sustainable-and-inclusive-growth_mr-anthony

SUSTAINABLE AND INCLUSIVE GROWTH Pacific Perspective Mr Felix ANTHONY National Secretary Fiji Trades Union Congress | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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, | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e Wood processing, Meat canning; 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 Climate change and sea level rise Natural and environmental disasters Management of waste Coastal and marine resources Freshwater resources Land resources Energy resources Tourism resources 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 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 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 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: 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 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 Good Governance i Improved transparency, accountability, equity and efficiency in the management and use of resources in the Pacific 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 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 Fostering economic development and promoting opportunities for broad based growth | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 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) 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 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 Achieving stronger national development through better governance The Cairns Compact in 2009 reflected the leaders renewed determination to lif 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 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 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e iii) iv) v) vi) tackle climate change Agreement was reached at the meeting on coordinating regional responses by establishing working groups on 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 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: Lower Commodity prices and demand for exports Fall in remittances and off-shore demand for labour Decline in tourism numbers Decline in private investments 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, afer 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 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 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 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 Figure Source: ADB Pacific Economic Monitor 10 10 Figure Source: ADB Pacific Economic Monitor 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 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 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e percent in 2012 Growth prospects are also better for Nauru on the back of improved global demand for its phosphate exports, with its economy expected to grow percent in 2011 and 2012 An economic growth outlook of percent in 2011 and 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 Samoa’s economy is expected to grow by 2.1 percent in 2011, and 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 The Kiribati economy is expected to grow by percent in 2011 and 2012 primarily as a result of donor-financed infrastructure investments Palau’s economy is expected to grow by 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 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 Source: Pacific Island Forum: Update Series on Current Economic Issues | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 7-8 th 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 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 principles are not binding, they are being respected generally, in many cases through the insistence of the donors | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e Indicative Net Aid to the Pacific SIDS in 2007 Net ODA ODA/capita (US$) ODA (%GDP) (USS millions) Cook Islands 9.3 461 Fiji 57.5 69 Kiribati 27.1 285 35 Marshall Islands 52.1 894 35 (Republic of the) Micronesia 114.9 1035 49 Nauru 25.6 2912 113 Niue 14.8 5514 88 Palau 22.3 1108 14 Papua New Guinea 320.9 51 Samoa 37.5 207 Solomon Islands 246.1 497 63 Tonga 30.9 302 12 Tuvalu 11.7 1197 44 Vanuatu 56.7 251 13 Regional Aid 138.7 n.a n.a Pacific Aid Total 1165.9 136 Timor Leste 278.3 262 70 Source: AusAID 2009: Tracking Development and Governance in the Pacific Indicative Sources of AID to Pacific SIDS (Excluding Timor Leste) 2007 Development Partner Australia Canada France Japan New Zealand United Kingdom United States Other bilateral European Union Global Fund Total (US$millions) 649.3 8.2 16.7 70.3 120.9 5.4 171.7 2.5 71.2 10.8 % of all sources of aid 55.7 0.7 1.4 6.0 10.4 0.5 14.7 0.2 6.1 0.9 10 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 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 11 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 12 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e ANNEX 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 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: 13 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e • • 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): • • 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 14 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 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 (€ 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 15 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 adaptation strategies Renewable energy is the focal sector for 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 16 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 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, 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 17 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 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) • • 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 18 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e ANNEX 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; 19 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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; 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 20 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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; • 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; 21 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e 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 22 | S u s t a i n a b l e a n d I n c l u s i v e G r o w t h - P a c i fi c P e r s p e c ti v e