Fiji: Selected Issues
IMF Staff Country Reports, June 20, 2025
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Bibliographic details
- Published: June 20, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229013963.002
Key findings on climate change and sea level rise
- The paper explores the impact of climate change and sea level rise in Fiji.
- Growing climate challenges increase the need for explicit consideration of costs and benefits of alternative adaptations in coastal management and other sectors.
- Careful allocation of government resources across all possible uses, including adaptation to climate change, is essential given competing needs and distributional effects.
- Prioritizing adaptation policies with positive externalities can improve outcomes by addressing market imperfections and policies that hinder efficient private adaptation.
- Ensuring a just transition is emphasized as part of adaptation strategy.
Role of cost-benefit analysis (CBA) and distributional analysis
- Despite limitations, cost-benefit analysis (CBA) can help decision makers consistently collect, aggregate, and compare information on public adaptation projects.
- CBA, when complemented by analysis and correction of distributional impacts, can help decision makers maximize overall social welfare and avoid wasting scarce resources.
- Explicit consideration of costs and benefits can help contain fiscal costs and maximize the impact of international finance.
Policy recommendations and priorities
- Prioritize adaptation policies that generate positive externalities.
- Remove market imperfections and policies that hinder efficient private adaptation.
- Implement measures to ensure a just transition for affected populations.
- Use CBA as a systematic tool for project evaluation, coupled with targeted distributional corrections to protect equity and welfare.
Content in this bundle
- Fiji: Selected Issues; IMF Country Report No. 25/139; May 30, 2025