Pacific Buzz

A roundup of development policy issues in the Pacific by the Pacific Institute of Public Policy and the Development Policy Centre.

We offer our condolences to the people of Cook Islands on the passing of former prime minister, Sir Geoffrey Henry.

Vanuatu Government expels the Australian Federal Police

A diplomatic stand off continues after the Vanuatu Government expelled the Australian Federal Police on 10 May in retaliation for embarrassment caused to Prime Minister Sato Kilman whilst transiting through Sydney airport last month. Where the Vanuatu Government views the matter as an infringement of national sovereignty, Australian Foreign Minister Bob Carr described it as a law enforcement incident and urged a rethink in the context of the value of Australian aid to Vanuatu. (more…)

Ministerial contact in Fiji

The high-level Pacific Islands Forum Ministerial Contact Group meeting commenced in Fiji (for the first time in four years) on Monday April 30^th, with consultations beginning May 1^st. The delegation comprised a number of officials from the region, including Australian and New Zealand foreign ministers Bob Carr and Murray McCully. The meeting was focused on the Fijian constitution consultation process and election preparations. (more…)

A roundup of development policy issues in the Pacific by the Pacific Institute of Public Policy and the Development Policy Centre.

PNG protests

The Judicial Conduct Bill that was rushed through the PNG Parliament on March 21 has resulted in yet another vigorous constitutional debate. Criticisms of the bill came from numerous quarters, including leader of the opposition Dame Carol Kidu, NGOs and the PNG Chamber of Commerce and Industry. The most visible opposition came from UPNG students (led by those studying law) who marched peacefully and presented a message and petition to the prime minister’s chief secretary. (more…)

A roundup of development policy issues in the Pacific by the Pacific Institute of Public Policy and the Development Policy Centre.

Our sincere condolences to the people of Tonga on the passing of King George Tupou V.

ADB criticises PNG sovereign wealth fund

The ADB has criticised the design of the PNG Sovereign Wealth Fund, saying that more funds from the resources boom should be saved and less spent “until the government undertakes necessary public financial management reforms.” The ADB also takes exception to the creation under the just-passed Organic Law on Sovereign Wealth Fund Management of a new infrastructure authority. (more…)

A roundup of development policy issues in the Pacific by the Pacific Institute of Public Policy and the Development Policy Centre.

Our sincere condolences to the people of Tonga on the passing of King George Tupou V.

ADB criticises PNG sovereign wealth fund

The ADB has criticised the design of the PNG Sovereign Wealth Fund, saying that more funds from the resources boom should be saved and less spent “until the government undertakes necessary public financial management reforms.” The ADB also takes exception to the creation under the just-passed Organic Law on Sovereign Wealth Fund Management of a new infrastructure authority. The Bank says that this will “absorb skilled staff from existing agencies, hollowing out already under-resourced service delivery institutions.” Rather than creating “new funding mechanisms that undermine institutions”, the PNG Government should “strengthen existing government agencies and systems.”

Also in PNG news, new Australian Foreign Minister Bob Carr got off to a shaky start over comments he made threatening sanctions and isolation if PNG did not stick to its election timetable. This prompted PNG senior officials and diplomats to react with  dismay  at the senator’s first foray into diplomacy in the region. Within days, Carr had moderated his comments and PNG’s government confirmed that elections would proceed as planned.

Also in PNG, a court order was issued for the case against Chief Justice Sir Salamo Injia to be dropped. In the latest twist to the ongoing saga, Deputy Prime Minister Beldan Namah called for the resignation of the chief justice and two other justices. For a reminder of the story so far, see the timeline on the Masalai blog.

MP Face to Face idea goes regional

The Pacific Institute of Public Policy (PiPP) launched its 2012 MP Face to Face series with a lively gathering on Pentecost island last week. This initiative aims to bridge the gap between politicians and voters in Vanuatu creating a new approach to civic awareness. These forums are being rolled out across the country to improve direct democracy and help steer the national conversation towards policy ideas rather than personality politics.

Now comes news the US government plans to support a similar program in PNG ahead of the election. PiPP is pleased to see its original initiative being picked up elsewhere in the region.

Constitutional consultation in Fiji

In another step along Commodore Bainimarama’s roadmap towards the 2014 elections comes the announcement of constitutional consultations in Fiji. The new commission has appointed Professor Yash Ghai, a veteran of constitutional architecture in the region, to oversee the process. Bainimarama has affirmed that anyone can participate in the consultations but that race-based parties will be ineligible to contest the elections.

Last week, Fiji’s president also formally abolished the Great Council of Chiefs.

Slowdown projected for 2012

After a year of strong economic performance, the ADB is projecting growth across the region to decline from a high of 7 per cent in 2011 to 6 per cent in 2012 and 4.1 per cent in 2013. Take out PNG and Timor Leste, and Pacific island growth falls from just over 3 per cent in 2010 to  just under 3 per cent in 2011 and to about 2.5 per cent in 2012. The ADB cites slow global growth, rising oil prices and sovereign debt problems in Europe as contributing factors.

Vanuatu stands out as an exception. After its recent slump (with GDP growth declining to 2.3 per cent in 2010),  growth in Vanuatu is estimated to have bounced back to 4.3 per cent in 2011 and is projected to reach 4.5 per cent in 2012 and 5 per cent in 2013.

The ADB parts company with the Government of Fiji on growth prospects for the Fijian economy. While the latter is projecting 2.3 per cent growth for 2012, the ADB thinks that growth will hit only 1 per cent.

Kiribati: looking for land?

President Tong recently raised the idea of purchasing land in Fiji although there is some uncertainty as to whether this is for resettlement or a business investment to generate national income.

Palau passes its 2012 budget

After five months of political wrangling, the government of Palau passed its 2012 budget amounting to USD 61 million.

This budget includes a number of notable policy changes, including welfare payments to no-income households, and consumption tax increases aimed at tourists. There will be an increase in the hotel room tax; and the ‘green fee revenue‘, a departure tax, will also double. The latter will be used to fund the protected areas network (a set of marine protected areas), and improve water and waste management throughout the country.

In brief:

• Tonga mourns the loss of the late king George Tupou V.
• In a new report, the World Bank has challenged conventional thinking on development in the Pacific. The Development Policy Centre has published a blogsummarising these findings.
• Results from a survey suggest that Tonga has the highest rates of domestic violence in the region. The statistics have found that three out of every four women experience violence from men at some point in their life.
• Micronesian leaders  summit in Guam to discuss economic development education and health care.
• More shake ups in Solomon Islands after PM sacked 11 permanent secretaries.
• A kava conferencein Vanuatu aims to overturn European ban.
• Vanuatu’s prime minister confirms commitment to a submarine cable to boost telecommunications.
• The Development Policy Centre will host a conference on Pacific islander migration and employment in Australia/New Zealand.

This biweekly roundup of development policy issues in the Pacific is a joint venture of the Pacific Institute of Public Policy and the Development Policy Centre. Editorial content is the responsibility of Derek Brien, PiPP Executive Director, and Stephen Howes, Devpolicy Director.

A roundup of development policy issues in the Pacific by the Pacific Institute of Public Policy and the Development Policy Centre.

Concerns mount over media freedom debates

Ironically, as censors leave the newsrooms and Radio Australia is poised to resume broadcasting in Fiji, concerns are mounting about media restrictions in other Pacific countries.

In Samoa, Prime Minister Tuilaepa Sa’ilele Malielegaoi has defended the government’s move to set up a body to regulate the media. Industry representatives have labelled the government’s moves as unnecessary and are pushing for self-regulation. (more…)

A roundup of development policy issues in the Pacific by the Pacific Institute of Public Policyand the Development Policy Centre.

Russian courting shakes up the Solomon Islands

Russia’s courting of Pacific island states continues to cause political fallout, with the Solomon Islands foreign minister, Peter Shanel, sacked by Prime Minister Gordon Darcy Lilo. This was for allegedly agreeing to forge closer diplomatic relations during a recent meeting with Russian foreign minister, Sergei Lavrov, in Fiji.  Russia claims that the issue of recognition for its proxy states Abkhazia and South Ossetia was not raised in any meetings, but is offering more general bilateral assistance to Pacific countries as Russia follows the US in its ‘pivot’ towards the Asia Pacific region. Amidst speculation that Prime Minister Lilo plans to remove another four ministers, Mr Shanel says claims that his sacking over the Russian issue was a cover up and that his removal was pre-planned.

Politicking in Solomon Islands was temporarily put on hold as the nation gathered to farewell elder statesman and first governor general, Sir Baddeley Devesi,  at astate funeral service in Honiara.

Trading beyond fish and coconuts

The existing trade agreement between Pacific island countries will be expanded to include the liberalisation of the service sector. Trade officials have agreed to develop a schedule of commitments under the Pacific Islands Countries Trade Agreement to open up economies to other island countries, with a focus on tourism, transportation and business services. This move signals a potential advancement in intra-regional trade and recognises that the future of the small island economies is based on trade in services rather than goods.

At the same time, it was announced that Dr Edwini Kessie has been appointed as Chief Trade Adviser for the Pacific island countries. The appointment of Dr Kessie, a Geneva-based international trade law expert, comes ahead of the next round of talks between island countries and Australia/New Zealand on the Pacific Agreement on Closer Economic Relations (PACER Plus). Though this recent piece by Wesley Morgan suggests that Australia has lost interest in PACER Plus.

US budget and military scale down

Despite a tough fiscal year ahead, US President Barack Obama has proposed a 2013 financial year budget of US$575.3 million for the Office of Insular Affairs (increased from US$464.3 million), which includes US$238.9 million in payments (increased from US$232.1 million) to the three freely-associated States in the Pacific (Republic of the Marshall Islands, Federated States of Micronesia and Palau) under their Compacts of Free Association.

Budget and strategic pressures are reflected in the likely scaling back of the US$23 billionmilitary buildup on Guam, with the number of proposed marines dropping from 8,000 to 4,700. Guam has also raised concerns over federal ‘compact-impact’ funds proposed in the budget, saying this is not enough to deal with rising costs related to the proposed build up and pressure on local services.

Tongan remittances drop

Tonga’s economy continues its downward trajectory as remittance inflows fall. There has been a drop of US$48 million since 2008, indicating that the Tongan diaspora is feeling the impacts of the global economic turndown. Remittances are a key source of revenue for Tonga, with the rate of inflows second highest in the Pacific. The National Reserve Bank will host an economic dialogue next month to map out strategies to strengthen economic growth.

Deep seabed exploration off Nauru

Nauru is the first developing country to take advantage of an international framework which sets aside areas of the seabed located in international waters (rather than within a specific EEZ) for mineral exploration and extraction.  This marks a significant extension of the scope of resource use in the region.  Whilst this project is described as being under ‘sponsorship’ by Nauru, it is essentially a private sector operation. Nauru Ocean Resources Inc. (NORI) in partnership with a group of former executives from Nautilus Minerals, a leading seafloor mining company already operating in PNG, is the first company to obtain a licence to explore deep sea minerals in an area reserved for developing countries. The licence has been granted by the International Seabed Authority (ISA), which oversees the United Nation Convention on Law of the Sea - a treaty signed by over 160 countries. NORI will be allowed to explore an area within international waters at estimated depths of 5,000 m, and is planning to explore deep sea minerals in a 25,000 km zone between Hawaii and Mexico later this year.

A number of countries within the ISA were opposed to the approval of the licence saying that the industry lacks regulation, and the environmental impacts remain uncertain. The secretary general of the ISA, Nii Allotey Odunton, suggested at recent meeting in Fiji that a precautionary approach will help limit the impact on deep-sea species.

In brief:

• PNG’s political saga is still before the courts as Dame Carol Kidu becomes the leader and the only member of the opposition and Sir Michael Somare announces his intention to stand again in this year’s election.
• Improving Fiji’s energy security.
• Poland establishes diplomatic ties with Palau.
• Cook Islands population decline blamed on lack of labour policy.
• Malnourished children in East Timor a cause for worry.
• Major flooding in Tonga from tropical cyclone Jasmine.

This biweekly roundup of development policy issues in the Pacific is a joint venture of the Pacific Institute of Public Policy and the Development Policy Centre. Editorial content is the responsibility of Derek Brien, PiPP Executive Director, and Stephen Howes, Devpolicy Director.