EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf

These high rural populations mean that the spatial challenge for infrastructure in the
Pacific is very different to that of most other developing countries. Elsewhere,
particularly in East Asia, countries are grappling with rapidly growing cities, in which
services like water and sanitation are critical. In countries with large rural
populations, these concerns may be less pressing. For example, settled, largely selfsufficient
rural communities may place relatively low value on water and sanitation
services. Pacific countries’ priorities for infrastructure are likely to be different to that
of East Asian or other comparator countries.
Figure 6.2: Rural Population (% Total Population)
100
90
80
70
Average Pacific Countries
Percent
60
50
40
Average Caribbean
Comparators
30
20
10
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Source: World Development Indicators 1990 – 2003
Note: The average for the Pacific countries does not include the Marshall Islands, for which data were only available
from 1999 – 2003. Marshall Islands reports 34% rural population for each of these years.
Small Pool of Skilled Labor
Strong institutions that work well require skilled people. The relatively few examples
of successful infrastructure service provision in the Pacific are all distinguished by the
presence of skilled managers and Board members. Performance improvements in the
Fiji Electricity Authority, the Samoa Water Authority and the Samoa Port Authority
are all due in part to the skills of the management teams.
Many Pacific countries have small populations, and therefore, a smaller pool of
people to draw from to make infrastructure institutions successful. In addition,
skilled individuals often leave to make their homes elsewhere, or are drawn abroad by
companies in New Zealand or Australia that are prepared to pay the airfares for
those prepared to join their workforce.
For example, Fulton Hogan, a road construction and maintenance company in New
Zealand responded to labor shortages in New Zealand by almost stripping Samoa of
skilled construction workers and bulldozer drivers under a scheme which gives
Samoan citizens preferential access to New Zealand work permit. This further
reduces the skills and capability in Pacific countries, directly deprives them of labor,
and therefore impacts their ability to deliver good infrastructure services.
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