General

DISCUSSION PAPER #13: Enhancing opportunities for regional migration

Download the briefing note here

PRESS RELEASE

The history of the Pacific is a history of migration. Yet modern barriers to migration impede development in the Pacific island countries facing degraded resources, high rates of natural population increase, low-lying geographies, and limited opportunities for international movement through citizenship or preferred visa status.

The Pacific Institute of Public Policy (PiPP) has released its latest briefing paper by Brian Opeskin (Macquarie University) and Therese MacDermott (Macquarie University)* that examines international migration in the Pacific, and argues there should be greater opportunities for the people of Pacific countries to migrate between their home states and the developed states of the Pacific rim.

Derek Brien, PiPP Executive Director, says “the relative success of the seasonal worker scheme in New Zealand serves as an example of how pragmatic migration policies can contribute to the development story of the Pacific. More needs to be done to open up new migration pathways that consider the special needs of some Pacific island countries – notably Kiribati, Tuvalu and Nauru as well as the Melanesian states of Papua New Guinea, Solomon Islands and Vanuatu. Facilitating choice migration is not a panacea for all ills, but does offer further options to tackle the challenges posed by high rates of population growth, youth unemployment, rapid urbanisation, resource depletion and climate change. It may also alleviate the prospect of forced migration due to rising sea levels”.

The briefing paper suggests that creating more permeable borders is an important means of redressing past and current injustices, expanding opportunities for human development, and fostering stronger regional relations.

Both the United States and New Zealand have been reasonably generous in facilitating migration from Micronesia and Polynesia. It is Australia that stands out as the Pacific neighbour with the greatest capacity to develop new migration streams that recognise Australia’s history as a colonising power, its self-interest in promoting regional security, and the special needs of some Pacific island countries. The seasonal worker scheme announced in 2008 takes a small but valuable step along this path.

Key messages from the briefing paper include:

• Natural resources are distributed very unevenly across the Pacific, with some states being substantially under-endowed in terms of their capacity to carry their human populations.
• Many Pacific populations continue to experience high rates of natural increase and high net growth, except where the safety valve of immigration relieves the population pressure.
• There has been significant depletion and degradation of natural resources in some Pacific countries due to population pressures and over-exploitation.
• Climate change and rising sea levels threaten to cast some Pacific island states as the first victims of a global problem that is not of their making.
• The history of Pacific colonisation has been capricious and has left some Pacific islanders with liberal access to economic opportunities in developed states through migration, while others have none.
• Preferential visa quotas and seasonal worker schemes go some way towards satisfying the needs of Pacific islanders but there is scope for expanding the channels of access to broaden the scope of Pacific migration.
• Developed states should assist developing states of the Pacific by promoting controlled migration, not only because it is in their self interest to do so but because it is an effective means of giving development assistance and fostering stronger regional relations.

*Mr Brien further suggests that “as we now live in a world where travel and communication technology makes the exchange of people and skills easier and more affordable than ever, it is timely to revisit migration policies in the context of national development strategies”.

*This briefing paper is an abridged version of the paper titled ‘Resources, population and migration in the Pacific: Connecting islands and rim’ by Brian Opeskin (Macquarie University) and Therese MacDermott (Macquarie University) first published in Asia Pacific Viewpoint, Vol. 50, No. 3, December 2009 ISSN 1360-7456, pp353-373. It is presented as a means of stimulating further thought on how migration can be cultivated alongside other policies to achieve sustainable development in small island Pacific states.

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Understanding trade – Pacific way. PiPP has published a series of briefing notes on Pacific trade issues.

When European powers left the region in the 1970s, they bequeathed a legacy of preferential market access arrangements and subsides. For a long time after independence, additional aid, particularly in Melanesia, went into established commodities such as copra, coffee, palm oil and cocoa. There was little incentive for Pacific governments to expand product ranges or look for new markets, as the subsides encouraged the export of traditional commodities duty-free and at above world market prices. In Fiji and Papua New Guinea the focus was on sugar exports to Europe; in Vanuatu and the Solomon Islands it was the copra trade.

Today, Pacific island governments can rely less on special treatments for exports to traditional destinations. Big trading partners like Europe, Australia and New Zealand are expecting the fledgling economies of the Pacific to liberalise, and quickly. Despite the existence of agreements among the Pacific island states, intra-regional trade has been low, mainly due to the massive distances and the lack of products to sell one another. In the words of an official of the Pacific Islands Forum Secretariat: The islands are hardly going to sell a lot of coconuts and fish to each other.

Yet opportunities exist for increased intra-regional trade, particularly in services, and especially among the geographically clustered and more diversified economies of Melanesia. Despite the concessions of reduced tariffs, the free trade agreement between members of the Melanesian Spearhead Group has failed to significantly increase trade. New Caledonia’s pro-independence Kanak Socialist National Liberation Front (FLNKS) has observer status in the Melanesian alliance. The potential contribution of these territories to regional economic growth is underestimated. The GDP of New Caledonia and French Polynesia is roughly the same as the 14 Pacific islands countries combined. A small amount of trade  would make a big difference to the region. 

Pacific countries can capitalise on further engagement with the global economy.  The  islands have had duty and quota-free access to Australia and New Zealand since 1981 under South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA). Marketing assistance to Pacific producers has been available, but meeting quality, consistency and quarantine standards has been a challenge. If a free trade  agreement comes out of the imminent PACER Plus negotiations, it will supersede existing SPARTECA market-access arrangements. Opening up to Australia and New Zealand, where most imports originate, could endanger import tariff revenue – in some cases up to 30 per cent of government income. Fears also exist about protecting domestic industries. As both development and trading partners, Australia and New Zealand can support the emerging Pacific island economies by ensuring PACER Plus negotiations do not focus solely on market access. In fact, Pacer Plus does not need to be considered as just a trade agreement, rather an economic partnership arrangement of which trade is one component.

Imports from Europe are small and diminishing, so direct tariff revenue losses and trade effects from the controversial Economic Partnership Agreements (EPAs) are likely to be minimal. The main issue for Pacific countries is the precedent that  EPAs set given the most favoured nation clause, which requires countries to extend conditions no less favourable than that provided to others. So an EPA would effectively prevent Pacific island countries from doing different deals with other trading partners. So far the only Pacific nations to sign up to the new trade agreement with the EU have been Fiji and Papua New Guinea, and that was to keep preferential access for sugar and tuna exporters. These agreements now set a precedent for other Pacific countries should they wish to enter into EPAs in the future.

Papua New Guinea, Solomon Islands, Fiji and Tonga are members of the WTO. Vanuatu and Samoa are in the process of acceding. Vanuatu nearly completed its accession negotiations in 2001. At the time it would have been the first Least Developed Country (LDC) to join the WTO, but baulked when asked for more liberal commitments for goods and services than existing members, including Australia, European countries and the United States. The WTO General Council has since agreed to provide more flexibility on the accession of LDCs. It remains to be seen if Samoa and Vanuatu will benefit from this special treatment. In the case of Tonga, which joined in 2005, it appears not. Tonga liberalised services extensively, was required to abandon prohibited industrial subsidies and bound its tariffs at the very low average rate of under 20 per cent. Graduation from LDC status has further implications, with Samoa on course to graduate in 2010 and Vanuatu in 2013. Graduation may affect the privileges and preferences and the prospect of losing these advantages makes it all the more important to promote export development and to make the economy more internationally competitive.

Confronting the challenges of globalisation is no easy task, especially when small, developing nations are at a clear disadvantage in terms of negotiating power. But Pacific island countries can move beyond fish and coconuts and capitalise on a more liberal trading environment.
Each country could benefit from export-oriented trade policy that focuses on a few select areas in which each country has an actual or potential comparative advantage such as tourism, food processing, fisheries and certain agricultural products. Doing nothing is not an ideal strategy as the region cannot continue to rely on past arrangements and high tariffs. Given the limited negotiating capacity of tiny island states, being prepared is essential. To leave everything undecided until the end is to play into the hands of the powerful.

This is an edited  version of the Pacific Institute of Public Policy briefing note, ‘Beyond fish and coconuts: trade agreements in the Pacific islands’ first published in 2008. The full series of trade briefing notes can be downloaded HERE 

ABD calls for increased membership contributions – what does this mean for the Pacific island countries?

Many people in the Pacific may not be aware that the Asian Development Bank (ADB) is about to ask all of its members for a general capital increase (GCI) – or more simply, a large capital injection.
The Pacific Institute of Public Policy (PiPP) has released a briefing paper in an attempt to explain what the proposed GCI means for Pacific island countries and  highlights the need for Pacific leaders to consider the ramifications of an increase on national budgets as well as ensuring that their voice is heard in the debate.
“Traditionally, the Pacific contributes little to the general capital of the ADB and so its representation on the board is left to others. This call for views on increased membership contributions presents as a great opportunity for the Pacific to be heard and to also influence the debate” says Mr Nikunj Soni, Executive Director of PiPP.
The increased membership contributions are required to boost the ADB’s general capital and so enable the bank to borrow more and so lend more to members.
The ADB has formally asked shareholders to consider 100 percent, 150 percent and a 200 percent general capital increase.  A further proposal to increase contributions by 250 percent and 300 percent has been put forward by India.
It is expected that the ADB Board of Directors will release a final draft paper proposing the preferred GCI (anticipated to be 200%) on Monday 23 March, 2009. The Bank would then seek final say from the Board of Governors as to their position on the increase at its meeting in Bali on 4 May, 2009.

The PiPP briefing paper notes that if Pacific leaders are to be heard, they will have to act quickly and suggests a number of options including:
1. Asking for more time
2. Securing bi-lateral donor support to fund the additional amounts
3. Recommend one of the lower amounts that have little or no direct cash impact such as the 100% increase
4. Accept a higher GCI increase and seek some reforms of the ADB in exchange.

“The impact of the global economic crisis on the Pacific region has yet to be fully understood, which makes it even more important for Pacific leaders to make an informed and timely decision on this matter” says Mr Soni, adding that “the recently announced MOU between the ADB and the Pacific Islands Forum Secretariat is an indication that the relationship between the Bank and the Pacific is maturing, and in this light we call on each Pacific country to consider its options carefully, discuss with their representative on the executive, and more importantly vote in line with the wishes of their people and governments”.

The Pacific Institute of Public Policy is and independent, non-partisan and not-for-profit think tank based in Port Vila, Vanuatu and exists to stimulate and support policy debate in the Pacific.

Responding to

stephen and nik rejoinder

VBTC – Radio Vanuatu, 18 MARCH 2009

Director General of the Ministry of Finance and Economic Management, George Maniuri has acknowledged the work done by the Pacific Institute of Public Policy based in Port Vila.

READ HERE

Social and economic impact of introducing telecommunications throughout Vanuatu

The Pacific Institute of Public Policy has completed the first phase of research into how people in urban and rural Vanuatu are exploiting access to telecommunications, and how the use of telephony impacts on household livelihoods.
The PiPP study draws on recent research conducted by the British Government Department for International Development (DFID), assessing the impact of telecommunications on poverty reduction and rural livelihoods in India, Mozambique and Tanzania. The underlying conceptual framework of the DFID study uses the Sustainable Livelihoods Framework. In adapting the DFID model, a detailed household survey was developed incorporating contextual changes to ensure relevance for Vanuatu. A total of 185 respondents were randomly selected from six locations: three rural (Isini, Lamnatu and Port Olry) and three urban (Freswota 1, Blacksands and Chapuis East). The research sites represent a cross-section of rural and urban Vanuatu.

The survey set out to find how households use telephony and how such uses impact on livelihoods. It identifies the linkages between contexts (rural/urban), patterns of use (including access and/or ownership of phones) and impacts on livelihoods (livelihood strategies and vulnerability of context). Comparing and contrasting rural and urban households is particularly important in the context of the dual (urban-rural) economy of Vanuatu.

A further 90 individuals participated in semi-structured interviews and focus group discussions to probe deeper into the impact of telephony on individuals and households. Drawing on the survey and qualitative research methods, the report presents three case studies: Small and Medium Enterprises & Telecommunications, Gender and Telecoms, and Rural – Urban Linkages and Telecoms.

…The survey set out to find how households use telephony and how such uses impact on livelihoods. …

Why did we do it?

In response to global moves towards liberalisation and the rapid developments in telecommunications technology, the Government of Vanuatu faced considerable pressure to end the TVL exclusive franchise prior to its 2012 end date. The argument for breaking the monopoly centred on promoting competition and separating out the regulatory powers from service providers. The end result anticipated better network coverage and lower prices.

The Telecommunications Act was amended in 2007, opening the market to competition. As part of negotiations to end the exclusive license arrangement, the Government surrendered its one third share holding in TVL, which became a fully privately owned entity. In December 2007, Caribbean based company, Digicel, was granted a licence to provide mobile telecommunications in Vanuatu. Presently, Digicel operates in five markets in the Pacific (Samoa, Papua New Guinea, Tonga, Vanuatu and Fiji) with an experimental license in the Solomon Islands.

Lessons from other from other developing countries suggest both pro-poor and distributional inequalities arise from differential access to telecommunications. However, to date there has been little research specific to Vanuatu or the Pacific more generally. The differing geographic, cultural and economic context of Vanuatu needs to be considered in any understanding of the widespread introduction of telecommunications services throughout the country; particularly in rural areas that have been largely isolated from urban centres and activities.

What did we find?

The study offers a snapshot of behaviour and impact of telephony on livelihoods at a time when the telecommunication sector was opened up to competition and a new service provider first commenced operation.Respondents were generally aged between 25 and 35 years, and most had secondary education. The average household size of was 5.7 with 3.1 adults and 2.6 under the age of 18. There was an imbalance in gender of respondents because men were more willing to participate and more forthcoming in their responses than women were. Migration, both within Vanuatu and overseas, was an integral part of life for respondents, with the majority of respondents reporting household members living in other parts of Vanuatu or overseas. Rural respondents generally worked in agriculture whereas urban dwellers were more likely to engage in small business such as running a kava bar, retail store or working for others.

It is important to note that the purpose of the study was not to report on tele-density, but rather to investigate behaviour patterns of users telephony in general and mobile phones in particular.

The key findings include:

Increasing use of and access to mobile telecommunications throughout Vanuatu and in rural areas in particular:

• Approximately 51 per cent of respondents indicated the first mobile in the household was acquired in the last year, 13 per cent in the last 1-2 years, and 33 per cent more than 2 years ago.
• The majority of rural respondents (80 per cent) had first acquired a mobile phone in the last year.
• The majority of those who do not own a mobile intend to acquire one in the next year.
• As demonstrated in the figure above, mobile is the preferred mode of telephony in both rural and urban areas. Most respondents said they did not use a private land line.

Primary reason for current non-use remains the high cost of using telephony including costs of charging and opportunity cost of finding network coverage:

• The ˜digital divide between rural and urban Vanuatu is shrinking, although there are still marked differences in access to services such as water, electricity, telephone, television, fridge, radio and computer between rural and urban areas.
• Only 47 per cent of rural respondents had access to electricity compared to 85 per cent of urban dwellers. The lack of access to electricity poses a significant hindrance to mobile phone use in rural areas. As one respondent from Lamnatu stated: œI pay as much as your monthly electricity bill just on charging my mobile.
• Rural users are more likely to share mobile phones with other household members whereas urban dwellers are more likely to own individually.

The impact of telecommunications on livelihood is positive for social and financial capital:

• Both rural and urban users reported increasing access to telecommunications is leading to more contact with family and friends, improving information regarding family events, reducing cost of travel, and increasing speed of communication.
• There is a positive relationship between perceived access to telecommunications and perceived livelihood improvements.
• Users generally consider telecommunications as critical for economic activity and would find it difficult to continue if they no longer had access:
• Telephone is valued most in communicating for social information, emergencies, and education, but has not replaced face-to-face communication in business activity.
• The advent of competition in the telecommunication market is affecting the value chain of businesses: reducing the cost of doing business (incremental benefits) and expanding business opportunities (transformational benefits).
• Of all business costs incurred, the highest costs were in logistics “ mainly transportation to and from the market.
• All of the interviewees agreed mobile telephone was reducing/expected to reduce transactions costs of doing business.
• Women selling at the market in Luganville and Port Vila were earning significantly more than those in Tanna, and suggested their expenditure on telephony reduced travel and other costs.

The the benefits of mobile telephony also comes with social and economic costs:

• Interviewees with higher cash incomes expressed anxiety over the added financial burden of having a mobile telephone, including subsidising relatives for purchasing credit and/or charging costs.
• In rural areas, in particular, interviewees were concerned about the unprecedented increases in speed of information and communication flow introduced by mobile telephony.

Gender and geography were important in determining ownership and use of mobile telephony:

• Lessons from other developing countries suggest that policies aimed at increasing access to telephony does not ˜trickle down equitably.
• In Vanuatu, men are more likely to own mobile phone than women in both rural and urban areas.
• Womens ownership of mobile phones is shaped by their relative influence in the intra-household decision making processes.
• Women were more likely than men to lack awareness of how to use mobile phones.
• Greater access to telephone services is playing a critical role in ˜managing distance between rural and urban households, and facilitating the redistribution of resources to rural households.

The level of sophistication in the use of mobile phones is likely to increase with more experience:

• Rural dwellers in particular were generally only using basic calling functions of mobile phones.
• Business people have yet to exploit the potential uses of telephony to promote existing businesses or start new enterprises.
• Examples from developing countries illustrate different ways in which the government and its development partners can employ mobile telecommunications as an innovative platform to target enterprises.

The telecommunication companies have introduced commendable marketing strategies to increase the affordability to their customers:

• Low priced new handsets, reduced cost of SIM, lower tariff rates and per second billing.

Generally, the preferred service provider in rural areas was Digicel and TVL in urban areas:

• Urban respondents who used both service providers suggested Digicel was better for keeping in touch with family and friends in the islands, whereas the level of service provided by TVL was seen to improve dramatically since the advent of competition.
• Rural respondents tended to prefer Digicel in areas where the company was providing network coverage for the first time.

What do we need to do next?

In order to capitalise on the benefits of improved access to telecommunications, policy makers, private sector, and other interested stakeholders need to consider options for addressing affordability, improving complementary infrastructure, reducing gender inequalities, and facilitating the transfer of resources to rural areas.

Recommendation 1:
Investigate private sector initiatives together with public-private partnerships to address issues of affordability, drawing on examples from other countries.

Recommendation 2:
Improve complementary infrastructure to fully realise the benefits of increased access to telecommunications, including roads, shipping and electricity.

Recommendation 3:
Disseminate examples of how mobile telephony can benefit small and medium enterprise development.

Recommendation 4:
Target women with information campaigns to encourage use and better understanding of mobile telephony to assist in mitigating gender inequalities in access to telecommunication services.

Recommendation 5:
Carry out further research to investigate how mobile telecommunications can facilitate the redistribution of resources to rural areas.

Recommendation 6:
Update this research project in twelve months time to confirm findings and track any changes.

Copies of the research findings and briefing notes are available for download.

Vanuatu Daily Post, 17 MARCH 2009

READ HERE

Radio New Zealand International, 16 MARCH 2009

READ HERE

Many people in the Pacific may not be aware that the Asian Development Bank (ADB) is about to ask all of its members for a general capital increase (GCI) – or more simply, a large capital injection.

The Pacific Institute of Public Policy (PiPP) has released a briefing paper in an attempt to explain what the proposed GCI means for Pacific island countries and  highlights the need for Pacific leaders to consider the ramifications of an increase on national budgets as well as ensuring that their voice is heard in the debate.

“Traditionally, the Pacific contributes little to the general capital of the ADB and so its representation on the board is left to others. This call for views on increased membership contributions presents as a great opportunity for the Pacific to be heard and to also influence the debate” says Mr Nikunj Soni, Executive Director of PiPP.

The increased membership contributions are required to boost the ADB’s general capital and so enable the bank to borrow more and so lend more to members.
The ADB has formally asked shareholders to consider 100 percent, 150 percent and a 200 percent general capital increase.”The impact of the global economic crisis on the Pacific region has yet to be fully understood” further proposal to increase contributions by 250 percent and 300 percent has been put forward by India.
It is expected that the ADB Board of Directors will release a final draft paper proposing the preferred GCI (anticipated to be 200%) on Monday 23 March, 2009. The Bank would then seek final say from the Board of Governors as to their position on the increase at its meeting in Bali on 4 May, 2009.
The PiPP briefing paper notes that if Pacific leaders are to be heard, they will have to act quickly and suggests a number of options including:
1. Asking for more time
2. Securing bi-lateral donor support to fund the additional amounts
3. Recommend one of the lower amounts that have little or no direct cash impact such as the 100% increase
4. Accept a higher GCI increase and seek some reforms of the ADB in exchange.

“The impact of the global economic crisis on the Pacific region has yet to be fully understood, which makes it even more important for Pacific leaders to make an informed and timely decision on this matter” says Mr Soni, adding that “the recently announced MOU between the ADB and the Pacific Islands Forum Secretariat is an indication that the relationship between the Bank and the Pacific is maturing, and in this light we call on each Pacific country to consider its options carefully, discuss with their representative on the executive, and more importantly vote in line with the wishes of their people and governments”.

The Pacific Institute of Public Policy (PiPP) is the leading independent think tank serving the Pacific islands community.
We exist to stimulate and support informed policy debate in the Pacific.
Central to our model of engagement with policy stakeholders is research communications. We synthesise research findings to draw out practical applications that can advance national development programs. Information is shared using innovative, people centred communication processes. Written material is published in user relevant formats and languages, and complemented using other media including audio and video pod casts, discussion forums, social networking, press, radio and television.
PiPP engages and connects principal stakeholders, promoting fraternity between the Pacific island countries and regional neighbours such as New Zealand and Australia. 
We add value by improving information flows and policy dialogue. Our model delivers a long overdue, inclusive forum for public debate and engagement in national and regional development matters.

Established under the Vanuatu Charitable Associations (Incorporation) Act [CAP.140] on 21 November 2007, the PiPP is located at:

4th floor
Ex Bank of Hawaii Building
Lini Highway, Port Vila, VANUATU.
Mail to: PMB 9034, Port Vila, VANUATU.
Tel/fax: +678 29842
Email us on pipp(at)pacificpolicy.org