Australia’s ‘Patch’

Howard's Foreign Affairs Minister, Alexander Downer, says Australia's motivation for increased involvement in the region is regional security, and by extension, Australia's national security.

"Why is Australia doing this? Why do the countries of the region seek it? The fundamental answer is that, over the past few years, the way that countries look at the world has changed. And the Pacific is no exception," says Downer.

"There is a long-standing view in the international community, among Pacific Island countries and among Australians that, as the largest and wealthiest member of the Forum, Australia has an obligation to assist the countries of the region deal with the problems of law and order, governance, economic management and the maintenance of basic institutions. That obligation is particularly pressing at this time of change."

In the 2004-05 budget year, the Australian government increased Overseas Development Aid (ODA) to PNG to an estimated A$436 million (US$342 million). It more than doubled ODA to the Pacific Islands to an estimated $383 million (US$301 million). An estimated A$202 million (US$158 million) was also allocated for Solomon Islands.

For John Ridgway, president of the Australia-Pacific Islands Business Council, the "psychological impact of the ECP and RAMSI has been positive.

RAMSI supported "Clean Up Honiara Day" in Solomon Islands last year, which saw thousands of local residents turn out. Photo: Gary Ramage/Defence

"There's no doubt that in terms of the profile of the region (in Australia), it is at its highest level in many years, and certainly in Australia that has improved the appetite for doing business in the Pacific," Ridgway says.

But others, notably the Australian non-government organization, AID/WATCH are more circumspect about the impact of Australia's aid activities on the ground in the Pacific.

AID/WATCH recently released a report on "boomerang aid" to Papua New Guinea, and campaign director Tim O'Connor says transparency is "still a huge problem," when AusAID awards contracts to Australian companies.

"This whole commercial-in-confidence clause when it comes into play, whenever a private company signs a contract with a government department like AusAid, it is very difficult to find out the information that's occurring around that."

Broad, if qualified community support continues for the Australian-led RAMSI mission, now 19 months old. While RAMSI is a regional operation, there is no question the Australian presence is dominant, in numbers and perception of influence. The Australian government is pleased with the progress of RAMSI to date, saying the operation has seen the arrest of 4,681 people on 6,878 charges and the removal of 3,738 firearms.

Recently however, RAMSI and its ongoing role has been the subject of debate in Solomon Islands' Parliament. At the beginning of February, then-Finance and Treasury Minister Francis Zama, said RAMSI would become a liability if it wasn't properly reviewed.

He claimed in Parliament that there were two "little governments" working in his department, one Solomon Islands, and one Australian.

"We receive these buggers in good faith and with all good intentions. At the time we have no choice, or alternatively, we're given the very difficult and demanding situations faced then we really have no choice," Zama told Radio Australia. A day after making his concerns known in Parliament, Zama was sacked from his ministerial position. Zama has speculated Canberra had something to do with that decision, although Prime Minister Kemakeza denies this.

Reflection on the ongoing role of RAMSI has extended to the wider community.

The director of the Solomon Islands Development Trust, Dr. John Roughan says if RAMSI is to continue its successes, it needs to be more inclusive.

"RAMSI … must not only recognize its natural allies but work closely with them. The information, facts on the ground and vital leads to capture criminals are with the small people whom these leaders are in intimate contact daily…Local policeman and women, for instance, are some of RAMSI's best tickets to better, deeper and more nuanced information and facts. Brandishing high powered guns, acting like Rambos and using other heavy handed approaches wins few friends and assures less information and understanding of the local scene.

"The present dangerous situation of 'them' and 'us' must be nipped in the bud now. Such a situation helps no one, neither RAMSI nor Solomon Islanders. It's fast becoming a no-win situation!"

When the Enhanced Cooperation Package, as it is now known, was in the early days of negotiation, there was resistance from within Papua New Guinea's government, not least Prime Minister Sir Michael Somare. Back in September 2003 he told the Australian Broadcasting Corporation, "Australia has got their own agenda…We know that. All the Pacific Islands knew that. Australia wants to exert its authority in the world; Australia wants to exert its authority in the Pacific."

Of course the ECP is now well underway, with A$805 million (US$632 million) assigned to cover the policing elements from 2004-2008, and other costs to be absorbed within the existing A$300 million (US$235 million) annual Australia-PNG aid program.

But Professor Helen Hughes, Senior fellow at the Centre for Independent Studies cautions about the effectiveness of his program. "Australian aid to PNG can only succeed in a framework of mutual obligation in which, in return for financial assistance, the PNG government pursues reforms that will remove the roadblocks to growth.

"Australian aid to PNG cannot be open-ended. Australian governments are accountable to taxpayers and voters so that aid has to be seen to be effective…The Papua New Guinea component of 'mutual obligation' also has to be evident to Australian voters. If components of the aid program are not working, they have to be suspended until performance improves."

From Left : John Ridgeway, President Australia-Pacific Islands Business Council, Australian Foreign Affairs Minister Alexander Downer, Bob Lyon, Managing Director Pacific, ANZ Banking Group, Alan Walter Managing Director, Westpac Pacific Banking Photo: Courtesy John Ridgway

Another Australian think-tank, the Australian Strategic Policy Institute says while the ECP is a "first decisive step" back to deeper commitment in PNG "to make a real difference in PNG, we need ... to find a policy approach that can help get to grips with the underlying weakness of state and nation in PNG, and remedy the problems that have bedeviled the bilateral relationship. But such an approach will entail a deeper engagement, greater commitment and even bigger costs than we have been prepared to accept so far, and it will require big changes to the way we think about and conduct our relationship with PNG."

It is too early to point to tangible effects of the ECP in Papua New Guinea. But the Business Council's John Ridgway is optimistic. "People are pretty bullish about Papua New Guinea's economy; those who've been involved there for a long time say it is the best it has been for 15 years. With the possible gas pipeline, mining opportunities, the ECP, all those things have had a hand in increasing confidence."

AID/WATCH's Tim O'Connor believes Australia's increased role in the future and development of her Pacific Island neighbors is creating debate in other sectors of Australian society.

"I think there is a real interest there. Things like sending a whole lot of Australian police officers to PNG and the intervention in the Solomons has really put these issues on the front page. And I think also as an aside to the tsunami, we are going to see more of a focus on the region, and what Australia is doing in the region. I think the long term approach that Australia is taking will mean there is a bigger focus on the aid program and hence Australia's role in delivering it.

The Boxing Day tsunami and Australia's $1 billion commitment to assisting devastated countries has raised questions and concerns about the sustainability of its Pacific programs in some quarters. But John Ridgway believes the government is in for the long haul, saying given the level of investment and aid recently announced, "How could they possibly walk away from it?"