Pacific Research and Policy Centre

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    The politics of economic restructuring in the Pacific with a case study of Fiji : a thesis presented in fulfillment of the requirements for the degree of Doctor of Philosophy, Department of Social Policy and Social Work, School of Social and Cultural studies, Massey University, Albany Campus, Auckland
    (Massey University, 2004) Slatter, Claire
    The subject of this thesis is the politics of economic restructuring, euphemistically termed 'reform' in the Pacific. Although structural adjustment policies are essentially neoliberal economic policies, the project of global economic restructuring, and its supposed end, a global regime of free trade, is a political one in several respects. It involves the wielding of economic power over developing countries by powerful multilateral institutions, developed countries and private corporate entities to such a degree that it is considered by some to represent the disciplining/subjugating and dis-empowering of developing states. It is supported by a successfully propagated ideology that combines economic growth theories (held to be infallible), 'good governance' rhetoric (with which no-one can reasonably disagree), and new notions of equality and 'non-discrimination' - the 'level playing field' and 'national treatment, in WTO parlance (which have been enshrined in enforceable global trade rules). It entails redefining the role of the state, transferring public ownership of assets to private hands, and removing subsidies that protect domestic industries and jobs, all of which are strongly contested. Successfully implementing 'reform' is widely acknowledged to require not only 'reform champions' but also 'ownership', and thus broad acceptance and legitimacy, yet commitments to restructuring are often made by government ministers without reference at all to national parliaments. National economic summits are used to rubber stamp or legitimate policies in a fait accompli. The thesis begins by situating the global regime of structural adjustment within the political context of North-South relations in the 1970s, the debt crisis of the early 1980s, and the collapse of socialist regimes and consequent discrediting of the socialist economic model and other variants of state-led development. It shows the key role of the World Bank in advocating the neoliberal model and setting the development aid agenda, and its abdication of this lead role after 1995 in favour of the World Trade Organisation and its agenda of global trade liberalisation. The thesis then examines the origins, agents and interests behind structural reform in the island states of the Pacific before focusing on how a regional approach to achieving regional wide economic restructuring and trade liberalisation is being taken, using a regional political organisation of Pacific Island states (The Pacific Islands Forum), and regional free trade agreements. It then illustrates the path of economic restructuring embarked on by Fiji following the 1987 coups, examines the implementation of 'economic reform' concurrently with policies to advance the interests of indigenous Fijians, and discusses some of the less acknowledged dimensions of reform.
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    The development impact of workers' remittances in Fiji : a thesis presented in partial fulfilment of the requirements for the degree of Master of Arts at Massey University, Palmerston North, New Zealand
    (Massey University, 2009) Prakash, Nilesh
    Remittances by international migrants have become an important source of finance for livelihood development amongst the households in Fiji. This is substantiated by the country’s rising migrant stock as a result of unstable political environment and the increasing economic opportunities for skilled manpower. It has been noted that the flow of remittances to Fiji excelled the amount of other capital inflows such as foreign aid and foreign direct investment and have surpassed commodity export earnings in the recent years. This has made remittances the second largest foreign exchange earner in Fiji after tourism. This thesis examines the developmental impact of workers’ remittances in Fiji, particularly its impact on economic growth, financial sector development, welfare development of the recipient households and an examination of the sustainability of remittance flows. Using an extended neoclassical framework, the empirical evidence finds a positive impact of remittances on economic growth and financial sector development. The welfare development hypothesis is tested using the Household Income and Expenditure Survey (HIES) data. This is analyzed first, by examining the expenditure patterns of the remittance-recipient households, the poverty and inequality effects followed by an assessment of human capital development impact of remittances. The empirical results show that households which receive remittances do not only expend their remittance income on basic consumption but have other substantive uses such as that on education of children, housing and expenditure on durables and nondurables. The poverty and inequality reducing effects of remittances, employ two counterfactual methodologies to estimate first, what the poverty and inequality indicators would be in a scenario where remittances are treated as an exogenous addition to household income. Second, it tests the effect in a scenario without migration and remittances, which treats remittances as a substitute for migrants’ foregone earnings. The results show strong poverty reducing effects of remittances irrespective of the methodology used while the effects on income distribution are not unambiguous. The results obtained for the human capital development analysis indicate the positive role of remittances in providing education opportunities for children in the recipient households. In noting these positive effects of remittances, it must however be acknowledged that the flow of remittances has to be sustainable overtime for households to benefit from human development. From a survey of Fijian-New Zealander migrant households, this study examines the remittance-sustainability debate. The results suggest that a combination of factors such as income of migrants, acquisition of higher education prior to migration and the intention to inherit assets from families in Fiji contribute to continued flow of remittances. These results do not support the hypothesis of remittance decay amongst Fijian migrants in New Zealand but reflect a strong altruistic motive of remittances sent to households in Fiji as insurance against economic shocks. This highlights the importance of development policy in facilitating the flows of migrant remittances for the socio-economic progress of Fiji.
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    Change content and aid effectiveness : how the size of change content affects implementation of technical assistance recommendations in developing Pacific Island countries
    (2008) Cotton, Margaret
    International aid agencies offer development aid with the expectation that developing countries will transform to such an extent that they can look after themselves, yet many countries have not developed as expected. This study identifies how the size of the change content of technical assistance recommendations affects their implementation: Technical assistance recommendations from the Pacific Financial Technical Assistance Centre, Fiji, to developing Pacific Island countries were studied. A content analysis was conducted to assess size using traditional transactional and transformational change definitions, and a survey questionnaire was used to assess size from the perspective of the technical assistance recipients. The content analysis findings suggest the majority of the changes are transactional, whereas, the recipients have rated the majority of the changes as large. The recipient’s perspective of size was most indicative of the likely implementation of the change. Changes rated as ‘small’ by the recipients are almost certain to be implemented whereas changes rated as ‘large’ have only a one-in-three chance of being implemented. If technical assistance recommendations are transactional manageable reforms in the eyes of aid agencies but are not seen the same way by recipients the chances a recommendation will be implemented, and the technical assistance successful, are compromised. The study supports the notion that to be effective technical assistance recommendations need to be seen through the eyes of the recipient.
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    The effect of migration on development in Tuvalu : a case study of PAC migrants and their families : a thesis presented in partial fulfilment of the requirements for the degree of Master of Philosophy in Development Studies at Massey University, New Zealand
    (Massey University, 2009) Simati, Sunema Pie
    International migration and development have been traditionally treated as separate policy portfolios; however, today the two are increasingly viewed as interlinked. While the development status of a country could determine migration flows, migration can, in turn, contribute positively to national development, including economic, social and cultural progress. Consequently, if migration is not well managed, it can pose development challenges to a country’s development and progress. Therefore, partnership through greater networking between countries of origin and destination is needed to fully utilise the development potential of migration. For Tuvalu, migration has remained a vital ingredient for economic development and more importantly, the welfare of its people. The implementation of New Zealand’s Pacific Access Category (PAC) scheme in 2002 offered for the first time a formal migration opportunity for permanent or long-term migration of Tuvaluans. The PAC scheme allows 75 Tuvaluans per year to apply for permanent residence to work and live in New Zealand, provided they meet the scheme’s conditions. The goal of this research is to investigate, more than five years after PAC’s implementation, the ways in which long-term migration of Tuvaluans, through the PAC scheme, has benefited Tuvalu. To give a broader perspective on the issues explored in this study, the views of Tuvaluan leaders, as significant players in traditional Tuvaluan society, are included, in addition to the perspective of migrants’ families in Tuvalu and the migrants themselves in New Zealand. Combining transnationalist and developmental approaches as a theoretical framework, this thesis explores how Tuvalu’s mobile and immobile populations, through articulation of transnationalism, enhance family welfare, and grassroots and national development. The eight weeks’ fieldwork in Tuvalu and Auckland demonstrated that the physical separation of Tuvaluans from one another through migration does not limit the richness of the interactions and connections between them. In fact, the existence of active networking between island community groups and other Tuvaluan associations in Auckland and in Tuvalu strengthens the Tuvaluan culture both abroad and at home, thus ensuring strong family and community coherence. Maintaining transnational networks and practices is identified as of great significance to grassroots and community-based development in Tuvalu. However, the benefits of long-term migration can only be sustained as long as island loyalty, or loto fenua, and family kinship stays intact across borders, and networking amongst families, communities and church remains active.
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    Agricultural export growth and economic development for Tonga : the quest for efficiency : a thesis presented in partial fulfilment of the requirements for the degree of Master of Public Policy at Massey University, Albany, New Zealand
    (Massey University, 2008) Kautoke-Holani, Alisi Wenonalita
    Neo-liberalism has become the dominant approach to economic development since the 1980s. Based on the economic principle of “efficiency”, the Washington Consensus and its supporters have avidly promoted the neoliberal orthodoxy as the ideal blueprint for the economic development of all countries in every region. However, as this thesis has discovered, the efficiency of public policy is weighed not by its conformity to an ideology but on how effective it responds to the economic and social problems of the population in question. In recent years Tonga has endured severe economic shocks which have pushed its low growth economy to the brink of economic crisis. In response to this crisis, the Government has chosen greater economic liberalisation and private sector – led growth to lead the economy to recovery. The Washington Consensus and its international supporters claim that this is the best policy response for Tonga due to the belief that greater liberalisation leads to greater efficiency. This thesis however believes that at the current dire state of the economy, it is not enough for Tongan public policy to just conform to international views on efficient economic development but to ensure that its economic development policies address the economic and social needs of the general Tongan population. With this in mind, this thesis investigated the role of agriculture in economic development. It identified that for an agriculture-based country such as Tonga, at low levels of growth, agricultural development is fundamental to long term economic growth. This research also revealed that agricultural growth is maximised through trade hence suggesting increased focus on agricultural export development. Based on these findings, this research project set out to verify the efficiency of Government agricultural policies by identifying the views of agricultural exporters and comparing these with Government approaches to agricultural export development in Tonga.