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Released Date - February 04, 2010
PAC – ECONOMY: SOL/STAR PACNEWS BIZ: Thurs 04 Feb 2010
04 FEBRUARY 2010 HONIARA (SOLOMON STAR) ---- Former Governor of the Reserve Bank of Fiji Savenaca Narube has warned small island states to take tougher measures in order to counter future economic crisis.
Mr Narube was speaking in Honiara on Tuesday on the topic: “Surviving in these turbulent economic times: The challenges of the region".
Economic Association of Solomon Islands (EASI) organised the forum.
Mr Narube said if another economic crisis occurs again in future, it will be more turbulent and serious than what has just been experienced.
He said although the world had slowly recovered from the economic downturn many island countries are still feeling its impact. He added island government must work hard to reduce the impact of the crisis through proper leadership, road map plan, partnership and restructuring program. “There should be more action and less talking,” he said. Mr Narube said the crisis had affected government revenue, foreign reserves, debts, unemployment and social security.
“Therefore we see a rise in deficit, oil price, inflation, loss of income, poverty, decline in law and order,' he said. Mr Narube described the situation as “being caught in a triple whammy”.
The Fijian said governments should make wise decisions to use their scarce resources and look for more investment.
“But the foundation is to have more stability,” he said. Mr Narube, who is now with the Asian Development Bank (ADB) as a consultant under the Pacific Economic Management (PEM) Program, said government, development partners and the Central Bank must work together to enhance development programs.
Meanwhile, Mr Narube said the option to have a single regional currency is a complex issue that needs to be properly looked at.
He said the option to have a regional currency like the European Union (EU) countries is something all sovereign nations of the Pacific must agree to.
“In the coming years one of the solutions to the economic problem in the region is for a regional currency,” he said.
The former Governor of Fiji's Reserve Bank said most of the regional countries are connected through trading.
“Therefore the need for such approach for a single currency is something the region may look at in the future,” he said. ….PNS (ENDS) |
