Kevin
J. Barr
From the film "Troy" |
Today analysts often
express their suspicions about the motivations of those who provide
aid or loans. Are they sincerely wanting to help us in an unselfish
way or do they have ulterior motives? If so, what do they want in
return? Do they want to help us but also help themselves at the same
time? Sir Michael Somare once said that Australian aid to Papua New
Guinea was “Boomerang aid” because, while it certainly assisted
PNG, it also returned benefits to Australia. Consultants came from
Australia or materials were brought in from Australian companies.
Certainly suspicions are
rife that China wants to boost its strategic and diplomatic influence
in the Pacific region, to make new friends, and expand its trade in
goods and services. China is a growing world power with a large
population and a huge demand for resources. Our timber and
especially our mining and fishing resources would surely be an
attraction and our position as the hub of the Pacific is of critical
importance. The USA and Australia seem to be concerned at China’s
growing influence in the Pacific region and seek to counteract it.
Years ago Julius Nyerere,
the President of Tanzania. had to face a similar dilemma – stay
with Britain and the West or also turn to China and the East in his
efforts to see his country develop. In the early years, China saw a
great opportunity to get its way in Tanzania and offered all types of
assistance. At a banquet President Chou En Lai made great promises
of assistance. Nyerere stood up and told him in a friendly but firm
manner that, although he welcomed Chinese help, Tanzania was not for
sale. On that understanding a more fruitful relationship of
assistance developed which was balanced by assistance from other
nations as well. Nyerere was willing to receive help from any
nation, provided that the aid was not part of an effort to intervene
in the domestic affairs of Tanzania or gain special concessions.
Perhaps we in Fiji and the Pacific could learn something from the
stance taken by Nyerere.
Years ago, Rev. Paula
Niukula then Director of the Fiji Council of Churches Research Group
sounded a strong note of warning when Sir James Ah Koy (then a
government Minister) proposed to open wide our doors to Chinese
investors from mainland China. Paula was no racist but he asked
government to seriously consider the consequences of such a move. At
the time there were enough case studies to show that, along with
business developments, there often came a lot of gambling,
prostitution, drugs and other less desirable activities. Clever
criminal elements often came together with Chinese investors. Of
course Paula’s warnings were dismissed as irrelevant and damaging
to business development. But many of his warnings have, in fact
proved to be true.
Currently we have received
some large loans on low interest from China (and some other
countries) for infrastructure (roads, housing etc). We have also
opened our doors very wide to Chinese investors. We hear of plans
for Hotels, a cement factory, a hardware company and other
developments. We see tracts of mangroves laid waste for Chine
developments despite warnings that we should protect our tiri land
and take rising sea levels seriously. We question whether the many
workers brought in from China as well as local workers employed by
Chinese companies adhere to our labour legislation regulations. And
there are rumours that, in some parts of the Pacific, convict labour
is brought in from Chinese prisons. We see Chinese prostitutes on
our streets and occasionally hear of fights arising at illegal
gambling locations. Some years ago a Chinese company hit the
headlines for producing and exporting drugs.
Chinese companies enter
the country with low interest loans from the Chinese Exim Bank to
build infrastructure or housing developments. While terms of
interest may be low, these companies usually bring a high percentage
of their labour and materials from China thus contributing to China’s
economy but not to ours. Moreover these Chinese companies and other
Chinese investors are undermining local companies and local
employment. They are impacting particularly on the local building,
mining, quarrying and timber companies and often getting unfair
advantages in terms of quick approvals and non application of labour
and environmental requirements. Acres of mangroves have been laid
waste to facilitate Chinese developments and many people are
concerned about what this devastation may hold for the future. A
saying is becoming common: “Whatever the Chinese want, the Chinese
get”. Of course Chinese diplomatic influence in Fiji and the
Pacific is growing stronger every year and the resources of the
Pacific – especially in fishing, timber and mining – are
particularly appealing for Chinese economic interests.
It is very easy for our
authorities to want to achieve everything at once and embrace all
those willing to supports our interests - to be all too ready to
accept loans and attract business interests. But we need always to be
wary that there may be a price to pay – if not now then in the
future. And are we fully aware of what that price might be? We are
rather naive if we think we can gain all the advantages and not have
to face a pay-off in the future.
Do we have a new version
of the Trojan horse emerging in our Pacific societies? The gift
looks attractive but what is lurking within? Will our acceptance of
the gift ultimately lead to our downfall? Should we not heed the old
warning and beware of Chinese bearing gifts?
5 comments:
Ian Simpson
Taveuni
Is Australia or New Zealand providing 2% loans on development loans?
Have the Chinese set up Bank branches in Fiji with exploitive interest rates.
Do the math Dr. Croz, then come back to me who has been exploiting who the past century.
Not only has our economy been cannabilized by Australia and New Zealand but our human resources have also been cherry picked quite nicely, thank you.
Anonymous ... Thank you for your comments. They raise important questions. I cannot get back to you because you choose to be anonymous. Please use your real name or a pseudonym. Please note also that Fr Barr wrote this article, not me. I publish articles many thoughtful interesting articles with which I do not necessarily agree.
Have look at Chinsese business practices in Africa where their largesse is free for all to see and experience. Zimbabwe is very ripe example. Aus and Nz give anyway and are not fairweather friends like the Chinses. Where were the Chinese when it came to humanitarian aid during Fiji disater or providing resourcs and infrastructure. Haven't Aus and Nz provided actual aid more than repayable loans??
True. There was another 'Trojan Horse'before the one Fr.Barr is writing about here.And it doesn't take kindly to being replaced. May be too late though.I think lessons need to be learnt from our own backyard experiences, not far off Tanzania.
@4.02
How about being more specific. Country by country.
Ethiopia have been very specific with the conditions set for Chinese development funds. i.e. local engineers being trained prior to commencement of project implementation, etc. with the objective of full employment for locals.
The Chinese are still finding their way in the aid giving game.
add the fact that the West has been exploiting the world for a long time and has had the advantage of identifying and doing business with secure govenments. The Chinese who have come late to the scene have no choice other than to deal with basket case countries with resources that the west can not legally deal with or are to risky. yet we expect the Chinese to be the manufacturers to the world.
Chinese operate in Australia , US and other developed conutries and nobody is complaining.
As to being fairweather friends or not, that has not been put to the test.
You are surely not expecting the Chinese to throw money at us when over 100 million of their people lost jobs durng the WFC. let alone the many that were already in dire poverty.
We have had every opportunity to a large extent mitigate the floods if we got off our bums and acted on the many reports and solutions made available.
Look at the balance of payments accounts between Fiji, Australia and New Zealand over the last 50 years. What do the numbers tell us?
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