Femm Endorses Forum Economic Action Plan 2007
FEMM ENDORSES FORUM ECONOMIC ACTION PLAN 2007
12th July, 2007
The 11th Forum Economic Ministers Meeting (FEMM) held in Koror, Republic of Palau, from 10-12 July has endorsed the 2007 Forum Economic Action Plan.
Economic Ministers reaffirmed their responsibility to provide leadership on regional economic integration and agreed that FEMM must facilitate the implementation of the Pacific Plan in the areas pertaining to economic growth and good governance.
With regard to this, the Ministers considered key issues including FEMM Reform Commitments and Economic Growth; Regional Economic Integration and Labour Mobility, Regulation and Regional Economic Integration: Regional Options for Economic Regulation; An Accountable and Independent Macroeconomic and Microeconomic Technical Assistance; A Regional or Sub-Regional Customs Service, and Financial Sector Reform, Financial Sector Supervision and Regulation in Forum Island Countries (FICs).
The Ministers noted that the economic performance of a majority of members has been mixed with average growth hovering around 3.5 percent per annum for the past ten years.
They recognised that the characteristics of smallness, isolation form major world markets and vulnerability to natural disasters have been exacerbated by a number of man-made challenges including increasing globalization, limited market access, political instability, deteriorating security situations, poor governance, limited access to land and slow public sector reforms.
Country presentations by Nauru, Papua New Guinea, Samoa and Tonga regarding their economic reform efforts reinforced the key message that strong political leadership is necessary for reforms to succeed. This will enable a predictable policy environment that is conducive to private sector growth.
Ministers were updated on labour mobility issues in the context of regional economic integration and directed the Pacific Islands Forum Secretariat in collaboration with the World Bank and other donors, to more closely examine the key lessons learnt from the pilot schemes currently in place, and to provide further guidance to both the sending and recipient countries on ways of continuing to improve benefits and better managing the risks from such schemes.
The Ministers reiterated the need to improve regulation of foreign investment, competition, pricing and access, and consumer protection and fair trading and noted the potential for regional approaches to support this effort.
The Ministers noted the need for improvement of economic Technical Assistance (TA) to Forum Island Countries and urged development partners to improve co-ordination of donor assistance consistent with the Paris Declaration on aid effectiveness. This would include improved TA missions and enhanced dialogue and information sharing to lessen the demands on FICs limited human resources.
Ministers also directed the Secretariat to endeavour to work with key stakeholders to explore through a feasibility study, the viability of a targeted regional customs services at sub-regional level.
The Ministers also reiterated that prudential regulation and supervision of the financial sector remains problematic in FICs, particularly in smaller island states.
Regional approaches to support financial sector supervision and regulation in FICs were also considered. Ministers directed that the Secretariat in collaboration with the Pacific Financial Technical Assistance Centre (PFTAC) to expand on current initiatives and more closely examine the challenges and constraints in FIC supervisory frameworks as well as potential solutions including outsourcing, contracting and development of shared supervisory services.
The role of the Secretariat for the Pacific Regional Environment Programme (SPREP) in providing support to FICs in addressing threats posed by climate change to the economic growth was also highlighted.
The Meeting was chaired by Palau’s Finance Minister, Hon. Elbuchel Sadang. It was attended by representatives from Australia, the Cook Islands, Fiji, Kiribati, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. Observers comprised representatives from the Asian Development Bank (ADB), Pacific Financial Technical Assistance Centre (PFTAC), Secretariat for the Pacific Community (SPC), Secretariat of the Pacific Regional Environment Programme (SPREP), United Nations Development Programme and the World Bank.
The Ministers endorsed the invitation from the Government of Vanuatu to host the 12th FEMM next year.
(Ends)
For more information, contact Mr Sanjesh Naidu, the Forum’s Economic Adviser on phone: 680 488 0547 or email sanjeshn@forumsec.org.fj
12th July, 2007
The 11th Forum Economic Ministers Meeting (FEMM) held in Koror, Republic of Palau, from 10-12 July has endorsed the 2007 Forum Economic Action Plan.
Economic Ministers reaffirmed their responsibility to provide leadership on regional economic integration and agreed that FEMM must facilitate the implementation of the Pacific Plan in the areas pertaining to economic growth and good governance.
With regard to this, the Ministers considered key issues including FEMM Reform Commitments and Economic Growth; Regional Economic Integration and Labour Mobility, Regulation and Regional Economic Integration: Regional Options for Economic Regulation; An Accountable and Independent Macroeconomic and Microeconomic Technical Assistance; A Regional or Sub-Regional Customs Service, and Financial Sector Reform, Financial Sector Supervision and Regulation in Forum Island Countries (FICs).
The Ministers noted that the economic performance of a majority of members has been mixed with average growth hovering around 3.5 percent per annum for the past ten years.
They recognised that the characteristics of smallness, isolation form major world markets and vulnerability to natural disasters have been exacerbated by a number of man-made challenges including increasing globalization, limited market access, political instability, deteriorating security situations, poor governance, limited access to land and slow public sector reforms.
Country presentations by Nauru, Papua New Guinea, Samoa and Tonga regarding their economic reform efforts reinforced the key message that strong political leadership is necessary for reforms to succeed. This will enable a predictable policy environment that is conducive to private sector growth.
Ministers were updated on labour mobility issues in the context of regional economic integration and directed the Pacific Islands Forum Secretariat in collaboration with the World Bank and other donors, to more closely examine the key lessons learnt from the pilot schemes currently in place, and to provide further guidance to both the sending and recipient countries on ways of continuing to improve benefits and better managing the risks from such schemes.
The Ministers reiterated the need to improve regulation of foreign investment, competition, pricing and access, and consumer protection and fair trading and noted the potential for regional approaches to support this effort.
The Ministers noted the need for improvement of economic Technical Assistance (TA) to Forum Island Countries and urged development partners to improve co-ordination of donor assistance consistent with the Paris Declaration on aid effectiveness. This would include improved TA missions and enhanced dialogue and information sharing to lessen the demands on FICs limited human resources.
Ministers also directed the Secretariat to endeavour to work with key stakeholders to explore through a feasibility study, the viability of a targeted regional customs services at sub-regional level.
The Ministers also reiterated that prudential regulation and supervision of the financial sector remains problematic in FICs, particularly in smaller island states.
Regional approaches to support financial sector supervision and regulation in FICs were also considered. Ministers directed that the Secretariat in collaboration with the Pacific Financial Technical Assistance Centre (PFTAC) to expand on current initiatives and more closely examine the challenges and constraints in FIC supervisory frameworks as well as potential solutions including outsourcing, contracting and development of shared supervisory services.
The role of the Secretariat for the Pacific Regional Environment Programme (SPREP) in providing support to FICs in addressing threats posed by climate change to the economic growth was also highlighted.
The Meeting was chaired by Palau’s Finance Minister, Hon. Elbuchel Sadang. It was attended by representatives from Australia, the Cook Islands, Fiji, Kiribati, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. Observers comprised representatives from the Asian Development Bank (ADB), Pacific Financial Technical Assistance Centre (PFTAC), Secretariat for the Pacific Community (SPC), Secretariat of the Pacific Regional Environment Programme (SPREP), United Nations Development Programme and the World Bank.
The Ministers endorsed the invitation from the Government of Vanuatu to host the 12th FEMM next year.
(Ends)
For more information, contact Mr Sanjesh Naidu, the Forum’s Economic Adviser on phone: 680 488 0547 or email sanjeshn@forumsec.org.fj
