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

6.4 Low Levels of Access to Infrastructure in Rural Areas
Most Pacific countries have large rural populations. They are also highly dependent
on natural resources for their economic development, most of which are sourced
from rural areas. Therefore rural infrastructure is particularly important in the Pacific,
and yet overall access to infrastructure services is very low in these areas. For
example:
Telephone access is largely limited to urban areas in the Pacific. In
Kiribati, Marshall Islands and Papua New Guinea, between 85% and
100% of main lines are in urban areas. In FSM and Samoa urban
mainlines account for 70% and 72% respectively. This can be explained in
part by the challenge of deploying a telecommunications network across
mountainous terrain or dispersed atolls. Low mainline access limits the
level of internet access outside of main urban centers in the Pacific.
Almost all internet users are located in capital cities
Access to water and sanitation services varies substantially between urban
and rural areas within each Pacific country, with rural access levels being
lower. Many water utilities report higher levels of access in their coverage
areas, which are often major urban centers, than is reflected in the overall
access statistics. This highlights the lower levels of access in rural areas
The larger Melanesian countries such as Papua New Guinea, Solomon
Islands and Vanuatu have particularly low road density levels per square
kilometer of land, and road access is often limited to lower lying coastal
areas and major cities or towns. In Vanuatu a significant number of
people live in the interior of Efate Island and Espiritu Santo Island but
have no road access from their settlements to the coastal road
In countries comprised of dispersed archipelagos or island chains,
shipping and aviation services to outer islands are relatively infrequent.
Low access to certain infrastructure services may be in part due to sensible
prioritizing. Reticulated water systems are not necessarily a high priority in rural
communities in Vanuatu, Papua New Guinea or Fiji for example, where there is
adequate rainfall, and wells or water tanks may suffice. However, other infrastructure
services are essential to rural development. Electrification, roading, and in some
cases, shipping and air services, are likely to be particularly important for economic
development.
Clearly, high costs of serving thinly populated and dispersed rural areas will affect the
ability of Pacific countries to provide access to infrastructure in rural areas. However,
low access levels are also related to:
Low priority being given to rural infrastructure, for example, when
coordinating aid projects
Inefficient subsidy arrangements, which mean that fiscal expenditures do
not leverage as much infrastructure development as they possibly could.
For example, supporting telecommunications access in remote areas
through a cross subsidy built into the tariff structure means that even
those customers who would be able and willing to pay the full cost of
service, receive a subsidy
Monopolies being granted to exploit profitable infrastructure
opportunities. For example, policies preventing competition in domestic
air services in Tonga have resulted in lower frequency and higher costs of
air services than would have otherwise occurred
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