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					CONSULTATION DRAFT

NEW ZEALAND AGENCY FOR INTERNATIONAL DEVELOPMENT (NZAID)

TOWARDS A STRATEGY FOR THE PACIFIC ISLANDS REGION

As at 1 July, 2002

towards a strategy for the Pacific Islands region • NZAID

NZAID • towards a strategy for the Pacific Islands region

TOWARDS A STRATEGY FOR THE PACIFIC ISLANDS REGION

CONSULTATION DOCUMENT

FOREWORD

In September 2001, the Government set new policy directions for New Zealand’s overseas aid programme. It decided to establish a new agency, the New Zealand Agency for International Development, Nga Hoe Tuputupu-mai-tawhiti, to manage the New Zealand Official Development Assistance programme from 1 July 2002. Poverty elimination is to be the central focus of NZAID’s work and the agency will retain a core geographical focus on the Pacific. The Government directed that NZAID prepare a Pacific regional strategy focused on poverty elimination and the sustainability of aid. This consultation document is the product of the Development Cooperation Division of the Ministry of Foreign Affairs and Trade and has had invaluable input from a wide range of individuals and institutions. The work has taken place in two stages. A desk-based review of literature and identification of key issues, carried out from November 2001 to February 2002 by researcher Anna Powles of the Australian National University, identified key questions for further study. The preparation of the draft strategy, involving extensive consultation within New Zealand and overseas, was carried out from February-April 2002 by Nick Hurley, former New Zealand High Commissioner to the Solomon Islands. The Minister of Foreign Affairs and Trade, Hon Phil Goff, and the Associate Minister of Foreign Affairs and Trade, Hon Matt Robson, have approved the draft as a consultation document. NZAID will undertake further consultations on the document with partner governments and stakeholders between July and December 2002. A final strategy document for NZAID in the region will then be submitted for consideration by the Government. Comments on this draft are very welcome.

Dr Peter Adams, Executive Director Nga Hoe Tuputupu-mai-tawhiti New Zealand Agency for International Development Wellington

July 2002

contact NZAID: The Executive Director NZAID Ministry of Foreign Affairs and Trade Private Bag 18-901 WELLINGTON nzaid@mft.govt.nz www.nzaid.govt.nz

towards a strategy for the Pacific Islands region • NZAID

TABLE OF CONTENTS

Executive summary 1. Background and introduction 2. The Pacific Islands region: contexts and challenges 3. New Zealand and the Pacific Islands 4. Poverty and sustainable development goals in the Pacific Islands region 5. Strategic programme focus for NZAID 6. NZAID’s country focus and relationship 7. Country versus regional approaches 8. Regional organisations 9. Understanding the Pacific Islands 10. Where can New Zealand make the most effective contribution to development? 11. Infrastructure/technical assistance 12. Improved design and delivery mechanisms 13. Coordination with other donors 14. Monitoring and evaluation 15. Communication strategy 16. Review of the strategy

5 7 8 9 9 11 11 12 13 13 14 17 18 19 19 20 20

Annexes A. Profiles of Pacific Islands B. C. NZODA funding in Pacific 1996-2002 Consultation process 21 23 24

4 NZAID • towards a strategy for the Pacific Islands region

EXECUTIVE SUMMARY

Purpose of strategy
The strategy sets out the strategic direction and priorities that will guide NZAID’s activities in the Pacific Islands region over the next five to 10 years.

Key outcome for NZAID in the region
Poverty reduction as measured against country-specific indicators, where poverty is defined as extreme poverty, poverty of opportunity or access, and vulnerability to poverty.

Key strategic focus
NZAID’s primary strategic focus in the Pacific will be on strengthening governance including basic service delivery, at all levels of society (national, provincial/outer island, community, government-owned companies and private sector) and recognising effective governance as the most critical precondition to poverty reduction and sustainable development. Effective governance: reflects local contexts; is based on universal human rights standards; enables the active participation of all its people, especially women and people vulnerable to poverty; facilitates sound economic growth and pro-poor policies based on principles of sustainability; enables equitable delivery of basic services; and reduces vulnerability to disaster and conflict.

Priority areas for NZAID
To help deliver that outcome, the priority sectors and cross-sectoral themes for NZAID engagement in the Pacific will be: • basic education (including pre-school, vocational, informal and second-chance education - but also tertiary for developing governance and leadership capacity); • primary health care; • security and justice (including conflict prevention/resolution, domestic violence and community safety); • sustainable economic growth and enhanced livelihood opportunities, including through private sector growth; • performance of government and quasi-government agencies (including transparency and accountability); • young people; • empowerment of civil society/community development; • sustainable resource use/environmental integrity; • urbanisation/rural development (including population growth). NZAID’s commitment to human rights, gender equality and gender equity, and environmental sustainability reinforces all aspects of its engagement in the region. Human resource development, capacity building, leadership development and institution strengthening are core elements in NZAID’s engagement in the region. NZAID’s choice among bilateral, regional and international methods of engagement will be informed by an assessment of relative contributions to the strategy outcome. In a high priority area, where NZAID may not itself have the most appropriate skill mix, the agency may choose to fund other agents.

towards a strategy for the Pacific Islands region • NZAID 5

The precise shape of NZAID engagement will be decided by strategies for individual countries and regional organisations, which will reflect the local mix of circumstances, including the views of the partner government and stakeholders, the involvement of other donors, and NZAID’s capacity.

Enhanced delivery of New Zealand development assistance
NZAID plans to improve effectiveness and sustainability of its programmes in the Pacific Islands region by: • sharpening its country focus and strengthening linkages among all NZAID’s bilateral, regional and multilateral programmes; • adopting a comprehensive sector-based approach at the national level, and an integrated crosssector approach at the community level, working with all the stakeholders; • involving civil society, the private sector and regional organisations more actively in the design, implementation and evaluation of programmes; • working actively to encourage harmonisation and collaboration on development policies and operational delivery with and among other donors, especially AusAID; • making longer-term commitments for programmes within a flexible framework; • boosting NZAID’s in-country resources and responsibilities to engage comprehensively with all stakeholders; • harnessing more actively Pacific Islanders’ knowledge, skills and experience within New Zealand society; • liaising with other parts of the New Zealand Government to ensure policy coherence between NZAID and other government activities in the region.

Improved capability of NZAID
To improve its own capability, NZAID will: • enhance professional skills of NZAID staff to understand the Pacific and its development challenges by support for expanding knowledge networks that link the agency with other New Zealand, regional and international resources; • allocate more resources to produce targeted research, identification and documentation of local knowledge and the collection of key data and indicators to underpin policy-making and evaluation; • enhancing its monitoring and evaluation systems, using independent processes more frequently, to improve the cycle of feedback and ensure lessons learnt are applied by NZAID.

Strategy review process
This strategy will need to be revalidated by NZAID in the light of experience, the outcome of relevant sectoral strategies by NZAID, and wider consultation in the region that was not practicable in the time available for the current exercise.

6 NZAID • towards a strategy for the Pacific Islands region

NZAID STRATEGY FOR THE PACIFIC ISLANDS REGION

1. Background and introduction
As part of the implementation phase for NZAID1, the New Zealand Government agreed that New Zealand’s Official Development Assistance (NZODA) programme should retain a core focus on the Pacific and directed officials “to prepare a Regional Strategy [for the Pacific] focused on poverty elimination and the sustainability of aid” Cabinet noted too that NZODA was the main tool available for . New Zealand’s engagement in the region and that the regional NZODA strategy, as well as the individual country strategies, would be prepared in conformity with the strategic framework, taking into account the relevant political, security, economic and social context. The strategy will provide a framework for NZAID’s longer-term goals in the Pacific Islands region over the next five to 10 years. It comes under the umbrella of the overall NZAID Policy Statement which sets out the general policy, operating principles and focus of New Zealand’s Official Development Assistance programme. The Pacific Islands Strategy in turn provides a framework for NZAID’s country strategies, country programmes, regional sectoral programmes and regional organisation strategies in the Pacific Islands. Separate but complementary sectoral strategies are being developed or revised in the areas of poverty, gender, environment, education, health, human rights and civil society. As each sectoral study is finalised, the Pacific Islands strategy should in turn be reviewed and if necessary modified to take account of any proposed approaches. The strategy sets out the broad nature of the New Zealand Government’s commitment on development assistance for the Pacific Islands region; sets down the strategic direction and priorities that will guide NZAID’s activities in the region, including the basis for assessing their effectiveness; identifies those areas and sectors where NZAID will focus its involvement; and provides an indication of the likely mix of such assistance. The strategy is not a programme implementation document for the next triennium. Country and regional programme documents will provide a greater level of specificity. The strategy will shape NZAID’s engagement with all Pacific Island members of the Pacific Islands Forum and Tokelau, as well as the French Pacific Territories2, with which New Zealand currently has a development assistance relationship. It has been suggested that East Timor and West Papua should be included within the scope of the strategy because of cultural affinity with other Pacific peoples. The issue is a broader political question that will need to be addressed by Ministers.

1

NZAID = New Zealand Agency for International Development Cook Islands, Fiji, Federated States of Micronesia, French Polynesia, Kiribati, Marshall Islands, Nauru, New Caledonia, Niue, Papua New Guinea (including Bougainville), Palau, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu, Wallis and Futuna

2

towards a strategy for the Pacific Islands region • NZAID 7

2. The Pacific Islands region: contexts and challenges
The Pacific Islands region is highly diverse - economically, politically, socially and culturally - and it is not possible to apply one uniform template for the development needs and priorities to the entire region. Niue, for example, a Polynesian state with a declining population of under 2000 and a special constitutional relationship with New Zealand, has little immediately obvious similarity to Papua New Guinea (PNG) which has a multi-ethnic, predominantly Melanesian population approaching 5.5 million and over eight hundred distinctive local cultures and languages. Some idea of the developmental context can be gauged from the region’s physical characteristics. Excluding PNG, the population of the Pacific Island countries is just over half New Zealand’s, scattered over a sea area larger than the United States - but with a land area about the size of the North Island. Any generalised description of the Pacific Islands therefore becomes problematic. The region nevertheless shares a number of broadly common characteristics. Essentially, they are small populations dispersed over large distances in the Pacific Ocean but occupying small land areas, vulnerable to environmental threats and natural disasters. Transport and communication options are limited as is human resource capacity. Most are small market economies often with substantial subsistence elements and limited livelihood options. There are nevertheless considerable natural resources, distributed somewhat unevenly among the region. The substantial major common resource is the sea, which provides vital food and significant income. The importance of fish for the peoples of the Pacific, especially tuna, has been likened to the importance of petroleum for states in the Middle East. Tourism and commodities are important resources for most of the countries. Forestry and minerals are significant actual and potential sources of revenue in the Western Pacific Islands area. A socio-economic approach to defining the key characteristics of the Pacific Islands is set out in Annex A. Over the past three decades since NZODA expanded significantly to focus on the Pacific Islands region, development performance has been mixed. Socio-economic disparities and gender inequities have increased in some areas. In education for example, high literacy and numeracy levels in the Eastern Pacific have been offset by declining levels in the Melanesian countries of PNG, Solomon Islands and Vanuatu. In health, life expectancy rates have improved and the incidence of malaria has reduced but new diseases, some associated with lifestyle, have appeared, notably diabetes, TB, sexually transmitted diseases and HIV-Aids. Open conflict, instability and lawlessness have featured over the past 15 years, impinging adversely on basic human rights. Infrastructure, especially in Melanesia, has been run down. Urban areas have grown rapidly through internal migration, at the expense of rural or outer island areas. Most migrants have been drawn by economic and lifestyle opportunities but many often have not had the appropriate skills, leading to social problems including overcrowding, pressure on public utilities, crime and declining health and education. Economic performance across the Pacific Islands region has been weak or even negative, with one or two exceptions. Perhaps the most positive economic outcome has been the region’s success, multilaterally and bilaterally, in securing returns from foreign fishers harvesting highly migratory fish stocks in their zones (increasing 403 percent to $60.3 million between 1983 and 19993). Opportunities for income growth remain largely unrealised, however, as these access fees represent about 3 percent of the value of the resource. Population growth in the western and northern Pacific Islands region has been among the highest in the world. Melanesian countries in particular have more than doubled their populations over the last two decades. Even now, Solomon Islands produces each year the population equivalent of another Tuvalu. And population growth in Fiji, Solomon Islands, PNG and Vanuatu combined accounts for around 166,500 people a year - the equivalent of almost another Samoa. By contrast, Cook Islands and Niue have declining populations fed by increasing emigration levels. Related to those high population rates is the high youth demographic in the Pacific Islands region. The median age of the region is 20 years. Although some factors have been beyond the control of governments - such as natural disasters and fluctuating commodity prices - inadequate or variable governance and leadership have contributed

3

Gillet, McKoy, Rodwell and Tamate (2001), Tuna: A Key Economic Resource in the Pacific Islands, a report prepared for the Asian Development Bank and the Forum Fisheries Agency.

8 NZAID • towards a strategy for the Pacific Islands region

substantially to that disappointing overall outcome. This is despite the major support of aid donors throughout that period, including NZODA. The specific impact of NZODA, however, is not easily identifiable, given the multitude of factors and players involved, including the shock of natural and other disasters. The challenges facing Pacific Island countries today are now more deep-rooted and complex, requiring determined leadership and improved governance to address the cumulative stresses arising from population growth/loss, inter-communal tensions and the impact of global developments. Population growth alone will have major impacts on access for citizens - especially young people - to health, education, transport, employment, housing and infrastructure. Population loss, in some countries, is placing strains on society generally and impacting on the elderly and language retention. Related major issues facing the region (but not uniformly) are access to health and education, security, social justice, economic growth, income disparities, employment/diversification of livelihoods, private sector development, support for those people vulnerable to poverty and those with disabilities, environmental sustainability/resource management, climate change, HIV-Aids, urbanisation, land security and weak institutional structures.

3. New Zealand and the Pacific Islands
New Zealand has a multi-dimensional role in the Pacific stemming from its uniqueness as a Treaty-based Pacific nation. It also has a special constitutional relationship with the Cook Islands and Niue, and a Treaty of Friendship with Samoa. Tokelau remains a self-governing territory of New Zealand. Church and trading links between New Zealand and the Pacific Islands go back over 150 years. Nearly 6.5 percent of New Zealand’s population identified themselves as Pacific peoples in the 2001 national census. By virtue of its geography and those links, New Zealand shares a number of common interests with the rest of the Pacific. These range from fisheries and language development to cross-border issues such as health (eg. TB, HIV-Aids), crime, immigration and biosecurity. This is a primary area for New Zealand in foreign policy terms. New Zealand’s standing elsewhere in the world is judged substantially by what it does in its own region. The New Zealand Government is engaged in the region as both donor and fellow member of the Pacific Islands Forum regional bodies. At present, the Pacific Islands region currently receives around $NZ107 million or nearly half of NZODA’s total funding allocation (excluding indirect contributions through its share of NZODA’s contribution to multilateral organisations such as the World Bank and ADB operating in the region). Annex B sets out NZODA direct assistance to the Pacific Islands region over the past six years. Pacific Islands governments have expectations of substantial engagement by New Zealand in the area. Future allocations will depend on overall financial targets for NZAID, the region’s absorptive capacity, and the engagement of other donors. The New Zealand Government, as stated in the 2001 Pacific Policy Review, has an integrated “whole-ofgovernment” approach to its relations with the Pacific Islands region. Its interests are in seeing the region become prosperous and stable, based on sustainable social and economic policies, respect for human rights, participation of civil society4 and effective governance. NZAID’s focus on poverty underpins those overall aims. NZAID will maintain policy links with the departments and agencies of the New Zealand Government which are involved in broader trade, economic and security issues affecting the Pacific Islands region to promote compatibility of aims and to avoid contradictory policies. The areas of engagement include trade, immigration, health, fisheries, biosecurity, education, defence, police, customs and communications.

4. Poverty and sustainable development goals in the Pacific Islands region
NZAID is committed to working with development partners and the international community to achieve the United Nations’ Millennium Development Goals and International Development Targets. The central focus of NZAID, as set out in the NZAID Policy Statement, is the elimination of poverty, defined as

4

Definitions of civil society vary according to context but most commonly they include all non-state and non-market actors: the media, churches, trade unions, academics, NGOs and community based organisations (which also include such networks as the wantok system, fa’a Samoa, fakaTonga etc).

towards a strategy for the Pacific Islands region • NZAID 9

extreme poverty, poverty of opportunity and vulnerability to poverty5. For the current strategy, however, a more realistic outcome over the next five to 10 years is poverty reduction. Perceptions, definitions and causes of poverty vary within each country, and even within different communities or ethnic groups. Similarly, appropriate strategies to address poverty are very contextspecific. Rather than develop a region-wide poverty reduction strategy, NZAID will therefore base each bilateral country programme on a comprehensive strategy that will be informed by in-country poverty analysis. These strategies will identify country-specific indicators of vulnerability and poverty of opportunity (including access to health and education) which, while less easy to quantify than those of income or nutrition, are relevant to the isolated nature of many of New Zealand’s Pacific Island partners. NZAID’s approaches to addressing poverty will be based on the findings of the Pacific Poverty Study. NZAID, along with the international development community, recognises that economic growth and wealth creation by the private sector are essential for eliminating poverty. Economic interaction, including investment and trade in goods and services, has a vital role in that process. Underpinning that growth is the need for sound and effective governance supported by a good education system, law and order observance, an independent and effective justice system, a professional bureaucracy, a strong and wellregulated financial sector, and vigorous competitive business practices or some measure of contestability to avoid harmful monopolistic practices. But the small size and scattered nature of some Pacific Island countries present a major challenge to achieving sustainable growth and equitable development. In some cases, public-private partnerships may be a more appropriate mechanism. NZAID acknowledges that each country needs to develop its own appropriate economic policies to maximise sustainable economic growth and equitable development. NZAID recognises that poverty elimination and sustainability are mutually interdependent. It places very high priority on encouraging development and resource use that are sustainable in all their dimensions economic, social/cultural, political, environmental. Ensuring equity and inclusiveness are key elements in achieving sustainability. Work is in progress internationally and regionally on identifying sustainability indicators and principles. The outcome of this work will be used in determining sustainability issues in the Pacific Islands region. At the same time, NZAID acknowledges that sustainable development and poverty reduction are extremely difficult - if not impossible - in situations of armed conflict or widespread lawlessness. Security and stability are a precondition to effective development. NZAID believes that countries with sound policies, effective leadership and institutions, supplemented by effective Official Development Assistance (ODA) should ultimately be able to achieve sustainable development and to graduate from regular ODA inputs, except perhaps for emergencies and natural disasters. For reasons of current limited development potential or capacity, NZAID nevertheless acknowledges that some Pacific Island countries will be dependent on development assistance for the foreseeable future. The agency will work with its development partners and other donors on developing mechanisms such as trust funds which may overcome these limitations in the long-term. New Zealand’s constitutional links with the Cook Islands, Niue and Tokelau will be explicitly recognised in framing their development assistance programmes. NZAID will also aim to ensure that specific activities with which it is involved will be sustainable after completion of the agency’s assistance. This will require longer term perspectives in programme design and implementation. Assistance with recurrent costs for a defined and limited period may be provided by NZAID where it is shown to be necessary as a bridging measure to help ensure specific assistance has a long-term sustainable impact.

5

NZAID has provisionally identified three aspects of poverty: extreme poverty (the inability to meet basic needs); poverty of opportunity (where opportunities to participate in economic, social, civil and political life are seriously limited); and vulnerability to poverty (where individuals, communities and countries are particularly vulnerable to circumstances that damage their livelihoods, their ability to meet basic needs and their ability to participate actively in economic, social, civil and political life).

10 NZAID • towards a strategy for the Pacific Islands region

5. Strategic programme focus for NZAID
The strategic programme focus of NZAID in the Pacific Islands region will be on the reduction of poverty through strengthening governance based on universal human rights standards at all levels of society: national and provincial levels of government, NGOs, communities and private sector including government owned companies and quasi-government agencies. That focus includes support for equitable delivery of basic services by governments and government agencies, although governance is not just about governments. The United Nations Development Programme (UNDP) in its Governance for Livelihoods and Development project document, January 2002, broadly defines governance as ”the exercise of economic, political and administrative authority to manage a country’s affairs at all levels…it comprises the mechanisms, processes, and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences “Moreover, good governance is, among other things, participatory, transparent and accountable…effective, equitable and promoting the rule of law” . NZAID recognises, however, that there is no global template for governance. To be effective, each society has to develop governance systems and behaviour that fit local circumstances and meet the needs of its members, achieving this within the framework of universal human rights standards. Tokelau with its “Modern House” development, and some Maori iwi are recent examples of that approach. Although resources and vulnerability are important factors, good governance is the most critical precondition to poverty elimination and sustainable development in the Pacific Islands region. Development assistance is largely ineffective in its absence. Poverty is linked directly, although not exclusively, to poor governance including weak leadership and corruption. The economic and social decline in some Pacific Island countries today can be largely attributed to a history of weak or inadequate governance. At the national country level, NZAID will seek to support the strengthening of national governments and relevant public sector institutions in the Pacific Islands region, to enable leaders to manage their country’s affairs and to provide opportunities and services in an equitable and sustainable way for the benefit of all citizens, including women, children and those who are vulnerable to poverty. A critical objective is to enable all citizens whatever their gender, ethnicity, culture or religious belief to contribute freely and fully to the affairs of their own societies; and to maximise their opportunities and choices. At the community level, NZAID will seek to encourage the development of a strengthened civil society, including the private sector, with responsive leadership that enables communities to participate actively in fulfilling their needs and aspirations. It is important, however, to ensure coherence and linkages between the national and community levels through authentic and responsive dialogue. Human resource development, institutional strengthening and leadership development are key elements in promoting good governance. Capacity development to empower women, young people and vulnerable groups enables them to contribute to and benefit from social and economic development.

6. NZAID’s country focus and relationship
A fundamental principle of NZAID is that development should be a country-led, participatory and inclusive process based on partnership and local empowerment. That principle reflects NZAID’s commitment to the partnership principles of the Treaty of Waitangi. The needs, aspirations and priorities of each partner country and its peoples should ideally be articulated and expressed in country-led national development strategies which target poverty and economic development, and are based on respect for human rights. Citizens generally have a vital role to play in contributing to governmental policy formulation and in providing feedback and accountability to their government. That participatory role is often expressed in a more focused way as “civil society” NZAID will actively support civil society’s role and participation in the . development process, recognising too that community resilience encourages social inclusion. The private sector equally has a critical part to play in development. NZAID will seek opportunities to engage civil society and the private sector in partner countries more systematically in the development of NZAID’s country strategies and programmes. The effectiveness of NZAID’s strategy in the region will be measured for its impact on poverty in the

towards a strategy for the Pacific Islands region • NZAID 11

country context - at national, provincial, outer island, and community levels. Separate country and regional programme strategies, with specifically-developed indicators, will be the vehicle for that process. Policy dialogue between the New Zealand and partner governments is a critical part of the NZAID strategy. Development assistance is ineffective in a poor policy environment, whether caused by a lack of government commitment or inadequate capacity. As noted above, sound country-led policies and frameworks are critical to poverty elimination. Where it is a question of capacity, NZAID may provide assistance to help develop appropriate policies and strengthen public sector institutions (jointly with other donors as appropriate). Where the issue is lack of national government commitment to policies that encourage equitable development, the normal partnership approach to development becomes difficult to implement. International experience has shown that conditionality rarely works unless there is some corresponding domestic commitment to appropriate policies. In such a situation, maintaining dialogue with government is important to help promote pro-poor policies. But NZAID might also look to channel assistance through alternative mechanisms such as community/provincial systems, civil society and the private sector (both in-country and New Zealand-based) where they are assessed to be effective. A focus on humanitarian assistance targeted to the social sectors to help those most affected, both directly and indirectly, may also be an option, although care needs to be taken to avoid indirectly weakening government systems or sustaining poor expenditure policies and practices. Innovative ways for such service delivery will be explored. However, such assistance may not be sustainable for lengthy periods, as long-term effective development requires a sound national policy framework and a long-term strategic approach by NZAID. Country strategies governing the role and objectives for NZAID bilateral programmes will be developed over time with each partner country and with the involvement of civil society (including New Zealandbased groups), the private sector and regional organisations. Such strategies will be informed by in-country poverty analysis and will be based on and link into partner countries’ own development priorities and strategies, incorporating locally designed strategies and indicators/measures for poverty. NZAID’s commitment to human rights standards, gender equity, the environment and sustainability will provide the basis for defining objectives and evaluating NZAID’s performance. Measures will also be identified to promote social cohesion and address underlying issues that may create or aggravate potential for internal conflict. Disaster preparedness and mitigation will be integrated into country programmes. Where necessary, studies to establish appropriate, reliable data and indicators will be carried out with NZAID assistance. Country funding allocations will be determined primarily through an assessment process which takes account of a number of variables including need, absorptive capacity, developmental/policy constraints and performance, and links with New Zealand. Declining social and human development indicators in Melanesia and Kiribati suggest that over time the focus of NZAID will shift more significantly in their direction. Those areas of the Pacific Islands region account for around 84 percent of the region’s population and are all low on the UN Human Development Index. The actual extent of such a shift in focus will depend on the development and application of more precise indicators and filters. Country programmes to implement country strategies will be agreed on the basis of regular dialogue and close consultation between NZAID and partner governments, usually by high level talks. Input from civil society (including New Zealand-based groups), the private sector and Pacific regional organisations will be part of such dialogue.

7. Country versus regional approaches
Regional approaches can provide cost-effective delivery of policy advice and programmes where there are economies of scale; where common solutions to shared problems are possible and desirable; where cross-border comparisons are appropriate and desirable; and where there may be mutual reinforcement and learning from others. Issues such as environment, health, education, policing/law and justice, trade, biosecurity and marine resources are examples where regional approaches can add significant value. Pacific-wide sectoral/thematic strategies and programmes are also useful for NZAID’s own performance to ensure policy consistency and to draw on greater specialist and professional inputs. Sectoral strategies will form part of the process of preparing a country strategy by defining sectoral indicators useful for

12 NZAID • towards a strategy for the Pacific Islands region

assessing country and NZAID performance. They can also indicate appropriate activities and priority areas for implementation at the country programme level. The relative funding balance between regional programmes and country programmes will be determined by effectiveness assessed at the appropriate level (country/provincial/sectoral/community) on a basis of expected development outcomes and cost. NZAID will be involved regionally where such an intervention is assessed to be more effective than on a country basis. Account will be taken of ongoing commitments to regional organisations. It is critical that the regional and bilateral approaches are integrated and mutually reinforcing, and coordinated with other donors where they are involved. NZAID’s programme focus will vary according to national and regional programme strategies but overall it will be in support of governance (including basic service delivery) as the underpinning strategy for the ultimate elimination of poverty.

8. Regional organisations
The intergovernmental regional organisations form an essential part of NZAID’s involvement in our region. New Zealand is a member of most of them and contributes to their core funding as well as to extrabudgetary programmes managed by the organisations6. They are able to represent the collective views of the region’s governments on particular issues, thus enabling unified action by the region on Pacific-wide issues. They are also a source of policy advice and assistance for their members. Strategies covering NZAID’s partnerships with the regional organisations will be prepared in collaboration with the organisations themselves and their governing members. The strategies will set out the broad nature of the New Zealand Government’s commitment on development assistance for the organisation including extra-budgetary assistance; set down the principles which will guide NZAID’s support, including the basis for assessing their effectiveness; identify those areas and sectors where NZAID will focus its involvement consistent with the overall Pacific Islands regional strategy; and provide an indication of the likely scale and mix of such assistance. A filter will be used to guide NZAID on funding options but the overall focus will be on ensuring effective outcomes in the national context. Regional non-governmental organisations, such as the Foundation of the Peoples of the South Pacific International and the International Federation of Red Cross and Crescent Societies, will be eligible to receive funding for programmes that are in line with this strategy. NZAID will also provide funding for activities carried out by other international organisations in the region where they are consistent with this strategy.

9. Understanding the Pacific Islands
Rapid change and volatility in the Pacific Islands region requires greater effort by NZAID to understand the development issues in all their dimensions and contexts. Sensible decision-making on NZAID policy and engagement depends on a sound understanding and analysis of the issues, and close collaboration with the Ministry of Foreign Affairs and Trade in Wellington and at its overseas posts in the region. As part of its strong support for professional development, one of NZAID’s priorities will be to develop greater understanding of the Pacific Islands region among NZAID officers. Field experience is a vital element in that process. NZAID will give priority to encouraging expanded networks of information sources in New Zealand, elsewhere in the Pacific, and the wider international community - strategic knowledge alliances. There is a wide range of individuals and institutions in New Zealand who maintain active interest in and links with the rest of the Pacific. Aside from the Pacific Island communities resident in New Zealand, these include NZAID itself, the Ministry of Foreign Affairs and Trade and its overseas posts, development

6

New Zealand is a member of, and contributes NZAID funding to, the following key organisations: Pacific Island Forum Secretariat (Forsec) with headquarters in Suva Forum Fisheries Agency (FFA) with headquarters in Honiara Secretariat of the Pacific Community (SPC) with headquarters in Noumea South Pacific Applied Geoscience Commission (SOPAC) with headquarters in Suva South Pacific Regional Environmental Programme (SPREP) with headquarters in Apia University of South Pacific (USP) with headquarters in Suva.

towards a strategy for the Pacific Islands region • NZAID 13

consultants, other government departments and agencies, the private sector (including the sector group Consulting NZ), NGOs, media (especially Radio NZ International), universities and the New Zealand Human Rights Commission. NZAID will look to expand and develop such linkages more systematically. Wider linkages with regional and multilateral institutions and stakeholders in partner countries will also be encouraged. It will be important to ensure such networking is fully integrated with the existing networks and resources, especially those managed by the Council for International Development, Dev-Zone, the universities and the Development Assistance Committee of the OECD. There is also a broader need to improve understanding of the Pacific Islands region among the wider New Zealand. NZAID will actively encourage New Zealand-based communities to take an interest in and engage in the Pacific Islands region as part of the agency’s wider public education strategy. The agency will work closely with Pacific Island communities in New Zealand as a potential resource for that purpose. To underpin its policies and interventions, NZAID will give priority to supporting relevant research and development. The collection of key data and indicators, including identification and documentation of local knowledge, will be an important part of that process, as will local capacity-building. Adequate internal resources for NZAID will need to be allocated for that purpose.

10. Where can New Zealand make the most effective contribution to development?
As is the case for all other donors, NZAID needs to be selective to make the greatest developmental impact. Care needs to be taken, however, to avoid an overly rigid definition a priori of the sectors where New Zealand or NZAID may have the perceived comparative strengths to make an effective contribution to development in a particular country. Such strengths will change continually as New Zealand’s own skill base changes. Moreover, the impact of NZAID will be determined by the set of skills of each individual carrying out ODA-related tasks. However, the overall strength of New Zealand’s development contribution is perceived to be the empathy and interpersonal skills of New Zealanders which enable them to be lateral thinking, flexible, and pragmatic; to be able to adjust their focus and activities appropriately to different situations; to learn from experience and to translate policies and ideas into action in a different cultural environment to make the best impact. New Zealand, because of its small size relative to other donors but perceived neutrality and intellectual strengths, can also play a useful role in advocacy, mediation and donor mobilisation. Where New Zealand may not have the right mix of skills in key areas, NZAID may need to seek appropriate expertise further afield, or help develop the skills in order to respond adequately to increasing developmental challenges. A particular case in point is in the area of conflict prevention and management. [A separate study on developing areas of excellence is to identify processes for that purpose.] Alternatively, where the activity is a high priority, NZAID should look to fund regional and international organisations which have the appropriate skills and delivery capacity. From international and New Zealand experience to date, consistent with the Millennium Development Goals, the greatest impact on poverty is likely to be achieved through support for strengthened governance and effective delivery of basic services in the following sectors and cross-sectoral issues. The exact mix of NZAID involvement in any one partner country will depend on the specific country strategy. There is some natural overlap between the sectors and cross-sectoral themes. The sectors identified are essentially the basic “enablers” of effective governance and service delivery, while the cross-sectoral approaches are multidimensional, synthesising issues that provide a useful cohesive framework for targeting interventions:

A. Basic education
NZAID will place major weighting on education as the primary means to develop individual human capacity and improve life choices. The priority is to ensure all citizens, female and male, have access to basic education that meets their needs. Basic education includes early childhood, vocational, informal and second-chance education. There is nevertheless a strong justification according to country need for providing tertiary and vocational education to develop governance and leadership capacity, including capacity for policy development and implementation, and specialist professional skills. Gender equity will be addressed at all levels.

14 NZAID • towards a strategy for the Pacific Islands region

B. Primary health care
NZAID’s overall focus on poverty elimination implies a significant emphasis on the improvement of access to, and quality of, primary health care. Assisting Pacific governments to reduce the incidence of major illnesses through a strengthening of their primary health care and health promotion strategies, prevention messages and early intervention will be the primary focus of NZAID’s health programmes. However, the capacity of many Pacific Island countries to provide all forms of tertiary treatment will always be limited. Ways in which NZAID can assist most cost-effectively in this area also need to be considered. Health priorities and needs vary from country to country within the region. Prevention and treatment of communicable diseases is still the major need within many Melanesian countries, whereas in Polynesia emphasis is on the prevention of non-communicable, “lifestyle” diseases. Within many parts of the region, reproductive health programmes to address low reproductive health knowledge, high fertility rates and high rates of infant mortality/morbidity and maternal mortality/morbidity are a priority. Limited access of isolated healthcare providers to specialist advice, second-opinions, up-to-date research and in-service training, along with retention of skilled staff, are other endemic problems that need to be addressed innovatively. The contribution of the private and voluntary sectors needs to be taken into account when determining resources.

C. Security/community safety/conflict prevention and resolution
Without security, defined in its broadest sense, development cannot occur in a sustainable way. Insecurity and the disruptive incidence of conflict directly impact on poverty. Investment and business activity is adversely affected, restricting or eliminating economic growth and opportunities. The associated immediate humanitarian problems demand resources, at the expense of longer-term developmental objectives. Crime, corruption and domestic violence also impact directly on those most vulnerable to poverty. Conflict prevention, conflict management, post-conflict recovery and resolution of the underlying issues, including law and justice systems, will receive focused attention by NZAID as part of country strategies. Strategies to improve community safety, including the incidence of domestic violence, will also be a priority area for NZAID. To maximise impact, NZAID will link closely with regional policing and law enforcement efforts (eg through the Pacific Islands Forum, Regional Police Chiefs’ organisation) as well as coordinate closely with NZDF’s Mutual Assistance Programme (MAP), New Zealand Police and other relevant New Zealand Government agencies. NZAID also will work collaboratively with relevant policing and defence programmes of other donors in this area.

D. Sustainable economic growth
NZAID will support the development and implementation of policies, at both government and business levels, which encourage sustainable economic growth and enable individuals to have the employment opportunities appropriate to their situation and aspirations. Governments themselves will continue to offer only limited employment opportunities. Alternative strategies for livelihood opportunities will need to be developed, focusing more on self-employment and small and medium sized businesses. Increasing opportunities for women and young people will be an important focus of NZAID. Direct assistance to the private sector by NZAID needs to reviewed against the background that other organisations are already actively involved which may be better placed to deliver related outcomes. The agency will, however, provide support for capacity building for business development, including the use of mentoring systems involving New Zealand-based Pacific Island entrepreneurs. The agency will also focus on supporting government institutions to engage effectively on economic and trade issues at the regional and international level, especially through the regional trade and economic cooperation agreements.

E. Performance, transparency and accountability of governments and government agencies
NZAID will give priority to assisting governments to improve their capacity to design and implement effective policies for sustainable development and delivery of essential services for the benefit of all their citizens, including women, children, young people and those with disabilities. The effectiveness and efficiency of state owned enterprises and quasi-government agencies to deliver essential services, while avoiding monopolistic practices, will also need attention. Transparency and public accountability remain

towards a strategy for the Pacific Islands region • NZAID 15

important mechanisms for ensuring governments and the bureaucracies perform and meet the expectations of their citizens. The poor suffer when corruption in public sector institutions diverts scarce resources from their needs.

F. Young people
Across the region, high population growth and the very high proportion of people under 25 have created a major challenge to development. Access to health, education, employment (both formal and non-formal sectors) and services is a current or potential problem. At the same time, the potential of young people is one of the rich assets available to the Pacific Island countries. Young people need increased opportunities and choices so that they can contribute constructively to society. Education needs to be relevant and related to employment opportunities. It is important that young people participate in discussion on issues affecting them. The alternative is an increase in the numbers of disaffected young people, reflected in rates of crime, violence, suicide and inter-communal conflict, especially in urban areas. Increased rates of teenage pregnancy and Sexually Transmitted Diseases (STDs) are also of concern in the region and often associated with conflict situations. NZAID will give priority to helping partner countries and organisations to deal with these issues, supporting in particular the full implementation of the UN Convention on the Rights of the Child.

G. Empowerment of civil society and community development
As noted earlier, capacity building of civil society, including community-based organisations, is important to strengthen their effectiveness at local and national levels. Locally appropriate systems and leadership, drawing on indigenous knowledge and traditions, need supporting and developing, taking full account of key international human rights instruments. A related challenge in a number of Pacific Island countries is to revitalise the Pacific village as a basic building block of society and the wider nation, to enable communities to deal with the challenges of the modern world and internationalisation. NZAID will give priority to supporting the strengthening of civil society to contribute actively to development at both community and national levels.

H. Sustainable resource use/environmental integrity
Pacific Island countries are environmentally fragile and vulnerable to the impact of pollution, waste disposal, logging, and depletion of marine resources. Land availability, access, planning, use and environmental management are growing problems affecting the quality of life especially among the vulnerable groups. Particularly in Melanesia and the atoll states, population pressures are impacting adversely on access to land for cultivation and settlement, including in peri-urban areas. These have implications for food production, health, social cohesion and urban management. The issue of adaptation to climate change and rising sea levels is also a major one for much of the Pacific Islands region. NZAID will cooperate closely with partner countries, as well as regional organisations and New Zealand Government agencies, in support of the long-term sustainable use and conservation of the region’s land and marine resources upon which much of the Pacific Island region relies for survival. Eco-tourism, integrating both environmental and human values, can be one positive response to such challenges.

I. Urbanisation/rural development
The consequences of increasing urbanisation throughout the Pacific Islands region affect both rural/outer island and urban areas, not least through its impact on cultural structures. Proactive, concerted action needs to be taken to enhance effective planning and resource allocation in urban areas, to improve infrastructure and utilities, including waste management, especially for the most vulnerable groups. At the same time, measures need to be taken to improve village and rural/outer island quality of life so as to ensure equitable development nationally. NZAID will give priority to supporting efforts of partner countries and regional organisations to tackle these issues.

16 NZAID • towards a strategy for the Pacific Islands region

J. Human resource development
Human resource development, capacity building, leadership development and institution strengthening are core elements in NZAID’s engagement across the board, strengthening individual and collective capacity for good governance including participation and delivery of basic services. Particular focus will be given to sectors/areas that can make a demonstrable contribution to reducing poverty (eg. the seafarers‘ training programme).

K. Gender equity
NZAID works towards achieving gender equity and the empowerment of women in all aspects of its work. The aim is to ensure that women, men, girls and boys are able to contribute fully to their own social and economic development and that development benefits all. A sustained and long-term commitment is essential. The foundation for NZAID’s efforts in the Pacific region is the full implementation of the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW). The international commitments made in the Beijing Platform for Action (1995) and the Pacific Platform for Action (1994) provide useful strategic approaches. NZAID will continue to support gender specific programmes and projects where these are necessary to address specific disparities or inequalities between women and men, girls and boys.

L. Disaster reduction and risk management
There is a high level of vulnerability throughout the region to natural hazards, especially cyclones, earthquakes and tsunamis. In addition there are also other types of resulting disasters caused by plant and animal diseases such as the fruitfly problems endemic in many Pacific Island countries, the recent taro blight infestation that wiped out the taro industry in Samoa overnight and the leptospirosis outbreak in Fiji that has caused many fatalities. Such disasters impact adversely on the economic and social well-being of all citizens but especially the poor. NZAID will give priority to helping partner governments address disaster mitigation and preparedness as an integral component of long-term development planning and comprehensive risk management. The agency will also work closely with regional and international organisations for this purpose. NZAID will provide emergency relief assistance based on damage, local assessment of priorities, other donor contributions and New Zealand’s funding and operational capacity. Such assistance will be linked to longer-term processes of rehabilitation, reconstruction and development. NZAID will aim to avoid undermining the traditional in-country coping mechanisms and the local economy. NZAID will continue to work in close partnership with the Ministry of Foreign Affairs and Trade, the New Zealand Defence Force and the NGO Disaster Relief Forum on the assessment and delivery of relief needs. The agency will also coordinate its responses with other donors, notably Australia and France, as well as other development agencies, to enhance effectiveness and avoid duplication.

11. Infrastructure/technical assistance
Inadequate infrastructure - transport, communications (both domestic and global), power, water, sanitation - is a major impediment to economic development, access to education and health, and participation in political processes. Normally New Zealand’s development funding will be in the form of technical assistance, either contracted directly or through grants. However, infrastructural assistance will be provided where the benefits to the vulnerable can be demonstrated and where there are sound national policy frameworks. Priority will be given to engaging local expertise and resources, and to helping develop related capacity and strengthening governance where they are issues.

towards a strategy for the Pacific Islands region • NZAID 17

12. Improved design and delivery mechanisms
NZAID aims to achieve maximum impact and effectiveness at delivering assistance based on quality, responsiveness, cost-effectiveness and timeliness. The agency aspires to excellence based on international best practice and New Zealand’s own considerable development experience, tailored to local solutions. NZAID recognises that differing forms of indigenous social and institutional organisation will require a different NZAID response. In the past, inputs from NZODA have not always produced the desired outcome because they were not fully integrated within a country-led strategy that included all financial and resource elements and in which all the stakeholders participated (the local communities, national and provincial governments, donors, civil society and the private sector). Sometimes, such frameworks do not exist. In some cases, sectoral and national frameworks will already have been established in-country with the support of other international development and finance agencies such as the World Bank, ADB or AusAID. Wherever possible, NZAID will focus on contributing within comprehensive national and sector-based development frameworks that integrate all inputs/resources in a coherent manner for a commonly agreed goal. Where such frameworks do not already exist, NZAID is prepared to contribute to their development. NZAID nevertheless recognises that a careful assessment of risks will be needed to ensure local capacity is sufficient, especially for financial management, and that NZAID’s overall goals are not compromised. Such engagement by NZAID within sectors needs to be complemented at the community level by a comprehensive, cross-sector approach which similarly integrates needs and resources, and involves all stakeholders working together for a shared goal. Such an approach varies according to context but could take the form of integrated island or rural community programmes, geographically defined, incorporating health, education, infrastructure, livelihood development, and service delivery by government agencies. This approach has a healthy multiplier effect on poverty impact through empowerment, but it also promotes good governance and the development of positive relationships between government and civil society. To be sustainable at the local level, however, community-level activities require the support of sound national policies. NZAID is committed to multi-year programming (five to 10 years) for maximum impact and sustainability. This longer time-frame will enable partners to plan strategically with greater certainty of NZAID inputs. New Zealand will also be able to respond more promptly and pragmatically to changing local circumstances and needs within the overall programme/project. NZAID’s field role needs to be strengthened to enhance policy dialogue with the partner government; to ensure sector-based approaches are fully effective through close collaboration at policy and management levels with partner governments and other donors; and to have good contact with local civil society and private sector at national and local levels. Such an approach will change the basic way the NZAID programme is delivered, requiring more in-country effort and people skills to be able to manage and contribute to the policy dialogue, partnership and sector arrangements. The relationships between New Zealand staff and local partners are vital for understanding and influencing issues at both senior government levels and in the wider community - even more so in volatile situations which call for a high degree of responsiveness and authority. The relationship in the field between NZAID staff and the Ministry of Foreign Affairs and Trade will be critically important to ensure coherence and synergy between NZAID’s objectives and the broader regional goals of the New Zealand Government. Consistent with the enhanced in-country focus, consultants and advisers, contracted by NZAID to design and deliver assistance programmes, should remain in-country sufficiently long to make a sustained impact through developing the relationships needed to gain greater insights. The innate tension between longevity and ownership - and the risk of swamping local resources - needs to be managed carefully, respecting local partnerships. For similar ownership reasons, NZAID considers it important to define an exit strategy for its involvement, even for a long-term process. Implementation of the 2001 review of Management Services Consultants should be progressively incorporated into NZAID’s in-country strategy. NZAID recognises that the knowledge, skills and experience relevant to development in the Pacific Islands region are found in many sectors and institutions of New Zealand society as well as in government service. In some cases, there is a commonality of interest such as in public health or community safety

18 NZAID • towards a strategy for the Pacific Islands region

between New Zealand and the Pacific Islands region. In other cases, groups or individuals may have active links with counterparts or their country of origin. NZAID will give priority to tapping into such sources of expertise more effectively in order to improve the design and delivery of development assistance in the Pacific Islands region. For this purpose, the agency will enhance cooperation with Maori, NGOs, churches, Pacific Island community groups and the private sector including state owned enterprises and organisations. NZAID will support innovative ways of encouraging skilled expatriate Pacific Islanders to contribute to development of the region, both on short-term and permanent basis. Closer cooperation with institutions such as the Human Rights Commission will be developed. Collaboration between NZAID and New Zealand NGOs will be guided by the Strategic Policy Framework agreed in August 2000 between NZODA and New Zealand NGOs. However, the complexity and cost of engagement in the Pacific Islands has been a disincentive to wider involvement in the region by some New Zealand-based NGOs and other community groups. NZAID will look at ways of addressing the issue to enable such organisations to work more effectively in the Pacific Islands region in line with NZAID’s regional priority.

13. Coordination with other donors
NZAID believes that cooperation among donors within a country-led framework is essential to avoid duplication or overlap, and to promote synergy in the interests of improving developmental impact. This is especially necessary for assistance delivered through comprehensive national development strategies, sector-based approaches and integrated community-level approaches. Collaboration with other donors, notably with Australia, EU, UK, France, Japan, US, China, Taiwan, Canada, World Bank, ADB and the UN agencies, is one of the keys to collaborating effectively with partner governments and to achieving optimum impact of NZAID in the Pacific Islands region. In most partner countries, New Zealand is unable by itself to deliver the major developmental outcomes needed and expected. In some countries, where New Zealand is a major donor, it may be desirable for risk management reasons to encourage the involvement of other donors who can contribute different skills. To be effective, the partner government and all donors need to reach consensus on strategy and policy goals. At the implementation level too, donors need to ensure operational clarity over respective roles, working to relative strengths in the interest of optimum effectiveness. Simplification and harmonisation of donors’ procedures, including in monitoring and evaluation, is an important objective in that process. As a priority, NZAID will work actively and collaboratively with partner governments and other donors to achieve policy and practice harmonisation. That process is already underway, especially with AusAID. But NZAID will boost its efforts through in-country collaboration, regular consultation with agencies’ headquarters, and active participation in multi-donor networks such as the Development Assistance Committee (DAC) of the OECD (Organisation for Economic Cooperation and Development). The challenge to reach common agreement is significant, however, and where full harmonisation is not immediately possible, NZAID will seek to ensure its activities complement those of other donors.

14. Monitoring and evaluation
New Zealand taxpayers and the citizens of the partner country have an equal interest in cost-effective use of ODA. All NZAID activities are subject to routine financial and performance accountability checks. Appropriate quality objectives and performance indicators developed through participatory processes will be integrated into all NZAID’s activities to measure impact and effectiveness. The NZAID Monitoring and Evaluation Strategy will be the primary instrument of measuring aid effectiveness. It also provides feedback to NZAID and partner governments through the involvement of beneficiaries to enable the organisations to learn from successes and failures and to improve decision-making. Priority will be given by NZAID to enhancing the cycle of feedback to ensure lessons learnt are applied. This will include the use of external independent reviews for wider accountability. NZAID’s funding of Pacific regional organisations of which New Zealand is a member will be managed and supervised through the normal governance structures, in close collaboration with other members and donors.

towards a strategy for the Pacific Islands region • NZAID 19

15. Communication strategy
Consistent with its overall communication strategy, NZAID is committed to maintaining an open, ongoing, two-way dialogue on this strategy with partner governments, stakeholders in both partner countries and in New Zealand, and with regional and international organisations. It will look to broaden the means of discussion and feedback through meetings, media, greater use of networks such as Dev-Zone and CID, and effective use of information technology (including the NZAID website).

16. Review of the strategy
The Pacific Islands region strategy needs to be dynamic, reflecting the extremely fluid situation in some countries and changing development trends in others. Any strategy needs to be evaluated regularly to make sure its assumptions and goals remain valid. This strategy will need to be revalidated by NZAID in the light of experience and wider consultation in the region which was not possible in the time available for the current exercise.

20 NZAID • towards a strategy for the Pacific Islands region

ANNEX A PROFILES OF PACIFIC ISLANDS
No one approach can provide a satisfactory framework for defining the key characteristics of the Pacific Islands, not only because of the wide diversity but also because basic data are variable and open to wide interpretation, even when collected by international agencies. The UNDP’s 1998 Human Development Index (HDI)7, for example, does not take account of vulnerability to environmental and economic impacts, for which a separate index is being developed. The HDI and the UNDP’s related Human Poverty Index (HPI)8 can nevertheless be a useful indicator of some significant issues. The following is based on grouping by similar socio-economic conditions drawing on ADB’s analysis:

A. Independent Melanesia: Papua New Guinea (including Bougainville), Solomon Islands and Vanuatu
These countries have: • low population densities - Papua New Guinea: 10 per square km; Solomon Islands: 16 per square km; Vanuatu: 16 per square km; • extensive natural resources - Papua New Guinea: minerals (copper, gold, oil), agriculture (coffee, copra, palm oil, tea), forestry, fishing; Solomon Islands: forestry, fishing, agriculture (copra); Vanuatu: agriculture (copra, kava, squash), beef, fishing, tourism; • lowest UN Human Development index scores – Papua New Guinea: 0.314; Solomon Islands: 0.371; Vanuatu: 0.425; • highest human poverty index scores in the Pacific – Papua New Guinea: 52.2; Solomon Islands: 49.1; Vanuatu: 46.6; • high population growth rates – Papua New Guinea: 2.5% and expected to double within thirty years; Solomon Islands: 3.4% and expected to double within twenty years; Vanuatu: 2.8% • high formal unemployment figures; • weak economies characterised by poor public sector capacity, particularly in the delivery of essential social services (for example: primary health care and basic education).

B. Cook Islands, Fiji, Samoa, and Tonga
Considered by the ADB to be ”economically advanced nations“ these countries have: , • a higher skill base and higher international labour mobility which has resulted in high levels of skilled migration; • relatively good long-term growth prospects; • moderate resource potential – Fiji: tourism, agriculture (especially sugar), gold, manufacturing; Cook Islands: tourism, pearls, fishing, agriculture; Samoa: remittances, agriculture, manufacturing; Tonga: remittances, tourism, agriculture (squash, pumpkin, copra, fresh vegetables); • high population density - Fiji: 44 per square km; Cook Islands: 65 per square km; Samoa: 59 per square km; Tonga: 142 per square km; • low or declining population growth rates - Fiji: 1.1%; Cook Islands: 0.3% but declining due to
7

The Human Development Index (HDI) is calculated by the combination of average life expectancy at birth, adult literacy, gross school enrolments, and adjusted GDP per capita. A low index number indicates a low level of human development. The Human Poverty Index (HPI) is calculated by combining the percentages of people not expected to survive to 40 years of age, adults who are illiterate, people without access to safe water or health services, and children under five years of age who are under-weight. A high index number indicates a high level of poverty.

8

towards a strategy for the Pacific Islands region • NZAID 21

emigration; Samoa: 0.5% due to emigration; Tonga: 0.6% due to emigration; • satisfactory human development index scores - Fiji: 0.667; Cook Islands: 0.822; Samoa: 0.590; Tonga: 0.647; • low poverty index scores - Fiji: 8.5; Cook Islands: 6.1; Samoa: 8.6; Tonga: 5.9.

C. French Pacific (New Caledonia, French Polynesia, and Wallis and Futuna), Federated States of Micronesia, Marshall Islands, Palau
These territories also have ”economically advanced nation” status, due in part to economic support derived from their constitutional relationships with France and the United States. • resources - Federated States of Micronesia: aid from the US, sale of fishing rights, sale of marine products, tourism; New Caledonia: nickel, tourism, fishing, aquaculture, agriculture; French Polynesia: tourism, fishing, pearls, agriculture; Wallis and Futuna: remittances from workers in New Caledonia, aid from France, stamps, handicrafts; • average human development index score - Federated States of Micronesia: 0.569 (unavailable for French Pacific); • higher than average poverty index score – Federated States of Micronesia: 26.7 (unavailable for French Pacific); • mixed population growth rate highly dependent on emigration prospects – Federated States of Micronesia: 2.0% but variable due to emigration to the US; Palau: 2.0% but variable due to emigration to the US; New Caledonia: 2.5% but variable due to emigration mainly to and from Europe; French Polynesia: 1.8%, Wallis and Futuna: 0.5% and dependent on continued access to New Caledonia; • population density - Federated States of Micronesia: 168 per square km; Palau: New Caledonia: 11 per square km; French Polynesia: 67 per square km; Wallis and Futuna: 59 per square km.

D. Kiribati, Nauru, Niue, Tokelau, Tuvalu
Atoll nations or with atoll-like characteristics: • severe disadvantages due to various combinations of size, isolation, vulnerability to rising sea levels, and weak resource base; • low poverty index scores – Kiribati: 12.6; Nauru: 12.13; Niue: 4.8; Tokelau: 7 Tuvalu: 7 .6; .3; • average human development index scores - Kiribati: 0.515; Nauru: 0.663; Niue: 0.774; Tuvalu: 0.583; (Tokelau score not available); • limited potential for self-sustained economic growth - Kiribati: copra, fish, remittances, Trust Fund; Niue: leasing phone and internet codes, remittances, agriculture, tourism; Tokelau: remittances from New Zealand, license fees for US tuna vessels, stamps; Tuvalu: internet domain income, copra, remittances, Trust Fund; • population density - Kiribati: 111 per square km (but South Tarawa is around 2000 per square km); Niue: 6 per square km; Tokelau: 121 per square km; Tuvalu: 403 per square km; • population growth rate - Kiribati: 2.3%; Nauru: 2.5%; Niue: -1.7%, steady decline; Tokelau: stable; Tuvalu: 0.8%.

22 NZAID • towards a strategy for the Pacific Islands region

ANNEX B NZODA FUNDING IN PACIFIC 1996-2002
1996/97 Pacific Country Programmes Regional Programmes Education Schemes Emergency Relief Good Governance Programme Maori & Pacific Partnerships Pacific Regional Agencies 10,412,000 94,431,171 1996/97 TOTAL NZODA PROGRAMME TOTAL DIRECT to PACIFIC Percentage 184,357 ,000 94,431,171 51.22 10,449,523 11,781,452 11,324,414 102,153,124 1999/00 219,094,452 102,153,124 46.63 65,447 ,000 4,998,000 12,604,000 761,171 209,000 1997/98 62,853,882 10,997 ,921 13,540,441 521,145 16,000 1998/99 66,923,398 10,609,043 14,968,021 480,939 32,000 1999/00 65,512,860 10,096,954 14,616,992 382,904 219,000 2000/01 69,364,000 11,805,000 15,190,000 755,561 109,000 49,000 12,602,000 2001/02 67 ,125,000 11,855,000 14,600,000 750,000 110,000 50,000 12,540,000

98,378,912 104,794,853 1997/98 1998/99

109,874,561 107 ,030,000 2000/01 2001/02

194,630,187 204,406,106 98,378,912 104,794,853 50.55 51.27

226,527 ,000 226,527 ,000 109,874,561 107 ,030,000 48.50 47.25

Breakdown of NZODA 2001/02

Pacific Country Programmes 30%

Other NZODA 53% Regional Programmes 5% Education Schemes 6% Pacific Multi Agencies 6%

towards a strategy for the Pacific Islands region • NZAID 23

ANNEX C CONSULTATION PROCESS
Given the tight timeframe, a selective but broadly representative range of individuals and organisations, numbering around 90, was consulted in preparation of the Strategy. Consultation took the form of individual and collective meetings, telephone discussions and email. Meetings were held in Wellington, Auckland, Palmerston North, Christchurch, Suva, Canberra and Sydney. A draft discussion document was initially circulated for general feedback, after which a more detailed document was circulated which took account of the initial responses. The current document reflects the feedback from that second phase of consultations. In addition to officials in the Ministry of Foreign Affairs and Trade (Development Cooperation Division, Pacific Division, Human Rights Division and Heads of Mission of the Ministry’s Pacific posts), the following were consulted on the Strategy, but their inclusion in the list does not necessarily imply their agreement with all or any part of the document. Matthew Abel Dr Airini Airini Denise Aldous Nick Alexander Professor Rod Alley Consulting NZ General Manager, Pasifika Development, Auckland College of Education General Manager, South Pacific Project Facility (SPPF), Sydney Tear Fund New Zealand Associate Professor, School of Political Science and International Relations, Victoria University of Wellington Heather Baigent Dr Wame Baravilala Stuart Batty Andrew Bedford John Bowis Consulting NZ Dean, Fiji School of Medicine, Suva Rotary NZ World Community Service, Christchurch Ministry of Fisheries Save the Children Fund (and member of the External Reference Group for NZAID) Jonquil Brooks Cynthia Burton Anna Butler Terry Butt Professor Rajesh Chandra Gareth Chaplin Kevin Clark Linden Clark Director, Dev-Zone Director, Policy and Management Reform Section AusAID, Canberra New Zealand Immigration Service Volunteer Service Abroad (VSA) Deputy Vice-Chancellor, University of the South Pacific (USP), Suva Treasury Advisory Council on External Aid and Development (ACEAD) Radio NZ International (and member of the External Reference Group for NZAID) Candis Craven Dr Sinclair Dinnen Chair, Advisory Council on External Aid and Development (ACEAD) Department of Political and Social Change, Research School of Pacific and Asian Studies, Australian National University, Canberra Phil Doherty Dev-Zone

24 NZAID • towards a strategy for the Pacific Islands region

Esther Ducai Emma Ferguson Alan Fletcher Walter Fraser Dr Ray Goldstein Dr Robert Guild Stewart Hadfield Professor Gary Hawke

Tear Fund New Zealand Economic Adviser, Pacific Islands Forum Secretariat, Suva ADRA, New Zealand Registrar, University of the South Pacific, Suva Board of Development Studies, Victoria University of Wellington Economic Infrastructure Adviser, Pacific Islands Forum Secretariat, Suva Lincoln International, Lincoln University Acting Director of Institute of Policy Studies, Victoria University of Wellington

Dr Peter Hempenstall

Acting Director of the MacMillan Brown Centre for Pacific Studies, Canterbury University

Dr John Henderson Professor Paul Henriques

Political Science Department, Canterbury University Head of Department of Applied Science, Auckland University of Technology (Council for International Development)

Rex Horoi

Executive Director Foundation of the Peoples of the South Pacific International (FSPI), Suva

Russell Howarth

Deputy Director, South Pacific Applied Geoscience Commission (SOPAC), Suva

Ian Johnstone

Radio NZ International (and member of the External Reference Group for NZAID)

Rae Julian Martha Keays

Council for International Development Head of Regional Delegation for the Pacific International Federation of Red Cross & Red Crescent Societies, Suva

Graham Kelly MP Pefi Kingi Peter Kitchin Professor Hugh Laracy Annette Lees Steve Long Elizabeth Mackie

Advisory Council on External Aid and Development (ACEAD) and PACDAC Pacific Island Community, Auckland Advisory Council on External Aid and Development (ACEAD) History Department, Auckland University Advisory Council on External Aid and Development (ACEAD) Deputy Police Commissioner, New Zealand Police Christian World Service (and member of the External Reference Group for NZAID)

Dr Kiki Maoate Fuimaono Les McCarthy Professor John McKinnon

Department of Paediatric Surgery, Christchurch Hospital Ministry of Pacific Island Affairs Board of Development Studies, Victoria University of Wellington

towards a strategy for the Pacific Islands region • NZAID 25

Ann McLean

Empower Consultants (and member of the External Reference Group for NZAID)

Stuart McMillan JB Munro John Munro Dr Warwick Murray Ros Noonan Tony O’Dowd Professor John Overton

Canterbury University Council for International Development Director, Pacific Bilateral Section, AusAID, Canberra Board of Development Studies, Victoria University of Wellington New Zealand Human Rights Commissioner Program Manager Governance, AusAID, Canberra College of Humanities and Social Sciences, Massey University (and member of the External Reference Group for NZAID)

Stewart Pittaway Dr Nancy Pollock Mike Powles Dr Jan Pryor Mere Pulea

Senior Consultant, Lincoln International, Lincoln University Board of Development Studies, Victoria University of Wellington New Zealand Human Rights Commission Research Coordinator, Fiji School of Medicine, Suva Pro-Vice Chancellor, Director Institute of Justice and Applied Legal Studies, University of the South Pacific, Suva

Dr Jimmie Rodgers Klaus Rohland

Deputy Director-General, Secretariat of the Pacific Community, Suva Country Director, East Timor PNG & Pacific Islands Region, World Bank Office, Sydney

Linda Rooney

Opus International (and member of the External Reference Group for NZAID)

Dr Kabini Sanga

Victoria University of Wellington (and member of the External Reference Group for NZAID)

Regina Scheyvens Alfred Schuster Harriet Sewell Alf Simpson Paul Sinclair Suliana Siwatibau Siwa Siwatibau Brian Slater Farib Sos

College of Humanities and Social Sciences, Massey University Auckland University of Technology (Pacific Island Community) Programme Manager, Oxfam New Zealand Director, South Pacific Applied Geoscience Commission (SOPAC), Suva Head, International Defence Relations Branch, NZDF Foundation of the Peoples of the South Pacific International (FSPI), Suva Vice Chancellor, University of the South Pacific, Suva Consulting NZ Volunteer Service Abroad (and member of the External Reference Group for NZAID)

Donovan Storey Dr Melenaite Taumoefolau

College of Humanities and Social Sciences, Massey University Acting Director, Centre for Pacific Studies, Auckland University

26 NZAID • towards a strategy for the Pacific Islands region

John Taylor Initiative, UNDP Suva , Dr Teresia Teaiwa Group for NZAID) Peter Thorpe Steve Tollestrup Sarah Turner Ronald Van Dijk Van C J (Stan) Vandersyp

Coordinator Pacific SMILE Programme, CSO/NGO Capacity Building

Victoria University of Wellington (and member of the External Reference

Council for International Development Tear Fund New Zealand Otago University (and member of the External Reference Group for NZAID) Programme Officer, UNICEF Suva , Director, Development and Economic Policy Division, Pacific Islands Forum Secretariat

Paul Wallis Dominic Walton-France Esther Williams

Senior Adviser, International Policy, Ministry of Fisheries Treasury Acting Director, Planning and Development, University of the South Pacific, Suva

Geoff Woolford Rebecca Wrigley Yuxue Xue Rodney Yee Amber Young

YMCA Programme Director, Oxfam New Zealand Deputy Resident Representative, UNDP Suva , Manager, Marketing and Development, Fiji School of Medicine, Suva Auckland University of Technology (Pacific Island Community)

towards a strategy for the Pacific Islands region • NZAID 27

The photographs used on the cover of this document have been featured in Ministry of Foreign Affairs and Trade development assistance publications. We gratefully acknowledge the photographers and/or copyright holders: New Zealand Defence Force, Augustin Pheu, Peter Lund, Oxfam New Zealand.

28 NZAID • towards a strategy for the Pacific Islands region