Pacific Notes
Pacific Notes
Region Changing Fashions Make An Impact On Economic Ministers. Calls for deregulation and devotion to the free market seemingly cast out; the annual Forum Economic Minister's Meeting (FEMM) has moved subtly back to what was always the reality in the Pacific-that government is always going to be the biggest show in town. This year FEMM met in Rotorua, New Zealand, under the chairmanship of that country's Finance Minister Michael Cullen. Condemned to a kind of obscurity due to the often arcane and dense nature of their discussion, FEMM this time produced a communiqué that was intriguing for the way in which it did not admit defeat to a previous strategy. Throughout the 1990s, under pressure from Australia and New Zealand, the Island nation members of the Forum were urged to privatize many key institutions and to open up their markets to competition. Few Pacific Islands states appeared capable of adopting the entire monetarist manifesto and the Rotorua FEMM marked a philosophical move away from deregulation and towards reform of governance itself. FEMM "agreed that a closer partnership must be built with Pacific communities and their institutions to promote governance and accountability," in their communiqué. The monetarist agenda was not entirely forgotten with ministers recognizing "increasing competition where possible to improve efficiency and maintaining disciplined government budgets." "In the Pacific, the large size of public enterprises in relation to the economy, and undeveloped nature of the private sector, required the public sector to be particularly efficient in its use of resources," the communiqué stated. To this end the Forum is promoting, among its members, a continued national effort "to adopt codes of governance, service agreements and performance audits for fully government owned public enterprises." This means that institutions that five years ago the Forum wanted privatized are now to be strengthened, particularly through laws to prevent corruption and a system of accountability. In another sign of surrender for the previous philosophy, FEMM agreed that essential services-once also targeted for privatization-should be "economically sustainable" and if they have to be subsidized, as leaders accepted, then the subsidies "should be provided in a transparent and contestable manner." FEMM's decisions go onto the leaders' summit in Samoa next month. -Mike Field Marshall Islands, FSM Compacts Signed, Sealed And Delivered Marshall Islands Foreign Minister Gerald M. Zackios and State Department Deputy Assistant Secretary for East Asia/Pacific Randall Schriver have exchanged diplomatic notes to memorialize the full implementation of the amended Compact of Free Association. Although the Federated States of Micronesia has yet to fully implement its Compact with the U.S., the FSM Congress on May 26 unanimously approved the Compact shortly after Pohnpei State's Legislature backed the agreement-the last of the four states in the FSM to do so. U.S. Interior Department oversight of spending started last October, despite the approval processes not being completed. "The full bilateral approval of the Compact, as amended, in the U.S. Congress during the fall and the signing of the Compact by President Bush in early December clearly defines this relationship," Zackios said at the May 1st ceremony, which also marked the 25th anniversary of constitutional government in the Marshall Islands. "With the exchanging of notes, the two countries have reaffirmed the special and unique relationship of 'free association' as embodied in the Compact." The FSM Congress approved the Compact almost exactly one year after FSM Ambassador to the U.S. Jesse B. Marehalau and U.S. Ambassador Larry Dinger signed it in Pohnpei. The amended provisions of the Compact will provide the FSM with $16 million annually in trust fund payments and $76 million in grants. In the Marshall Islands, the Compact is providing $7 million annually for a trust fund, and $33 million in grants, aside from $15 million annual rental payments for the Kwajalein missile range. In the FSM, grants will be reduced by $800,000 annually and the trust fund contribution increased by the same amount, while in the Marshalls the amount is $500,000 per year following the same formula. -Olivier Wortel and Giff Johnson Nauru Flotilla And Creditors Converge On Nauru Members of the two-yacht Flotilla of Hope appeared to be sailing into trouble at the time Pacific Magazine was going to press. The Flotilla formed to "bring hope to refugees on Nauru, and to let them know that not all Australians share the views of their Prime Minister, John Howard," according to Flotilla organizer, Stavros Georgopoulos. "We have no grievance against the Nauru government," says Georgopoulos. "They've got a gun pointed to their heads. We understand they need to feed their people. But we think the Australian government should recognize their true sovereignty, show them true respect and acknowledge that Australia has taken phosphate from Nauru for all those years, give Nauru appropriate foreign aid, we don't have to blackmail them." The transit was expected to take three to four weeks from Brisbane, and the flotilla hoped to stay there for a day or two. But Nauru has indicated they won't be welcoming the flotilla in the way they have the refugees. Nauru's Justice Minister, Russel Kuhn told Radio Australia, "… if they want to go on with their protest they should do it there instead of coming here. I mean the thing is we have other problems." -Samantha Magick Fiji Army, Government At Loggerheads The Fiji government's spiraling relations with the Army has reached new lows with the establishment of a commission of inquiry into allegations by five senior officers that army chief Voreqe Bainimarama had intended to overthrow the administration of Prime Minister Laisenia Qarase if the latter refused to renew his contract. Bainimarama has stated he would accept whatever decision was made of his fate insisting there was "nothing to find" and that all was a "waste of time." Qarase, however, is adamant a commission was "the best way of ensuring that all allegations which have been made are given full and fair hearing." The Commission is to comprise three members, including "a suitably qualified person from overseas and suitably qualified local appointees." The Commission, which will exercise full powers as enshrined in the Commissions of Inquiry Act to ensure a "full inquiry," will be required to conduct its inquiry and submit a report within a three-month period. -Matelita Ragogo New Caledonia New Political Forces In May Elections The recent political earthquake in French Polynesia was foreshadowed by elections in New Caledonia on May 9th, with a significant setback for long-time anti-independence leader Jacques Lafleur and his Rassemblement pour la Calédonie dans la République (RPCR). The elections marked the rise of Avenir Ensemble (The Future Together) - a new coalition led by Didier Leroux and RPCR dissidents Harold Martin, Phillipe Gomes and businesswoman Marie-Noelle Themereau. Following the 1998 Noumea Accord, voters choose representatives for three provincial assemblies in the South, North and Loyalty Islands. A proportion of these elected members then make up the 54-member Congress. In the new Congress, there are three major blocs of roughly equal size-the RPCR / FCCI (with 17 seats), the Future Together (16 seats), and various pro-independence parties (17). The extreme Right Wing National Front, holding four seats, is an important swing vote. The RPCR had long dominated the Southern provincial assembly and Congress, but its vote dropped 12 percent compared to the last election in 1999. After this set-back, RPCR leader Lafleur resigned his seats in both bodies, and Avenir member Phillipe Gomes was elected as South Province president (a position Lafleur held for 15 years). Another RPCR dissident Harold Martin took over as Speaker of the Congress. -Nic Maclellan CNMI Stateless Children Given A Reprieve Stateless children in the Northern Marianas can now stay permanently after attaining the age of 21 and will no longer have to be deported, based on a law signed May 27 by Governor Juan N. Babauta. Stateless children are the children of non-residents who were born between Jan. 1, 1974, and Nov. 4, 1986. Just over 200 children who were born to parents of non-resident aliens, mostly Filipinos and Koreans, became stateless. Previously, those children, under CNMI laws, could remain in the CNMI under an "immediate relative" status until they attain the age of 21. They then had to leave or be deported. The number of stateless children continues to decline, as some have already departed. Others have married locals and can petition the U.S. for green cards. While they can now stay in CNMI, the new law will not allow them to gain U.S. citizenship, even after they reach the age of 21. -Frank Rosario Taiwan Taiwan's President Starts Second Term Chen Shui-bian began his second four-year term as Taiwan's president on March 20th, amid fierce criticism from China over his pro-independence stance and a court battle that could in theory overturn the result of the vote that re-elected him. Even before Chen's much-anticipated inaugural address before dignitaries including a number of Pacific Island leaders, Beijing warned him that it would "crush" any schemes that led to Taiwan's independence from China. Beijing is particularly worried about Chen's plans to rewrite the constitution. Chen says the constitution, which came into effect in 1947, is no longer useful for modern Taiwanese society. Heads of state from several of Taiwan's diplomatic allies in the Pacific attended the inauguration, including Palauan President Tommy Remengesau, Marshall Islands President Kessai Note, Solomon Islands Prime Minister Allan Kemakeza and Tuvalu Prime Minister Saufatu Soponga. -Graham Norris |
