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
Islands Business, June 2019 19