Page 12 - IB January 2023

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In PNG there are hopes mining will resume at Pogera this year.

increases are passed on, while noting, “during the pandemic, nomic Monitor estimates a 4.8% growth rate in the region in
you were able to be more self-sufficient, producing a lot of 2023, partly fuelled by tourism earnings in Fiji, and mining in
your own food, setting an example. And sometimes when you Papua New Guinea.
have a difficult situation that leads to some good things. So However it raises some red flags; the challenge of recover-
you’ve shown you’re more capable of being self-sustaining, ing from the 2022 tsunami in Tonga, tourism’s slow recovery
and that can then have a better impact on your economy.” in Palau, and a steep increase in inflation across the board.
The UN is concerned on how slow growth will impact In its recent regional report, the ANZ said of the region’s
progress towards the 2030 Sustainable Development Goals, prospects, “the temptation is to let tourism do the heavy lift-
measures to end poverty, protect the planet, and ensure that ing, but now is the time to take advantage of the opportuni-
by 2030 all people enjoy peace and prosperity. “This is not ties a more balanced economy can bring.”
the time for short-term thinking or knee-jerk fiscal austerity It also notes the impact of remittances; particularly in
that exacerbates inequality, increases suffering, and could Tonga, Samoa and Vanuatu, in contributing to household
put the SDGs farther out of reach. These unprecedented budgets and driving consumer demand. The ANZ expects con-
times demand unprecedented action,” said António Guterres, tinued low unemployment rates in Australia and New Zealand
UN Secretary-General. and continued recruitment from the Pacific to lift remittances
There are already concerns about the Pacific region’s to near record levels in 2023.
progress towards the SDGs. In December, the Quadrennial Cara Tinio, Economics Officer from ADB’s Pacific Depart-
Pacific Sustainable Development Report was launched in Suva ment agrees, saying ensuring consistent quality in the workers
with the warning that none of the 21 targets expected to be sent, to ensure they are meeting the needs of the labour mar-
achieved in 2020 were met. It is unlikely that the Pacific will ket is important. “It’s good that the governments are focusing
achieve even 20% of the SDG targets by 2030. on upskilling, making sure that the labor force has the proper
“The situation is worrisome given that our sustainability education, the proper training,” she told Islands Business,
requires the restoration of social, economic and environmen- noting there is also a discussion about sending more women
tal stability, by investing in clean equitable growth through on these programs, “which is also a good thing as far as remit-
political frameworks and settlements that foster peace and tances goes, because I think there is evidence that they remit
partnership,” said Pacific Islands Forum Deputy Secretary more frequently. They’re meant for a longer period of time,
General, Dr Filimon Manoni at the launch. and they may have wider family ties.”
Tinio is a joint author of the ADB’s Global Economic Moni-
Banks weigh in tor, which also mentions the need for investment pathways
A number of banks and international finance organisations for seasonal or offshore workers, and encouraging domestic
say the Pacific may fare slightly better than other global entrepreneurs.
economies. The Asian Development Bank (ADB) Pacific Eco- “Training for families receiving remittances would also help

12 Islands Business, January 2023