Asian Development Bank

RNZ reports the high cost of living means many people struggle to meet basic needs.

The ADB points out that there is also a lack of access to basic infrastructure, services and utilities and low levels of employment or income generating opportunities.

Of 14 Pacific countries the Marshall Islands population is the most poor, with just over half its people living below the national poverty line.

Tonga's closest neighbours, Fiji, has 31% of its population living below the poverty line and Samoa 26.9%.

Vanuatu has the lowest poverty statistics at 12.7%.

Advance copies of Finding Balance 2016, the latest edition of ADB’s landmark assessment of Pacific SOEs’ performance, were shared at the Pacific Update Conference at the University of South Pacific, Fiji.

The report finds SOE portfolios in the eight Pacific countries examined contributed only 1.8% to 12% to gross domestic product, despite their very large asset base, ongoing government cash transfers, and monopoly market positions. It also finds productivity levels of the SOEs tend to be well below developed country benchmarks.                                             

The agreements will see the TFP provide up to $12 million annually to support trade activity in Samoa.

 “It’s the first agreement of its type and I’m congratulating Samoa for taking the lead with this project and facilitating the development and the finalization of the agreement,” said Minister of Finance Sili Epa.

“ADB is the largest investor in renewable energy in the Pacific, which is still heavily reliant on diesel for power generation,” said Michael Trainor, Energy Specialist in ADB’s Pacific Department. “We are working with governments and communities to improve the quantity and quality of energy services across the region by ramping up support for the transition to renewable energy.”

The country relies on unpredictable and volatile revenue sources, such as fishing fees, licensing fees for its ".tv" internet domain, and development assistance, making fiscal sustainability a challenge.

The bank's director for the Pacific Subregional Office, Robert Jauncey, says the policy reform programme hopes to promote public procurement policies and regulations to address these challenges.

The government hopes to support public enterprise reforms and maximise government efficiency and transparency.

The Minister for the Ministry of Communication, Information and Technology, Tuisugaletaua Sofara Aveau says the Samoa Submarine Cable Company is an innovative case of private partnership.

He says it's a marriage of Samoa telecom carriers, Bluesky and Digicel, the Computer Service Limited, and Samoa financial investors the Samoa National Provident Fund, the Unit Trust of Samoa and the Samoa Life Assurance Corporation.

He made the comment during a recent visit to Fiji and cited key priorities Pacific Opportunities: Leveraging Asia's Growth that would strengthen Pacific Island countries' links with Asian countries.

On shipping, Takehiko said, initial experience in Vanuatu and Solomon Islands suggested that subsidising the private sector on a competitive basis to undertake shipping routes to remote communities could be a better approach than through inefficient state-owned enterprises.

On his first official visit to Fiji,  Nakao also called on Attorney General and Finance Minister Aiyaz Sayed-Khaiyum and Foreign Affairs Minister Ratu Inoke Kubuabola. Discussions focused on ways ADB can further enhance its support for Fiji to meet its development priorities.    

Nakao’s programme also included a visit to the ADB-supported Kinoya wastewater treatment plant near Suva and an official address at the University of the South Pacific (USP), where he discussed potential opportunities and policy priorities for Pacific island countries.

President Nakao made the statement Friday in his public lecture at the University of the South Pacific on “Pacific Islands: Development Opportunities and policies priorities.

“ADB recognises the diversity of the Pacific. The region has over 800 languages. Pacific Island economies are very different. But a regional approach to common challenges can benefit all.

“Pacific Island leaders will be discussing a new framework for Pacific regionalism at the Forum Leaders meeting in Port Moresby in early September. ADB stands ready to support their key priorities,” he stressed.

Emma Veve of the Asian Development Bank (ADB) says commodity exporters like Papua New Guinea will feel the effects of lower prices for their products and preparations must be made for this.

Veve says there will be a slow down in the number of outbound tourists from China but the market is so huge countries dependent on the China trade like Fiji and Palau will barely feel the shock.

She says the devaluation of the yuan eases the way for countries heavily reliant on imported fuel and concessionary Chinese loans.