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Spatial Development Challenges in the Pacific Island Countries 3 July 2019 Pacific Update Robert Utz Program Leader and Lead Economist Equitable Growth, Finance, and Institutions The World Bank

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Page 1: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

Spatial Development Challenges in the Pacific Island Countries

3 July 2019Pacific Update

Robert UtzProgram Leader and Lead Economist

Equitable Growth, Finance, and InstitutionsThe World Bank

Page 2: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

PICs are unique with respect to distance and size

RMI

FSMPalau

3,000

5,000

7,000

9,000

11,000

13,000

15,000A

vera

ge d

ista

nce

fro

m m

arke

t (k

ms)

Population (log scale)

All countries

PICs

Carribean

10k 1m 10m 100m 1bn

Page 3: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SolomonIslands(2009)

Vanuatu(2009)

Kiribati(2010)

FSM(2010)

RMI(2011)

Tuvalu(2012)

Palau(2004)

Tonga(2011)

Samoa(2014)

Fiji(2014)

Nauru(2005)

Pe

rce

nt o

f n

atio

na

l po

pu

latio

n

Distribution of Population between Main and Outer Islands

% on main island % not on main island

… and with respect to geographic dispersion

Page 4: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

Kiribati: distance from main island

0

10,000

20,000

30,000

40,000

50,000

60,000

0 500 1000 1500 2000 2500 3000 3500

Population

DistancefromMainIsland(SouthTarawa)(km)

‘Outer Islands’ of Kiribati (distance vs. land area vs.

population size)

Tarawa - South

KiritimatiTabiteuea- North

Arorae

15.76

25.78

9.48

388.39

0

10,000

20,000

30,000

40,000

50,000

60,000

0 100 200 300 400 500 600 700

Population

DistancefromMainIsland(SouthTarawa)(km)

‘Outer Islands’ of Kiribati (excluding Line Islands)

(distance vs. land area vs. population size)

Tabiteuea- North

Arorae25.78

9.48

Tarawa - South

15.76

Size of circle = size of island land area (km2)

Data source: http://www.climate.gov.ki/about-kiribati/island-reports-2012/

Page 5: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

• Limited access to cash income earning opportunities• Little infrastructure• Poor connectivity• Limited and difficult delivery of public services

WB focus on reducing hardship and boosting shared prosperity

Governments request assistance to address these issues

Migration

Outer Islands Main Islands

Public expenditure

Votes

Trade

• Urbanization challenges

Remittances

Motivat ion for World Bank Study on Spatial Development Issues

in Paci f ic Is land Countr ies

Page 6: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

Objectives of World Bank Study on Spatial

Development Issues in Pacific Island Countries

• Deepen understanding of

spatial inequalities in socio-

economic development of

Pacific Island Countries

• Review policy and

investment options

for fostering the

socio-economic

development of outer

islands populations

Page 7: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

Socio-economic development gaps raise

important policy questions

• How to address spatial inequalities

with respect to socio-economic

development and hardship

• What are the trade-offs between

investing on OIs vs investing on

islands with higher population

density?

• What role does (internal) migration

play and what are the policy

options to respond to internal

migration?

• What are cost efficient ways of

providing services on OIs?

Vaitupu, Tuvalu (photo credit: Nora Weisskopf, 2017)

Page 8: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

Spatial concepts Characteristics and focus

Urban – rural Each category considered to represent distinct development issues -

focus on urban management and rural development

Leading-lagging

regions

Focus on spatial differences in productivity, with some areas of the

country able to produce goods and services that are internationally

competitive

Facilitate movements of people and capital to where the greatest

opportunities are

Remote and low

population density

areas

Focus on challenges of service delivery (e.g., Sahel, Australia)

Spatial development concepts provide helpful directions for understanding

the situation in Pacific Island countries….

Page 9: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

Spatial concepts Characteristics and focus

Main-outer

island

• Geography implies limited private sector production of tradables and

elevated cost of public service delivery on main island and even more

so on outer islands.

• Main island stands out as seat of government and connector to rest of

the word through air and sea connectivity which are key sources of

employment and cash income.

• Aid, resource rents, and remittances (and in a few cases tourism) as the

main sources of foreign exchange.

• Political process determines how aid and resource rents are divided

between main and outer islands (in the form of public services,

infrastructure, transfers and subsidies.

• “Islandness” adds additional challenges in terms of connectivity,

space, environmental fragility,…

…but need to focus on particularities of archipelagic

small island states.

Page 10: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

Focus areas of WB study

1. Spatial dimensions of socio-economic development and hardship indicators

2. Spatial policies and decision making framework

3. Political Economy of spatial policies4. Internal migration5. Interisland connectivity (sea, air,

ICT)6. Health and education service

delivery on outer islands7. Livelihoods on outer islands8. Urban settlements and resilience

Page 11: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

Agenda

1) IntroductionRobert Utz, Progam Leader

and Lead Economist, WB

2) Spatial Dimension of Socio-Economic Development in

Pacific Island Countries

Darian Naidoo, Economist,

WB

3) Politial Economy of Spatial Development in the Pacific

Island CountriesDavid Craig, Consultant, WB

4) Internal MigrationMatt Dornan, Senior Social

Protection Specialist, WB

5) Economic Lifelihoods on Outer IslandsKim Edwards, Senior

Economist, WB

Q&A All

Page 12: Spatial Development Challenges in the Pacific Island Countriesdevpolicy.org/2019-Pacific-Update/Day_1_Panel_2A_Chair... · 2019-09-22 · WB 3) Politial Economy of Spatial Development

CONTACT

Robert Utz

Phone + 61292356533 | Web worldbank.org

Email [email protected]