Global economics hit Pacific people’s lives hard

Submitted by Narayan24 on Fri, 15/01/2010 - 11:47am

“In everybody’s mind, anything could happen tomorrow,” he says.

The crisis is having a major impact on every aspect of many Pacific people’s everyday life, and its consequences are felt in the work environment or in the households.

Burdened with money devaluation, declines in tourism receipts and reductions in the value of remittances and international investments, more Pacific countries are facing difficulties in the economic downturn.

Businesses and trades, such as Pranit’s, are affected.

“People are even afraid to renovate their properties because of the costs,” he says.

As an example, he mentions the price of cement which has risen from F$11.5 to $15.5 a kilo in the past few months alone.

“Poverty in the Pacific does not generally mean hunger or destitution, but rather the continuous struggle to meet essential daily living expenses, particularly those that require cash payments,” says Dr Isiye Ndombi, the United Nations Children’s Fund (UNICEF) Pacific Representative.

“Now, even families in the most rural or outer island villages have to find cash for everyday needs.”

Pranit is not the only one sharing the concern of being left all by himself facing the crisis.

“Cash is needed for bus fares, school fees, bills and essential goods. It’s becoming harder and harder to get to the end of the month,” he says.

Despite the existing social protection policies, there are more and more families suffering from hardship in the region. Lacking sufficient funds, governments too often opt for the worst solution by cutting social expenditure.

And not supporting the vulnerable in these times of global economic crisis can only lead to even longer-lasting consequences on the well being of the Pacific people.

“For a normal worker, it is very hard to survive with a family. Every day I have to walk around looking for any job to fulfil my family’s needs and to ensure my employees can do the same at the end of the week,” Pranit says.

“Life is becoming harder and harder over here, and if it continues like this I’m really afraid not only Fiji but many other Pacific countries will drown,” says Pranit.

In the eyes of the many similar testimonies, it is clear that an appropriate response must be provided by Pacific Island governments.

Adequate social protection policies must be put in place at all levels – either on the Pacific one or locally.

Protecting the population now is not only a way to tackle the negative impacts of the economic downturn but also a way “to strengthen and prepare the region for future aggregate shocks which are sure to come,” explains Dr Will Parks, UNICEF Pacific Chief of Policy, Advocacy, Planning and Evaluation.

Dr Parks adds that “Pacific Island governments should use this crisis to jump-start a new development paradigm, one in which social expenditure on the most vulnerable is at the heart of a more inclusive and sustainable pattern of economic growth in the region.”

Investing immediately to protect the people of the Pacific is the most useful tool governments have to ensure that the global economic crisis does not leave long-lasting marks on many Pacific families such as Pranit’s.

Pranit says life is becoming harder and harder and fears many Pacific countries will collapse if nothing is done to protect their people.

By Alice Gentile in Suva - Alice Gentile is a communications intern with UNICEF Pacific. “Pranit” is not the real name of the carpenter featured in this story.

Source: Pacific Scoop