FEMM issues disparity guidelines

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FEMM issues disparity guidelines

MAJURO, RMI (FSM Information Service): July 17, 2003 – Economic Disparities was the backdrop to the numerous issues addressed at the Seventh Forum Economic Ministers Meetings (FEMM) in the Republic of the Marshall Islands held from June 9 – 12, 2003.

The Economic and Finance Ministers of the Pacific Islands Forum countries had reviewed the region’s economic progress and had agreed that addressing the poor should be in the core development policy of each country to ensure sustainable development. The Ministers outlined in the Forum Economic Action Plan 2003, among other economic goals, guidelines to address the region’s economic disparities.

The action plan emphasized the need for each country to have in place the following to promote economic growth and minimize the likelihood of economic inequalities increasing:

1. avoiding policies and actions that give monopoly rights of any kind to individuals, firms or industries, unless they involve natural monopolies, which should be effectively regulated;

2. minimizing the scope for discretionary behavior by politicians and bureaucrats;

3. fostering an economic, political and legal environment that is conducive to domestic and foreign investment; and

4. developing human resources, through providing access to health, education and other services, to allow participation in the modern economy.

The Ministers also noted that the guidelines would require the Forum countries to provide “appropriate statistics on which to base policy decisions, so as to ensure that growth is generated in a sustainable and equitable manner.”

The biennial Stocktakes would become the measuring stick for the regions progress at both the national and regional levels.