Pacific in Peril - Greenpeace

Nauru (a special case). The picture is of a dual economy
with a relatively affluent services sector and a large
subsistence sector. Even in the economies of New
Caledonia, French Polynesia and Palau, the relatively
small fisheries and agricultural communities fall into the
latter category, judging from Chart 24.
It is possible to gain some understanding of the
importance of the reef structures for fisheries (Table 8).
The data are imperfect and subject to improvement but
do allow some differentiation to be made between reef,
pelagic and other types of fishing activities. Statistics for
the total area, apart from Vanuatu, suggest that reef and
slope fisheries account for just over half the total
tonnage, with their relative importance highest in Tonga,
Samoa, Kiribati, Palau and Tuvalu. The quantity of reef
fishing was highest in Fiji, followed by Kiribati, French
Polynesia and Tonga. Fiji had the most diversified
fisheries sector with significant pelagic and estuarine
fishing and a flourishing trade in trochus, mother-ofpearl,
bêche-de-mer and giant clams. 10
The subsistence farming and fishing activities
provide quite an efficient means of surviving for many
Pacific communities. Coupled with traditional societal
systems, including common ownership of land, this
prevents any one member of the community from
suffering absolute poverty. Indeed, it has been possible
for these nations to maintain relatively high standards of
living, with poverty, starvation and severe malnutrition
generally non-existent, life expectancy rates high
compared with Asia and primary education coverage
fairly complete. This situation is, however, increasingly
under threat with emerging pockets of poverty and
environments extremely vulnerable to natural disasters
such as cyclones and droughts. According to the ADB,
“While such hazards confront many nations, for a Pacific
nation one cyclone may wipe out a significant portion of
its GDP” (ADB, 1996).
Notably, poverty has become a greater threat to
Pacific communities in the past few years. A joint report
by the regional development banks, the World Bank and
the International Monetary Fund notes: “The countries
in the Pacific, despite their relative higher per capita
income [compared with Asia], are vulnerable and have
limited capacities to deal with external shocks.”
(MDBs/IMF, 2000).
CONSUMPTION OF ELECTRICITY per head of population is a
function of various factors, including industry
development and general standard of living. It averaged
just over 900kWh in 1998 for the 13 nations (one-tenth
of the Australian average of 9220kWh in 1998). New
Caledonia again tops the scale, followed by Palau, both
far above Nauru, French Polynesia and American Samoa
(Chart 25). The last country, however, consumes more
electricity than might be expected from its GDP per
head. Fiji and the Cook Islands consume some twothirds
of the 13-nation average, Samoa, Tonga and
Tuvalu roughly one-third, and Vanuatu, Kiribati and
Solomon Islands much less.
GOVERNMENT REVENUE AND EXPENDITURE: Budget
expenditures are about seven per cent higher than
budget revenues, according to the most recent statistics,
but inconsistencies in the data invite caution. The Asian
Development Bank covering the period to 1995
calculates expenditures and revenues relative to GDP for
Cook Islands, Fiji, Kiribati, Samoa, Solomon Islands,
Tonga, Tuvalu and Vanuatu (ADB, 1998). The first four
countries include foreign aid in their revenues; this has
been deducted as much as possible.
The category axis crosses the value axis at ‘1’ on
Chart 26, so that all bars pointing to the right indicate
budget deficits (in the absence of foreign aid). The
governments of all the countries would appear to have
serious budgetary problems in the absence of substantial
economic aid.
ECONOMIC AID is a major source of development financing
of these economies. Spending includes mainly public
sector investments on building and infrastructure
(private investment remains generally low) and
technical assistance. Aid per head of population varies
widely, with Palau topping Chart 27 with over $9000
(part of a 15-year United States program providing up to
$700 million in return for military facilities). The two
French dependencies follow. At the other end of the
spectrum, Fiji and Samoa rely relatively least on foreign
grants. Total aid to the 13 countries was in the order of
$1.65 billion around 1996 (reference year varies),
equivalent to about $740 per head of population.
A high level of economic aid from other countries is usually an
indicator of vulnerability because such economic aid can be
withdrawn. This is more likely to happen if an area is independent,
whereas aid given to a dependent area by a metropolitan country is
more likely to stay.
Given the time differences, the total is not
dissimilar to the total overseas development aid (ODA)
from Australia ($1.43 billion in 1997-98) and New
Zealand ($123 million in overseas development aid in
1995). Of course, Pacific nations receive aid from many
other sources, and Australia and New Zealand donate to
other countries. Nevertheless, the comparison is
relevant. In 1997, Samoa and Solomon Islands received
33 per cent of their total aid from Australia, Fiji 32 per
cent, Kiribati and Vanuatu 31 per cent, Tonga 28 per
cent, Tuvalu eight per cent and other Pacific countries
three per cent. Of the remaining countries, New Zealand
would provide the main support for the Cook Islands,
France for New Caledonia and French Polynesia, and
the United States for Palau and American Samoa
(AusAID, 1998, which is also the source of the data
following).
Japan was the largest donor of overseas
development aid to Pacific countries in 1997, excluding
French ODA to French territories and United States
ODA to former US trust territories. Of the total ODA of
about $US 370 million (converted from $A 499 million
at 1997 exchange rates), Japan donated 29.6 per cent,
Australia 22.8 per cent, New Zealand 17.5 per cent,
Europe (individual countries and the EU) 14.7 per cent,
and the United States and Canada 3.5 per cent. The
remaining 11.9 per cent came from the Asian
Development Bank, United Nations, World Bank and
from other multilateral aid.
10 Coral harvesting is another aspect. There are currently an
estimated 5000 people engaged in this activity in Fiji
alone, according to one of the reviewers of this report. To
reduce coral harvesting it would be necessary to divert
these people into more sustainable activities such as fish
and prawn farming, pearls and seaweed.
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