At the opening of the Special Forum Economic Ministers Meeting (FEMM) in Tonga on Wednesday, Forum Secretary General Baron Waqa addressed key global and regional challenges, highlighting the importance of collective action for economic recovery, resilience, and sustainable growth in the Pacific.
The meeting, hosted by Tonga, marks a key moment for Pacific countries as they work together to address critical regional economic issues, especially those related to the ongoing global shifts in geopolitics and economic policies.
Waqa warmly welcomed Dr ‘Aisake Valu Eke, Prime Minister and Minister for Finance of Tonga, as the newly appointed Chair of the FEMM, acknowledging his leadership and the significance of Tonga hosting this key meeting.
He also stressed the importance of cooperation among Forum member countries, particularly as the region faces several challenges, both from within and beyond the Pacific.
“We gather here today, for this Special FEMM, I am once again reminded of the importance of our collective goal and efforts through the 2050 Strategy for the Blue Pacific Continent to promote economic recovery, resilience, sustainable, and inclusive growth across our Blue Pacific,” Waqa said.
He emphasised that despite the challenges the region faces, the Pacific remains united in its vision, as articulated in the 2050 Strategy for the Blue Pacific Continent.
One of the critical themes in Waqa’s address was the growing concern over the global economic climate, particularly the impact of recent policy shifts by the United States government.
Waqa noted that the Pacific region, though geographically distant from some of these shifts, would not be immune to their effects.
The changes in U.S policy—especially cuts to development funds—are already beginning to have an impact on the region’s economy, with rising consumer prices and reduced economic activity being immediate concerns.
“We must recognise that the policies and measures being taken by the new U.S Government are having global implications, from which we will not be immune. We cannot ignore these global developments. They will inevitably have an impact on consumer prices and the general level of economic activity in our region.
The Secretary General emphasised that these global developments would likely lead to greater geopolitical tensions and competition, both among traditional and non-traditional political and development partners.
As nations around the world adjust to these changes, the Pacific region may find itself at the centre of a new geopolitical landscape, with powers vying to increase their influence and partnerships.
“The global geo-political uncertainties, especially the cuts to the U.S development funds, are also likely to continue to attract attention to the region from traditional and non-traditional political and development partners keen to fill the gaps,”Waqa cautioned.
Despite these uncertainties, Waqa stressed the importance of the Pacific Islands Forum’s unity. He reminded Ministers of the vision outlined in the 2050 Strategy, which calls for a region of peace, harmony, security, and prosperity—where all Pacific peoples can live healthy, productive lives. This vision, he emphasised, should guide the Pacific’s response to the challenges ahead.
“As Pacific Leaders, our vision is for a resilient Pacific Region of peace, harmony, security, social inclusion and prosperity that ensures all Pacific Peoples can lead free, healthy and productive lives”. We must never forget that this is our overarching goal, to be achieved through regional economic cooperation and integration in support of regional collective actions that in turn support national priorities.
With these global and regional dynamics in mind, the Secretary General outlined the key items for discussion at the meeting.
The first major agenda item was the Pacific Roadmap for Economic Development (PRED), which aims to drive the region’s economic agenda in alignment with the 2050 Strategy. Waqa emphasised the importance of adopting the PRED as a critical tool for ensuring the future prosperity of the Pacific peoples. He noted that the PRED had undergone nearly three years of consultations, involving member nations, development partners, and stakeholders to ensure that it reflected the diverse needs of the region.
“The PRED has now been nearly three years in the making; it has involved extensive consultation and reviews with members, partners and stakeholders. This also includes a careful review of all the region’s national development plans to assist in identifying suitable regional projects that would complement and support the achievement of national priorities,” he explained.
The second agenda item was the draft Climate Finance Access and Mobilisation Strategy (CFAMS), a critical initiative aimed at mobilising both public and private sector funding for climate change initiatives.
The strategy seeks to secure innovative financing solutions to support regional projects focused on climate change and disaster resilience—two of the most pressing challenges facing the Pacific.
Waqa emphasised the importance of leveraging private sector investment, alongside traditional government funding, to ensure that the region has the resources it needs to tackle the growing climate crisis.
“The CFAMS is aimed at mobilising innovative, public and private financing opportunities to support regional programmatic initiatives linked to the 2050 Climate Change and Disaster thematic outcomes. It will cover the potential pathways to engage private sector investment and leverage innovative financial mechanisms to secure necessary funding for implementing climate actions,” he said.
The third and final agenda item was the Pacific Resilience Facility (PRF), which Waqa described as an essential regional mechanism for strengthening the Pacific’s resilience to climate change and natural disasters.
Ministers were tasked with considering the draft establishment agreement for the PRF, including its treaty framework and governance arrangements. This facility, once fully operational, will provide financial and technical support to Pacific Island nations, helping them to better prepare for and respond to the impacts of climate change and disasters.
Waqa highlighted the PRF as a critical part of the Pacific’s long-term strategy for resilience, noting that the facility would play an essential role in coordinating efforts and resources across the region.
He also provided updates on the ongoing work to finalise the facility’s operational policies and fundraising plans for 2025.
“The Pacific Resilience Facility’s (PRF) draft Establishment Agreement (Treaty) and the pathway to Treaty signing and ratification at the 54th Pacific Island Forum Leaders Meeting. The paper also provides updates on the draft Rules of Procedures and core operational policies, PRF transitional governance and operational arrangements, progress towards PRF capitalisation and the high-level advocacy fund-raising plan for 2025, the status of the PRF financial rules modelling, and the PRF set-up budget and work plan for 2025-2026,” he explained
Waqa called for renewed solidarity among Pacific countries, stressing that the strength of the Forum lies in its unity. As the region grapples with a complex mix of geopolitical, economic, and environmental challenges, cooperation and collaboration are more important than ever.
“The Pacific Islands Forum has always been a source of mutual reassurance and support for Members in uncertain times as we are currently facing with increasing trade wars, continued conflicts and tensions in Europe and the Middle-East, as well as in parts of Asia.
“In these challenging times, solidarity and cooperation among our Member States are more important than ever. The strength of the Forum lies in our unity; by cooperating and working together, we can navigate the complexities of the current geo-political situation and uncertainties in the global economy,” he said.
Waqa also reaffirming the Forum Secretariat’s commitment to supporting the work of the FEMM and ensuring the continued success of the region’s economic and climate resilience initiatives.
He expressed confidence in the Pacific’s ability to chart a course toward a prosperous and sustainable future.
