World Bank Group’s support for Fiji gives us strength to move economy in right direction

January 21 was a significant day in the 2021 calendar of our Fijian economy. This was the day that the Board of Executive Directors of the World Bank Group (WBG) discussed the new framework for its engagement with Fiji over the next four years.

The World Bank says it is aimed at boosting the Fijian economy and strengthening its fiscal, climate and social resilience following the impacts of two tropical cyclones, and the devastating fall-out from the COVID-19 pandemic.

The World Bank Group’s Country Partnership Framework for Fiji, the first for Fiji, provides a strategic road-map of priority activities for World Bank Group member organisations: the World Bank; the International Finance Corporation (IFC) which focuses on the private sector in developing countries; and the Multilateral Investment Guarantee Agency (MIGA), which offers risk insurance and credit enhancement guarantees.

This level of support enhances our capacity to focus on recovery from the economic and social impacts of COVID-19, as well as severe Tropical Cyclones Harold and Yasa.

They have added on to ongoing pressures and challenges presented by climate change. The WBG directors made reference to an earlier statement by Attorney-General and Minister for Economy Aiyaz Sayed-Khaiyum on the issue. It is in recognition of the work he has done in getting us to this point. He had said “Service-based economies like Fiji’s have been worst-hit by the COVID-19 pandemic, compounding our already-extreme vulnerabilities to climate change. Our partnership with the World Bank holds the potential to enhance our resilience to an array of external shocks, including the impacts of lethal pathogens and a warming planet.

“The pace of our recovery over the next 12 months will determine our ability to meet the stated aims of this four-year partnership. With the right support and access to adequate finance, the Fijian economy can indeed emerge stronger and more capable of seizing new opportunities. But we must seek more than a short-term recovery. Together with the World Bank, we hope to shape an international financial system that is more inclusive and more responsive to the development priorities of small states and the Global South.”

These are profound words and the WBG Framework for Fiji has responded with two major focus areas:

■ Focus Area 1: Fostering Private Sector-led Growth and Inclusive Economic Opportunities – focuses on creating investment and business opportunities; more jobs; improved access to finance; boosting the tourism and agriculture sectors; as well as better infrastructure, digital services and more clean energy.

■ Focus Area 2: Building Resilience – includes support to help Fiji gain access to funds both before and after a disaster strikes; improve emergency planning and increase resilient infrastructure; protect the environment and develop a sustainable Blue Economy; strengthen community resilience to climate and public health emergencies; and provide social assistance to help families and businesses that are in critical need.

The framework is underpinned by an emphasis on strengthening governance and supporting gender equality.

What we need to do now is to focus on the task at hand and comply with the requirements set by the WBG.