China Tweaks its Belt and Road Initiative to Avoid Further Backlash

Most Pacific Islands now have diplomatic relations with mainland China and many have signed up for the Belt and Road Initiative which, while providing much needed  and very considerable help with infrastructure, also raises questions about repayment and indebtedness that can be used —as can all aid assistance—to advance the political and economic interests of the donor. -- ACW

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 China Tweaks its Belt and Road Initiative to Avoid Further Backlash  by 

    Alex He and Anton Malkin*

In his speech at the recent Belt and Road Forum, Chinese President Xi Jinping underlined that the next phase of the Belt and Road Initiative (BRI) will “adopt widely accepted rules and standards,” “follow general international rules and standards in project development, operation, procurement and tendering and bidding” and “ensure the commercial and fiscal sustainability of all projects.”

Pacific Leaders More Questioning of Chinese Influence

Radio New Zealand     -     24 Nov 18

By Michael Walsh

Papua New Guinea's capital Port Moresby was a sea of red in the lead up to the APEC summit - Chinese flags dotted major roads, and the face of China's powerful president-for-life was pasted high on billboards.

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President of China Xi Jinping arrives at APEC in Port Moresby. Photo: AFP / Pool / Eyepress

Rethinking how NZ Spends its Overseas Aid : Sam Sachdeva

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Sam Sachdeva is Newsroom's political editor, covering foreign affairs, trade, defence, and security issues.  

https://www.newsroom.co.nz/2018/09/16/237567/rethinking-how-nz-spends-its-overseas-aid

The Government’s “Pacific reset” and a $714 million boost to our foreign aid programme was big news earlier this year, but the first review of our aid policies in nearly a decade hasn’t made the same headlines. Sam Sachdeva reports on why it’s taking place, and what NGOs, academics - and Winston Peters - want from it.

The news in May of a nearly billion-dollar boost boost to New Zealand’s foreign affairs budget resulted in a predictably polarised response along political lines.

The Government, led by Foreign Affairs Minister Winston Peters, hailed the decision as an essential increase after years of neglect, while the National opposition accused it of “putting diplomats ahead of doctors”.

China's aid to the Pacific in some sort of perspective

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A NEW FEATURE. SEE 'SNIPPETS/BREAKING NEWS' IN THE SIDEBAR
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One perception Pn46

The Pacific region is making headlines across Australia after Pacific and International Development Minister Concetta Fierravanti-Wells harshly criticised Chinese aid in the region. 'Useless' is how Fierravanti-Wells has described Chinese aid projects, leading countries to take on debt they can't afford. While her concerns are legitimate, her blunt delivery hasn't been constructive and has led to some considerable political and diplomatic fallout.

Aid to the Pacific Islands

	Total $US (m)	% China	% Loan	% Aust.	% NZ	% Other	Pop	GDP
PNG	4475	14.1	90	76.8	3.9	5.2	7.3M	15.4B
Vanuatu	1030	23.7	84	39.1	11.8	25.3	266K	798M
Fiji	921	39.1	89	32.9	5	23.2	881K	4B
FSM	1058	3.9	0	2.3	-	93.9	104K	333M
Samoa	809	28.4	75	30	15.1	26.5	190K	793M
Tonga	590	29.2	77	30.8	17.8	22.2	104K	473M
Cook Is.	175	28.6	58	17.1	49.7	4.6	13K	295M

Based on: Lowy Institute https://chineseaidmap.lowyinstitute.org/ figures for 2015. FSM Federated States of Micronesia. Aid figures rounded up. % Other: EU Institutions, France, Japan, USA. 'Loan'- low interest concessional loans from China, remaining percentage grants and cash. Solomon Islands recognizes Taiwan.It receives no aid from  the CPR. Niue not included. Calculated by Croz Walsh.

Author Jonathan Pryke, Director 
 Lowy Institute's Pacific Islands Program

The Pacific region is making headlines across Australia after Pacific and International Development Minister Concetta Fierravanti-Wells harshly criticised Chinese aid in the region. 'Useless' is how Fierravanti-Wells has described Chinese aid projects, leading countries to take on debt they can't afford. While her concerns are legitimate, her blunt delivery hasn't been constructive and has led to some considerable political and diplomatic fallout.

So what's the real story? Is Chinese aid in the Pacific useless?

The answer is not so simple. China's aid program is so opaque it is very difficult to understand exactly what it is doing. China does not conform to the sophisticated reporting and accountability mechanisms that traditional Western donors have developed over decades of aid delivery. According to some estimates, China announced more than US$350 billion in aid between 2000 and 2014 under a shroud of secrecy, leading to considerable anxiety about where, why and how Chinese aid is given.

This anxiety extends to the Pacific, where since 2006 China has rapidly expanded both its commercial ties and aid program. The Lowy Institute has invested considerable time to better understand China's engagement. Our map of Chinese aid in the Pacific shows projects committed from 2006 to the middle of 2016. By scouring budget documents from countries across the Pacific, Chinese government websites, secondary sources such as conventional and social media, and conducting numerous interviews, we have compiled the most comprehensive picture of China's involvement in the region. It is not perfect, but it identifies and quantifies Chinese aid better than any other source.

Our research shows Chinese aid in the Pacific has grown substantially, with China committing more than US$1.7 billion in aid to eight Pacific Island countries (including Timor-Leste). To put this into context, total traditional aid to these countries over the same period was over US$9 billion, with aid from Australia making up almost two-thirds this amount.

President Xi Jinping

An important distinction must be drawn between Chinese projects and traditional ones. China typically engages in large infrastructure projects by providing low interest, or 'concessional', loans that eventually have to be repaid. There is often scant information beyond an announcement, with no detail on the terms of these loans or repayment schedule. Australia and other traditional donors typically provide one-way grants that do not need to be paid back and engage in more complex (albeit far from perfect) forms of assistance across multiple sectors, from humanitarian assistance to governance support.

To illustrate this point, while we have identified 216 Chinese aid projects in the Pacific from 2006, there have been more than 5000 projects carried out by traditional donors since only 2011. While Chinese numbers may appear large, it involves a concentration into select large projects. Because of this distinction, comparing Chinese aid to Australia's is like comparing apples and oranges. China has emerged as a significant donor, yet is it clearly still not the biggest player in the Pacific.

Understanding the quantum of Chinese aid is only the starting point. The greater challenge is understanding quality, the point that has landed Fierravanti-Wells in strife. Such judgments are not black and white, and ultimately projects have to be assessed on a case-by-case basis. The best research on this, looking at the experience of four countries in the region, has found that effectiveness of China's aid to be mixed; projects in Samoa have largely led to positive outcomes, while the experience in Tonga and Vanuatu has been less positive.

Importantly, the authors find that the quality of Chinese aid projects are 'dependent in large part on the actions of Pacific Island governments'. This shouldn't come as a surprise. China is not forcing aid on these countries; the Pacific governments have to tell China what they want and manage the projects to a standard that ensures China delivers. With these findings in mind, a criticism of Chinese aid is also an implicit criticism of the governments in the region that agreed to the projects in the first place.

The point Fierravanti-Wells makes about debt distress is a fair one. The International Monetary Fund has noted that Tonga, Samoa and Vanuatu all face considerable debt repayment pressures, and all have significant debt to China. Xi Jinping has even acknowledged the debt burden in the past, promising forgiveness that has yet to eventuate. There are also cautionary tales elsewhere in the world of China taking advantage of debt-distressed nations. Considering the portfolio of loans in Pacific countries (think government buildings and conference facilities, rather than critical infrastructure projects such as deep-sea ports or airports), this seems less of a problem, though certainly worth keeping a close eye on. But again, much of this responsibility must rest with Pacific governments. Australia can't criticise China without criticising decision-makers in the Pacific as well.

Given this messy context, the statements by Fierravanti-Wells, while not without basis, have not been constructive. Attacking the new kid on the block is the easy way out, and Australia is a far from perfect player in the region. The government should instead be working harder to encourage the role of Chinese aid in the Pacific, acknowledging it as an important complement to Australia's aid. China's continuing attention on the region should also be a catalyst for Australians to take a hard look at themselves and ask how they can do more in the immediate region and work with all actors towards a more prosperous Pacific.

The Pacific region is making headlines across Australia after Pacific and International Development Minister Concetta Fierravanti-Wells harshly criticised Chinese aid in the region. 'Useless' is how Fierravanti-Wells has described Chinese aid projects, leading countries to take on debt they can't afford. While her concerns are legitimate, her blunt delivery hasn't been constructive and has led to some considerable political and diplomatic fallout.

So what's the real story? Is Chinese aid in the Pacific useless?

The answer is not so simple. China's aid program is so opaque it is very difficult to understand exactly what it is doing. China does not conform to the sophisticated reporting and accountability mechanisms that traditional Western donors have developed over decades of aid delivery. According to some estimates, China announced more than US$350 billion in aid between 2000 and 2014 under a shroud of secrecy, leading to considerable anxiety about where, why and how Chinese aid is given.

This anxiety extends to the Pacific, where since 2006 China has rapidly expanded both its commercial ties and aid program. The Lowy Institute has invested considerable time to better understand China's engagement. Our map of Chinese aid in the Pacific shows projects committed from 2006 to the middle of 2016. By scouring budget documents from countries across the Pacific, Chinese government websites, secondary sources such as conventional and social media, and conducting numerous interviews, we have compiled the most comprehensive picture of China's involvement in the region. It is not perfect, but it identifies and quantifies Chinese aid better than any other source.

Our research shows Chinese aid in the Pacific has grown substantially, with China committing more than US$1.7 billion in aid to eight Pacific Island countries (including Timor-Leste). To put this into context, total traditional aid to these countries over the same period was over US$9 billion, with aid from Australia making up almost two-thirds this amount.

An important distinction must be drawn between Chinese projects and traditional ones. China typically engages in large infrastructure projects by providing low interest, or 'concessional', loans that eventually have to be repaid. There is often scant information beyond an announcement, with no detail on the terms of these loans or repayment schedule. Australia and other traditional donors typically provide one-way grants that do not need to be paid back and engage in more complex (albeit far from perfect) forms of assistance across multiple sectors, from humanitarian assistance to governance support.

To illustrate this point, while we have identified 216 Chinese aid projects in the Pacific from 2006, there have been more than 5000 projects carried out by traditional donors since only 2011. While Chinese numbers may appear large, it involves a concentration into select large projects. Because of this distinction, comparing Chinese aid to Australia's is like comparing apples and oranges. China has emerged as a significant donor, yet is it clearly still not the biggest player in the Pacific.

Understanding the quantum of Chinese aid is only the starting point. The greater challenge is understanding quality, the point that has landed Fierravanti-Wells in strife. Such judgments are not black and white, and ultimately projects have to be assessed on a case-by-case basis. The best research on this, looking at the experience of four countries in the region, has found that effectiveness of China's aid to be mixed; projects in Samoa have largely led to positive outcomes, while the experience in Tonga and Vanuatu has been less positive.

Importantly, the authors find that the quality of Chinese aid projects are 'dependent in large part on the actions of Pacific Island governments'. This shouldn't come as a surprise. China is not forcing aid on these countries; the Pacific governments have to tell China what they want and manage the projects to a standard that ensures China delivers. With these findings in mind, a criticism of Chinese aid is also an implicit criticism of the governments in the region that agreed to the projects in the first place.

The point Fierravanti-Wells makes about debt distress is a fair one. The International Monetary Fund has noted that Tonga, Samoa and Vanuatu all face considerable debt repayment pressures, and all have significant debt to China. Xi Jinping has even acknowledged the debt burden in the past, promising forgiveness that has yet to eventuate. There are also cautionary tales elsewhere in the world of China taking advantage of debt-distressed nations. Considering the portfolio of loans in Pacific countries (think government buildings and conference facilities, rather than critical infrastructure projects such as deep-sea ports or airports), this seems less of a problem, though certainly worth keeping a close eye on. But again, much of this responsibility must rest with Pacific governments. Australia can't criticise China without criticising decision-makers in the Pacific as well.

Given this messy context, the statements by Fierravanti-Wells, while not without basis, have not been constructive. Attacking the new kid on the block is the easy way out, and Australia is a far from perfect player in the region. The government should instead be working harder to encourage the role of Chinese aid in the Pacific, acknowledging it as an important complement to Australia's aid. China's continuing attention on the region should also be a catalyst for Australians to take a hard look at themselves and ask how they can do more in the immediate region and work with all actors towards a more prosperous Pacific.

-- Jonathan Pryke in The Interpreter, 11 Jan. 2018

See also 
West accused of trying to spread discord over Chinese aid'

Help for Elderly & Disabled, 40 Years Neglect, Meeting of Donors, An Apology, Govt Appointments

N0092. CLOSE TO 60,000 BENEFIT.  Nearly 60,000 elderly and disabled persons will benefit from the new bus fare concessions that will see a 50% reduction on bus fares for people over 60 and a free service for the disabled. It is hoped the non-transferable ID cards — yellow for the elderly and red for the disabled — will be ready by March.  The Ministry will rely on its existing Social Welfare database of senior citizens 60 years and above along with FNCDP database. New applications will be added onto these two databases.

N0093. FORTY YEARS OF NEGLECT.Asia Development Bank project manager and engineer Roley Hayes says upgrading work on the Tamavua water treatment plant, Suva's main reticulated water source, will cost around $100m mainly because no upgrading work had been carried out for the past 40-50 years.The work is being funded by a Government loan from the ADB.

N0094. ROUNDTABLE DONOR MEETING. Government officials met with executives from 32 donor countries and representatives of the diplomatic community, civil society organisations and financial institutions last week.  The purpose of the meeting was to improve co-ordination of Official Development Aid (ODa). The PM used the opportunity to ask its development partners to respect the country's right to settle its problems in its own ways, and indeed self-determination "and this includes the  area of management of official development assistance” much of which now bypasses government and is managed by NGOs. This has been a general trend in all Pacific countries in recent years because of donor concerns about corruption and mismanagement. The policy has been applied more rigorously in Fiji because donors did not want to be seen to support the coup and the Bainimarama Government.-- Based on 2011, No:0221/MOI.

N0095. AN APOLOGY. The reader who made a comment last week about boots on throat has apologized. He wrote:Croz, when I wrote the "boot on throats" comment last week, little did I realise how much of a stir it would cause. This little turn of phrase has been like pushing a stick into a hornets' nest. Some indigenous Fijians seem to think it was directed at the i'taukei as a whole. Can we all please just step back, stop the "roti boy" insults and hear me out? It wasn't meant to be literal. It was a figure of speech, imaginary to convey the notion of the need to keep something under control. In this case, it was the organisers of Coup 4.5, who were allowing racist comments like "mongoose" on their website. Nothing more, nothing less.. I now realise that it may have been a little too provocative in the Fiji context and for that, I'm sorry. IT WAS NOT MEANT TO BE TAKEN AS INDO-FIJIANS NEEDING TO KEEP THEIR BOOTS ON THE THROATS OF THE I'TAUKEI. I am not an Indo-Fijian and don't like them being vilified for crimson prose I wrote in the heat of the moment that I now regret. Yalo vinaka. Ni vosoti au. Vinaka vakalevu.

N0096. GOVERNMENT MUSICAL CHAIRS. LtCol Ifereimi Vasu is the new Commissioner for Prisons and Correctional Services, replacing Brig Ioane Naivalurua who is now the Police Commissionery, and LtCol Neumi Leweni, previously PermSec of Lands and Minerals, is now the new Commissioner Eastern, replacing LtCol Vasu.-- Based on 2011, No:0232/PSC.

Blocked Racist Comment, School Fees, Coordinating Aid, Kiribati-Fiji Relations, Office Rationalisation

N0081. BLOCKED COMMENTS.  Sometimes I block comments that are insulting and distasteful but sometimes it is necessary to publish one to show the sorts of people who do not like my blog (and much else besides). Here is what Boots on their throats boy wanted to leave behind on my "It's Only a (FRU) Game &  Ugly Racism" (N0065) item:

Croz, Has your little mate who is going to stand on our throats run down his hole and peed his pants? As a Fijian said to me today - why doesn't the little roti boy come into the pub here and open his big mouth? If he does I'll tear his leg off and shove it up his arse!!!"  

For those who missed the original comment, it referred to the publishers of an anti-government blog who  had distorted the news. But, despite comments to the contrary, this writer and others chose to believe it was meant for indigenous Fijians.

N0082. EXORBITANT SCHOOL FEES NOT TOLERATED. The Ministry of Education has warned schools that school fees and levies must by approved by the MOE, and that no child may be locked out for unpaid fees.  Minister Filipe Bole said that many school had been charging exorbitant fees and this would not be tolerated. "No child is supposed to owe any money because the government is paying all the fees. However, some managements may argue that such levies are directed towards building grants and few other items.They ought to know that the government has considered all those expenses while allocating grants. Our people have been instructed to obtain each school's audited accounts for verification,” the Minister said. -- Based on 2011, No:0187 /MOE.

N0083. COORDINATING AID. An aid donors round table co-ordination meeting will be held on Friday. The meeting, that will be attended by development partners, regional organisations and financial institutions, civil society organisations and government officials,  will provide government with the opportunity to discuss way in which overseas development assistance and aid resources can be enhanced through partnership with development partners.

The overall objective is to formulate a framework for Overseas Development Assistance in line with the 2005 Paris Declaration commitments to which Fiji and another 91 countries, donor partners and stakeholders are signatories. The meeting will help Fiji prepare for the Fourth High Level Forum on Aid Effectiveness to be held in Busan, Korea in November. -- Based on 2011, No:0203/MOI.

N0084. KIRIBATI RESPECTS FIJI SOVEREIGNTY. A delegation of senior government official was in Kiribati from January 13 to 18 to discuss strengthening bilateral ties as  stipulated under the Memorandum of Understanding signed by HE President Anote Tong and PM Bainimarama last September. Areas of cooperation included trade and investments, education, labour mobility, immigration, commerce, retail and taxation, fisheries cooperation, air and sea transportation, health and pharmaceuticals, climate change, environment, security and energy.

During the visit President Tong further underlined his government's policy to continue engaging constructively in recognition of the sovereignty of Fiji to settle its own internal affairs.  He also acknowledged the crucial role that Fiji played in the enhancement of the wellbeing and socio-economic development of the people of Kiribati and the region.

N0085.OFFICE LOCATION RATIONALISATION. The PSC is in the process of arranging for the relocation of various Government Offices to bring about cost savings and "better synergies" in government administration. The "clustering" of related departments is also expected to improve accessibility the public and other stakeholders. -- 2011, No: 0162/PSC.

This was announced on Monday by PSC Permanent Secretary Parmesh Chand who anti-government blogs reported as having resigned a month ago — and they have still not corrected their error!

WEEKEND READING WEEKEND READING (AND LISTENING) ♦ Allen Lockington column ♦  Fiji's New Diplomacy has Implications for the Region by Sandra Tarte ♦ Why the Roadmap: the Politics Under the Bridges Part II by Croz Walsh

Trees, Wadan and the Blogs, Two New PMs, Teachers, Multi-Ethnic Devolution, AusAID, Debts, FNPF, Fiji Water

NEW QUOTE FOR THE WEEK. See right sidebar. Scroll down for Weekend Reading.

TREES, GIFTS FOR THE FUTURE. More than half a million trees have been planted around the country in response to government's “Plant a Million Trees – A Gift for the Future" initiative, and another half a million trees is expected to be planted to ensure the full implementation of the campaign. --  FBCL News.

'NADAN' BLOGGERS THE IMAGINATION. The Blogs FDFM copied by Coup4.5 wrote:

"  Quoting the work of Nadan (sic!) Warsey (sic!) ... the military will have busted its annual budget by $700,000,000 if it's allowed to continue until 2014."

What Wadan actually wrote was: "Roughly, between 2000 and 2010, the military has illegally overspent by $225 million ...If the present trend continues ... the military will have taken  ... some $700 millions over and above their normal pre-2000 allocations between 2000 and 2014."

There are four elements: 1) Wadan's "normal" pre-2000 allocation of $50m a year; 2) the increase in the military budget that started under Qarase, 3) the over-spending that has continued after Qarase, and 4) the expenditure guestimate from now until 2014.

The anti- blogs attributed all the increase and overspending to the Bainimarama government, choosing to ignore the Qarase period from 2000-2006. Their $700m does not mention the pre-2000 "normal" expenditure.  And a less than careful reader could assume the $700m is annual.

Wadan was also a less than honest. He made no allowance for inflation, the 20% devaluation, and the troubled times since 2000, blaming the military, and no one else, for the 2000 and 2006 coups. Of course military expenditure will increase in a country where race is used to create civil unrest that could — and did — threaten other citizens.

He also made no allowance at all for the extended work of the military since 2006  in the administration of the country from district to national level, or the civic work now being done for example by Army engineers. The engineers have always performed civic tasks but the magnitude of the tasks has increased in recent years.  In the last three years, for instance, they have worked on hurricane evacuation centres, school buildings, church repairs, the Fiji School of Nursing,  bridges, river embankments, the Nukulau and Naboro prisons, the Quarantine Station in Rotuma and the Sigatoka Hospital.

In planting his flag so firmly in their camp, Wadan should look very carefully at his new comrades. They only partly understand what he is saying (and misuse what they think they understand); they are likely to want a very different Fiji from the one he wants — and they don't even know his name!

BAINIMARAMA WELCOMES TWO NEW PM's. In his congratulatory letter to the new Vanuatu PM Sato Kilman, the Fiji PM said, 'I am confident that your appointment will provide a new momentum and marks a new impetus in the ever growing close bilateral relations between Fiji and Vanuatu.”   And to new Cook Island PM Henry Puna he said, “With your leadership I believe that the existing warm and friendly relations between our two countries will be further strengthened in the years to come.” A third Pacific nation Tonga is expected to announce its new PM in the next few days.

BOLE THANKS TEACHERS.  School ended for the year on Friday, with Education Minister Filipe Bole extending his "sincere gratitude and heartfelt appreciation to all 9,826 of the country's teachers for their immense contribution to education in Fiji."  The Minister hoped they will enjoy their Christmas break and be refreshed when schools reopen on January 24th. -- Based on 2010, No: 2073 /MOE.

DEPT OF MULTI-ETHNIC AFFAIRS. As announced in the 2011 Budget Address, the functions, staff and assets of the Department are to be "devolved" to relevant line ministries. Public Service Commission permanent secretary, Parmesh Chand, said the proposed devolution "is in line with provisions of Peoples Charter for Change, Peace and Progress to remove ethnic bias in government programmes and [is] also commensurate with reforms in the Public Service to remove duplication, maximise use of resources through rationalisation and bring about improvements in service delivery." -- Based on 2010, No: 2065/MOI. [The general aim is a worthy one but in some matters each of Fiji's ethnic groups needs special attention. It is to be hoped that they will not be lost in the devolution.]

AUSAID IN FIJI. Australia has allocated $F37.2 million to its its volunteer aid programme in Fiji for 2010-2011. There are currently 35 volunteers working in areas such as education, health, disabilities, poverty reduction, protection, climate change/environment and humanitarian emergencies.

DEBT REPAYMENTS. Representatives of overseas funding agencies are in the country to work out a plan with government on extending the time frame of paying back debts left by past governments. government is also negotiating with India to extend the time frame of the repayment of the $86m loan for the upgrade of the sugar mills.

FNPF RETURN $198 MILLION.The Fiji National Provident Fund's fixed income portfolio FYE June 30 was recorded at $198.3m. Earnings from the portfolio make up 87.9% of the Fund's investment portfolio and 90% of the total investment income. Fund CEO Aisake Taito said total investments in government bonds for the financial year were $317.30m, compared with $268.82m in the 2009 year

FIJI WATER: ONE OUT, FIVE IN. I didn't know that Fiji Water had "paid less than $F1 million in total corporate tax since its inception, and received up to $F5 million UNDERLINE a year in value-added tax refunds for its export sales." Hamish Macdonald  tells all in this article in the Sydney Morning Herald. http://www.smh.com.au/world/bainimarama-shows-hes-the-full-bottle-but-challenges-await-20101203-18jvg.html

Bainimarama's Northern Tour, China Unsettles Oz, Aid, Tourism Dollar

BAINIMARAMA'S NORTHERN TOUR. It's interesting what the PM's provincial tours reveal other than necessary but huge rural infrastructure spending. For the North, this included roads, small loans access, phone coverage and bauxite mining in Bua as reported on Friday. And in Cakaudrove new and upgraded roads, rural electrification and upgraded Savusavu and Taveuni hospitals.

But from Macuata we also again learn of concerns about illegal logging that seems to be linked to bribes and corruption. Nothing seems to have been done to rout it out since the PM's last visit. And from Cakaudrove we learn about rumblings and animosity among the vanua, though what exactly the media did not report. Commissioner Northern LtCol Inia Seruiratu did, however, tell the people to sort out their own problems, saying that Government will only step in only when needed.

“Government respects chiefly decisions that holds the people together,” he said. Government interference could add to animosity. “We don’t want to spoil the relationship that exists between the people and their vanua. Development should bring about improved living standards and not animosity." So the Government is not against chiefs per se, afterall Bainimarama is also a chief, just chiefs who  abuse their people's trust.


CHINA TIES WILL UNSETTLE AUSTRALIA. ANU's Prof.John Warhurst says China's efforts to be more influential in the South Pacific will unsettle Australia.He says, "What has happened in Fiji over the last 10 or 15 years now with the number of coups probably leads Australian policy-makers and the general community to throw their hands up and say 'look, this is beyond our doing anything about it'. The question of a superpower like China injecting itself into the Pacific I think would have long-term worries for Australia," Warhurst said. He thinks China could undermine a region that is already destabilized, while a greater role for Beijing in the South Pacific might overshadow Australia's role as the biggest power in the neighborhood.

The remarks were made in light of Bainimarama's comment while visiting China last week that he is prepared to abandon his country's traditional political ties in the region in favor of China. He stressed, however, that Fiji will continue to trade with New Zealand and Australia.

OZ AID. Australia has donated a $40,000 fibreglass boat, the “Vuniwai ni Beqa,” and three vehicles to the Health Department. The boat will be used for medical purposes serving the islands of Beqa and Yanuca, of the Navua-Pacific Harbour coast, and the vehicles for use by the typhoid campaign in the Northern, Western and Eastern Divisions.  The handing over ceremony last week at the Health Headquarters included the donation of three vehicles to help in the Ministry of Health typhoid campaign.--  Based on 2010 No:1285/MOI.

ADB/GOVERNMENT HELP WATER AUTHORITY.The Fiji government and the Asian Development Bank (ADB) have assisted the Water Authority of Fiji with a $23 million loan to revamp the Waila water treatment plant.

HOTEL OCCUPANCY RATES have returned to the normal 60%, up from 40% over the past two years, and Reserve Bank Governor, Sada Reddy is calling on the hotel industry to invest now to ensure a good mix of rooms as tourism increases further over the next two to three years.

LESS THAN A HALF OF A TOURIST DOLLAR. Sada Reddy  also expressed dissatisfaction that Fiji retains only about 44 cents of tourism dollar compared with developing countries, 50-60 cents, and advanced countries, between 80-90 cents. Fiji's low rate is largely due to leakages through loss of VAT from packaged tours, borrowings from foreign banks and foreign ownership of the large hotels.

"Almost all service provided to packaged tours are of a domestic nature, excluding Air Pacific. Therefore VAT should be payable on all domestic services. Unfortunately, Fiji has been losing out on the VAT revenue for packaged tours. Government should study this issue and see how they can plug this leakage."

Hurricane Tomas: Human Beings and Politics

As Hurricane Tomas moves away from Fiji, only Ono-i-Lau and Votua islands in the southern Lau group are still experciencing gale force winds. They are closer to Tonga than mainland Fiji and are too far south to be shown on the map.

 UNICEF estimates that at least 150,000 people, primarily in Fiji's Northern and Eastern Divisions could have been directly affected by the hurricane (see map).

International airlines.  Air New Zealand and V-Australia including Fiji's own carrier, Air Pacific, have resumed operations in and out of Nadi International airport today, albeit on delayed schedules. Earlier, eleven Japanese travel journalists who will spend a week in Fiji reporting on its tourist attractions were greeted on arrival by Hurricane Tomas.

Tourism Fiji CEO Josefa Tuamoto has confirmed that no tourist was hurt in the wake of the cyclone and there have been no reports of extensive damage to hotels and resorts throughout the country.  Tourism facilities on the main island of Viti Levu (Coral Coast, Denarau, Nadi and Pacific Harbour) and in the nearby Mamanuca and Yasawa Islands escaped unscathed.

Disaster Management (DISMAC) Operations officer, Anthony Blake, said his officials will meet with representatives of donor countries tomorrow to discuss emergency aid needs. “They will start their own assessment once the weather clears.” Meanwhile government's "key priority is the safety of everyone  ... The Red Cross is government's primary provider on the ground at the moment.” The immediate needs for the affected areas include tents and emergency shelters, water storage containers and water purification tablets and

A RNZAF C130 "Kiwi 698" aircraft has arrived at the Nausori airport to conduct aerial surveys and distribute relief supplies to Labasa, and a second aircraft from the Australian RAAF is expected to arrive into Nausori this afternoon, reload for Labasa, and conduct aerial survey of Lomaiviti and Lau. The Fiji military has no airforce and commercial planes are not suited for this sort of work.

Australia will provide up to $US1,000,000 in initial emergency humanitarian assistance following an official request for assistance from the Fiji Government, and provide funding to DISMAC to charter transport such as helicopters and boats to deliver much needed relief supplies to remote communities. Fiji Red Cross will also receive funding to distribute emergency supplies already in storage in Fiji, and enable the local purchase of other essential supplies. Australia and NZ are expected to work closely to coordinate their responses. Australia's willingness to work with the Fiji government is commendable. It contrasts with NZ's flood relief assistance  to the Northern Division last year dealt only with NGOs, bypassing official government channels.  (NZ will also provide $1,000,000).

Media Decree consultations delayed. Hurricane Tomas has delayed public consultations on the Media Decree, which were due to start today. The consultations, deferred until further notice, are expected to be held in Suva, Lautoka and Labasa.

National Youth Day postponed. The PM has announced that the public holiday for National Youth Day next Monday will now be a normal work and school day.  He said this will help the country to recover the days lost. Bainimarama said we must come together as a nation and must also do so for our fellow citizens who have suffered loss of livelihood and shelter.The National Youth Day celebrations will be held at a laterdate.

Making political capital out of disaster.  Australia and New Zealand have commendably avoided linking their humanitarian aid to politics, a position much improved on their politically-weighted  assistance to the Western Division following last year's floods.  Not so the...

,,, the Anti-Bloggers.  I know some readers think I should be less often critical of anti-government bloggers and the comments they attract to their blogsites but I thought they'd like to read about how some such blogs reported Hurricane Tomas.

One blog criticized government for imposing the curfew and asking evacuees to take bedding and food to evacuation centres ("we're in a recession ... surely officials can come up with provisions"). An anonymous comment had this to say: "A curfew for some rain and wind? The jittery regime is jumping at shadows. This indian supported coup is becoming a joke. The sooner the real cleanout starts the better!! Cassava patch runner will be offfaster than a mongoose!!!"

Another anti-government blog was a shade more charitable with news on fundraising in Auckland (vinaka) and NZ government assistance (vinaka vakalaveu), followed by a brief note that the Fiji interim governmnent was  assessing (sic!) the situation!