Well-being from Work in the Pacific Island Countries

In the Pacific island countries, which
are small and far from world markets, labor mobility
represents the most significant and substantial opportunity
for overcoming geographic constraints on employment. This
report presents a brief overview of employment challenges in
small Pacific island countries and recommendations for
addressing them. The report contributes to an ongoing World
Bank analytical program examining the linkages between
employment and well-being around the world, begun with the
World Development Report 2013: jobs. Discussion in this
report relates to Pacific island states, with populations of
significantly less than one million, including Solomon
Islands, Vanuatu, Samoa, Tonga, Tuvalu, Kiribati, Republic
of Marshall Islands, Federated States of Micronesia, and
Palau. Economic growth and diversification has been very
limited in these countries because of the barriers imposed
by smallness and distance, and these barriers will not be
quickly overcome. This report provides five priorities that
are likely to be broadly applicable to the unique group of
countries. First, stakeholders' expectations about the
trajectory of development will need to be realistic. Second,
the volume of international labor mobility should be
increased through the erosion of regulatory barriers and
investment in transferable human capital. Third, governments
can work to harness the positive potential of urbanization
through investment in improved rural services, connective
infrastructure, and improved urban administration. Fourth,
productive public spending can be used as a mechanism for
creating new employment opportunities. Finally, policies can
ensure that natural resource industries provide a
sustainable source of employment creation.