WBG Governor's Statement No. 12 - Statement on the Impact of COVID-19 and Support for Vanuatu and Pacific Island Countries

Jul 19, 2026

WBG Governor's Statement No. 12 (October 15, 2020) presents a regional address by the Governor of the Bank for Vanuatu on behalf of nine Pacific Island Countries. The statement describes how COVID-19—through collapsed tourism, lower commodity prices, and reduced remittances—has increased poverty and unemployment, while natural disasters further intensify vulnerability. It calls on the World Bank Group and IMF to sustain fast-track support, strengthen social safety nets, expand health-system readiness for vaccine distribution, and improve access to vaccines and therapeutic resources. It also highlights debt sustainability challenges and supports the Debt Service Suspension Initiative to create fiscal breathing space for COVID-19 response.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages6

Reading Time15 min

AccessFree to download

Impact of COVID-19 on our Economies

Recovery, policy advice, and sector investment

COVID Vaccine

Access, procurement coordination, and health system readiness

Debt Service Suspension Initiative

Debt sustainability and fiscal space for COVID-19

Public Disclosure Authorized Public Disclosure Authorized WBG Governor's Statement No. 12 October 15, 2020 Statement by the Hon. JOHNNY KOANAPO RASOU, Governor of the Bank for VANUATU, ON BEHALF OF THE FEDERATED STATES OF MICRONESIA, KIRIBATI, MARSHALL ISLANDS, NAURU, PALAU, SAMOA, SOLOMON ISLANDS AND TUVALU Statement by the Hon. Johnny Koanapo Rasou, Governor of the Bank for Vanuatu, on Behalf of the Federated States of Micronesia, Kiribati, Marshall Islands, Nauru, Palau, Samoa, Solomon Islands and Tuvalu Mr. Chairman, Fellow Governors, Ladies and Gentlemen, It is an honor for me to present this statement on behalf of the nine Pacific Island Countries (PICs) of the Federated States of Micronesia, Kiribati, Marshall Islands, Nauru, Palau, Samoa, Solomon Islands, Tuvalu and Vanuatu. I would like to take this opportunity to thank the World Bank Group and International Monetary Fund for the organization of this annual event in a virtual format, during this unprecedented time in our history. Impact of COVID19 on our Economies The PICs are facing an unprecedented social and economic crisis as a result of COVID- 19. The collapse in our tourism sector, falling commodity prices and declining remittances have contributed to the increase in poverty and unemployment. This is further exacerbated by the impact of natural disasters such as Tropical Cyclone Harold, which causes widespread damage in several of our countries earlier this year. This demonstrates the magnitude of vulnerabilities that the PICs are facing, especially, when trying to marshal resources to revamp our health systems in preparation of containing COVID-19 and at the same time sustain our economies. It is expected that growth in the PICs will contract in 2020 as travel restrictions severely impact tourism, trade in goods and services and remittance. Whilst most of the PICs remain free from COVID-19, the health measures imposed by health authorities to control the transmission of the virus has resulted in restrictions on travel, business operations and people-to-people interactions have brought the economy to a standstill. The decline in tourist arrivals meant a lot of small businesses supporting the tourism industry are also affected, leading to thousands of our citizens without jobs. This has placed additional pressure on our governments to mobilize our limited resources to support livelihoods and social protection, while at the same time increase health spending for preparedness and containment response. Against this backdrop, we commend the Bank for its speedy response to our member countries through the COVID19 Fast-Track Facility. The financial resources and knowledge provided by the Bank has strengthen our preparedness and containment response to the pandemic. We encourage the Bank to continue to engage with our governments to implement existing projects and those in the IDA19 pipeline, as this will create job opportunities for our citizens, while waiting for our economies to fully recover from the impact of this pandemic. In order to stimulate recovery, we encourage the Bank and IMF to provide policy advise and increase financial support to help countries strengthen their social safety nets and facilitate the movement of capital and labor toward sectors that will be productive and sustainable post-pandemic. We will need resources and expertise from the Bank and IMF to invest in new sectors of our economy such as the knowledge economy and fisheries. The digital economy can be a driver of innovation, competition and growth for our entrepreneurs and small and medium-sized enterprises after this pandemic. Furthermore, we encourage the Bank to support the mobilization and crowding in of private capital and finance, with innovative products from IFC and MIGA, to create markets and promote investments and quality infrastructure for a broad-based recovery and long-term growth. COVID Vaccine We commend the Bank for its recent effort

FAQs

What economic impacts of COVID-19 are described for Pacific Island Countries?

The statement cites a tourism collapse, falling commodity prices, declining remittances, and increased poverty and unemployment. It also notes travel restrictions that affect trade, business operations, and people-to-people interactions, bringing economic activity to a standstill.

How do the statement’s recommendations address COVID-19 vaccine access?

It encourages the World Bank Group to ensure fair, equitable, and affordable access to resources to purchase vaccines and therapeutics in a timely manner. It also emphasizes strengthening health systems for distribution and coordinating with UNICEF, ADB, and COVAX to avoid duplication and ensure no country is left behind.

Why is debt service suspension important according to the statement?

Debt sustainability is described as a challenge intensified by COVID-19, natural disasters, and climate change. The Debt Service Suspension Initiative is welcomed as breathing space so governments can redirect freed resources toward combating COVID-19, despite limited Pacific participation.

Jul 19, 2026

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