Raising Pasifika - Strengthening Government Finances to Enhance Human Capital in the Pacific - A Public Expenditure Review for Nine Pacific Island Countries

Jul 19, 2026

Upload by Finn

Raising Pasifika presents a public expenditure review for nine Pacific Island countries, focusing on fiscal management and the financing of human capital. The review analyzes structural drivers of PIC-9 economies and fiscal policy, evaluates megatrends shaping the past decade, and examines risks of debt distress and the policy options to address them. It assesses fiscal space for additional education and health spending over the next 20 years, while reviewing revenue performance, taxation and revenue mobilization, and education spending composition and use.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages290

Reading Time12 h 11 min

Abbreviations and Acronyms

Executive Summary

1. Fiscal

Introduction

What structural aspects drive the PIC-9 economies and fiscal policy?

What megatrends have driven fiscal policy over the past decade?

Why is the region at risk of debt distress and how can this be addressed?

Could the PIC-9 have the fiscal space to finance additional human capital spending over the next 20 years?

2. Revenue

Introduction

How did revenue perform prior to the COVID-19 crisis?

Indirect taxation drives most of the PIC-9 countries’ tax collection

Direct taxation, particularly of corporates, is under-utilized

Sovereign rents have increased in importance

How can the PIC-9 strengthen revenue performance?

3. Education

Introduction

In terms of public spending, how much are countries spending on education and has this changed over time?

How is overall education spending financed?

How is public spending on education used?

Public Disc losure Authorized Raising Pasifika Strengthening Government Finances to Enhance Human Capital in the Pacific Pub lic Disclosure Authorized Pub lic Disc losure Authorized Pub lic Disclosure Authorized A Public Expenditure Review for Nine Pacific Island Countries Kiribati, Nauru, Republic of the Marshall Islands, Federated States of Micronesia, Palau, Samoa, Tonga, Tuvalu, and Vanuatu © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 [Internet: www.worldbank.org](Internet: www.worldbank.org) This work is a product of the staff of T he World B ank w ith external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies inthe information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be alimitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [pubrights@worldbank.org](pubrights@worldbank.org). Acknowledgment: The team would like to acknowledge and thank all those who provided input to this study. The lead authors are Andrew Blackman (Task Team Leader, Executive Summary, and Fiscal chapter), Jaffar Al-Rikabi (co-Task Team Leader) and Eric Lacey (Revenue chapter), Lars Sondergaard and Paul Cahu (Education chapter), Maude Ruest (Health chapter), and Matthew Dornan (Social Protection chapter) . Valuable inputs were provided by Vishesh Agarwal, Wayne Irava, Susan Ivatts, Yuto Kanematsu, Mesulame Namedre, Gokuldas Pai, Reshika Singh, Thomas Poulsen, Fatim Adja Lahonri Diabagate, and Sharad Tandon. Michelle Lee provided valuable administrative support. The team is grateful to the Governments of Kiribati, Nauru, Republic of the Marshall Islands, Federated States of Micronesia, Palau, Samoa, Tonga, Tuvalu, and Vanuatu for their cooperation during consultations, for providing data, and for sharing feedback on the report. The team is also grateful to several World Bank colleagues who reviewed and provided guidance for this work. The team would like to thank Hassan Zaman, Lars Christian Moller, Stephen Ndegwa, and David Gould for providing overall guidance. The team would also like to thank Chadi Habib, Ajay Tandon, Marie-Helene Cloutier, and Jesse Doyle for peer reviewing the report. Angela Takats edited the report and The Greenhouse Studio provided graphic design services. Contents ABBREVIATIONS AND ACRONYMS ..................................................................... 05 EXECUTIVE SUMMARY ......................................................................................... 09 1. FISCAL ............................................................................................................. 43 1.1 Introduction ........................................

FAQs

What countries are covered in the Raising Pasifika review?

The report covers Kiribati, Nauru, the Republic of the Marshall Islands, Federated States of Micronesia, Palau, Samoa, Tonga, Tuvalu, and Vanuatu.

How does the report address debt distress risk in the Pacific region?

It explains why the region faces risk of debt distress and outlines how this can be addressed, including implications for fiscal policy.

How does the review evaluate whether the PIC-9 can expand human capital spending?

It examines whether the PIC-9 has the fiscal space to finance additional human capital spending over the next 20 years, supported by analysis of fiscal drivers and revenue performance.

Jul 19, 2026

Upload by Finn