PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i


Commentary

A VERY UN-PACIFIC MEETING OF PACIFIC LEADERS

By T K Jayaraman

SUVA, Fiji (Fiji Times, Aug. 25, 2008) – The Pacific Islands Forum held its 39th Meeting in Niue minus Fiji. It was certainly a momentous meeting, as it was unique.

Politics dominated the deliberations, beginning much before the meeting, ending with an unprecedented communiqué.

In the views of many, it was called very "unPacific". It indicated, for the first time, the possibility of suspension of a founding member nation, which is also hosting the Pacific Island Forum Secretariat, in the event of failing to fulfill a commitment. As an old, American commercial jingle on Salem cigarettes went, "You can take Fiji out of the Forum, but you cannot take the Forum Secretariat out of Fiji!"

That is at least for the time being: unless the two metropolitan powers have already made alternate arrangements to accommodate the secretariat on their shores.

Benjamin Disraeli in a House of Commons debate observed. "Finality is not the language of politics".

Anything may happen before March 2009.

As another equally distinguished Englishman, Joseph Chamberlain noted, "In politics, there is no use looking beyond the next fortnight."

So let us wait for the dust to settle and the steam to cool off.

In the meanwhile, let us review a few positive things which happened at the Niue meeting.

Seasonal farm jobs

Australia announced its own pilot scheme for seasonal workers from one country each from Melanesia, Polynesia and Micronesia. The scheme is based on the successful experience of the New Zealand scheme of Recognised Seasonal Employers.

The Australian three-year pilot scheme will place up to 2500 workers from Vanuatu, Tonga and Kiribati in horticultural work in Australian regional areas with identified labour shortages.

In the midst of growing unemployment and rising poverty levels in the island countries, provision of farm labour opportunities would enable families in island countries to receive remittances in a steady manner. Under the scheme approved by the Australian Government, visas issued will allow workers to work in Australia for seven months in a year.

Infrastructure Fund

At the Niue meeting, a much awaited initiative, known as Pacific Region Infrastructure Facility was announced. The facility will be jointly funded by Australia, New Zealand, the Asian Development Bank and the World Bank.

The objective of the facility is to assist island countries improve roads, ports, and general transport and support reliable energy and communications infrastructure, water, sanitation and waste management systems. It will provide funding of up to $200 million during the next four years.

Bulk procurement

In the context of recent surges in oil price combined with its high volatility, Pacific islands should adopt a joint, competitive tendering procedure for importing oil. Such a combined bulk procurement program will assure them of lower prices than prices at which they currently procure oil from supply sources.

The bulk petroleum procurement idea has been on the cards for past several years. The Niue meeting has now confirmed the possibility of making a more solid progress as details of a scheme would be hammered out in the October 2008 Forum Finance Ministers meeting.

Partnerships

Australia signed two agreements, one with Papua New Guinea and another with Samoa, marking a new approach. The agreements are called Partnerships for Development, providing aid to island countries, conditional to fulfilling certain identified commitments to improve their economies. Australia has planned to sign similar agreements with eight more island nations.

Both PNG and Samoa will receive Australian aid in specific areas, such as providing better access to markets and services, universal education, improved health outcomes and better public administration, strengthening law and justice agencies and private sector-led growth.

Unfinished tasks

Many tasks still remain. These include implementation of Pacific island Countries Trade Agreement (PICTA) envisaging free trade by 2010 amongst island countries, keeping Australia and New Zealand out, through countries implementing required steps beyond its mere ratification; and conclusion of the Economic Partnership Agreement with European Union by December 2008. The latter would trigger negotiations with Australia and New Zealand toward the ultimate free trade area concept, raising in the first place the question about the usefulness of PICTA, as a stepping stone.

Above all, there remains the Pacific Plan, which was assiduously prepared with single-minded devotion by the former secretary general, Greg Urwin. The Pacific Plan is a scheme of co-operation based on four "pillars": economic growth, sustainable development, good governance and security. It incorporates many of the components of regional economic integration including free trade in goods and services and regional cooperation in areas including fisheries, food security and transport.

Now the annual jamboree is over, the Pacific island leaders back in their home countries, must be surely pondering over what they failed to achieve towards the goal of regional integration. Were there any other missed opportunities as well?

Certainly, when the new secretary general and his staff solemnly gather for a memorial service in the morning of Wednesday, August 27 at the Forum Secretariat headquarters in Fiji to honour and celebrate the life of Greg Urwin, the sombre words of Robert Frost will inspire them: "The woods are lovely, dark and deep. But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep."

Associate Professor Jayaraman teaches economics at the University of the South Pacific.

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