21 Aug 2007

New report says unstable Pacific countries prevents economic reform

10:36 am on 21 August 2007

A new report says the unstable political environment in several Pacific countries is preventing reforms needed for private investment plus a lift of credit ratings.

Standard & Poor's says social tension and political violence in countries such as Papua New Guinea and Fiji continue to constrain economic development.

The service's Pacific analyst, Kyran Curry, says while PNG has shown improvement in economic and fiscal performance, uncertainty remains over the long term.

Mr Curry says while the agenda of Fiji's interim is to reduce debt and stabilise foreign reserves, the ongoing effects of the military coup make change difficult.