An estimated 6000 people will be in Samoa for the Commonwealth Heads of Government Meeting (CHOGM) in October. An independent economic analysis suggests that CHOGM will be the main economic driver in the 2024 calendar year.

The report, by ANZ International Economist for the Pacific, Kishti Sen, shows the economy is gaining ground following the Covid years.

Samoa’s economic outlook remains positive off the back of strong visitor numbers in 2023 and the country is set to host its biggest event in decades later this year.

The reports said that demand drivers, such as employment, remittances, and visitor arrivals, performed strongly in the first four months of this year and expect it to be notably stronger this year as employment in service sectors accelerates, particularly around CHOGM.

Historically, hosting major events has led to growth spurts from an influx of visitors.

In 2015, when Samoa hosted the Commonwealth Youth Games and the first rugby match between the All Blacks and Manu Samoa, GDP grew 6.2 per cent. In 2019, Samoa hosted the Pacific Games, which lifted GDP 6.3 per cent in Q3 2019, bringing through-the-year growth to 5.4per cent, the report stated.

CHOGM is shaping up to be the largest event Samoa has hosted in nearly 62 years of independence. Industry consultations suggest up to 6,000 visitors could arrive, and logistics are being worked out.

This is a no-brainer on why the government in the last two financial years has spent over $40 million to prepare for this event. The forecasted revenue from CHOGM would be over $300 million. That is why CHOGM is important to this nation.

However, the gains are for the short term. The government is encouraged to focus on investments and priorities to achieve the long term goals. Understandably, the government is staying away from loans and direct investments into infrastructure to service its debt.

A recent study by the Lowy Institute has found that Tonga, Vanuatu and Samoa are spending some of the biggest sums in the world to repay debts. In Samoa, debt repayments are 2.6 per cent of GDP — the fourth-highest rate in the world.

The no-loan and no-investment strategy are working for debt repayment as figures announced in the national budget show a considerable reduction but it does augur well for investment into sectors like education, health, and agriculture.

The nation is gripped with a labour shortage issue. If the government could focus on education and ensuring all children are able to finish high school and provide a pathway to quality tertiary education, a lot of problems faced by the nation could be solved.

Samoa needs doctors, nurses, engineers, qualified people in the agricultural sector and other fields that require tertiary qualified and experienced people.

Education benefits not just the individual, but society as a whole.  An educated population are more environmentally conscious, have healthier habits, and have a higher level of civic participation.

Also, increased tax revenues from higher earnings, healthier children, and reduced family size build stronger nations.

According to the World Bank, the economic returns for tertiary education graduates are the highest in the entire educational system – an estimated 17 per cent increase in earnings as compared with 10 per cent for primary and 7 per cent for secondary education.

Two issues need to be looked at. First is access to education and ensuring that all Samoan children can finish secondary education and get the opportunity to go to tertiary institutions.

Secondly, there should be more scholarships for higher studies. Agriculture is the future and food security will play a vital role in years to come, yet students do not want to get their hands dirty.

But before we can reach there, the first step is to eliminate the educational inequality that exists in this nation.

Educational inequality is the unequal distribution of academic resources, including but not limited to school funding, qualified and experienced teachers, books, and technologies, to socially excluded communities. These communities tend to be historically disadvantaged and oppressed.

The first thing to do is to make education accessible. Have budgetary allocations so parents do not have to pay exorbitant fees. How many children in Samoa end up becoming street vendors or carwash employees because their parents cannot afford to send them to school?

The other area to look at is filling the gaps in schools with qualified teachers. The basics from the primary school level should be set right so when children progress, they do with the skill sets which are learnt at each level.

Events like CHOGM will come and go. Their impact will not last that long. Education is the only way to battle poverty and help Samoa grow into a much more developed nation, steps have to be taken. It is time for action and not words.