Fiji Shares Economy Experience at Forum Meet

Fiji shared with the region its experience and strategies for responding to the economic crisis brought on by the COVID-19 pandemic. It did so at the 23rd Forum Economic Ministers Meeting (FEMM) which was held virtually the past two days.

The FEMM 2020 Chair, Tuvalu Minister for Finance, Seve Paeniu told a virtual press conference yesterday that Fiji highlighted three key issues:

■the regional COVID-19 Economic Recovery

Taskforce

■the Development partners meeting which will be crucial to raising finance for stimulus and other measures to support livelihoods and businesses

-■Fiji’s own experience in response to the impact and implications of COVID-19.

The Fijian delegation was led by the Minister for Economy and Attorney-General Aiyaz Sayed-Khaiyum.

Minister Paeniu was supported by the Secretary General of the Pacific Islands Forum, Dame Meg Taylor.

The Economic Ministers of the Pacific Islands Forum also expressed their grave concerns about the severe and disproportionate and unpredictable impacts of COVID-19 on the livelihoods of people around the world It also includes the small, isolated and vulnerable economies of the Blue Pacific region.

■Dame Meg highlighted that they recognised the severe consequences caused by the coronavirus pandemic (COVID-19) to global and national economies, with impacts on the livelihoods and prospects of our people to be felt for some time.

■She commended Members for rising to the extraordinary challenges posed by the pandemic, and reminded of the growing uncertainty about the future of the Blue Pacific due to inherent and persistent vulnerabilities that continue to challenge the region’s resilient development and security, and which have been amplified by the COVID-19.

■She encouraged Ministers to envisage the “new normal” post-COVID-19 for the region, whether to wait until the global economy recovers, or to use the opportunity to assert a regional economy that supports Pacific priorities, and to consider investments, policies and partnerships required to secure the region’s economic resilience and the wellbeing of its people now and into the future.

Next FEMM host

■Vanuatu will host the FEMM in 2021, as decided by Economic Ministers at their 2018 and 2019 meetings, subject to the COVID-19 situation, and further noted the interest expressed by Tonga to be a reserve host for 2021;

The 2022 and 2023 FEMM will be held at the Pacific Islands Forum Secretariat in Suva, in accordance with the FEMM Charter; and

Some key highlights from the ministers were:

■They acknowledged that the containment measures adopted by Forum Members have been largely successful, with relatively low numbers of COVID-19 cases compared to other parts of the world.

■However, they recognised that strictly-imposed border restrictions have had substantial flow-on economic impacts on the movement of people, trade and essential goods and services across the region.

■They acknowledged the steps and measures taken by development partners, CROP agencies and other regional entities in realigning their programmes, activities and resources to focus on improving data, understanding and supporting the mitigation of the pandemic’s impacts on Forum Members, including through innovative use of online technologies.

■They recognised that sound and timely data is essential, and emphasise the need to invest in data to track the needs and progress towards achievement of goals and objectives.

■They recognised that the impacts on our economies differ across the region. Tourism has essentially come to a complete standstill since the border closures in late March.

Many Forum Island Countires (FICs) are highly dependent on tourism flows for employment, incomes and public and private sector revenues.

Countries with high dependency on tourism have lost between 30 per cent – 40 per cent of national incomes with SME tourism businesses disproportionally impacted. Air services have collapsed, affecting connectivity and the financial viability of our airlines. COVID-19 border closures have also exacerbated ongoing challenges in aviation and shipping.

■They note that employment levels have declined substantially in directly and indirectly affected sectors, where household incomes have also plummeted, while informal sector activity has increased as displaced and newly unemployed families seek other sources of income and livelihood.

■Women’s economic security has been diminished and needs specific attention.

■Remittance inflows to the region, as well as export revenues from key sectors, including fisheries, minerals, logging and agricultural primary commodities, have dropped significantly in 2020.

■The meeting was attended at Ministerial level by Australia, Cook Islands, Fiji, Nauru, New Zealand, Niue, Samoa, Tonga, Tuvalu and Vanuatu. French Polynesia, Kiribati, New Caledonia, Marshall Islands, and Solomon Islands were represented at officials level.