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Secretary General of the Pacific Islands Forum Secretariat, Tuiloma Neroni Slade said at the ceremony that the South-Pacific is a region with remarkable contrasts and immense diversities. It is also a region that continues to face major challenges in the effort to pursue development aspirations and quest to improve the lives of all Pacific people.
"Not one of our countries has been spared the effect of global financial and economic crisis and associated high cost of fuel and food, as well as the danger of climate change."
To address those challenges, outgoing Forum Chair and Australian Foreign Minister Stephen Smith outlines three priorities his government has taken over the past year.
"Helping to build foundations for sustainable economic development; improving coordination of resources available for development in the region, and improving the effectiveness of development assistance; and working together to tackle climate change."
It's said 2.5 million people in the South-Pacific are still living in poverty, and even worse, the global economic crisis continues to impact the economies. As the incoming forum chair and prime minister of Vanuatu, Edward Nipake Natapei, says, this requires employment of austerity measures and necessary economic reforms.
"Whatever we can do collectively or individually to contain the crisis is encouraged, but we need to be proactive and build on the optimism to recovery, led by examples of vibrant economies such as China and India."
The prime minister adds the countries of the Pacific ought to be seriously encouraged to commit to continued pursuit of economic reforms. One of them is to mainstream the regional options into national policies and plans, and the other, to strengthen economic cooperation with the region's development partners.
After the two-day leaders' meeting, the forum leaders will meet with the region's development partners, including China, in the Post-Forum Dialogue on Friday.
For CRI, this is Chen Feng in Port Vila, Vanuatu.