Pacific Economic Ministers Acknowledge Private Sector Vital
July 5, 1999 - 0:0
APIA Pacific economic ministers ended a meeting here Saturday acknowledging the development of private business was vital for sustained growth. The 16 nation Forum Economic Ministers Meeting (FEMM) ended with a communique which said governments should focus on policies that develop business. "There was strong support to further boost private sector development, especially in terms of education and training to enhance the quality and range of skills in the labour force," it said.
Samoan Prime Minister Tuilaepa Sailele Malielegaoi said because of the vast differences in economic circumstances, regional countries set their own pace and extent of reform in areas such as the public sector, good governance and economic policy. FEMMS central reference point is a 1997 plan which countries are working towards implementing. It consists of four major points -- economic reform, accountability through open government, liberal investment policies, and open trade by cutting tariffs.
Some countries had made substantial progress in implementing the plan, though others had not, Tuilaepa said. He advocates a value added tax, saying it widens the tax base and was a vital liberalization tool. Not all forum countries were convinced. Fijis new Prime Minister, Mahendra Chaudhry, has promised to remove the tax and customs duty from essential food items. In fact, Chaudhry, who has a trade union background, aims to reverse the trend towards less government involvement in key commercial areas.
"Perhaps the reform that has taken place is too fast, perhaps there are other ideas that need to be tested, and this is the kind of experiences that this meeting would like to bring out," said Tuilaepa. Often economic reform means downsizing the public sector and femm knows "there may be adverse implications," Tuilaepa said. It could result in downsizing the bureaucracy, which in many forum countries is the major employer, for the sake of developing the private sector, which is now a clear FEMM goal.
Tuilaepa said in Samoas case downsizing was done in phases so the impact was not really felt, as opposed to what was done in New Zealand. "New Zealand, of course, with its own economy being very strong, it rushed its own reforms within a certain time span." The numerous reforms and resulting legal, social and economic changes yet to be experienced by other forum countries have one attractive end result which samoa has experienced.
"We have liberalized our financial system and restructured our taxes and tariffs, " Tuilaepa said, in opening this years meeting, "resulting in lower prices for our people." The South Pacific Forums members are Australia, Cook Islands, Federated Atates of Micronesia, Fiji, Kiribati, Nauru, New Zealand, Niue, Marshall Islands, Papua New Guinea, Palau, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. (AFP)
Samoan Prime Minister Tuilaepa Sailele Malielegaoi said because of the vast differences in economic circumstances, regional countries set their own pace and extent of reform in areas such as the public sector, good governance and economic policy. FEMMS central reference point is a 1997 plan which countries are working towards implementing. It consists of four major points -- economic reform, accountability through open government, liberal investment policies, and open trade by cutting tariffs.
Some countries had made substantial progress in implementing the plan, though others had not, Tuilaepa said. He advocates a value added tax, saying it widens the tax base and was a vital liberalization tool. Not all forum countries were convinced. Fijis new Prime Minister, Mahendra Chaudhry, has promised to remove the tax and customs duty from essential food items. In fact, Chaudhry, who has a trade union background, aims to reverse the trend towards less government involvement in key commercial areas.
"Perhaps the reform that has taken place is too fast, perhaps there are other ideas that need to be tested, and this is the kind of experiences that this meeting would like to bring out," said Tuilaepa. Often economic reform means downsizing the public sector and femm knows "there may be adverse implications," Tuilaepa said. It could result in downsizing the bureaucracy, which in many forum countries is the major employer, for the sake of developing the private sector, which is now a clear FEMM goal.
Tuilaepa said in Samoas case downsizing was done in phases so the impact was not really felt, as opposed to what was done in New Zealand. "New Zealand, of course, with its own economy being very strong, it rushed its own reforms within a certain time span." The numerous reforms and resulting legal, social and economic changes yet to be experienced by other forum countries have one attractive end result which samoa has experienced.
"We have liberalized our financial system and restructured our taxes and tariffs, " Tuilaepa said, in opening this years meeting, "resulting in lower prices for our people." The South Pacific Forums members are Australia, Cook Islands, Federated Atates of Micronesia, Fiji, Kiribati, Nauru, New Zealand, Niue, Marshall Islands, Papua New Guinea, Palau, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. (AFP)