Pacific Islanders Turn to Local Economies to Drive Post-pandemic Recovery

Excerpt from ipsnews.net

While Pacific Island countries have, so far, been spared a catastrophic spread of COVID-19, their economies have been devastated by the effects of border closures, internal lockdowns and the demise of international tourism and trade. With the global pandemic far from over, Pacific Islanders are looking to their local and regional economies to drive resilience and recovery.

In Fiji, the pandemic has led to one in three people losing their jobs. In Vanuatu, in the southwest Pacific, the combined economic losses of COVID-19 and Tropical Cyclone Harold, which descended on the Melanesian nation in April last year, are predicted to reach 68.7 percent of Gross Domestic Product (GDP). Meanwhile, extreme poverty across the region could rise to 40 percent, forecasts the Development Policy Centre at the Australian National University.

“The development and support of existing and new domestic industries and the private sector is critical to help affected families get through the economic downturn and to maintain income,” Mia Rimon, Regional Manager for Melanesia at the regional development organisation, Pacific Community, in Vanuatu told IPS.

The Pacific Islands region, with a total of 27,215 reported cases of coronavirus, as of Feb. 18, represents a fraction of the more than 100 million cases worldwide. However, the price for countries in the region of maintaining strict border closures to protect their small highly vulnerable populations is the decimation of the tourism industry.  The sector is of huge importance to island countries, such as Vanuatu, where it accounts for 46 percent of GDP, and in Fiji 39 percent of GDP. Between April and September last year, the pandemic caused monthly tourist arrivals in the Pacific Islands to plummet by 99-100 percent.