Page 17 - Islands Business May-June 2022

Why would any superpower or FIC begrudge China’s attempt to get FICs to
sign a Treaty which will put their relationships on a common formal footing,
instead of having to negotiate with each and every small FIC?
Let us remember that US also has its agreements with the former Trust
Territories, France totally controls New Caledonia and French Polynesia, and
Australia and NZ have their official networks through organisations like Forum
Secretariat and Pacific Community.
And it was not too long ago that Western attempts to box in Japan
contributed to Japan entering WWII alongside Germany.
Might Machiavellian attempts to “box in” an even more powerful China also
Commentary lead to less than peaceful outcomes? Heaven forbid. Commentary

What poor FICs need

about
Discussions Discussions FICs U.S., I asked why the organisers had not included China, also
signing treaties with each
other or being part then an emerging Donor. The replies by the organisers talked
about FICs of the
Australian “vuvale” (family)
signing treaties
might imagine that these are about difficulties with “visas” (Islands Business March 2011).
perhaps roughly “equal
partners”. with each other Today, just ten years later, Chinese officials apparently have
But most IB readers no difficulty in entering any FIC and several FICs have signed
or being part of
will know that some of these
FICs are “poor” and that their Treaties to guarantee that, and probably much more.
the Australian
political leaders, after
of
decades “vuvale” political In the recent media debates about the China-Solomon
independence, are still
struggling to improve the Islands Treaty, many observers in the Australian media
(family) might
ordinary people’s standard of
living. imagine that have accused Chinese officials of using “brown paper bag”
Yet few international
these are
IB readers will know how abjectly poor they are, relative to the superpowers who diplomacy to attain their objectives. No one has asked
attempt to manipulate their geopolitics such as US. why China has not been invited into all the regional donor
perhaps roughly “equal partners”.
Take Timor Leste, with a per capita GDP of a mere $1,584. Who would
blame its President, Jose Ramos Horta, of wanting to develop stronger ties with organisations or even a new one created, so that all aid flows
But most IB readers will know that some of these FICs are
China to facilitate more development aid. They have not forgotten the less than
honest negotiations with Australia over the sharing of gas royalties in the Timor are transparent and on the table.
“poor” and that their political leaders, after decades of
Sea.
political independence, are still struggling to improve the
Or take Solomon Islands with an average GDP per capita of US$2,344 The Pacific has some solid political leaders like Samoa’s
which hides massive regional inequalities (such as much worse poverty in Malaita)
ordinary people’s standard of living.
which have resulted in civil unrest for decades. Who would blame Prime Minister Fiame Naomi Mataafa, who could try to encourage FICs to
Sogavare if he sees China as a new source of inflows of foreign aid and
Yet few international IB readers will know how abjectly
investment that might take Solomon Islanders out of their poverty trap. broker some kind of peace between the US and China, and
All these FICs have had extremely poor growth paths over the last 30 years,
poor they are, relative to the superpowers who attempt to
even the resource rich Melanesian countries (like PNG, Solomon Islands and the Pacific mini-Powers like Australia and NZ. Perhaps the
Vanuatu) whose natural resources (land and sea) have been plundered without Pacific periphery can be a location of new “Pacific” relations
manipulate their geopolitics such as US.
any domestic value adding.
What they need from good donors are not dollars flying in and out, but between the superpowers.
Take Timor Leste, with a per capita GDP of a mere
investment in infrastructure and natural resource value-adding, which could lead
to sustainable high rates of growth over the next three decades.
$1,584. Who would blame its President, Jose Ramos Horta,
Simultaneously, they need all the employment opportunities in Australia
of wanting to develop stronger ties with China to facilitate
(and NZ) that have been put on the table by the new Government. They also Professor Wadan Narsey is a Former Professor of Economics
need the wide social integration through sports, arts and the media, that can really
more development aid. They have not forgotten the less than
bind the Pacific people to Australia and NZ. at USP and Adjunct Professor, James Cook University,
None of this means that China should be excluded from similar relations
with FICs. honest negotiations with Australia over the sharing of gas Queensland.
royalties in the Timor Sea.
A “Pacific” Solution
Or take Solomon Islands with an average GDP per capita of wadan.narsey@gmail.com
Many historians believe that the changes of the strengths of global empires are to
US$2,344 which hides massive regional inequalities (such as
be first seen not in the “centres” like Rome or London or Paris or New York, but in
their peripheries. Without any doubt, the Pacific is such a periphery where one
much worse poverty in Malaita) which have resulted in civil
can observe the changes in the relative strengths of superpowers, however they
might deny that the process or resist the change.
unrest for decades. Who would blame Prime Minister Sogavare
if he sees China as a new source of inflows of foreign aid and
investment that might take Solomon Islanders out of their
poverty trap.
All these FICs have had extremely poor growth paths over TRADE MARK CAUTIONARY NOTICE IN
the last 30 years, even the resource rich Melanesian countries MICRONESIA, MARSHALL ISLANDS AND PALAU
(like PNG, Solomon Islands and Vanuatu) whose natural
resources (land and sea) have been plundered without any Notice is hereby given that Fifth Generation, Inc., a
domestic value adding. corporation organized under the laws of the State of Texas,
What they need from good donors are not dollars flying in USA of 12101 Moore Road, Austin, Texas 78719 United
and out, but investment in infrastructure and natural resource States of America is the proprietor in Micronesia, Marshall
value-adding, which could lead to sustainable high rates of Islands and Palau of the following trade mark:
growth over the next three decades.
Simultaneously, they need all the employment opportunities
in Australia (and NZ) that have been put on the table by the TITO’S
new Government. They also need the wide social integration
through sports, arts and the media, that can really bind the Used in respect of
Pacific people to Australia and NZ.
None of this means that China should be excluded from Class 33: Alcoholic beverages except beers.
similar relations with FICs.
The proprietor claims all rights in respect of the above
A “Pacific” solution
Many historians believe that the changes of the strengths of trade mark and will take all necessary legal steps against
global empires are to be first seen not in the “centres” like any person or company infringing their said rights.
Rome or London or Paris or New York, but in their peripheries.
Without any doubt, the Pacific is such a periphery where DAVIES COLLISON CAVE PTY LTD
one can observe the changes in the relative strengths of 255 Elizabeth Street, Sydney, NSW 2000, AUSTRALIA
superpowers, however they might deny that the process or Telephone: +61 2 9293 1000
resist the change. Email: MHeathcote@dcc.com
Some ten years ago at a donor dialogue meeting driven by
Islands Business, May-June 2022 17