BY LORETTA B MANELE
Policies work better together and neither policy can do the job alone.
Finance Minister, Rex Ramofafia, referring to fiscal and monetary policies, expressed the sentiment at the recent “2nd CBSI-ADB-APAEA Joint Workshop” last week at Heritage Park Hotel.
He said neither policy can do the job alone.
“Fiscal policy provides a long-term foundation through investment, public services, and debt management, while monetary policy helps manage demand and keep inflation under control.
“When both policies implement each other or complement each other, the economy is more stable and more resilient, said Ramofafia.
On top of that, he said there are also opportunities for regional cooperation, including research, creating regional disaster insurance or even exploring shared stabilization funds would help us manage common risks more effectively.
The Finance Minister also stated that the Pacific is stronger when it works together.
Moreover, he also offered three recommendations.
The first one is that resilience is about preparation and not just recovery to which Ramofafia added that investing now in climate adaptation, digital infrastructure, and social protection will make us better able to handle future shocks.
Second to that, he said debt sustainability must stay at the heart of our fiscal strategy.
Ramofafia said sound management of public finance builds confidence and creates room to respond when new challenges rise.
Lastly, he spoke on how capacity building is vital.
“Our partnership and collaboration must ensure the transfer of skills and knowledge so our institutions can produce independent, high-quality research to inform sound policy decisions,” he said.
Ramofafia expressed that research presented at the workshop ranging from climate change and inflation to remittance and fiscal coordination, will provide valuable insights for policymakers across the region for our Pacific.
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