Page 19 - IB June 2019
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Politics

              tourism roads to the scenic spots, the   resetting their priorities and the emer-  blown. “I think it has been exaggerated
              sidewalk under construction in down-  gence of new development partners. She   and  it’s  a  political  tool  that  has  been
              town  Nuku’alofa  and  the  St.  George   says the key challenge is presenting a   used.  Each  country  has  to  decide  for
              Government  Building  as  a  national   collective front. She has worked to posi-  itself whether it can work with China.
              landmark, the Tonga High School Sports   tion the PIF Secretariat as key to collec-  Nothing comes free but if you look at
              Facility is expected to have its ground-  tive efforts, flagging the possibility of a   the interest rate in comparison to other
              breaking later this year.”   China is also   Forum-China dialogue, and advocating   agencies, it is very attractive.”
              investing  in  solar  and  wind-powered   for the channelling of assistance from   “We are really a tiny speckle of sand
              green electricity projects in Tonga.  China (and others) through the Pacific   in  the  amount  of  funding  that  China
                Meanwhile, China has announced it   Resilience Facility which could allow for   [gives],” he says.
              will build a deep water port on Penrhyn   common standards and criteria.
              Island in the Cook Islands, and under-  That  Facility  is  still  under  negotia-  Where to now?
              take  construction  and  upgrading  of   tion—Forum Economic Ministers were   The  perception  of  ‘no-strings  at-
              roads and ports in Niue.           unable to sign off on it during their May   tached’ aid, for example China’s support
                The  Beijing-based  Taihe  Institute   meeting in Suva—but Forum members   for post-coup Fiji when other develop-
              produces an annual Report on Impeded   are optimistic  that with further nego-  ment partners issued censures, has been
              Trade Index, which measures the level   tiation and fine-tuning, it will come to   important in shaping its relationships
              of unimpeded trade between China and   fruition.                      in the region.
              BRI  partners.  The  international  think   Of  course  six  Pacific  nations—Kiri-  However  for  dissenting  politicians,
              tank which is a member of the Belt and   bati,  Marshall  Islands,  Nauru,  Palau,   there is a need for more transparency
              Road  Studies  Network,    rates  Tonga   Solomon Islands and Tuvalu—continue   around the details of the BRI in the Pa-
              and  Cook  Islands  as  having  “weak”   to  recognise  Taiwan,  despite  regular   cific; not only the fine detail of disburse-
              trade  flows  with  China.  In  the  latest   murmurings  that  one  or  more  are  on   ments,  but  also  in  terms  of  imported
              report released in April,  Vanuatu and   the  verge  of  switching  “allegiance.”   labour and environmental standards.
              Samoa were rated as ‘potential’ while   This  is  an  irritant  not  only  to  China,   Pressure  is  on  the  region’s  largest
              PNG and Fiji were rated as ‘good.’ The   but also to ambitions for regional unity   donor Australia, to refine its response.
              Institute  says  countries  that  are  cur-  in  multilateral  negotiations,  although   An Australian Strategic Policy Institute
              rently at a limited level can strengthen   Dame  Meg  says  she  is  confident  this   (ASPI)  report  released  in  April  noted
              their bilateral trade relations with China   can be overcome.         that  China  has  developed  a  narrative
              through improved financial integration                                that like Pacific island states,  “it too is
              and people-to-people bonds, production   Responding to criticisms     a developing country, despite its current
              capacity cooperation, integration of local   The April summit saw China  respond   wealth and technologically sophisticated
              labour markets and non-tariff barriers   to  criticisms  of  the  BRI.  President  Xi   economy.” Author Richard Herr writes:
              to trade.                          said  the  BRI  will  work  more  closely   “That narrative has helped to reinforce
                                                 with  multilateral  development  banks   its anti-colonial credentials and distin-
                Scoping a regional response to the   to  conform  to  multilateral  rules  and   guish its relationships from the earlier
              BRI                                standards. He pledged to make the BRI   colonial  relationships  of  the  region’s
                Speaking at a public forum in Vanuatu   more sustainable and  greener,  and to   traditional friends.”
              earlier this year, the Secretary General   work against corruption. The BRI will   Herr’s  report  is  framed  as  an  Aus-
              of the Pacific Islands Forum Dame Meg   also consider intellectual property rights   tralian  response  to  China’s  growing
              Taylor  said  members  generally  see   and subsidies.                influence.  It  recommends  Australian
              China’s  increased  involvement  in  the   Politicians  and  observers  regularly   leaders and policy makers make better
              region as a positive development that   express fears that the Chinese govern-  use  of  the  range  of  grassroots  assets
              brings greater financing and develop-  ment is using the BRI and other loans   and people-to-people relationships both
              ment opportunities:                and debts to create a hold over Pacific   in the region and through the Pacific di-
                “Indeed,  if  there  is  one  word  that   island  countries.  However  University   aspora in Australia, promote soft power
              might resonate amongst all Forum mem-  of the South Pacific Head of School and   through  small  and  micro-enterprises,
              bers when it comes to China, that word   Director, Politics and International Af-  invest  in  “smarter”  infrastructure  de-
              is access. Access to markets, technology,   fairs, Dr Sandra Tarte disputes this. Dr   velopment,  and in its participation in
              financing,  infrastructure.  Access  to  a   Tarte says a distinction should be made   regional governance institutions, listen
              viable future…To a large extent, Forum   between the Chinese government and   “with greater sensitivity.”
              Island  countries  have  been  excluded   the  interventions  of  private  Chinese   Meanwhile President Xi Jinping has
              from the sorts of financing, technology   companies  in  island  economies,  tell-  reiterated “China is not seeking a sphere
              and  infrastructure  that  can  enable  us   ing regional journalists that: “The only   of  influence  in  Pacific  Ocean  island
              to fully engage in a globalised world.   country that has any semblance of …  state” after meeting Vanuatu’s President
              Many countries see the rise of China and   debt problems with China is Tonga. But   in May. While for those with a deeply
              its increasing interest in the region as   those loans that seem to be the cause of   held scepticism about China’s motiva-
              providing an opportunity to rectify this.   this were not triggered by the Chinese   tions, that assurance will ring hollow,
              Indeed,  we  have  seen  large  increases   government. These were Chinese firms   Pacific  island  nations  keen  for  funds,
              in both financing for development and   back  in  the  early  2000s  that  actually   investment and access will continue to
              trade with China over the past decade   sought  those  projects  and  sought  the   act with pragmatism, and a degree of
              or so.”                            loans to fund them.”               optimism.
                Dame  Meg  says  China’s  rise  has   Fiji  fisheries  minister  Koroilavesau
              meant other development partners are   also believes these concerns are over-  r  editor@islandsbusiness.com

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