This is the
compounding threats from climate change, including rising future we want.”
sea levels, water salinity, food scarcity, and increasingly
frequent natural disasters including volcanic eruptions, editor@islandsbusiness.com

44 Islands Business, May-June 2022