Financing the SDGs in the Pacific: Maximizing new opportunities

07 Dec 2016 by Gail Hurley, Policy Specialist, Development Finance, UNDP

Pacific island nations like Tuvalu must secure resources not only to meet development priorities but also to adapt to climate change. UNDP photo
Pacific island countries such as Kiribati, Tuvalu and Vanuatu are among the countries most vulnerable to extreme weather events and climate change. Just last year, Cyclone Pam ripped through Vanuatu and caused damages estimated at over 60 percent of GDP, in addition to 11 lives lost and widespread damage to homes and livelihoods. The Asian Development Bank estimates that the Pacific loses US$300 million a year through disasters alone. And such events are expected to become more frequent and more severe with the predicted impacts of climate change. With Pacific islands at the forefront of climate change impacts, they need to secure resources not only to meet development priorities such as improving health and education but also to adapt to climate change, build resilience and withstand sudden (often very large) economic and environmental shocks. Where will these resources come from, and how can Pacific islands make most effective use of these funds? These were the topics of a recent workshop co-organized by UNDP and the Pacific Islands Forum Secretariat (PIFS) in Fiji, which brought together policymakers from the Pacific islands and experts from major bilateral and multilateral finance providers. When it comes to resource mobilization, many Pacific islands have made important strides to increase domestic resources over recent years. For example, through the Narue Agreement – which establishes the terms and conditions for issuing foreign fleets with licenses to fish in the Pacific – eight Pacific island countries have been able to increase fishing revenues from $100 million to over $500 million over the last five years. And there is room to increase this even further in the future. … Read more

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