A Pacific Strategy for the New Millennium

Abstract

The Pacific strategy for the new millenium responds to five key development challenges facing the Pacific developing members countries (PDMCs) over the medium term: (i) disappointing macroeconomic and growth performance over the last decade; (ii) increasing poverty, particularly in Papua New Guinea (PNG), Solomon Islands, and Vanuatu; (iii) continuing reliance on large government investments due to inadequate private sector response; (iv) increasing environmental degradation; and (v) little progress in strengthening the role of women in political, economic, and social spheres. To address these challenges, the strategy examines key variables: (i) vulnerability of the Pacific island economies, because of their remote locations, narrow resource base, susceptibility to natural disasters, and the influence of the global markets; (ii) political instability and good governance; (iii) limited availability of skilled human resources; (iv) the wide range of socio-cultural factors influencing politics and productivity; (v) rising population growth rates; and (vi) inadequacy of physical, technological and financial sector infrastructure necessary to underpin sustainable growth.