World Bank Reinforces Pacific Ties with Jobs, Climate Resilience and Local Reforms

In a week-long mission across Fiji, Papua New Guinea (PNG), and Australia, the World Bank’s Managing Director of Operations Anna Bjerde concluded a high-level tour focused on strengthening regional partnerships, creating sustainable jobs, building economic resilience, and accelerating development impact across the Pacific Islands. Her visit marked a pivotal moment in the World Bank Group’s (WBG) evolving engagement with the Pacific, with several major announcements and renewed commitments.

A New Vision: Jobs at the Center of Development

At the heart of Bjerde’s visit was a clear message: job creation—particularly for youth—is central to sustainable and inclusive growth in the Pacific. The World Bank has made a concerted effort to place employment opportunities at the center of its development programming in the region, as Pacific nations grapple with challenges such as climate vulnerability, lagging growth, demographic pressures, and tightening global financial conditions.

“The World Bank Group is proud to support the people of the Pacific with solutions that address development challenges in the region, with jobs at the center—giving young people the chance to shape their own future,” Ms. Bjerde emphasized.

In Papua New Guinea, she met with Prime Minister James Marape and visited community programs under the Urban Youth Employment Project, which equips young people with life skills, vocational training, and pathways into employment. The project serves as a flagship initiative of the WBG’s approach to inclusive development in PNG.

Procurement Reform to Prioritize Local Labor

During her trip, Ms. Bjerde unveiled a major reform to the World Bank’s procurement framework aimed at fostering more inclusive and sustainable development outcomes from Bank-financed infrastructure investments. Going forward, companies bidding on international civil works contracts—such as roads, bridges, and energy infrastructure—must now allocate at least 30% of their labor costs to local workers.

This reform is designed to ensure greater economic spillovers from World Bank-financed projects by prioritizing job creation for host communities. It also builds on global calls for more equitable development finance that benefits local populations and stimulates domestic markets.

Strengthening Pacific Financial Inclusion

In Fiji, Ms. Bjerde participated in the Pacific Islands Forum Economic Ministers Meeting (FEMM), where she reinforced the importance of regional integration and financial inclusion for small island developing states (SIDS). She highlighted the World Bank’s leadership in supporting a regional correspondent banking project, which now spans eight Pacific nations, with more preparing to join.

Correspondent banking relationships are vital for the Pacific, where small markets and high compliance costs have led to the withdrawal of commercial banking services by major international players. The World Bank-led initiative aims to restore financial connectivity and facilitate cross-border transactions that support remittances, trade, and investment.

Expanding the World Bank’s Presence in the Pacific

Ms. Bjerde’s visit comes at a time when the World Bank has dramatically scaled up its footprint in the Pacific. Over the past 12 years, its operations in Papua New Guinea and the Pacific Islands have expanded more than seven-fold, with a portfolio of 86 active operations valued at US$3.4 billion.

In fiscal year 2025, about 50% of all World Bank investment in the Pacific is climate-related, reflecting the region’s acute vulnerability to climate shocks. From infrastructure and renewable energy to disaster resilience and coastal protection, the Bank is investing in long-term solutions to safeguard lives, livelihoods, and national economies.

The WBG has also made institutional investments to strengthen its technical presence, with new director-level positions in Suva (Fiji) and Port Moresby (PNG), and an expanded team of technical specialists based across the Pacific. These changes are intended to provide real-time support to governments and enhance the responsiveness and effectiveness of development assistance.

Australia Visit: Deepening Development Cooperation

Concluding her trip in Canberra, Ms. Bjerde held high-level meetings with Australian government officials and development partners, including DFAT and international NGOs. Discussions focused on deepening Australia–World Bank cooperation, particularly in delivering aid and concessional finance through the International Development Association (IDA)—the WBG’s window for the world’s poorest countries.

Australia’s role as a longstanding and strategic development partner in the Pacific was widely acknowledged. Ms. Bjerde praised the country's leadership in regional initiatives and emphasized the importance of sustained collaboration in areas such as climate resilience, digital infrastructure, and social protection systems.

A Blueprint for Resilient, Inclusive Growth

The World Bank’s intensified presence in the Pacific, combined with its new focus on local labor, job creation, and regional connectivity, signals a shift toward more inclusive and homegrown development solutions. Ms. Bjerde’s visit has set the tone for a deeper, more adaptive partnership between the World Bank and Pacific nations in the face of global volatility and climate challenges.

“We see the effects of slowing growth, climate shocks, and global policy uncertainty, but Pacific nations are pioneering regional initiatives and investing in the foundations for jobs and inclusive growth,” Ms. Bjerde concluded.

As the region looks to the future, the World Bank’s renewed engagement offers both financial and technical muscle to help Pacific Island nations build economic resilience, empower youth, and chart a path toward sustainable development.