Like other small island developing states, Fiji is also vulnerable to the impacts of climate change. This means it is prone to cyclones, floods, and rising sea levels. This also means that Fiji needs disaster resilience support. Cyclones, while not common during El Niño, are frequent visitors to Fiji every November to April. This type of disaster is one of the causes of death and financial losses in the country, impeding its economic growth.
Flood risk is another story. According to research conducted by the Fijian government, many smaller-scale events that go unreported contribute to the overall underreporting of the country’s flood danger. The Fijian government’s flood accounting shows that fluvial (2.6% of GDP annually) and pluvial (1.6% of GDP annually) floods have caused considerable losses.
Despite these natural catastrophes, the government of Fiji is working hard to strengthen its resilience. They have worked with different organizations and international bodies, including the Global Environment Facility, the Green Climate Fund, and other agencies under the United Nations.
Recently, the Asian Development Bank (ADB) and the government of Fiji signed a $70 million loan, which could be a significant step towards enhancing disaster and fostering sustainable growth. The program is divided into two subprograms, with the first subprogram receiving funding in 2024 while the second subprogram will have its $70 million in 2026.
The Sustainable and Resilient Growth Program is designed to strengthen Fiji’s progress in a more sustainable and resilient way by making the government, businesses, and communities better equipped to handle economic or climate-related challenges.
By strengthening resource mobilization and increasing the effectiveness of public investment to support crucial climate adaptation and mitigation priorities, the initiative will help Fiji speed up reforms. It will also strengthen resilience by enhancing the financial and business climate. Additionally, the Fiji disaster resilience support funding will help the country’s attempts to mainstream gender equality, such as increasing community preparedness for disasters and extending gender-responsive budgeting to all line ministries.
Leah Gutierrez, ADB general director, said the bank is happy to be part of this ambitious reform project. She added, “The program will enable Fiji to access highly concessional financing under ADB’s new lending terms for small island developing states. This will help reduce Fiji’s future debt service obligations and create more fiscal space for the government to finance development spending.”
Deputy Prime Minister and Minister for Finance Biman Prasad explained, “This program reflects the close partnership between the Government of Fiji and its development partners to support new policies and regulations that strengthen climate adaptation and mitigation, reduce barriers to private sector growth, and improve the transparency and quality of public financial management.”
Cofinanced by the Australian and New Zealander governments and the World Bank, with the advising help of the European Union, the program aims to improve public financial management, helping Fiji be more financially stable and inclusive. Its goals also include boosting private sector development and enhancing climate and disaster resilience.