Prosperous and Growing

Bustling...Noumea, capital of New Caledonia.

The country's economy revolves around the nickel industry. It is the world's third largest nickel producer. Its fisheries sector is growing and is particularly successful with prawn farming. A large proportion of the population is employed in the agricultural sector. The main activities in this sector are cattle breeding and fruit and vegetable farming destined mainly for the local market.

New Caledonia is divided into three regions‹the Northern, Southern and Loyalty Islands Provinces‹each with its own administrative body. Certain powers of decision-making fall under the provincial governments' authority, others under the territorial and French governments. In 1998, the pro-independence party, FLNKS, and the main anti-independence party, the RPCR, and the French government signed the Noumea Accord. The agreement outlines a transfer of administrative responsibilities from France to New Caledonia over a 15 to 20-year period. At its culmination, a referendum on independence will be held.

Following the accord, new institutions have been established including a territorial government. But it hasn't all been smooth sailing. Not long after the government was in place, problems related to power sharing surfaced. As a collegial institution, the government is made up of both FLNKS and RPCR members. But the FLNKS complains that it is excluded from decision-making by the majority RPCR.

Meanwhile, internal disagreement in the FLNKS is threatening the party's integrity. There is no-one at its helm and the party is currently administered by a temporary management committee. Relations between the Union Calédonienne (UC) and Partie de Libération Kanak (Palika), the party's two main factions, have become more strained since July when French president Jacques Chirac visited the territory.

The FLNKS nominated Palika president Paul Néaoutyine, who is also president of the Northern Province, as its spokesperson during the visit. While the UC boycotted the visit, Palika encouraged its members to attend Chirac's public meetings.

Néaoutyine said Palika's presence was not a show of support for Chirac and his government, but a sign of the party's commitment to the Noumea Accord. During the Noumea Accord period the focus is on the country's economic development with a more evenly distributed development.

There is strong emphasis on providing the population with more specialised and adapted training, putting more infrastructure for growth and developing economic activities. Two major economic projects are the construction of new nickel processing plants in the north and south.

Although the Noumea Accord period will have its ups and downs, New Caledonia is off to a good start. It has no shortage of assets with its rich nickel deposits, tropical island beaches and landscapes to seduce tourists, and its fisheries and agricultural potential. With political stability to increase investors' confidence and France's generous funding, New Caledonia is set for a period of growth and prosperity.