Poverty Matters blog

From Tuvalu to Kiribati, the outlook for Pacific island states is perilous

The challenges may seem daunting, but to preserve the environment and provide decent livelihoods, island states need to take a greener, more inclusive approach
kiribati Young boys cover each other in reef-mud
Young boys cover one another in reef-mud in the Pacific island nation of Kiribati. Photograph: David Gray/Reuters

Small island developing states in Asia-Pacific are at a development crossroads. Some have achieved middle-income status. The classification is based on several indicators, one being economic. Some are also ranked as medium human development, a measure of achievement in key areas such as health, income and standard of living. But their progress in addressing economic and environmental vulnerabilities is lagging behind.

Although island states in Asia-Pacific and other regions share several common challenges such as small size, remoteness, limited natural and human resources, and exposure to natural hazards, some challenges are unique to the Pacific.

Geographically, the Pacific island states are more remote from world markets than their counterparts elsewhere in the world. Their growing populations are spread over many small and far-flung islands, adding to the difficulties in domestic trade, providing basic services and building infrastructure.

They are more prone to natural disasters such as cyclones, hurricanes and floods. Therefore, climate change not only poses a major challenge to achieving sustainable development, but it threatens the very existence of many of them.

Atoll islands such as the republics of Kiribati, Maldives, the Marshall Islands and Tuvalu, are barely one metre above sea level, which makes them most vulnerable to climate change.

Many of them have weak economies that are heavily dependent on subsistence agriculture, fisheries, remittances and aid. This dependence makes them highly vulnerable to climate change-related natural disasters, global economic shocks and aid volatility.

Low life expectancy is a major issue, linked to high infant and adult mortality rates. This is also linked to high rates of non-communicable diseases such as diabetes and heart problems.

Low and volatile growth has made job creation difficult, many live below the poverty line, and female and youth unemployment remain high. The average unemployment rate in the large and growing youth population is 23% compared with a global average of 13%.

Education and training often do not meet market demands. This mismatch needs to be addressed because unemployed young people are vulnerable to social exclusion. Such exclusion could lead to unrest, social and political instability, and crime. Increasing public investment in developing skills would lead to decent employment opportunities and boost economic growth.

As young people migrate to cities and abroad to seek jobs, they often leave behind older people who need special care, fracturing traditional family and community support systems.

This migration is contributing to growing urbanisation, raising questions about sustainable development. If managed properly, urbanisation can help accelerate economic growth and address climate change challenges by designing denser, more compact cities, increasing energy efficiency, and reducing travel time and costs.

This is where governments can play a critical role. The success of development strategies depends on vision, political will and the quality of governance and administration. Pacific governments are committed to enhance the inclusiveness and sustainability of growth and human development. Though most of these states are democracies, much of the uneven development is linked to differences in the quality of governance. Therefore, there is an urgent need to strengthen institutions, improve public administration and service delivery, reduce corruption, and enhance the rule of law and access to justice.

The public sector remains the biggest employer in most of the region, but the private sector needs to be nurtured through entrepreneurship training and credit being made available for young people to accelerate economic growth and create jobs.

These challenges call not only for stronger governance but renewed public investment to forge a better future for the Pacific island states.

Next week, the third international conference on small island developing states, in Apia, Samoa, will focus global attention on the development challenges confronting Pacific island countries. It will allow them to join debates about targets for when the millennium development goals expire next year that reflect their specific concerns about poverty, vulnerability, exclusion and sustainability.

At the conference, the UN Development Programme (UNDP) will launch a regional report on the economic and social dimensions of vulnerability and exclusion in the Pacific, based on new data and analysis. The report highlights how poverty and inequality are growing in the region. It makes eight recommendations, including: developing Pacific-specific indicators of poverty and exclusion to improve policy; reforms to improve economic efficiency and promote inclusive growth; strengthening social protection programmes; improving access to education, skills training and healthcare; and adopting a green-growth path.

The challenges may seem daunting, but to preserve the environment, reverse ecological destruction and provide decent livelihoods, the Asia-Pacific island states need to take a greener, more inclusive and resilient approach to development. Only by addressing vulnerability and exclusion can development become more equitable and sustainable.

• Haoliang Xu is the UN assistant secretary general and UNDP regional director for Asia and the Pacific

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