Friday, August 30, 2013

X-Post- The Diplomat: The Deep Sea Resources Rush

A 2008 SiFM post addressed the rush to mine the seabed in the region. A recent article from "The Diplomat"  follows up on that particular subject.

The entire excerpt of The Diplomat article:

The Deep Sea Resources Rush

Source: The Diplomat

By Gemima Harvey

NM1
Exploitation of seafloor minerals appears imminent. But we do really understand the potential impact?

Insatiable demand for minerals and rare earth elements, coupled with dwindling resources on land have stakeholders across the world looking to a new frontier: the deep sea. Advancing mining technologies are making the prospect of exploiting seafloor minerals—including gold, copper, zinc, cobalt and rare earth elements (REEs)—not only possible but also imminent, with commercial licenses to be granted by the International Seabed Authority from 2016.

China has a stronghold on REEs, controlling a staggering 97% of global production. These finite elements and other precious minerals are used in the creation of a massive range of electronics devices, emerging green technologies and weapon systems, triggering a strategic scramble to exploit new sources.
In what has been described as a global race, governments and companies are keenly eyeing this emerging mining arena, eager to get their slice of the next “gold rush” as it’s made increasingly economically viable. In 2010, there were eight exploration licenses, currently there are 17 in the high seas of the Pacific, Atlantic and Indian oceans. There is also significant interest in the ocean’s resources within territorial waters, particularly in the Pacific Ocean, where more than 1.5 million sq km of the seafloor is currently under exploration license. This is an area roughly comparable to the state of Queensland in Australia.

Greenpeace reportThe president of the International Marine Minerals Society, Dr. Georgy Cherkashov, was quoted last year linking the rush for licenses to the reality of “first come, first get,” saying the shuffle to secure the most promising sites represents “the last redivision of the world.”
Three types of deep sea mineral deposits have drawn interest. These are seafloor massive sulphides (SMS), manganese nodules and cobalt-rich crusts. In the Pacific Ocean, currently the most commercially feasible are SMS, which are created by the activity of deep sea hydrothermal vents.

Tuesday, August 27, 2013

Fiji and China Ink M.o.U On Defense Cooperation & Technical Assistance.

Source: MoI

Fiji's Minister for Defence, Jonetani Cokanasiga and PLA Ltd, General  Wang (MoI)
The People’s Republic of China and the Republic of Fiji Military Forces (RFMF) today achieved another milestone following the signing of a Memorandum of Understanding (MOU) for closer cooperation and technical assistance.

The MOU was signed this morning by Lieutenant General Wang of the Peoples Liberation Army (PLA) and Fijian Minister for Defence Joketani Cokanasiga at Sofitel Resort and Spa in Nadi. In inking the milestone breakthrough between the two countries, Minister Cokanasiga highlighted the role of China in Fiji’s development. “The assistance is indicative of the relationship between our two countries,” he told Lt. Gen Wang.

“We have seen cooperation in the various sectors of our economy including socio and economic assistance which have been rendered towards Fiji and we are grateful to have a friend like the Peoples Republic.”
The signing also strengthens the existing defense MOU that was signed in 2011 between the two countries.

Minister Cokanasiga also briefed the delegation on the bold step taken by the two countries in building strong allies. Currently, two Chinese police officers are on attachment with the Fiji Police Force assisting local police officers in their daily duties.


(L-R) left is PS Defence Mr Osea Cawaru, Minister Cokanasiga, Mohammed Aziz, Major Sila Balawa and Captain Duaibe (MoI)

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Wednesday, August 21, 2013

A New Chapter in Fiji (Updated)

Fiji's new Constitution was unveiled, by the Attorney General, Aiyaz Sayed-Khaiyum in Suva today. 
The Constitution is available for downloads here (PDF).

Grubsheet's recent post, highlights some sections of the new document.

Member of  the Diplomatic corp in Fiji reading the new document (Image: MoI)




Video of Constitution release (posted below)




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Saturday, August 17, 2013

X-Post: Eureka Street - Finagling Free Trade In The Pacific.

Source: Eureka Street

Jemma Williams | 

Map delineates Pacific Island region relative to Australia and New Zealand Negotiations towards a free trade agreement involving Australia, New Zealand and 14 of our neighbouring Pacific Island countries are underway this week in Port Vila, Vanuatu.
The agreement, known as PACER-Plus, aims to enhance development through greater trade in the region. However, the negotiations are being carried out on unequal playing field, with Australia and New Zealand leading the talks which involve largely small, underdeveloped island nations, five of which are listed by the United Nations as among the least developed countries in the world. Recognising this, Australia and New Zealand are funding the negotiations as well as providing assistance to Pacific Island countries to implement the agreement.

Despite insisting that promoting development in the Pacific is the priority, Australia stands to gain more than most of the Pacific Islands, which already have tariff-free access for their goods into Australian markets under previous trade arrangements. Among the issues expected to be discussed in Port Vila is trade in services, which would mean Australian companies, providing services from banking to health and education, would have unrestricted access to Pacific Island markets, and Pacific Island governments would have less rights to regulate them.

The logic for including services in trade agreements is that established private service providers, in this case based in Australia or New Zealand, would be enticed into Pacific markets through deregulation, and Pacific Island nations would benefit from increased access to the service they provide. Indeed, the entry of international telecommunications companies into a number of these island economies did improve mobile phone coverage and connectivity, including in rural areas.

However, opening up all service 'markets' in vulnerable economies poses many threats. The inclusion of services in a free trade agreement restricts the regulation of any service which could be considered to have any commercial activity or where there are one or more service providers. This deregulation and entry of private service providers is often followed by pressures to privatise essential services like water. In countries like Argentina and Bolivia private companies have raised prices and have not invested in infrastructure in unprofitable areas.
Jeema Williams

" Many Pacific Island nations question what they would gain from PACER-Plus. Earlier in the year Papua New Guinea's trade minister said PNG would gain nothing from the negotiations and he would consider withdrawing. "

Additionally, services are typically negotiated on what is known as a 'negative list basis' — meaning that all services are included unless they are specifically excluded. This means that all services now and in the future would be subject to these rules even in light of new environmental or social problems or new research. This would undermine governments' policy space to address pressing development concerns like climate change, which is already affecting Pacific Island countries.

Many Pacific island nations are already struggling to provide essential services such as water, health and education. Having access to many of these services is a basic human right. Implementing policies to ensure the equitable distribution of essential public services throughout all areas of the country is one of the essential responsibilities of government. Liberalising trade in services could hinder the ability of government to fund or provide local or government-owned services to their most vulnerable populations.

Healthcare is a typical example. Foreign healthcare providers are likely to establish themselves in wealthy areas, profiting by charging high prices to those who can afford it. They would not service rural populations where the majority of people are unwaged and survive on subsistence agriculture. Governments would still have to fund or provide health care to the most vulnerable populations. Additionally, the stark inequalities in healthcare provision could lead to a 'brain drain,' where the most qualified professionals seek work in clinics which serve the wealthy.

Many Pacific Island nations question what they would gain from PACER-Plus. Earlier in the year Papua New Guinea's trade minister said PNG would gain nothing from the negotiations and he would consider withdrawing. The islands are pushing for the inclusion of temporary labour mobility rights so that their citizens will be able to gain visas to work in Australia and New Zealand, as well as more development assistance. Neither of these issues is normally included in free trade agreements, but they are being used as bargaining chips for Pacific Island nations to concede access to Australia and New Zealand access to their services markets.

If the Australian and New Zealand governments really want to achieve development in the Pacific, it is difficult to understand why they are pushing these islands to reduce their barriers to trade in a manner which could restrict their achievement of human development goals.


Jemma Williams headshotJemma Williams has an honours degree in international studies specialising in international development. She currently works for the Australian Fair Trade and Investment Network.



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Friday, August 16, 2013

ABC's Newsline - A Skewed Potrayal of Fiji's PIDF.

Australia News Network's program Newsline, covers the recent Pacific Islands Development Forum (PIDF), which was a diplomatic initiative of Fiji .

Most of the commentary in the Newsline segment, contained loaded terminology and the analysis within the video, is viewed through the prism of the Australian Foreign Affairs establishment. The general theme of the Newsline segment, unfairly portrays this new addition to the regional architecture, in particular subtle overtones of bias.

A recent post by Grubsheet accurately describes a similar strain of bias, existing in Radio Australia; apparently this is an endemic problem within the Australia Broadcasting Corporation (ABC).

(Video of Newsline segment posted below)





Thursday, August 08, 2013

Fiji Foreign Minister Speaks On Pacific Issues.

Source: Radio NZ
Radio New Zealand's correspondent, Sally Round interviewed Fiji's Foreign Minister, Ratu Inoke Kubuabola. In that interview, Kubuabola addressed the outcome of the recent inaugural Pacific Islands Development Forum (PIDF) and labelled it as, "I believe it was not successful for Fiji, but successful for Pacific Island countries who attended".

Fiji Foreign Minister, Ratu Inoke Kubuabola (MoI)
Kubuabola was asked, where the PIDF was heading, in relation to the Pacific Islands Forum (PIF) and replied, "That the PIDF compliments the PIF" and "It was about sustainable development and PIDF was never about competing with existing regional organizations".

Kubuabola, also touched briefly on the current review of the PIF and further added that, "[Fiji] will not be part of the Forum, as is and there will need to be some changes before [Fiji] goes back in". Kubuabola further elaborated on those needed changes in the PIF, "Australia, New Zealand need to decide whether they want to be a donor or a member".

Kubuabola addresed the postings of High Commissioners to Suva, " We've been looking at some of things being done by Australia, New Zealand towards Fiji and we believe, maybe we should hold back on the postings of High Commissioners to Fiji and our High Commissioners to Canberra and Wellington". Kubuabola also alluded to the undermining by the Metropolitan neighbors, "Some leaders were approached, not to attend attend this meeting".

Audio of the interview ( posted below)


Monday, August 05, 2013

X-Post- Dominion Post: NZ Must Take Balanced Approach To Fiji Govt.

 Source: Dominion Post

There has been a significant change of attitude in Australia to Fiji. Last Tuesday Julie Bishop, deputy leader of the Opposition and shadow minister of foreign affairs and trade, recommended re-engagement with Fiji and the restoration of diplomatic ties with the Bainimarama Government.

In a comment that would have done justice to New Zealand's seemingly forgotten traditional relationship with the Pacific, Ms Bishop said: "We will be guided by the Fijian Government on what they seek from Australia".
She pledged Coalition support "in whatever form Fiji requires" to assist them to get to grips with the challenges involved in establishing a workable parliamentary democracy.

Ms Bishop is, of course, the Opposition representative - though that may change after Australia's election in September. The Australian Labor Government is another matter. Prime Minister Kevin Rudd has been the poster boy for a hardline approach to Fiji since the coup in 2006. He and predecessor Julia Gillard have focused simplistically on the need for elections. But there is more to it than that.

Since coming to power, Prime Minister Frank Bainimarama has cracked down on the hitherto strong Fiji trade union movement. Inevitably Australian trade unions reacted strongly to the difficulties of their Fijian colleagues, and their position has had a powerful influence on Labor Party policy. The opposition parties in Australia recognise no such trade union influence. Ms Bishop's remarks, though sensitive and well-focused, are off the official agenda. But they must be seen as a signal and an important one.

Since the coup in 2006, New Zealand and Australia have offered little to Fiji in what could be seen as the collegiality expected as characterising relationships within the Pacific community. Both governments have continued to provide some aid but Fiji needed more than that. Post coup, it wanted the sort of support and relationship now outlined by Ms Bishop, especially when she says "there are very valuable lessons to be learned if we stand in each other's shoes and we try to see issues from each other's perspective".

As I noted in a comment piece three years ago, Fiji's internal tensions since before independence have to be dealt with by Fijians and the decisions reached have to be accepted by the Pacific and wider community.
Now there are further developments. Since 2006, Fiji has not stood still.
Gerald McGhie

" I am advocating is that New Zealand take a more balanced approach to Fiji. The Australian Opposition has taken an early lead. The key for New Zealand is to again speak in the Pacific with a New Zealand voice, re-establish positive contact with Fiji "


A range of countries have been welcomed in Suva and Fiji has become an active member of the Melanesian spearhead group - which contains the potentially rich Pacific island states. Fiji has also gained the prestigious position of chair of the non-aligned meeting where it has established a high- profile among delegates.
China-Fiji relations have developed strongly, and Fiji's much-sought-after soldiers are well represented in British and United Nations operations in many of the world's hot spots.

The Australian comments are in marked contrast to those coming from New Zealand. In a speech on New Zealand's place in the world late last year, Opposition foreign affairs spokesman Phil Goff made little reference to the Pacific and in later discussion emphasised his continuing view that human rights were the key to progress in Fiji.

Of course, human rights are important and coups cannot be condoned but, given Mr Goff's persistent concerns about human rights and illegal seizures of power, I might have expected a stiff comment on recent developments in Egypt where what looks very like a military coup has taken place. The New Zealand Government also appears to be remarkably quiet on Egypt.

What I am advocating is that New Zealand take a more balanced approach to Fiji. The Australian Opposition has taken an early lead. The key for New Zealand is to again speak in the Pacific with a New Zealand voice, re-establish positive contact with Fiji and, while not accepting the coup, come up with alternative policies in a context of co- operation.

Negotiations will not be easy. But if understandings can be agreed and adhered to, at least there will be some structure on which to build a better relationship.There may be a sense within the Wellington policy establishment that Suva is simply waiting for New Zealand to welcome them back to the Commonwealth, Pacific Forum and PACER trade negotiations. In fact it may not be quite that clear-cut.

Fiji now has a substantial - but not dominant - grouping that asks why they should bow to New Zealand. They point to Fiji's substantial gains since the coup in spite of Australia and New Zealand sponsored opposition and at times hostility. They consider that they should build on their new structures.

The reality is that New Zealand must undertake a similar repositioning to that of the Australian Opposition.
This means a rethink in terms of policy and, even more important, of attitude - leading to less exhortation and more patient discussion. It is now probably too late but if sufficient goodwill is generated, New Zealand might get Fiji's support in its bid for the 2014 Security Council seat. It depends on the quality of diplomacy.

Gerald McGhie is a former diplomat with many years of experience in the Pacific. He is a former director of the New Zealand Institute of International Affairs.


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Opening of Pacific Islands Development Forum