I mentioned an op-ed piece that appeared in the Daily Post in Vila while we were there.
The same topic, reportage and conclusions were this morning (Sunday 20 Nov) broadcast in a radio op-ed programme back here at home.
A lengthy report from Danny Lui “Where next on labour mobility?” covers the discussions on the South Pacific Forum meeting held in PNG. Now this is not a Vanuatu issue, it is one which is important to most of the Pacific Islands, and to the small nations in particular. Danny notes right at the start that the representatives of these nations – from Kiribati to Palau and including Samoa, Tonga, and Vanuatu – had attended the Forum with the intent of making some break-through in this area of “labour export”.
Australia and New Zealand – being the “big brothers” of the Forum – had the intent of signing all of the island nations to “The Pacific Plan”. This is described by Lui as a “new vision for regional integration which includes everything from opening up trade to information technology, to qualifications, and even movement of labour between the Pacific Islands themselves... In the end the though, it seems that the Plan includes everything except a labour scheme between the Pacific and Australia and New Zealand. [Emphasis mine]
...
So, what happened at the meeting?
Sadly the two ANZ countries had not read the script. While Pacific nations asked the questions, the answers they heard in Madang were not very encouraging... for all the talk of a Pacific community and regional integration, the meeting showed that there is still a big difference in power between the region’s developed countries and its small islands – and it is the “big brothers” who are still definitely the boss...
Well, for a starter I guess I have to concede that the big brother power is universal. We cop it from those with greater power than ourselves, and we give it to those smaller. Law of the jungle yet!
It goes a bit further as well.
Tonga has been applying for membership of the WTO apparently. I have seen nothing of this in the news until just this past week.
Then it was reported that in order to “qualify” for membership, Tonga must meet two (at least) primary requirements –
First, removal of all import tariffs.
Second, to “deregulate” all of its service industry to allow overseas competition.
The import tariffs is the Tongan government’s primary source of income. There is little to no “income tax” as most of the economy is barter, uncontrolled, and subsistence. There is little to no corporate tax, by choice, to attract employment prospects to the islands. Take away the import tariffs and what is the Government going to use as income?
Secondly, given the nature of the Tongan economy – very much a third world model – there is no way that the informal and barter systems could compete against external competition. Equally difficult is the idea of "de-regulation". How does one “de-regulate” a market system that operates on the street corner.
The truth is that the WTO members (the “big brothers” again) in fact want to lay their hands on two things. Prime Tongan land – for the recreation of the rich and famous – and most particularly the infrastructure and resources of Tonga’s tourist industry.
And at that point my mind goes straight back to Vila.
I have been trying, over the ten days that we were there and since, to put my finger on just what has changed in the eleven years since our first visit to Vanuatu. The answer was there in a conversation I had with an Australian who owns a tourist resort about 18km outside Vila.
The major resorts in Vila were all foreign owned first time we visited. There were also a number of smaller motels and similar sized guest accomodations being run by Vanuatu people (I include those Europeans who stayed on after Independence). More importantly the tourist services – tours, fishing, and so on – were predominantly run and staffed by ni-Vanuatu. That is changing. That is where the difference lies. That makes me sad as it takes the investment and the return away from the ni-Vanuatu.
UPDATE
This to hand following a search for another source...
Ni-Vanuatu may be able to find employment soon in the tourism, medical and seasonal work in Australia and New Zealand or even Europe, thanks to the endorsement of a Melanesian Spearhead Group proposal to boost labour mobility.
A proposal to include World Trade Organisation (WTO) Mode 4 Services Agreement by the Vanuatu delegation to the 2004 MSG Senior Officials Meeting has now been taken forward and accepted by the special Trade Expert Advisory Group (TEAC) in their meeting in Fiji last month.
Mode 4 Proposal specifically relates to labour and human resource mobility between one market and access to other competitive markets, for example in the case of the MSG both Australia and New Zealand on the PACER Proposal and with the European Union on the proposed EPA.
and at the end -
The Vanuatu delegation submitted this proposal to the MSG Senior officials meeting which was subsequently accepted and endorsed by the recent meeting of the Trade Expert Advisory Group, a special high level committee advising the Forum Island Countries on the progress of the forthcoming ACP/EU EPA which will be concluded by the end of 2007.
For Vanuatu, important policy decisions at the highest political level are yet to be done to facilitate the implementation of this important proposal.
As I implied, and in the absence of direct access to Lui's op/ed the quotes are not direct, neither Australia nor NZ were particularly impressed by the idea at Madang. In Australia's case, Howard came out with a flat "No." Auntie Helen was a bit more pragmatic about it pointing out the "difficulties" that would be associated with such a programme.
It seems that others are recognising the same thing.
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