High-Level Pacific Policy Dialogue on “The Role of Macroeconomic Policy and Energy Security in supporting Sustainable Development in the Pacific
The ongoing global economic crisis, coupled with high energy prices, is making it more challenging for the small and remote countries in the Pacific to pursue sustainable development as envisioned by the Pacific Plan and the Mauritius Strategy. While the direct impact of the euro zone crisis has been limited, indirect impacts through tourism and remittance channels could be sizeable, and greater if Asian economies with close trade and investment linkages are severely affected. At the same time, global commodity prices remain high and volatile, raising a particular concern for the Pacific island countries which rely heavily on imported fuel for their energy requirements.
Such challenges call for stronger policy coordination at national and regional levels, as already being pursued in the Pacific. In particular, a better understanding on the inter-linkages between macroeconomic policies and energy security issues could be instrumental in creating more fiscal and monetary policy space and in promoting the sustainable use of energy. In light of this, and the renewed momentum provided by Rio+20, the ESCAP Pacific policy dialogue will seek to identify strategic macroeconomic and energy policy options to build resilience to shocks and promote sustainable development. By engaging diverse stakeholders, the high-level event will contribute to developing a shared vision and coordinated actions among relevant authorities, especially the finance ministries and central banks and the energy ministries and departments.