Renowned Caribbean economist and financial strategist, Ms. Marla Dukharan, has urged Pacific nations, including Vanuatu, to strengthen their economic resilience by adopting proven risk management strategies such as pooled disaster insurance, sovereign savings, and economic diversification.

Speaking during a the VBTC PRESSS KLAB panel discussion on economic sustainability and resilience, Ms. Dukharan presented three key recommendations to improve financial preparedness in the face of increasing natural and global shocks.

She encouraged Pacific island governments to consider establishing a regional disaster insurance mechanism similar to the Caribbean Catastrophe Risk Insurance Facility (CCRIF), a fund that provides rapid financial assistance to member countries following natural disasters such as hurricanes or earthquakes.

“When disaster strikes, CCRIF disburses funds quickly to help countries recover without delay. This is a model that can be replicated in the Pacific,” she said.

Ms. Dukharan also highlighted the importance of setting up a Sovereign Wealth Fund, describing it as a national “piggy bank” for emergencies. She emphasized that even small, consistent contributions can grow over time to help finance recovery without depending on external borrowing.

“Save small, save early. When a crisis hits, that fund becomes a lifeline,” she added.

Her third recommendation was for greater economic diversification, encouraging governments to expand beyond traditional sectors such as tourism and agriculture. She stressed the need to invest in other industries while strengthening international partnerships.

“No country can go it alone. Having strong regional and global alliances ensures quicker support when challenges arise,” she noted.

Ms. Dukharan’s insights come at a critical time, as Vanuatu and other Pacific nations continue to recover from multiple shocks, including natural disasters and economic disruptions.