The International Monetary Fund (IMF) is backing digital transformation and targeted capacity building as key tools to strengthen Pacific Island economies in the face of growing global and regional challenges.
Speaking to PACNEWS, Nada Choueiri, Deputy Director of the IMF’s Asia & Pacific Department, said digital connectivity is already improving access to financial services across the region—but also warned of new risks that come with it.
“We see great potential from digitalisation to benefit communities in Pacific Islands,” Choueiri said.
“Digital innovation means greater connectivity, and hence greater access to services, including financial services: someone can have access to financial services available to them from their phone, no matter where they are.”
She said the region has seen rapid adoption of mobile apps for transferring money, paying bills, and other services, especially given the geographic isolation of many islands. But the benefits also come with threats.
“Some people can fall prey to online scams, and there’s a risk of online tools being used to transfer illicit money. So, we are working with the authorities to share lessons from good examples and to guard against the risks of money laundering,” Choueiri told PACNEWS.
Beyond digital development, Choueiri pointed to limited administrative and technical capacity as a major challenge to implementing economic reforms across the Pacific.
“The IMF has paid close attention to the needs of small and developing states around the world. One of the common themes is the need to develop capacity,” she said.
She outlined the Fund’s support across areas such as fiscal policy, financial regulation, and data collection.
“We regularly provide assessments to governments of public financial management, public investment management, public spending, taxation systems, and governance,” Choueiri said.
“In the case of the Pacific, we have a team of technical experts based in Suva to work with governments in the region to train staff, provide advice on best practices, and help them meet international standards.”
Looking ahead, the IMF will continue to focus on economic stability and long-term resilience.
“That will remain the core focus of our surveillance,” Choueiri said.
“There are some issues particularly important for Pacific Islands: for example, how to develop the blue economy, which is an important source of growth and revenue; how to increase resilience to natural disasters and adapt to climate change… and how to make sure that countries have full access to the global financial system,” she said.
