Trade flows between the Pacific and China have increased substantially in the past decade and contributed to steady economic growth, according to the November edition of ANZ’s Pacific Quarterly released yesterday.
The report also found the early economic recovery from the global economic crisis in Australia, as the Pacific’s largest trading partner, will play a key role in the region’s recovery from the global economic downturn, in addition to the region’s growing trade with China. Chief Economist Asia, Paul Gruenwald said: “We’ve seen China’s trade with the Pacific increase dramatically from $180 million in 2001 to more than $2.1 billion in 2008, which is an average annual growth rate of 32.3 per cent.
We expect the resource-rich Pacific countries of Papua New Guinea (PNG), Solomon Islands and Timor-Leste will benefit substantially from ongoing trade between the Pacific and China.” The report also outlined that reconstruction efforts are likely to lead to GDP growth in 2010 in countries affecred by the recent tsunami, such as Samoa. Key findings from the Pacific Quarterly include: • Fiji - The impacts of the devaluation are being felt, with exports declining and only moderate growth expected in 2010; however a tourist recovery is underway. • PNG – Strong outlook, with GDP expected to grow by 6.5 per cent in 2010. PNG now accounts for two thirds of imports from China, compared to 38 per cent a decade ago. • Samoa – The impact of the tsunami is balanced by an 8 per cent increase in tourist earnings (year-on-year) in July and August this year, and easing price pressures. • Solomon Islands - Share of Pacific exports to China jumped from 4.6 per cent in 2001 to almost 30 per cent in 2008 and overall production index grew by 22 per cent (quarter-on-quarter) in June, after declines in the previous two quarters. • Timor-Leste - Positive outlook supported by rising oil prices, higher government spending and political stability and an expected GDP growth of 8 per cent in 2010. • Tonga - Export growth declined 45 per cent (year-on-year) in August and remittances declined by 16 per cent (year-on-year) in June, but that figure was an increase of TOP2.2 million compared to May. • Vanuatu - Share of Chinese imports to the Pacific tripled to nearly 7 per cent in 2008 and is in a position of strength, with GDP is expected to rise by more than 4 per cent.
CEO Pacific, Michael Rowland, said: “As the biggest employer in the Pacific, it’s pleasing to see the most challenging period after the global financial crisis has largely passed for the Pacific, with the help of rising tourist numbers and Australia’s relatively strong performance. The Pacific Quarterly is published by ANZ Economics and Research and explores the economic performance of Fiji, PNG, Samoa, Solomon Islands, Tonga and Vanuatu. The report can be downloaded from anz.com, where people can also register to receive the report via email.
Today’s topic: Bob Rankin’s letter and invasion in Samoa
Bob Rankin’s letter in today’s paper is timely.
His concerns are legitimate and ones the government should seriously consider. No doubt many people would identify with the letter writer’s concerns but choose to remain silent.
One who’s not afraid to ask hard questions though, Mr Rankin is worried about what he terms the “Chinese invasion” of Samoa. He does not mince words.
“With so many of our Cabinet Ministers enjoying free trips to China with its delicious food and myriad exotic attractions, one doubts that the Chinese invasion is going to end in the near future,” he wrote. “Perhaps we should accept the inevitable and introduce Chinese as a second language in all our schools.”
Such a serious suggestion. Indeed, the suggestion is not as wild as we think. It’s a valid point when you consider what’s happening today. “Recently a large new store opened up on the road heading towards the airport,” Mr Rankin wrote. “The strange thing about this store is that the manager and his three or four female assistants jabber away to each other in a language nobody understands.”
The scenario is not confined to this one store. There are many such stores popping up in and on the outskirts of Apia. And they don’t just sell groceries. Some of these sell furniture among other items. And then there are restaurants and takeaways.
Just down the road from our Vaitele office, the main road is dotted with foreign-owned shops and restaurants. Some of the people manning them barely speak a word of English. Not so long ago in this country, this was not an issue. But the influx of foreigners who set up businesses on our shores has grown dramatically we can no longer ignore them, especially when they’re in our faces every day.
Incidentally, just this week, it was revealed more than 20 sacks of dried sea cucumbers were confiscated by fisheries authorities before they were exported to Hong Kong. The report said an Asian business man is being questioned by the authorities and charges will be laid. How long has this been allowed to continue? We are reminded that some time ago, a concerned resident warned through the pages of your newspaper about this operation. How many others like this businessman are out there doing the same?
The question, as Mr Rankin asks is, who issues these business licences? How can foreigners be allowed to be employed in positions (such as shopkeepers and the like) which can be easily filled by locals? And what is the government doing about this influx? We’ve seen from other Pacific countries such as Solomon Islands the perils of allowing this trend to grow. Already, some of our people are starting to ask questions. Inevitably, resentment will start to grow and we fear what could happen when such unhappiness reaches boiling point.
It gets worse for Samoa of course given our relatively small population. Even with if only a couple of thousand foreigners have been allowed, they could easily make up a substantial percentage of our population. We are mindful that migration is part and parcel of globalisation. Samoa is not immune. Still, it’s important we are alert.
After all, didn’t we say there is no such thing as a free lunch? That when we accept aid from China, and everyone else without question, there are bound to be consequences? Look no further than what is happening today. It’s sad but don’t say you were not warned. It’s time to wake up Samoa!
Dear editor - According to Mike Moore in Monday’s Observer, Samoa’s future prosperity depends on globalisation with its foreign intervention, immigration, free trade, and investment and money lenders from overseas.
He goes on to say that more wealth has been created in the past 60 years than all of history beforehand and implies that this is because of globalisation. Mike Moore is a very clever writer but even though he says if you don’t believe me you are an enemy of reason, when it comes to Samoa, I don’t believe much of what he says.
Increased foreign intervention, immigration, free trade and foreign investment are the last things Samoa needs if it wants to retain its unique identity and keep control of its destiny
The wealth that has been created in the past 60 years, and which Mike Moore is so proud of, came about through unbridled greed and raping of the world’s resources to such an extent that the very existence of life on planet earth is endangered.
I hardly think that this is path that Samoa would like to follow. I was therefore amazed to hear in the news yesterday that the Samoan government is on the verge of joining the World Trade Organisation, once run by Mike Moore and seen by him as the saviour of the world.
No wonder, as mentioned in the newscast, that the larger nations of the world are looking forward to Samoa joining the WTO. Should we join, Samoa will be swamped. We will lose millions in Customs duty on overseas imports and will be powerless to protect any local industries from overseas competition, GST will be raised still further with the poor suffering the most, foreign investors will have a field day taking over Samoa’s assets, and it won’t be long before foreigners completely control the place.
As John Duffy wisely asked in Wednesday’s paper “Does anybody in Government know where we are going?” If anybody there does know, it’s about time they spoke out, otherwise we can soon kiss goodbye to the Samoa that most people want and love as we are dragged kicking and screaming into the modern world by the likes of Mike Moore and his disciples like PM Tuilaepa and his HRPP.
Bob Rankin Vaitele
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