Global economic crisis a concern for FICs
PRESS STATEMENT (118/08)
28th October 2008
GLOBAL ECONOMIC CRISIS A CONCERN FOR FICs
The effects of the global economic crisis is a cause of concern for Forum Island Countries (FICs) “but in these times of crisis there are openings and opportunities for FICs through regional cooperation.”
Speaking at the opening of the 12th Forum Economic Ministers Meeting in Port Vila, Vanuatu today, Secretary General of the Pacific Islands Forum Secretariat, Tuiloma Neroni Slade said: “There is cause for concern about the global economic situation and, for Forum Island Countries, cause for concern about impacts on the demand for our exports and services and, more seriously, for tourism.”
“But in times of crisis, there are openings and opportunities. We need, as a region, to take charge of a challenging situation to demonstrate the resilience Forum states have shown in past crisis. We need in particular to re-assess and renew commitment to sound policies and structural reforms. This would be a good opportunity to re-assert prudence and re-invigorate sound surveillance and management systems,” Mr Slade said.
He added: “There is reason to be positive about the fall in oil prices, although there is likely to be continuing fluctuations in oil prices. There is also the dip in food prices over the last few months, which may slow down the high inflation experienced so far this year.
“However, it needs also to be appreciated that current oil and food prices remain at much higher levels than experienced on average in the last five years. This remains a significant concern for policy makers in our region, particularly given the reliance of Pacific Island Countries on imports.”
Mr Slade said given the current situation there is significance in the adoption of ‘energy and food security’ as the theme for FEMM 08.
“We believe the sharing of country experiences on ways to dealing with high food and fuel prices will be beneficial in helping with the policy choices for the way ahead. We expect these discussions will conclude with identification of development partner support,” said Mr Slade.
During the two-day FEMM, Ministers will discuss among others, a draft Memorandum of Understanding for the bulk procurement of petroleum, the Pacific Regional Audit Initiative, Temporary Movement of Labour, Regional Options for Financial Sector Supervision in FICs and the 2008 Biennial FEMM Stocktake.
There will be also presentations from the international financial institutions like the World Bank and the Asian Development Bank on the global economic crisis, effects on the FICs economies and possible measures to mitigate the impact on their economies.
The Prime Minister of Vanuatu, Hon.Edward Natapei opened the meeting. It is being chaired by the Vanuatu Minister of Finance and Economic Development Hon. Sela Molisa.
ENDS.
For more information contact Johnson Honimae, the Forum Media Officer on phone 678 22313 (Le Lagon Resort) or email: johnsonh@forumsec.org.fj
28th October 2008
GLOBAL ECONOMIC CRISIS A CONCERN FOR FICs
The effects of the global economic crisis is a cause of concern for Forum Island Countries (FICs) “but in these times of crisis there are openings and opportunities for FICs through regional cooperation.”
Speaking at the opening of the 12th Forum Economic Ministers Meeting in Port Vila, Vanuatu today, Secretary General of the Pacific Islands Forum Secretariat, Tuiloma Neroni Slade said: “There is cause for concern about the global economic situation and, for Forum Island Countries, cause for concern about impacts on the demand for our exports and services and, more seriously, for tourism.”
“But in times of crisis, there are openings and opportunities. We need, as a region, to take charge of a challenging situation to demonstrate the resilience Forum states have shown in past crisis. We need in particular to re-assess and renew commitment to sound policies and structural reforms. This would be a good opportunity to re-assert prudence and re-invigorate sound surveillance and management systems,” Mr Slade said.
He added: “There is reason to be positive about the fall in oil prices, although there is likely to be continuing fluctuations in oil prices. There is also the dip in food prices over the last few months, which may slow down the high inflation experienced so far this year.
“However, it needs also to be appreciated that current oil and food prices remain at much higher levels than experienced on average in the last five years. This remains a significant concern for policy makers in our region, particularly given the reliance of Pacific Island Countries on imports.”
Mr Slade said given the current situation there is significance in the adoption of ‘energy and food security’ as the theme for FEMM 08.
“We believe the sharing of country experiences on ways to dealing with high food and fuel prices will be beneficial in helping with the policy choices for the way ahead. We expect these discussions will conclude with identification of development partner support,” said Mr Slade.
During the two-day FEMM, Ministers will discuss among others, a draft Memorandum of Understanding for the bulk procurement of petroleum, the Pacific Regional Audit Initiative, Temporary Movement of Labour, Regional Options for Financial Sector Supervision in FICs and the 2008 Biennial FEMM Stocktake.
There will be also presentations from the international financial institutions like the World Bank and the Asian Development Bank on the global economic crisis, effects on the FICs economies and possible measures to mitigate the impact on their economies.
The Prime Minister of Vanuatu, Hon.Edward Natapei opened the meeting. It is being chaired by the Vanuatu Minister of Finance and Economic Development Hon. Sela Molisa.
ENDS.
For more information contact Johnson Honimae, the Forum Media Officer on phone 678 22313 (Le Lagon Resort) or email: johnsonh@forumsec.org.fj
