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SUSTAINABLE AND INCLUSIVE
GROWTH
Pacific Perspective
Mr Felix ANTHONY
National Secretary
Fiji Trades Union Congress
1|Sustainable and Inclusive Growth -Pacific Perspective
Sustainable and Inclusive Growth – Pacific Perspective
Background
The Pacific is a very diverse region with Island Countries scattered far apart and isolated
from major industrialised countries. These countries are small in size both in land area and
population and vary in cultures and traditions. This creates a major challenge for the Island
states for sustainable development. The main industries in the region are tourism, fisheries,
forestry and agriculture and more recently human resources.
The region is made up of 14 small island developing states (SIDS). These are the Federated
States of Micronesia, Papua New Guinea, Palau, Solomon Islands, Nauru, Tuvalu, Samoa, Fiji,
Vanuatu, Tonga, Kiribati, Republic of Marshal Islands, Cook Island and Niue. Of these island
states, Kiribati, Samoa, Solomon Island Tuvalu and Vanuatu are classified as least developed
Countries. (LDC’s)
Main Economic Activities of Pacific Island Countries
Country
Cook Islands
FSM
Fiji
Kiribati
Marshall Islands
Nauru
Niue
Palau
PNG
Samoa
Solomon Is.
Tonga
Tuvalu
Vanuatu
Industries
Fruit-processing, Tourism, Finance, Copra, Citrus fruit, Clothing, Coffee,
Fish, Pearls and pearl shells, Mining,
Handicrafts.
Tourism, Construction, Fish processing, Craft items (shell, wood, pearls),
Garments, Bananas, Black pepper.
Sugar, Tourism, Copra, Gold, Silver, Clothing, Timber, Fish processing,
Cottage industries
Fishing, Handicrafts, Copra
Copra, Fish, Tourism, Craft items (shell, wood, pearls), Offshore banking
(embryonic), Coconut oil, Trochus
shells
Phosphate mining, Financial services, Coconut products
Tourism, Handicrafts, Food processing, Finance, Coconut cream.
Tourism, Craft items (shell, wood, pearl), Commercial fishing,
Agriculture.
Copra crushing, Palm oil processing, Plywood production, Wood chip
production, Mining of gold, silver, and
copper, Crude oil production, Construction, Tourism, Timber, Coffee,
Cocoa, Seafood.
Timber, Tourism, Food processing, Fishing, Coconut oil and cream,
Copra, Beer
Timber, Fish, Palm oil, Cocoa, Copra
Tourism, Fishing, Squash, Fish, Vanilla, Root crops, Coconut oil
Fishing, Tourism, Copra; Stamps/coins.
Fishing, Offshore financial services, Tourism, Food and fish freezing,
Wood processing, Meat canning;
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Coconuts, Cocoa, Coffee.
Source: ADB Annual Reports, ABC World Fact Finder, SPC Pocket Statistical Summary (1998)
The Mauritius Strategy
An International Meeting on Small Island Developing States (SIDS) was held in Mauritius in
January 2005. This Strategy is the current UN sustainable development strategy for Small
Island States for the period 2005-2015. The strategy was adopted for the small island states
by all members of the UN, including donors. This strategy recognized the special situation
and vulnerabilities in relation to the intensity and frequency of natural and environmental
disasters and their impact on the SIDS. These countries face disproportionately high
economic, social and environmental consequences. The strategy comprises of the following
priorities that needed to be addressed by the individual states and through regional
cooperation.
1. Climate change and sea level rise.
2. Natural and environmental disasters
3. Management of waste
4. Coastal and marine resources
5. Freshwater resources
6. Land resources
7. Energy resources
8. Tourism resources
9. Land resources
10. Transport and communication
11. Science and technology
12. Improve status from least developed states
13. Trade – globalization and liberalization
14. Sustainable capacity – development and education
15. Sustainable production and consumption
16. National and regional enabling environment
17. Health
18. Knowledge management and information
19. Culture
20. Implementation
(www.un.org/smallislands2005/pdf/sids stratergy.pdf)
The special situations that were recognized in the formulation of the strategy included the
remoteness of the island states, vulnerability to natural disasters and climate change. The
strategy is a broad aiming at inclusive economic growth and is forward looking. The
priorities identified were in the strategy were key challenges that needed attention to
ensuring sustainable growth and development with the states and the region as a whole.
The region witnessed reasonable progress on the strategy and the implementation is work
in progress. However, much assistance is needed by the SIDS in terms of capacity building
and resources.
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The critical requirement in the implementation of the Mauritius Strategy was to ensure that
enabling governance structures were developed together with planning and regional
cooperation. The Pacific Island Forum Leaders committed themselves to the development of
National Sustainable Development Strategies (NSDS) within their respective countries. Each
Country had different timeframes for their implementation programs. This ranged from
2years to 10years. (2006-2015). Some Countries had 2 year plans, others had 4-5 year plans
and a few like Tuvalu and Vanuatu had 10 year plans. There is no doubt that these SIDS are
committed to their sustainable development plans but lack the resources and capacity to
fully address the priorities. Assistance has been sought in many cases from international
organisations in the implementation.
The Pacific Forum Island Leader also adopted a Pacific Plan at around the same time as the
Mauritius Strategy. This plan was to compliment the Mauritius strategy for the PICs. The
objective of the plan was summerised in the four main goals that was identified as:
1. Enhance and stimulate economic growth
i. Increased sustainable trade (including services), and investment.
ii. Improved efficiency and effectiveness of infrastructure development and
associated service delivery.
iii. Increased private sector participation in, and contribution to, development.
2. Sustainable Development
i. Reduced poverty
ii. Improved natural resource and environmental management
iii. Improved health
iv. Improved education and training
v. Improved gender equality
vi. Enhanced involvement of youth
vii. Increased levels of participation and achievement in sports
viii. Recognized and protected cultural values, identities and traditional
knowledge
3. Good Governance
i. Improved transparency, accountability, equity and efficiency in the
management and use of resources in the Pacific
4. Security for Pacific Countries through regionalism.
i. Improved political and social conditions for stability and safety
Reviews on progress on the plan are done periodically and reports prepared on a six
monthly basis. Additionally, an independent comprehensive review of progress will be
conducted every 3 years. The plan has a general time frame of 10 years but may be
reviewed by leaders for its relevance. The last review was conducted in 2009 for the cycle
period ending in 2012
The 2010 progress report on the Pacific Plan is built around five themes and priorities set for
the years 2010-2012.
1. Fostering economic development and promoting opportunities for broad based
growth.
i) On Trade, support continued to Member States to facilitate their domestic readiness
to trade under the Pacific Island Countries Trade Agreement (PICTA) and the
Pacific Agreement on Closer Economic Relations (PACER). The process to
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establish the Office of Chief Trade Advisor (OCTA) commenced with the aim to
provide Member States with greater access to advice on PACER Plus.
ii) Infrastructure was addressed through the Regional Maritime Programme focusing on
the integration of port development.
iii) Fisheries- the Pacific Island Forum Fisheries Agency (FFA) AND the secretariat of the
Pacific Community (SPC) were strengthened and their strategic and working
relationship to ensure effective fisheries sector assistance to countries.
iv) There were also development within the energy sector, tourism, transport and
information and communication technology (ICT)
2. Improving the livelihoods and well being of the Pacific peoples.
Efforts were mainly focused in this area in food security, health mainly in the area on
non communicable disease and HIV/AIDS, education reform (Pacific Education
Development Framework), gender-based violence by strengthening legal frameworks
and public advocacy and addressing the needs of people living with disabilities.
3. Addressing impact of climate change
Advocacy for the plight of SIDS at the Copenhagen Summit (2009) to tackle the
impact of climate change including the rise in sea levels that threaten the very
existence of some member states. SIDS will continue its efforts to find a long term
solution.
4. Achieving stronger national development through better governance
The Cairns Compact in 2009 reflected the leaders renewed determination to lift
economic and development performance of the region and to achieve real progress
against the Millennium Development Goals. FIC’s started the process of reporting on
their national plans, development partners reported on their efforts to reduce aid
fragmentation and improve on its effectiveness.MDG Tracking Report was developed
together with the road map on strengthening public finance management. Other
areas complementing these efforts were the strengthening of the collection of
statistics for better informed national policy, improvement of access to official
information, strengthen accountability and integrity of institutions and addressing
corruption
5. Ensuring improved social, political and legal conditions for stability, safety and
security.
Greater coordination was achieved by law enforcement agencies on Pacific
Transnational Crime Assessment. A working group on terrorism was convened.
Discussions were held with CSO’s on conflict, peace and security issues. A human
rights adviser was appointed in 2010 to coordinate the implementation of the
human rights objectives of the Pacific Plan.
The 2011 Progress report on the Pacific Plan noted:
i)
That in the fisheries sector, regional maritime surveillance operations were
conducted to detect illegal, unreported and unregulated fishing.
ii)
In the area of climate change, the establishment of the Council of Regional
Organisation of the Pacific (CROP) subcommittee on climate change to
coordinate efforts of regional agencies. A major study on options to improve
access to and management of climate change financing was completed by
the Forum Secretariat. A region wide consultation was held in March 2011 in
Niue at the Pacific Climate Change Roundtable to identify more effective
ways to tackle climate change. Agreement was reached at the meeting on
coordinating regional responses by establishing working groups on
5|Sustainable and Inclusive Growth -Pacific Perspective
iii)
iv)
v)
vi)
mitigation, adaptation and mainstreaming climate change resources, and
climate change information and knowledge management.
The Education Ministers endorsed the implementation strategy for the Pacific
Education Development Framework. This was aimed at strengthening the
quality and relevance of education across the region. Work commenced on a
baseline survey to obtain accurate information on the status and
requirements of education systems in the Forum Island Countries.
Holding peer reviews In Vanuatu, Niue and Tuvalu in 2011 as part of the
implementation of the Forum Compact and Strengthening Development
Coordination for the Pacific. A key outcome of the reviews was on concrete
actions to improve development coordination. The review was also an
important tool for sharing experience in the region.
Regional accountability was strengthened through the Pacific Regional Audit
Initiative (PRAI) and the Pacific Ombudsman Alliance.
Completion of the majority of the Regional Institutional Reforms that had
been underway since 2005. This included the merger of Pacific Islands
Applied GeoScience Commission and the South Pacific Board for Educational
Assessment into the Secretariat of the Pacific Community. (SPC).
While there have been progress under the Pacific Plan in 2010 and 2011, major
challenges remain. Negotiations on trade agreements under the Pacific Islands
Countries Trade Agreement (PICTA), Pacific Agreement on Closer Economic Relations
(PACER Plus) and the Economic Partnership Agreements with the European Union
(EU EPA) remain difficult and complex.
The Pacific Plan has played a key role in creating an environment needed to achieve
sustainable development goals and this was recognized in the 5 year review of the
Mauritius Strategy. It is however important to recognize the impact of the global
economic meltdown and its impact on the SIDS. Most SIDS experienced a lower
economic growth during the period 2009-2011 as the crises worsened. The direct
impact was felt through:
1. Lower Commodity prices and demand for exports
2. Fall in remittances and off-shore demand for labour
3. Decline in tourism numbers
4. Decline in private investments
5. Decline in aid
Pacific Island Countries and EU Coorporation
At the core of EU-Pacific partnership in cooperation on climate change; the single greatest
threat to the region. Since the EU and the Pacific Islands Forum adopted the Joint
Declaration on Climate Change in November 2008, EU-Pacific cooperation on climate
change has substantially, both politically and financially.
The EU and its Member States are the largest donor worldwide and the second in the
region, after Australia.
EU development cooperation with Pacific ACP countries and OCTSs (Overseas Countries and
Territories) managed by the Commission is estimated at 750 million Euros for 2008-2013. EU
aid is funding bilateral assistance programmes as well as Regional Programmes managed by
Pacific Regional Organisations.
6|Sustainable and Inclusive Growth -Pacific Perspective
On top of resources for development and climate change initially allocated to the Pacific,
ACP countries for the period 2008-2013, the EU has made available a financial package of
110 million Euros in additional climate related resources committed by the Commission
since 2008.(see annex EC Memo / 12/435)
REGIONAL ECONOMIC UPDATE
1. Although the current economic crisis has reduced growth prospects for most leading
economies, at this stage the consensus view suggests that the Pacific region will experience
less significant impacts. In part, this is due to relatively optimistic Australian and New
Zealand economic prospects. However, growing inflationary pressures as well as indirect
effects from the economic crisis will contribute to downside risks to the region.
2. According to the December 2011 edition of the ADB Pacific Economic Monitor,
growth projections for most FICs in 2011 and 2012 are expected to be weak. However,
some relatively positive performances are expected to come from PNG, Solomon
Islands, Nauru and Vanuatu (See Figure 1).
GDP Growth for FICs
2011 2012
2011 2012
Inflation prospects for FICs
PNG
Fiji
Kiribati
Palau
FSM
Vanuatu
Solomon Is.
RMI
Samoa
Cook Is.
Tonga
Nauru
Tuvalu
PNG
Solomon Is.
Nauru
Vanuatu
Samoa
Palau
Kiribati
Fiji
Cook Is.
FSM
RMI
Tonga
Tuvalu
0
2
4
6
8
Figure 1 Source: ADB Pacific Economic Monitor
10
0
2
4
6
8
10
Figure 2 Source: ADB Pacific Economic Monitor
3.
With a projected growth rate of 8.5 percent in 2011 and 6.5 percent in
2012, the strong growth forecast for PNG stems from construction associated with the
LNG project which will reach its peak in 2012, along with the resumption of nickel and
cobalt mining.4
4.
Favorable commodities prices coupled with strong commodity exports,
particularly logging, and the resumption of gold production also secures a better
outlook for the Solomon Islands with 7.5 percent growth expected in 2011 and 4
7|Sustainable and Inclusive Growth -Pacific Perspective
percent in 2012.
5.
Growth prospects are also better for Nauru on the back of improved
global demand
for its phosphate exports, with its economy expected to grow 4 percent in 2011 and
2012.
6.
An economic growth outlook of 3 percent in 2011 and 4 percent in 2012 for Vanuatu
is expected to be driven mainly by increased tourist arrivals, with contribution also coming
from growth in its construction sector.
7.
Samoa’s economy is expected to grow by 2.1 percent in 2011, and 3 percent in 2012
reflecting strong growth in the construction sector as a result of the post-tsunami
reconstruction, as well as improvement in remittances and modest growth in tourism
related activities.
8.
The Kiribati economy is expected to grow by 2 percent in 2011 and 2012 primarily as
a result of donor-financed infrastructure investments.
9.
Palau’s economy is expected to grow by 2 percent growth in 2011 reflecting a
recovery in tourist arrivals. However in 2012 growth for Palau is expected to slow to 1.5
percent suggesting a reflection of weaker outlook in the country’s main tourism source
countries.
10.
Fiji’s economy is expected to grow by of 1.2 percent for 2011 and 2012, however
recent investments linked to the mining sector could improve its prospects going into 2012.
11.
The Cook Islands economy is expected to grow by 1.1 percent in 2011. However, an
expected strong resurgence in tourist arrivals for 2012 from NZ and Australia are expected
to improve its growth prospects to 3.3 percent.
12.
For the other FICs, growth prospects are expected to remain low for 2011 and
2012.
13.
Driven by high fuel and food prices, an average inflation rate of about 4 percent is
expected across all FICs in 2011 (see Figure 2), increasing inflationary pressures and
contributing to downside risks for the region. Effects of the global economic crisis although
limited at this stage, could also affect growth prospects for the region indirectly, through
trade and investment linkages between the EU and the Pacific’s economic partners,
declining
values of Pacific trust funds, and possible declines in tourism and remittance flows from
other markets such as the US and Japan.5
14.
However, the robust outlook over the short term in the major FIC trading partner
economies of Australia and NZ support an anticipated increase in tourism to the Pacific.
Tourist numbers from Australia and New Zealand have increased substantially since the first
quarter of 2011. The number of Australian tourists increased for most Pacific destinations
and was strongest in Samoa at 24 percent and in Fiji with 13 percent. The number of New
Zealand tourists to Samoa and Vanuatu declined over the same period, but this was more
than offset by higher departures to the Cook Islands, Fiji, and Tonga.
8|Sustainable and Inclusive Growth -Pacific Perspective
Source: Pacific Island Forum: Update Series on Current Economic Issues
Civil Society and Sustainable Development
Civil society is active at the local and regional level in the region. These organizations vary in
size, capacities, competencies etc. These are mostly Trade Unions, NGO’s, community based
organizations, and faith based organizations. The Pacific Island Forum has granted
consultative status to a wide range of CSO’s. They are South Pacific Oceania Council of Trade
Unions (SPOCTU), Council of Pacific Education (COPE), Pacific Disability Forum (PDF),
Foundation of the People of the South Pacific (FSPI), Greenpeace, Pacific Foundation for
Advancement of Women (PACFAW), Pacific Concerns Resource Centre (PCRC), Pacific
Islands Association of NGO’s (PIANGO), Pacific Island News Association (PINA), Pacific
Conference of Churches (PCC), World Wildlife Fund South Pacific Program (WWF-SP) and
Pacific Network on Globalisation (PANG) . These CSO’s take part in regular consultations
with the Forum. The Pacific Island Private Sector Organisation (PIPSO), formed in 2005,
whose members comprise of national private sector organisations.
The CSO’s , PIPSO and the Forum recognize that sustainable development in the region is
only possible through the effective participation and partnership of governments in the
region, civil society, regional organizations and development partners. While this
recognition is well engrained, capacities need to be further developed amongst the partners
to realize the full benefit of the partnership for the region. These include:
i. Empowering people and communities and directly engaging young people as
agents of community –based change
ii. Strengthening our ability to manage knowledge both indigenous and sciencebased
iii. Improving our ability and procedures for planning
iv. Developing effective partnerships between local and national levels with Civil
Society
v. Influencing resources flows so that they provide the incentives for
sustainable development.
vi. Valuing the environment appropriately.
The 42nd Pacific Islands Forum held in Auckland 7-8th September 2011, the leaders
reaffirmed their commitment and work with Civil Society. The communiqué stated “ Leaders
welcomed the Secretary General’s initiative to convey the views of civil society on a range of
challenges facing the Pacific. Leaders recognised many of the issues identified by civil society were
ones already on the regional agenda. Leaders highlighted this commonality and noted that
meaningful engagement with civil society was vital in finding the best path forward. Leaders
tasked the Secretariat to determine, as appropriate, practical means to ensure civil society
perspectives continue to be reflected in Forum policy formulation and are able to be conveyed to
future Forum Leaders’ meetings”. (see Annex 2 Waiheke Declaration)
Access to Financial Aid
The region receives approximately 1b annually in aid assistance from various countries. The
major contributors being Australia, New Zealand, The European Union, United States and
Japan. There are other donors like France, Canada, UK and other International Financial
Institutions. Aid effectiveness has been a major concern. The Pacific Aid Effectiveness
Principles are consistent with the 2005 Paris Declaration on Aid Effectiveness. While these
9|Sustainable and Inclusive Growth -Pacific Perspective
principles are not binding, they are being respected generally, in many cases through the
insistence of the donors.
Indicative Net Aid to the Pacific SIDS in 2007
Net ODA
ODA/capita (US$)
ODA (%GDP)
(USS millions)
Cook Islands
9.3
461
4
Fiji
57.5
69
2
Kiribati
27.1
285
35
Marshall
Islands 52.1
894
35
(Republic of the)
Micronesia
114.9
1035
49
Nauru
25.6
2912
113
Niue
14.8
5514
88
Palau
22.3
1108
14
Papua New Guinea
320.9
51
5
Samoa
37.5
207
7
Solomon Islands
246.1
497
63
Tonga
30.9
302
12
Tuvalu
11.7
1197
44
Vanuatu
56.7
251
13
Regional Aid
138.7
n.a
n.a
Pacific Aid Total
1165.9
136
9
Timor Leste
278.3
262
70
Source: AusAID 2009: Tracking Development and Governance in the Pacific
Indicative Sources of AID to Pacific SIDS (Excluding Timor Leste) 2007
Development Partner
Australia
Canada
France
Japan
New Zealand
United Kingdom
Total (US$millions)
649.3
8.2
16.7
70.3
120.9
5.4
% of all sources of aid
55.7
0.7
1.4
6.0
10.4
0.5
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United States
171.7
14.7
Other bilateral
2.5
0.2
European Union
71.2
6.1
Global Fund
10.8
0.9
International
Financial 9.9
0.8
Institutions
United Nations and other 28.8
2.5
multilateral organisations
Total
1165.9
100.0
Source: AusAID 2009: Tracking Development and Governance in the Pacific
There have been a number of times where it has been recognized in this report that the
SIDS lack the capacity to carry out the strategies and plan set out in various agreements.
This is in no way due to the lack of commitment on part of the SIDS but rather lack of
technical and managerial skills. Capacity building in the SIDS is vital for the SIDS to
successfully implement sustainable development strategies. Efforts have been made in this
area through funding from various Governments. In this regard a SIDS University
Consortium was set up in 2005 to address the short comings. Other initiatives such as the
Pacific Regional Qualifications Register (PRQR), The Pacific Association for Technical and
Vocational Education and Training (PATVET) and the Australia Pacific Technical College was
also undertaken.
(refer ESCAP Report Sustainable Development in Pacific- progress and challenges)
Governance and regional Politics
This has been a major obstacle to the SIDS quest for sustainable development. Political
uncertainty in some countries such as Fiji, Papua New Guinea, Solomon, Vanuatu (to a lesser
extent) have been a constant issue with investment in the countries and development. Fiji
has experienced 3 military coups, the latest being 2006 and remains under military rule.
PNG has constantly been unable to have a stable government with a vote of no confidence
in successive governments being tabled in parliament frequently. The rule of law and
security has remained a constant challenge for PNG and continues to remain so. More
recently, an attempt by some within the military to intervene in a political stalemate was
defused. Similarly, the Solomon Islands have witnessed political instability with change in
the country’s leadership frequently. In all these countries accountability and transparency
in Government have remained a constant challenge. While efforts through international
agencies have been made to attempt to strengthen accountability and democracy in the
region, there still appears to be a long
road ahead. Regional cooperation with Australia on strengthening the Pacific Transnational
Crime Network, money laundering, child labour, drug transshipment have had success,
internal discipline in good governance principles within the states still lacks both the will
and/or commitment by leaders to address this serious issue. Democracy has also remained
a challenge for some of the SIDS. This is largely due to traditional and cultural demands on
the indigenous populations in these countries. However, this is becoming less of a problem
as the younger generation has a greater opportunity to education and improved
communications in the region. The rise of Trade Unions, NGO’s and community based
organizations has contributed much in this area.
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References
1.Programmes of the Pacific Plan 2010
2.Programmes of the Pacific Plan 2011
3.UN-ESCAP-Sustainable Development in Pacific, Review of Mauritius Strategy, April 2010
4.UNEP Sustainable Development, Priority for South Pacific-Civil Society Position-2003
5.The Mauritius Strategy: A Program of Action
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ANNEX 1
Reference: MEMO/12/435
European Commission
MEMO
Brussels, 11 June 2012
Pacific Islands – EU relations: Focus on Climate change
Pacific Islands – EU cooperation
The Pacific Plan for Strengthening Regional Cooperation and Integration, adopted by Pacific
Islands Forum (PIF) leaders in 2005, sets out the region’s goals on cooperation and
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integration from 2006 to 2015 in four areas: economic growth, sustainable development,
governance and security.
As a response to the Pacific Plan1, in 2006 the European Union adopted the EU Strategy for a
Strengthened Partnership with the Pacific and in 2012 the New Commission Communication:
Towards a renewed EU-Pacific development Partnership. The Commission uses a
combination of policies and financial resources to put the strategy into effect:



Increased development assistance to Pacific Countries and the region.
Enhanced EU-PIF political dialogue, through participation in the Annual Forum
Meetings and Ministerial Troika Meetings. The dialogue covers matters of common
interest, ranging from regional security and governance to economic stability and
growth, international trade, environment, climate change and development
cooperation.
Trilateral Pacific dialogue with Australia and New Zealand at Heads of Mission level,
covering: country situations, peace and security in the region, Cairns Compact,
climate change, Aid for Trade, energy, budget support and delegated arrangements.
Does climate change have any visible impact on Pacific Countries now?
Unfortunately, climate change impact is already visible and seriously affects Pacific people.
Pacific islands are inundated by rising sea levels, increasing erosion occurs from intense
storms, and saltwater intrudes into freshwater supplies. These changes are affecting
livelihood activities such as hunting and fishing and impacting on island infrastructure,
access to water resources, food and housing availability.
In Small Island States, which are the majority of the Pacific Islands Countries, soil salinity
and sea water intrusion are serious threats to agriculture, as well as increased intensity and
decreasing frequency in rainfall. Phenomena such as saltwater flooding and droughts have
further reduced freshwater supplies for the growing population.
Moreover, Small Island States are affected by changes in surface and subsurface ocean
temperatures, ocean acidification and coral bleaching, pest infestations, the deterioration of
reef fisheries and an increase in communicable diseases. In addition, Pacific Small Island
States have limited opportunities for private sector led growth, face constraints in structural
capacity and are very vulnerable to recurrent natural disasters.
Climate change puts further stress on these already fragile situations, can exacerbate tensions
around scarce resources such as land or water, has a serious impact on heavy agriculture and
hampers progress towards Millennium Development Goals. Also, the frequency and intensity
of cyclones or tropical storms, which recurrently hit Pacific Island Countries, will increase as
a result of climate change.
It can be anticipated that living conditions will severely deteriorate across the region. Certain
islands and even entire countries (Tuvalu or Kiribati) could even see their own physical
existence at risk. Relocation from sinking islands is no longer the worst case scenario but a
reality in the making.
The EU response – development assistance to the Pacific
Development assistance to the Pacific has increased between the 9th European Development
Fund and the 10th European Development Fund (2008-2013):
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






The overall amount available for the period 2008 – 2013 is €750 million; from this
amount €677 million is earmarked for Pacific-ACP countries and €73 million for
Pacific OCTs;
The 10th European Development Fund (EDF) Regional and Country Programmes,
signed in 2008, mobilised €475.3 million (a 60% increase compared with the 9th
EDF); this amount has now reached € 567 million after the Mid-Term Review (MTR)
top-ups and other un-programmed allocations.
The 10th EDF Regional Strategy Paper (RSP) and Regional Indicative Programme
(RIP) - €95 million. It is broken down as follows: Regional economic integration €45 million, Sustainable Management of Natural Resources and the Environment €40 million, Non state actors, technical cooperation, etc. - €10 million. A major part
of the implementation is well under way, with projects to a value of €54 million
having been included in the Annual Action Plans for 2009 and 2010; MTR top-up €19
million for climate change
An additional €27.7 million from the Vulnerability Flex mechanism (2009 and 2010)
was mobilised to help the most vulnerable Pacific countries to cope with the Financial
Crisis;
The Commission has approved a contribution of €10 million to the Pacific Regional
Infrastructure Fund (PRIF), in addition to a substantial contribution expected from the
European Investment Bank;
The Pacific will also benefit from "all-ACP" programmes, such as the "Disaster
Facility", the "Migration Facility" or the "Science & Technology research
programme".
Other intra-ACP allocations for the Pacific include: Water facility, Energy facility and
Climate change.
The Commission is also financing six programmes to Pacific countries through the
Global Climate Change Alliance (GCCA), amounting for €30.4 million.
What is the Commission doing now to address climate change in the Pacific?
The Commission is leading the EU effort on development cooperation to address climate
change in the Pacific. Together with Pacific partners, the Commission is already very actively
engaged also in financial terms, with €90 million in ongoing and already planned
development cooperation projects and programmes at country and regional level for the
period 2008-2013.
The Commission has already approved four programmes through the Global Climate Change
Alliance (GCCA) for €20.4 million in total. Three of them cover specifically Vanuatu, Samoa
and Solomon Islands climate resilience specific needs and the other has a multi country
dimension, supporting strategic actions on adaptation in 9 Pacific Small Island states, as well
as to prepare those countries to efficiently absorb the expected international climate Fast Start
funds.
Another two GGCA actions planned for Papua New Guinea (forests) and Timor Leste (range
of support notably to local communities' adaptation to climate change) in 2012 bringing the
GGCA allocation to the region to €30.4 million in total.
In addition, under the Intra ACP allocation (€ 8 million) a second regional project on climate
change, to be implemented by the University of South Pacific, seeks to strengthen capacity
building, community engagement and adaptive actions along with applied research.
In addition, other on-going and planned interventions focus on "renewable energies and
energy efficiency" and "disaster risk reduction", which are integral part of climate change
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adaptation strategies. Renewable energy is the focal sector for 7 out of 15 Pacific ACP
countries (Federated States of Micronesia, Kiribati, Marshall Islands, Niue, Nauru, Palau and
Tonga) under the 10th European Development Fund, with an amount of €30.5 million (after
MTR). The objective is to promote renewable energy and energy efficiency, which will help
reduce dependency on fossil fuels and improve the quality of life in the concerned countries.
At regional level, an additional program to address climate change and improve energy
security and sustainable livelihoods through strengthening the energy sector is under
formulation, notably using the MTR top-up for the climate change. Finally, €20 million have
been earmarked for a Pacific Regional Programme on natural disasters risk reduction.- IntraACP funding.
Another programme funded under the 9th EDF was the Support to the Energy Sector in Five
ACP Northern Pacific Island Countries (REP-5). This programme worked as a multi-country
initiative which funds renewable energy and energy efficiency projects in five Pacific Island
Countries. The REP-5 programme helped to reduce these countries' dependence on imported
fossil fuel as a means of achieving fiscal balance, as well as increasing the availability of
electricity services to their outer island communities. After the successful implementation of
REP-5, the same programme will now continue under 10th EDF.
EU- Pacific climate change cooperation in political terms / Rio+20
In political terms, EU-Pacific coordination on climate change at the UN has improved. For
example, at the United Nations Framework Convention on Climate Change (UNFCCC)
negotiation in Durban, the Least Developed Countries (LDCs), the Association of Small
Island States (AOSIS) and the EU built up an alliance to reflect their desire for an ambitious
outcome in a common statement. This alliance, will and should be continued and
strengthened in support of adopting a single global and comprehensive legal instrument
applicable to all Parties by 2015.
As far as the upcoming Rio+20 negotiations are concerned, the EU's objective is to build an
alliance with Pacific states, notably seeking support for the goals and targets proposed by the
EU on oceans – and on marine biodiversity in areas beyond national jurisdiction (ABNJ), but
also on other issues (e.g. sustainable energy for all).
EU is looking forward to continued mobilisation by the Pacific Island countries at Rio, to join
our efforts at political level for the best possible result.
Examples of projects:
Strengthening Pacific Economic Integration through Trade (€30 million)
Components include:
Trade facilitation in Customs cooperation. This component will develop modern and
competent customs services that adhere to international standards and ensure compliance
with international protocols. It includes integration of information communication technology
(including training) and harmonised coding systems, as well as strengthening the institutional
capacity of the Oceania Customs Organisation. Improving the efficiency of national customs
services will be key to enhancing the trade capacity of the region.
Increasing Agricultural Commodity Trade. The action aims at widening the range of tradable
products from Pacific ACP countries in the areas of agriculture and forestry, but also
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aquaculture or animal production. It will further support the organic and ethical industry by
implementing and managing the Pacific Organic Standard.
Fostering improved collaboration amongst exporters should enable them to supply larger
markets and reduce the risks from climatic and other disasters. The programme includes
support to the private sector, for instance assisting at least five timber processors to obtain
FSC (Forest Stewardship Council) certification. It also includes strengthening of national
capacities, for instance by training quarantine staff and addressing food safety and issues
regarding sanitary and phyto-sanitary standards.
Global Climate Change Alliance Project, University of South Pacific (€8 million)
The implementation is led by the University of the South Pacific (USP).
Examples of actions:


Conducting 40 community adaptation projects (e.g., including: mangrove replanting,
reforestation of watershed areas, rainwater harvesting and water conservation, , soil
retention measures, reduced-impact harvesting etc.)
Training students in the science of climate change both at formal academic level (45
postgraduate diplomas, 25 Masters scholarships, 5 PhD scholarships) and also to work
with communities on climate change adaptation (300 certified trainers)
Expected Results:



Capacity development: Improved capacity of people in the Pacific Islands to
understand climate change, its impacts and how to adapt.
Community engagement and adaptive action: The capacity of people in the Pacific
Islands to design, implement and sustain solutions to help them adapt to climatechange.
Applied research: The effects of projected climate change impacts in the Pacific
Islands region are better understood through applied research, and adaption actions in
a range of sectors and community contexts are monitored and evaluated
Other examples:
Tonga (Niuatoputapu island) €875.000
The only hospital on Niuatoputapu Island, which was at sea level, was destroyed by the
October 2010 tsunami. It will be reconstructed at the highest part of the island to account for
ocean level rise , with Commission funding.
Marshall Islands, Nauru, Tonga, Tuvalu, Micronesia, Palau, Papua New Guinea, Solomon
Islands. € 9.2 million
The rise in sea level reduces drinking water sources in the area.
In response, the EU provided water tanks in Marshall Islands., Nauru, Tonga, Tuvalu, and
financed Emergency Operation Centres for Communications for Micronesia, Palau, Papua
New Guinea and Solomon Islands.
For example, in Tuvalu, a total of 310 rainwater tanks with 10.000 litre capacity each have
been supplied and installed in the capital, Funafuti, benefitting 5000 people i.e. almost half of
the country's population.
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Under the 10th EDF we will continue the 'emergency' water supply to the outer islands with
supply of 10,000 litre tanks to an additional 1233 households i.e. every single household.
On the Marshall Islands, 192 tanks have been installed on the outer islands, along with 450
tanks on Majuro and Ebeye, with 6,000 direct beneficiaries i.e. 10% of the population
Kiribati €6.8 million
We will upgrade existing water infrastructure and provide 350 additional water tanks in 16
Kiribati outer islands (with a population of approx. 43,000 people living in 139 villages)

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We will conduct hydro geological assessments, combined with participatory
community consultations and water, sanitation and hygiene workshops in those 16
islands; with a view to installing water pumps and sanitation infrastructure.
The percentage of households with access to improved water sources will increase
from 53% to 75% by 2013 as a result
Micronesian countries (Palau, Marshall Islands, Federated States of Micronesia) €14.4
million
Traditional sources of energy among Pacific countries have been fossil fuel dependent,
thereby increasingly expensive, extremely damaging to environmental sustainability and to
eco-system preservation.
The Commission will finance solar energy provision of households, schools and health
centres in Federated States of Micronesia, in the Marshall Islands and in Palau in the North
Pacific.

The project will reduce the number of households, schools and medical centres with
no access to electricity by 25% ; and reduce domestic electricity consumption by 10%
through energy efficiency measures
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ANNEX 2
THE WAIHEKE DECLARATION ON
SUSTAINABLE ECONOMIC DEVELOPMENT
We, the Leaders of the Pacific Islands Forum, meeting in Auckland, New Zealand:
Acknowledging with gratitude the foresight of Pacific Leaders who forty years ago first met
in Wellington, New Zealand, to establish what is today the Pacific Islands Forum involving
sixteen independent member states of the Pacific region;
Recognising the vision of Leaders at that first meeting who strongly encouraged the
development of regional cooperation as a valuable mechanism to assist in resolving issues of
common concern affecting the daily lives of the peoples of the Pacific;
Celebrating the achievements accomplished through close and effective regional cooperation;
Realising the economic and social challenges we all face, including those arising from
climate change, the increasing costs and insecurities of supply of daily necessities such as
energy and food, and the impacts of urbanisation and natural disasters;
Expressing with appreciation the significant assistance received over the past four decades
from the region’s development partners;
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Taking into account the strategic direction provided by the Pacific Plan for progressing the
pillars of sustainable development and economic growth in the Pacific;
Acknowledging the importance of good governance and security, the other two pillars of the
Pacific Plan, in helping to deliver sustainable economic development outcomes;
Reaffirming the importance of accelerating progress towards the Millennium Development
Goals,
Highlighting the benefits of advancing development coordination involving Pacific Countries
and development partners, as articulated in the Cairns Compact on Strengthening
Development Cooperation in the Pacific (Forum Compact);
Sharing our aspiration to create a prosperous, stable and secure Pacific for future generations;
Hereby
Declare that strengthened sustainable economic development is key to a better quality of life
for all our peoples;
Recommit ourselves to pursuing a goal of ensuring a sustainable economic environment for
all, so that all our peoples, in particular the young who are the future of our societies, have
opportunities for gainful employment and can live healthy, productive and safe lives;
Recognise that sustainable economic development increases the resilience of communities,
including their most vulnerable members.
Set out to transform the region’s future by drawing on the Pacific’s unique assets by
collectively focusing our efforts on areas where we have an impact on our peoples’ long-term
wellbeing;
Recognise that despite challenges related to our small size and our relative isolation, we live
in an ocean of opportunity, that immense potential rests in our productive sectors, particularly
fisheries, tourism and agriculture, and that capitalising on this potential is crucial for the
future of the Pacific and the livelihoods of its peoples;
Acknowledge the importance of sectors such as transport, infrastructure, education and
energy in providing an environment in which the Pacific’s potential can be realised;
Affirm the high importance of the private sector in helping realise the region’s potential;
Acknowledge our responsibility to create an environment where business can thrive and
contribute to the region’s development;
Recognise the way in which regional and economic integration can improve the prospect of
stable, long-term economic growth in Pacific communities by creating jobs, enhancing
private sector growth, and raising standards of living, through the freer flow of goods,
services and investment within the Pacific;
Pledge to:
• Pursue improved sustainable returns to Pacific island economies from the abundant natural
resources, particularly fisheries, available from the wealth of our shared Pacific Sea of
Islands;
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• Foster an environment that supports increased investment, productive activity and a
strengthened private sector, particularly in relation to fisheries, agriculture and tourism, to
generate income and employment;
• Empower the next generation by significantly improving children’s access to quality basic
education, so as to raise literacy and numeracy rates;
• Improve the health status of our peoples so that they can enjoy more productive and less
troubled lives and to relieve the burden on Pacific economies;
• Conserve and manage fragile island ecosystems which underpin sustainable development
and food and water security within our region;
Commit ourselves specifically to:
• Improve energy security through greater efficiency measures and the promotion of clean
and affordable energy, including renewable energy;
• Address the persistent problem of illegal, unregulated and unreported fishing in the Pacific
through enhancing the effectiveness of regional monitoring, control and surveillance
activities;
• Promote the Pacific as an exciting and diverse tourism destination, and support the sector’s
ability to generate income and employment for its peoples;
• Raise educational standards and expand opportunities for acquiring technical and vocational
skills relevant to job markets, especially for women, including through non-formal education
and training provision;
• Increase opportunities for women to participate in the formal labour market and as
entrepreneurs;
• Ensure the meaningful engagement of civil society and Pacific island communities in the
development process;
• Develop institutions that contribute to creating an enabling environment for private sectorled growth including by introducing appropriate regulatory and legal reforms;
• Reduce barriers to regional trade and investment in order to expand access to markets for
Pacific businesses and focus on building the capacity of economies to benefit from the trade
and investment opportunities that arise;
• Continue strengthening public financial management and development coordination as a
means to improve development effectiveness and to adequately prepare and ensure efficient
management of the influx of resources to address climate change;
• Invest in improved infrastructure;
• Support the development of niche, high value agricultural production and its links into
global value chains, such as Fair Trade and organics;
Agree to strengthen the monitoring of progress against regional priorities;
Undertake to examine further ways in which we might enhance regional cooperation and
integration, including through enhancing the effectiveness of shared institutions, in order to
promote efficient delivery of regional public goods, and improved services, to our businesses
and peoples;
Urge Pacific Regional Organisations to actively consider how their work programmes can
contribute to economic growth and enhancement of the capacity of the productive sectors
where applicable;
Call on our international partners to support, in a coordinated way, our endeavours by
focusing their assistance on areas that directly and indirectly improve our ability to develop
sustainable productive economies.
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