Economic Development and Policy Issues: Pacific Island Countries

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Economic Development and Policy Issues Pacific
Island Countries

• Kimio Fujita
• October 7, 2005

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Pacific Ocean

• Space-wise, the Pacific occupies 1/3 of the total
  globe surface, by far the largest ocean.
• Many islands scatter all over the ocean. Another
  distinct feature different from its counter part
  on the other side of the globe, the Atlantic.
• Before the discovery by the navigators from the
  west in the 16th century, the residents there had
  had a long tradition of their civilizations.

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Ethnicity

• Three sub-regions based on ethnic groupings
  Micronesians, Polynesians and Melanesians.
  Originates from the Greek words Mikros small
  Nesosisland Polus many Melas black.
• Micronesians and Polynesians are believed to
  belong to Mongoloid same as Asians. Melanesians
  are Australoid .

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Ethnicity 2

• Especially the Polynesians had long been believed
  by the Westerners to be descendants of the people
  from the Mediterranean area, because of their
  physical features tall and handsome.
• Population Micronesians4 Polynesians8
  Melanesians76 Asians10 Caucasians2

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Geology

• Volcanic origin and coral islands
• Number of habitable islands Micronesia 161
  Polynesia 287 Melanesia 341 ( Douglas Oliver.
  The Pacific Islands 1961).

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Common features

• Vulnerable economy. By their small size and
  remoteness from the centers of the economic
  activities. Sea-locked countries.
• Subsistence affluence. Food stuffs, clothing and
  shelters are self-supported. Self-supporting
  economy shares are different in each case.

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Common features 2

• Study 1 Subsistence Output and National Income
  ( Fairbain Kakazu 1985 as quoted in Izumi
  Shonan 2000)
• Fiji 6.6 Kiribati 15.7 PNG 17.2
  Solomon 35.6 Tonga 22.6 Tuvalu 18.5
  Samoa 35.1
• Study 2 Share of non-monetary economy in
  GNP ( Pacific Economic Bulletin and others as
  quoted in Studies for Pacific Island Countries
  by Kobayashi Izumi . 1994)
• Fiji 6.6 Kiribati 15.5 PNG 15.1 Solomon
  22.9 Tonga 24.3 Tuvalu 22.3 Samoa 27.7.

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Common features 3

• Affluence results in an enviable life style
  Pacific way. Ratu Sir Kamisese Maras definition
  A spirit of sharing. President Nakamura of Palau
  defines Respect to the seniors and listen rather
  than talk.
• Somerset M. Maughams description.
• Maintenance of traditional culture and habits.
  Chiefs and extended families. Not only economic
  activities, but police, medi-care, social
  security are provided. Functions as safety-net in
  the society.

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Pacific Island Countries

• Pacific Island Forum Countries---14 ( Kiribati,
  Nauru, Palau, Marshall Islands, Micronesia, Cook
  Islands, Tuvalu, Tonga, Niue, Samoa, Vanuatu,
  Solomon Islands, PNG, Fiji)
• Other areas under different status( Commonwealth,
  Territory, Overseas Territory etc.) ---10 (
  Northern Mariana Islands, Guam, American Samoa,
  Easter Islands, Wallis and Futuwa, Tokelau,
  Pitkein, French Polynesia, New Caledonia)Pacific
  Islands Community headquartered at Noumea, NC.

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Micronesia

• Atoll countries severely disadvantaged by their
  smallness, isolation and weak resource base.
• More than 2,000 islands, 161 of which are
  habitable.
• Colonial rulers changed from Spain, Germany,
  Japan and to the US. Outside of this region are
  Kiribati and Nauru, former British colonies.
• Strong Japanese influences still exist in family
  names, vocabularies and physical features.

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Micronesia 2

• Under Japanese rule of 30 years, the production
  capacity of each island attained the peak.
• Many Japanese immigrated to the islands. In 1943,
  there were 80,000 Japanese against the total
  50,000 natives. Engaged in the government
  service, agriculture, fisheries and canning
  industries.
• In Palau, for instance, it is believed that in
  25 of the population there are Japanese blood
  inherited.
• Toshio Nakayama, the 1st President of FSM, Kunio
  Nakamura, President of Palau are some of the
  leaders with Japanese ancestry.

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Micronesia 3

• Even the most critical US travel guidebook states
  that the agricultural production achieved a
  surprising level, exported more than import, and
  these years were the golden ages of Micronesia.
• Under the strategic trusteeship rule by the US,
  Micronesia were cut off from the outside world
  for 20 years. The region were utilized as
  nuclear and missile test ground.
• After the end of the strategic trusteeship,
  gradual development of self-government have been
  introduced.

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Micronesia 4

• Food stuffs are provided by US as aid. No
  indigenous agricultural production.
• Airport, schools and homes for the aged have been
  constructed. They are managed by the public
  servants, the salaries of whom are paid by the
  fiscal aid fund from US.
• Compact aid negotiation once in 3 to 4 years are
  the critical moment for the local governments.
  Free use of the military bases are the cost they
  have to pay.

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Micronesia 5

• FSM s case population 100,000. 53 of national
  revenue being financed by US Compact Money. 70
  of employed in the service sector, 44 being
  teachers and civil servants, earning 2.7 times
  over private employees.

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Micronesia 6

• Short term target of development cooperation to
  secure the steady flow of compact fund from US.
  Gradual development of indigenous industry.
• Mid and long term target establish and expand
  trust fund to finance basic services on a
  sustainable ground, support niche markets for
  tourism and develop marine resources related
  industries.

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Polynesia

• Cradle of the Pacific
• Occupies 1/2 of the Pacific 1/6 of the whole
  global space.
• Natives of the Hawaii to the north, original
  residents of the Easter Islands to the east,
  Maoris in New Zealand to the south.
• More economically advanced with moderate resource
  potential.)

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Polynesia 2

• Robert Louis Stevenson ( 1850-94)
• Paul Gauguin ( 1848-1903)
• W. Somerset Maugham ( 1874-1965)
• R.L.Stevenson Spent 7 years in South Pacific and
  North America. Spent final years(1890-94) in
  Vailima, suburbs of Apia. Wrote some of his
  masterpieces there The Master of Ballantrae
  (1888) Catriona ( 1893) Weir of Hermiston (
  1896). Wrote about Samoa in The Beach of Falesa
  and The Ebb-Tide.

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Polynesia 3

• R.L.S. was outraged by the political
  manipulations by the big powers ( US, Germany and
  UK) disregarding the traditions of the Samoans
  and expressed his indignation in his letters to
  the Times.
• R.L.S. could not close his eyes to what he
  sawhypocritical, deceitful and manipulativeby
  the white. (Jenni Calder Introduction to Tales
  of the South Pacific by R. L. S.)
• R.L.S. has deeply been respected by the Samoans
  and has been called Tusitala ( narrator).

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Polynesia 4

• W. Somerset Maugham. Trembling of a Leaf-
  -Little Stories of the South Sea Islands.
• The Moon and Six Pence
• Rain Mackintosh The Fall of Edward
  Bernard The Vessel of Wrath The Pool.
• Pago Pago is about the rainiest place in the
  Pacific. They attract the water. It seems to
  attract the rain from all over the Pacific.

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Polynesia 5

• About the Polynesian A look of extraordinary
  distinction, they were tall and finely built.
• About the Polynesia Its like the garden of
  Eden.
• About the British Grotesque, a figure of fun,
  dullness of his intellect.

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Polynesia 6

• Typical subsistence affluence. Tourism policy.
  Never repeat the mistakes committed by Saipan and
  Tahiti. Construction.Respect to the land owning
  system.
• People . Coming of Age in Samoa by Margaret
  Mead( 1901- 1978) Are angst and rebellious spirit
  of the youth the products of physiological
  process or social and cultural climate? Meads
  answer Samoan youth are without aggression or
  hostility, which is due to their care-free
  attitude to life and permissive sexuality.
• Margaret Mead and Samoa by Derek Freeman a NZ
  anthropologists refute.

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Polynesia 7

• Paul Gauguins paintings.
• Well-built physique. Rugby players and Sumo
  champions. Konishiki and Musashimaru.
• Development targets private sector growth and
  strengthen physical and financial sectors.
• Infrastructure building because of the
  land-locked nature of the country.
• Human resources development high literacy and
  school enrollment rates.
• Utilization of ICT.

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Melanesia

• Space and population. Overwhelming in the Pacific
  region. ADB Economic Outlook for 2005. With
  the notable exception of the Pacific developing
  countries, nearly all Asian economies grew by
  more than 5 in 2004, remarkable for a region
  with 4 billion people. GDP growth rate in the
  Pacific remain on average at around 2, as the
  two largest economies, Fiji and PNG are not
  projected to perform particularly well. Fiji
  3.8( 3.4 in 2003), and PNG 2.6( 2.8 in 2003).

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Melanesia 2

• Resources rich but relatively poor.
• Africanization of Melanesia.
• Ethnic strife in Solomon Islands, Fiji, PNG.
• Political corruption.
• Development targets Focus on governance, public
  sector reform, and poverty reduction.

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Melanesia 3

• James A. Michener. Tales of the South Pacific
  Written at the largest US Military base in the
  Pacific front in WW II, Espritu Santo, the
  northern most and the largest island of Vanuatu.
• Coconut palms nodding gracefully toward the
  ocean. Reefs upon which waves broke into spray,
  and inner lagoons, lovely beyond description.

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Development Targets in the Pacific

• 1. Severe natural constraints small in
  population and territory, remote from overseas
  marketsmost of them categorized as LDCs.
• 2. Subsistence affluence leads to the atmosphere
  of paradise as well as to the lack of economic
  incentives ( tourism, overtime work)
• 3. Strong traditional institutions chiefs and
  extended families providing food, clothing,
  shelter, health, employment, social security.
  Need for cultural assessment on planning a
  project.

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Development Targets in the Pacific 2

• 4. Land tenure system. Community ownership.
  Difficulty in acquisition of land for a project.
• 5. Development of regionalism Pacific Island
  Forum and Pacific Island Community.
• 6. Growing awareness on environment.
  Establishment of SPREP( South Pacific Regional
  Environmental Program). Global warming and waste
  disposal.
• 7. Strong anti-nuclear sentiment.

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Development Targets in the Pacific 3

• 8. Utilization of ICT. Distance education and
  E-Medicine.
• 9. Need for developing renewable energy
  resources Solar energy development in Fiji and
  Vanuatu. Efforts by PICHTR ( Pacific
  International Center for High Technology
  Research) and JICA.