Pacific Buzz | A roundup of political and economic news
TOP STORIES
Micronesian Presidents summit
Finance and fibre-optic cables seem to have topped the agenda at the recently concluded Micronesian President’s summit held in Palau. The Presidents of FSM, Palau and Marshall Islands also discussed “Compact impacts” (referring to their Compacts of Free Association with the US), the upcoming Pacific Islands Forum meeting in the Marshalls as well as the potential use of drones for maritime surveillance in their areas.
Tonga’s public debt pressures
New analysis of the Tongan economy presents a bleak picture. On top of falling remittances and low export performance, the country remains crippled by its huge public debt. Of its USD 174 million total external debt, the Tongan government owes nearly USD 112 million, equivalent to a third of its economy, to the EXIM Bank of China. A state owned enterprise, the EXIM Bank is mandated to facilitate Chinese exports and imports and assist Chinese companies in offshore project contracting and investment. The Tongan government have asked for more development assistance to help ease the pressure of huge loan repayments, and is counting on new capital projects to stimulate the economy.
POLITICS
Rudd visit to PNG offers police, immigration softening
Australian prime minister Kevin Rudd and his Papua New Guinean counterpart, Peter O’Neill, have agreed to co-operate more closely to help resolve PNG’s chronic law and order problems. They have announced an initial 50 Australian police will deploy to PNG before the end of the year to help police in Port Moresby and Lae.
PM Rudd also brought his minister for trade Richard Marles and the new immigration minister Tony Bourke. Healthcare, the West Papuan issue and managing the asylum processing centres on Manus island were also high on the agenda. Following his recent trip to Indonesia, Rudd wants to ensure a “regional response” to the issue. Rudd has also started to address one of the biggest issues in the relationship – visas. Papua New Guineans can now use the “Australia New Zealand” line at Brisbane and Cairns airports.
PNG is also debating important constitutional amendments, which would extend the grace period of governments from 18 months to 30 months. PM O’Neill says it will bring much needed stability but the Opposition claims the changes are dangerous.
Australian defence needs a Pacific focus
A new Australian Strategic Policy Institute paper says Canberra needs to focus on defence policy in the Pacific, while the Pacific Institute of Public Policy released an opinion piece arguing the need for Australia to engage with Melanesia through the MSG, questioning why the recent Australia Defence White paper doesn’t even mention Melanesia or West Papua despite them being key strategic issues.
As RAMSI pulls out of the Solomon Islands after 10 years, there are also renewed questions about insecurity and a warning about the potential for future riots. This reflects concerns raised in a recent survey about the level of dissatisfaction felt by many Solomon Islanders over basic service delivery.
Climate and disaster risk roadmap
Fiji hosted the first joint meeting to bring the Pacific Platform for Disaster Risk Management (DRM) and Pacific Climate Change Roundtable together to work on a regional roadmap of co-operation. Organisers say there is a strong link between climate change and disaster management.
Meanwhile as Australian PM Kevin Rudd announced plans to change Australia’s carbon price from a fixed to floating price in line with the EU, China and the US have held talks on addressing climate issues. An agreement was reached on limiting hydro fluorocarbons, while both countries, the world’s largest emitters, aim for more co-operation on climate change despite their many differences on other issues.
ECONOMICS
More financial blows for Tonga
As if a bleak economic forecast wasn’t enough, New Zealand has suspended its NZD 3 million tourism aid to Tonga over concerns about the safety of Tonga’s newly acquired MA60 aircraft donated by China. Tongan authorities have been put under pressure to get proper certification for the aircraft before New Zealand can reconsider its decision. TVNZ reported that the main reason for the suspension was because of the aircrafts poor ‘safety record’, although Tongan airline, Real Tonga, claim the decision was made to protect New Zealand-owned airline company, Chathams Pacific, who have since abandoned their own intra-island service in Tonga.
Build, neglect, rebuild – the state of infrastructure
Poor maintenance and the premature deterioration of infrastructure is the topic of a new report released by the Pacific Region Infrastructure Facility, a multi-donor partnership. The report, Infrastructure maintenance in the Pacific: Challenging the build-neglect-rebuild paradigm [pdf – 170 pages], draws on case studies from around the region and details the profound adverse consequences for development and people’s lives. It also emphasises the need to consider the potential liabilities of new infrastructure projects, which are often donor led or require substantial loans.
Trade deal with Europe stalled
The troubled negotiations on a proposed Economic Partnership Agreement between Europe and the Pacific have been suspended by the European Union. It seems the main sticking points in negotiations are the demands from Europe to have national laws amended that deal with the management of fisheries resources and the hesitation from some Pacific countries to extensive liberalisation of import tariffs. Vanuatu has also led the charge to have market access issues for kava resolved under any new agreement. Pacific leaders had previously requested that a deal with Europe be concluded this year, although this is now looking unlikely.
BRIEFS
- Solomon Islands launches a new government network in the wake of the increasing use of ICTs for development.
- A no confidence motion against Vanuatu prime minister Moana Carcasses has been thrown out by the speaker of parliament, but the PM’s Port Vila seat, along with five others from the same constituency, is being challenged.
- Former chairman of the PNG Public Services Commission, Rigo Lua, is sworn in as the new PNG chief Ombudsman.
- Kiribati celebrates 34 years of independence
- Resettled Solomon Islands families will have their own land.
- A new Australian minister in the Rudd government distances herself from West Papua support.
- NGO Coalition on Human Rights raises concerns over security forces brutality and continued restrictions to freedom of expression in Fiji.
- Small Islands Developing States prepare for a global gathering in Samoa next year.
Editorial content is the responsibility of Derek Brien, PiPP Executive Director.
