Page 30 - Islands Business March 2023

Development Development

2050 STRATEGY IS ESSENTIALLY

POLITICAL

By Kaliopate Tavola one hand and the Pacific Island Countries (PICs) on the other,
and the FTA, Pacific Island Countries Trade Agreement (PICTA)
Regionalists generally identify three characteristics of for PICs only. The last time I checked, PICTA is only being
regionalism, namely: economics, security and politics. Eco- implemented by 50% of its membership, and it’s a ‘Trading in
nomic regionalism focuses on economic and financial aspects. Goods’ agreement only, with the ‘Trading in Services’ agree-
This is effectively an alternative reference to a trade bloc. ment has yet to be fully ratified two decades into its lifespan.
Security regionalism focuses on peace and security. Political PACER, of course, has given rise to FTA, PACER Plus. To
regionalism focuses on shared aims of the nation states and date, not all PICs have signed the FTA, and the two largest
any issues that a state may face. Overall, however, it can be PICs and Melanesian Spearhead Group trading giants – Fiji and
said that all three forms of regionalism are interconnected Papua New Guinea, have opted out of the FTA.
and can overlap. Consequently, any analysis of regionalism is The direction that the SPF Leaders wanted to pursue way
likely to exhibit all three characteristics. The 2050 Strategy back in 1971 – for regional economic integration and even
for the Blue Pacific Continent is no exception. However, given with advanced economic and political integration in a trade
the relative weight of political issues vis-à-vis others, it can bloc, has not materialised. It can be concluded that mem-
be classified as essentially political. bers of Pacific regionalism may lack the appetite for greater
The political orientation of the 2050 Strategy can be regional economic integration through trade. This is perhaps
gleaned from various sections of the Strategy including: Lead- more apt for PICs than for Australia and New Zealand, given
ers’ Vision for 2050, Our Values, Leaders’ Commitments to the latter’s respective integration into the global trading
2050 and from the seven thematic areas. The latter includes system.
respective ‘levels of ambition’ up to 2050. Two politically The lack of appetite is instructive but understandable. PICs,
laden themes, namely: ‘Political Leadership and Regionalism’ given their relative size, geography, resource endowment,
and ‘People Centred Development are foregrounded under relative economic status etc., may be concerned about free-
Thematic Areas. Their respective ‘levels of ambition’ speak ing up trade and the loss of tariff revenue, apart from loss
of the need for greater cooperation to safeguard, secure of any competitive edge in trading that may result. Notwith-
and progress the Blue Pacific Continent; unity and cohesive- standing the dominant political direction of the 2050 Strategy,
ness of political leadership; responsiveness of the regional the Pacific Islands Forum Secretariat (PIFS), is already taking
architecture; recognition and respect for collective approach; essential economic-related measures to counter competition
drawing on cultural and spiritual attachment to land and the hitches under the 2050 Strategy’s Thematic Areas 2 (People
ocean; gender equality and equal access to public services so Centred Development) and 4 (Resource and Economic Devel-
that no one is left behind. opment). The Secretariat is to be commended for this.
It is clear that the 2050 Strategy, whilst it contains some Notwithstanding the lack of appetite for regional economic
economic and financial aspects, is certainly not a trade bloc. integration, Pacific regionalism has grown since 1971 to what
This is just as well. Pacific regionalism has an extremely poor it is today. As I will discuss below, it has been members’
record in this matter and in regional economic integration as political rationality that has been the driving force of Pacific
a whole. regionalism and will continue to do so in the context of the
By way of clarification, the founders of the South Pacific Fo- 2050 Strategy going forward.
rum (SPF) in 1971 had wanted to pursue an ‘economic union’. But first, it should be noted that the 2050 Strategy is defi-
It took 10 years for the SPF to get started. However, it was a nitely not a security type regionalism in its orientation, even
misstep. SPF Leaders launched SPARTECA in 1981 - a pref- though it has some security aspects to address. Thematic Area
erential, non-reciprocal trade agreement instead of a Free 3, for example, is titled ‘Peace and Security’. Greater amplifi-
Trade Agreement (FTA). SPARTECA’s contribution to regional cation is given under its respective ‘level of ambition.’
economic integration was thus minimal, as can be expected. The above makes a lot of sense. For Pacific regionalism,
In the early 2000s, the Forum launched its first FTA. The security as a form of threat, has already been rationalized
Pacific Regional Trade Agreement (PARTA) however did not get and contextualised. For the Forum, its greatest existential
past first base. Forum members lacked unity to get it signed. security threat is climate change. The Forum’s relevant con-
It was shelved and, in its place emerged PACER – an economic cerns and stratagem in this matter are enshrined under the
framework agreement between Australia and New Zealand on Boe Declaration. This is likely to have an independent status

30 Islands Business, March 2023