Opening Remarks by Deputy Managing Director Bo Li at the Pacific Islands High Level Conference on Charting the Course Towards Shared Prosperity

IMF News, February 26, 2024

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Canonical URL: Opening Remarks by Deputy Managing Director Bo Li at the Pacific Islands High Level Conference on Charting the Course Towards Shared Prosperity

Event: IMF Pacific Islands Conference, the IMF’s first in the region since the COVID-19 pandemic.
Date references in the text: February 26, 2024 (title) and February 25, 2024 (page heading).
Purpose: Resume regional dialogue to discuss challenges, opportunities, and the future of Pacific Island countries.
Opening acknowledgement: Thanks to Prime Minister Rabuka for his remarks and to the people of Fiji for their hospitality.

High vulnerability to global shocks due to the region’s geography and economic structure.
Specific risks identified:
- Future commodity price spikes from geopolitical shocks and supply disruptions.
- Shipping disruptions in the Red Sea and globally, posing risks to supply chains and inflation for many Pacific Island countries.
- Growing signs of geoeconomic fragmentation, which tends to hit smaller countries harder and could seriously hamper growth in the region.
- The global climate crisis, with Pacific Island countries on the frontlines given their geography.

Timeframe: Over the next two days the conference will:
- Share ideas, knowledge, and experiences from within the region and beyond.
- Begin with issues discussed during the IMF Annual Meetings, including migration and climate.
- Present extended IMF analytical work on migration and the Blue Economy and summarize findings ahead of roundtable discussions in the first two sessions.
- Present IMF’s latest work on digital money in the third session.
Focus areas for discussion across sessions:
- Migration
- Climate
- Blue Economy
- Digital money and its policy implications

Potential benefits emphasized:
- Reducing costs of financial services.
- Enhancing financial inclusion.
- Potentially alleviating the reduction in correspondent banking relations (CBRs).
Cautionary note:
- The decision to adopt forms of digital money is complex and requires careful consideration; IMF will present its latest work during the third session.

Concern: Loss in CBRs and de-banking identified as a key regional issue.
Importance: CBRs described as a vital financial lifeline for Pacific Island countries.
Conference objective: Share views on a range of measures to help address the growing challenge of CBR loss and de-banking.

Priority: Climate finance for adaptation in Pacific Island countries will be addressed on the second day.
Problem statement:
- "The needs are enormous but access to climate finance is slim."
Collaborative approach: Discussions will include development partners, donors, and a wider group of international organizations on how to mobilize more climate finance.

Milestone: 30th anniversary of the IMF’s first-ever regional technical assistance center, PFTAC.
Evening event: Celebration of PFTAC’s 30th anniversary and reflection on achievements and future collaboration.
IMF support modalities reiterated: lending, policy advice, and capacity development.

Aim: Enhance IMF engagement in the region and solicit Pacific Island countries’ views on how to do so.
Deliverable sought: Develop a medium-term roadmap to steer IMF engagement in the years ahead.
Call to action: Work together toward a shared vision, carrying a spirit of collaboration through the program.

Personal visit: Deputy Managing Director Bo Li visited Namoli village and observed coastal protection efforts and mangrove protection against rising sea levels.
Closing message: While challenges are significant, they can be addressed through collaboration toward shared prosperity.

Opening Remarks by Deputy Managing Director Bo Li, February 25, 2024.