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Curzon
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Curzon

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December 1st, 2006

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Big Trouble in the South Pacific

That Fiji is on the verge of a military coup is on a number of front pages today. But behind that headline is a harsher truth: a number of states across the south Pacific have been highly volatile since becoming independent from Britain and France several decades ago. Lacking cohesive civil society, sustainable economy, and reliable political leaders, a number of problems are coming to a slow boil that spell trouble for many island nations, and in turn, their larger continental neighbors.

Fiji: Armed guards patrol the streets as the Prime Minister and Army Chief meet in New Zealand for talks to try and avert a fourth coup in the past twenty years, while the army announces that it is ready to defend against any foreign invasion intervention. Although Fiji has perhaps the most developed economy of the island nations, with sugar exports and a growing tourist industry, it faces numerous hurdles, not least of which the fact the emigration of educated and professional Fijiians.

Solomon Islands: Previously covered here and here, Australia maintains a strong contingent of peace-keeping forces on the islands (with Kiwi troops on the way), but relations between the two governments soured recently when Australia called the island’s economy poor and plagued with corruption.

Tonga: Tonga is perhaps the worst example of political looting and crazy economic experiments. The country has over the past decade proposed or tried: selling passports; searching for oil (despite geological reports indicating no possible fields); making Tonga a nuclear waste disposal site; registering foreign ships, including some which turned out to be working for Al Qaeda; an orbital launch station; and plenty of other schemes that are so peculiar its hard to believe they are real. Perhaps most infamous was the former royal “Court Jester,” who became the country’s finance minister and used the post to embezzle US$26 million, after which he fled the country.

Vanuatu: This island nation faces problems similar to Tonga, mainly political leaders determined to loot the country, aggravated by a breakdown of civil society. One parliamentarian is advocating the legalization of marijuana to address the country’s economic woes.

New Caledonia: A French territory with the underpinings of an export resource economy, New Caledonia has faced an ongoing two month general strike that has shutdown the country. (The strikers are calling for the expulsion of Filipino workers and a reduction in living costs.) This means that New Caledonia is unable to reap the benefits of 19-year highs on nickel prices. What’s worse, another mining project has been shutdown with an injunction issued by a Paris judge in response to a complaint filed by an indigenous group on the island, so the regional economy is hurting and the people with it.

* * *

European colonial rule was no picnic. Practices such as blackbirding devastated local populations. But at least in the 20th century, a distant continental mentor guaranteed minimum standards of civil society and good government. This has evaporated with independence, which has brought a return to more primitive governance.

Is there any good news? How about this from Papua New Guinea: the capital of Port Moresby, one of the world’s most dangerous cities, is seeing a boom from Chinese migrants and investment.

Comments to this entry

Matt
December 1, 2006
5:24 am
I was in Fiji at the time of a previous coup some 16 years ago. The problem in Fiji is a racial one, and the racial competition for resources between the native Fijians, and the Indian workers brought in by the British colonial administration.
sunbin
December 1, 2006
5:58 am
I think many of Tonga's "peculiar" efforts are reasonable attempts to generate revenue, including selling passport and registering ships (look at Liberia).
The problem is that, as you said, the profits wer embezzled!
Curzon
December 1, 2006
7:01 am
Well, except that both of those examples you mentioned were so poorly done that it cost more than it was worth.

1. The passports-for-sale scheme brought down the wrath of Interpol and forced the country to nationalize the holders, most of whom were Chinese, who now control the local business in Tonga which has caused notable ethnic strife and resentment.

2. The ship registration had no oversight and was thus used by all sorts of unsavory characters. Liberia may not be a model state, but Liberian ship registration has for decades been managed through an LLC based in Virginia and is pretty professional.

On a sidenote, countries/regions that have made a business of various entity registration or incorporation, including Delaware State, Panama, Hong Kong, Mongolia, Liberia, and the Bahamas to list a few, nonetheless require minimum standards and some oversight to ensure they don't become a haven for providing legitimate cover for organized criminal operations, smuggling, piracy, and terrorism. Tonga, never having oversight, saw its attempt collapse.
Dr. Alfred Russel Wallace
December 1, 2006
12:00 pm
Thank you for an excellent, thoughtful and informative post - an example of why I keep coming back!
Eddie
December 1, 2006
1:13 pm
Australia slowly is realizing it must take actions steeped in long-term vision and planning to stabilize its neighborhood. Their neighborhood, with the exception of New Zealand, is filled with "Gap" states.
Rommel
December 1, 2006
2:41 pm
Agree with the good Doctor on this one. Great informative post.

Curzon wrote:
"On a sidenote, countries/regions that have made a business of various entity registration or incorporation, including Delaware State, Panama, Hong Kong, Mongolia, Liberia, and the Bahamas to list a few"

Now I'm curious. What entities is Mongolia registering?
It would be rather humorous to have one's ship registered in Mongolia.
jon
December 1, 2006
3:00 pm
Vanuatu's plan to allow people to grow marijuana could lead to a boom in the tourist trade. Instead of having to go to Brit Columbia or Amsterdam, they can now go to the South Pacific, and chill and shit in the sun, man.
Curzon
December 1, 2006
3:07 pm
Rommel: "Prepare to be shocked!":http://www.globalpolicy.org/nations/flags/2004/0702landlocked.htm

In fact, on my August trip through Hokkaido, I saw a ship in the port of Hakodate registered in Mongolia. I'll dig up a picture for you later.
sunbin
December 1, 2006
4:43 pm
curzon,

that is my point. the ideas are good (except going for oil even after knowing there wasn't, maybe.), but the execution is poor in a country which has no such experience but a lot of incompetent corrupted officials.

p.s. the chinese immigrants aren't the problem of tonga. solomon islands did not sell passports. in fact, it is usually the richer chinese who could afford to buy these passports.
sunbin
December 1, 2006
4:43 pm
...and my point was further supported by your endorsement on mongolia? or is this double standard? :)
Fabian
December 1, 2006
8:54 pm
The current tensions in Fiji are not racially based as in the past. Fijian Indians are not being put up as the troublemakers this time round.
Kurt9
December 2, 2006
4:09 am
How much were the passports sold for in these schemes? Do any of these countries still sell passports?
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