As the Forum Economic Ministers Meeting (FEMM) kicks off in Suva today, Tonga’s Finance Minister and FEMM Chair, Tiofilusi Tiueti, highlighted the importance of addressing regional economic challenges and seizing opportunities for growth.
He acknowledged the efforts of Secretary General Waqa and his team for their strong leadership in guiding the region towards prosperity.
Tiueti emphasised the 2050 Strategy for the Blue Pacific Continent as a crucial guide for future prosperity and sustainability.
“Our theme this year, ‘Accelerating Transformative Resilience in the Pacific: Partnerships for Prosperity,’ underscores the need for our Blue Pacific Continent to collectively address challenges and promote shared growth,” he said.
Over the next two days, the ministers will focus on key economic priorities, including technology, connectivity, and the digital economy.
Tiueti highlighted the ongoing impact of the pandemic, geopolitical tensions, and climate change on the region.
“The global economic outlook remains uncertain, with lingering pandemic effects, geopolitical tensions disrupting supply chains, and rising inflation. Climate change continues to pose an existential threat to our Blue Pacific Continent,” he noted.
Reflecting on the devastating eruption of Hunga Tonga-Hunga Haapai in January 2022, Tiueti illustrated the urgent need for transformative resilience.
“The eruption caused significant loss and damage equivalent to 36 percent of Tonga’s GDP,” he recalled.
“This is just one example of the harsh realities we face in the Pacific, and why building transformative resilience is not a choice, it is a necessity.”
Tiueti praised the Pacific community’s support for Tonga in the aftermath of the eruption but acknowledged areas for improvement in collective response.
“The scars of Hunga Tonga-Hunga Haapai underscore the critical importance of our theme: ‘Accelerating Transformative Resilience in the Pacific: Partnerships for Prosperity.’ We must build back better, focusing on long-term resilience,” he urged.
He also pointed out the potential of technological advancements and ocean resources in driving economic prosperity.
“Technological advancements offer innovative solutions for climate adaptation, financial inclusion, and sustainable development. The vast ocean resources of the Pacific offer significant opportunities for unlocking economic prosperity,” Tiueti said.
In a traditional Pacific discussion forum, known as a talanoa session, the ministers will engage in open dialogue on unleashing Pacific resilience through partnerships and innovation. They will also consider the draft Pacific Roadmap for Economic Development (PRED), which aims to strengthen regional economic integration and collaboration.
Tiueti acknowledged the progress made in regional economic cooperation but stressed the need for greater efforts.
“Whilst we have made good progress in some areas, we need to work harder to extend this to other sectors,” he said, noting the need for harmonising systems and processes to boost trade, labour mobility, and private sector investment.
“Whilst we have benefitted from the Australian and New Zealand labour mobility schemes, and the increasing opportunities for permanent migration, these have come at a cost to our domestic economies.
“The latest figures indicate that over 50,000 Pacific Islanders are now working on these schemes. Remittances are certainly important sources of income for many families. But our domestic economies are languishing through a loss of labour and a lack of sound new business and investment opportunities.
“Our rural areas and outer islands are losing their populations making it more costly for our governments to provide public services. I recommend Minsters to carefully study the paper on the assessment of socio-economic impacts of human migration,” Tueti stressed.
Critical issues such as correspondent banking relationships, climate finance, and public financial management will also be discussed, along with the importance of collaboration between Forum Island Countries, development partners, and the private sector.
“The impacts of climate change and disasters continue to pose existential threats to our Pacific economies and communities. We need to be more vigilant and aggressive in strengthening the resilience of our communities,” Tiueti emphasised.
Tiueti also called for a collaborative mindset among the ministers.
“By working together, we can create a stronger and more successful Blue Pacific Continent that will benefit future generations. Our meeting this week presents a unique opportunity to chart a new course for our Blue Pacific,” he said
Tiueti expressed optimism for productive discussions and fruitful deliberations over the next two days.
