Systematic Country Diagnostic for the Eight Small Pacific Island Countries

Abstract

This Systematic Country Diagnostic (SCD)
 covers eight small Pacific island countries (PIC8):
 Kiribati, Marshall Islands, the Federated States of
 Micronesia, Palau, Samoa, Tonga, Tuvalu, and Vanuatu. The
 objective of the SCD is to identify the most critical
 constraints and opportunities facing the PIC8 to meet the
 global goals of ending absolute poverty and boosting shared
 prosperity in a sustainable manner. The report is intended
 to help these countries, the World Bank and other
 development partners establish a dialogue to focus their
 efforts around the key priorities and activities that have
 high impact and are aligned with the two goals. The regional
 approach of this SCD is driven by the similarity of
 development challenges faced by these countries and the
 importance of regional solutions to these challenges. The
 SCD also highlights that economic opportunities available to
 the Pacific island countries are limited. While these
 opportunities have been known for a long time, the
 experience of most of these countries in realizing these
 opportunities has been disappointing, reflected in the poor
 growth performance of the PIC8. A realistic assessment of
 these opportunities as well as of the measures needed to
 realize them is essential. In this context, deep sea mining
 is seen by some of the PIC8 as the next big opportunity,
 while at the same time many raise concerns about its
 possible environmental impacts. This is thus an area that
 would benefit from an objective assessment of risks and
 opportunities that could inform policy choices in the PIC8.
 With the liberalization of telecoms markets and investments
 in fiber-optic cables that connect many of the PIC8, new
 opportunities to overcome the tyranny of distance through a
 focus on knowledge products may become available and deserve
 a critical assessment. The Pacific Possible research program
 led by the World Bank Group is providing new insights into
 the potential of these game-changers.