The World Bank and nine Pacific Island countries launched a new six-year partnership on May 5, 2026, in Suva, aimed at creating more and better jobs, strengthening public services, and building resilience to climate and economic shocks, according to a press release. The partnership arrives as global volatility, including disruptions affecting energy markets, continues to place pressure on small island economies. It is formalized through a new Regional Partnership Framework (RPF) covering Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Palau, Samoa, Tonga, Tuvalu, and Vanuatu. Developed with governments across the region, the framework will guide support from FY2026 to FY2031. It is aligned with national priorities for jobs, resilience, and economic growth.
Across the Pacific, small and remote economies face distinct development constraints. Several have fast-growing young populations and high exposure to climate risks, making job creation both urgent and challenging. Turning growth into employment, particularly for young people and women, is central to sustaining long-term prosperity and stability. The framework responds to these realities through country-led priorities shaped in close partnership with regional governments. It reflects shared commitments between the World Bank Group and the nine participating countries.
The new partnership focuses on strengthening economic and fiscal management, improving physical and digital connectivity, investing in health and education, and building resilience to future shocks, including external shocks, climate change, and disasters. These are described as critical foundations for sustained, private sector led job creation. Investments in transport, energy, and digital infrastructure will support employment while connecting people and businesses to markets. Stronger health and education systems will help build the skills needed for productive work at home and abroad. Sound macroeconomic management will help countries manage shocks and create a more stable environment for investment and jobs.
Stephen N. Ndegwa, World Bank Director for the North and South Pacific, underscored the practical aims of the framework.
“This partnership is about delivering real impacts for people across the Pacific,” he said. “By focusing on jobs, skills, and resilience, and by using regional solutions where they add scale, we are supporting practical reforms and investments that help communities thrive, enable businesses to grow, and strengthen the foundations for long-term growth.”
His remarks highlight the dual emphasis on country-level reforms and regional approaches. They also point to the role of scale in addressing shared challenges.
To overcome constraints of distance and small size, the framework draws on regional platforms and shared solutions. This reflects the World Bank Group’s Small States Strategy, which tailors support to the unique challenges of small and remote economies. The partnership also includes crisis preparedness and response tools designed to help countries respond quickly to shocks while protecting development gains. Together, these elements aim to align World Bank Group engagement with the long-term ambitions of Pacific Island nations. The framework sets the course for cooperation through FY2031.
