## 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](https://www.imf.org/en/news/articles/2024/02/26/sp022524-boli-charting-the-course-towards-shared-prosperity)

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## Bibliographic details
- Published: February 26, 2024

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### Context and opening
- 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.

### Key challenges highlighted
- 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.

### Conference agenda and IMF analytical work
- 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

### Digital money — opportunities and cautions
- 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.

### Financial infrastructure, correspondent banking relations (CBRs), and de-banking
- 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.

### Climate finance and adaptation
- 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.

### Capacity development and historical milestone
- 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.

### IMF engagement and next steps
- 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 observations and closing
- 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.*

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## References

- [Bo Li](https://www.imf.org/en/About/senior-officials/Bios/bo-li)
- [Republic of Fiji and the IMF](http://www.imf.org/external/country/FJI/index.htm)
- [Speeches](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2024/02/26/sp022524-boli-charting-the-course-towards-shared-prosperity_