Illustration, money
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A new report from Australia’s Lowy Institute highlights growing concerns about debt related development funding in the Pacific.
The seventh edition of the Pacific Aid Map, released last month, covers official development finance (ODF) from 2008 to 2022 and includes data on more than 37,000 projects.
One key concern mentioned is debt, with growing use of loans rather than grants, that do not need to be paid back.
“Some 60 percent of infrastructure financing in the Pacific is now being financed by loans,” the report said.
“While 75 percent of these loans are directed to the region’s largest economies, such as PNG and Fiji, the remaining quarter is allocated to smaller economies, a majority…
