Australia admits failings in Pacific, as China looms

RISING SUN

Senior member
Dec 3, 2017
18,099
7,792
Australia admits failings in Pacific, as China looms
Australia has admitted it had not focused enough attention on its Pacific backyard but vowed to make "long overdue" amends, amid growing Chinese influence in the region.

"I think we would have to accept some criticism," Australia's minister for international development and the Pacific, Anne Ruston, told AFP on Friday (Mar 8).

"We have perhaps not put as much attention and effort into our own region as we should of."

In recent months, Ruston has been at the sharp end of trying to fix that - jetting to-and-fro between Australia and far-flung Pacific Islands, as part of Prime Minister Scott Morrison's "step-up" in the region.

The policy includes more aid, more security assistance, more diplomats working in the region and, crucially, more face-to-face contacts.

It is, in large part, a response to Beijing's growing economic, political and military activity in the region.

"I think we've had our focus gazed much further afield for a very long time," said Ruston. "It has certainly, more recently, been forced to be refocused back onto our own region."

"That's a good thing. And it was certainly long overdue."

While Australia was more focused on Fallujah than Fiji, China has been doling out loans and investment in the region and scooping up natural resources and telecoms contracts.

Still, Ruston rejected suggestions that Australia, by moving to develop security facilities in Papua New Guinea and Fiji is causing the type of militarisation many complain China is embarking on.

"This is our region, this is our area, this is where we live," she said.

"However you see the security and sovereignty of our region the Pacific is extremely important to Australia."

THE BIGGEST ISSUE

Australian re-engagement has been hampered by deep disagreements with Pacific nations over the conservative government's sceptical stance on climate change - an existential threat to many island nations.

Fiji Prime Minister Voreqe Bainimarama has been among those accusing Australia of putting its coal industry "above the welfare of Pacific peoples".

"It is a very, very real issue for them," Ruston acknowledged.

In places like Kiribati - where the average height of the land is a few feet above sea level - it is "singularly the biggest issue that they have at the moment".

To square the circle, Canberra diplomats have tried to separate climate policy writ-large from day-to-day work to temper its impact.

The mitigation and infrastructure needs are enormous, "we talking tens of billions of dollars to be able to get the Pacific up to the kind of development standard, that I think Pacific aspires to have for itself", said the minister.

Australia has committed to some ambitious projects, like helping Papua New Guinea bring electricity to 70 per cent of the population by 2030. Today the percentage stands in the low double digits.

But even that is another issue that has been complicated by Australian domestic politics - which sees Papua New Guinea almost exclusively as the location of a deeply controversial offshore detention facility.

"I think it is the challenge of the job," said Ruston of balancing domestic and international issues, admitting that Australians have not been totally won over by the idea of long-term development assistance.

"I think one of the things that we've probably failed to do is to sell the message to the Australian public about why it is so important for Australia to assist, particularly our close neighbours in the Pacific."

Many Australians see Pacific aid as money being taken from drought-hit farmers at home, instead of seeing the "huge value and benefit it is to Australia to have strong economies around it, the benefit to Australia to have secure and sovereign nations around it" she said.
Australia admits failings in Pacific, as China looms
 
India's 1.3b people could be Australia's next great trading hope
The business relationship between India and Australia has had many false starts.

Key points:
  • India has just risen above New Zealand to be Australia's fifth biggest trading partner
  • Over the past decade, the number of Indian-born Australian residents has jumped to more than 700,000
  • The Department of Foreign Affairs and Trade has an India economic strategy out to 2035 to boost trade
But a growing population of Indian-Australians, and a greater understanding of the potential of the world's largest democracy, is prompting Australian business to try harder.

A conference of young entrepreneurs from the two nations has been looking for ways to supercharge the relationship in the next decade, attempting to make India a trading partner on the scale of China and Japan.

Speaking at the Australia India Youth Dialogue, former secretary of the Department of Foreign Affairs and Trade Peter Varghese urged local entrepreneurs to embrace the chaos and diversity of India.

"There is no other single market in the world that has more growth opportunities for Australia than India," he said.

"So if you work backwards from that headline, the question is, how do we best position ourselves strategically?"

Mr Varghese was commissioned by the Federal Government to report on our business relationship and develop a strategy to improve it.

To him, the 700,000 Indians now calling Australia home — a number that has spiked since 2006 — are a good place to start.

"In the long-term they'll prove to be a very important connecting thread between Australia and India and that will feed back into the business trade and investment relationship," he said.

"Because the diaspora will play a role in helping navigate Indian business culture, in terms of expanding contacts, in terms of finding partners — all of the things that are grist to the mill of a successful business strategy in India."​
Australia's current top trading partners are China ($195 billion), Japan ($78 billion), the US ($70 billion), South Korea ($52 billion) and, then, India ($29 billion).

The report recommends an ambitious target: to make India one of our top three export destinations by 2035.

It is not an impossible goal. India's population is more than 1.3 billion people, but just a year before the 2017-18 figures above, Australia did more trade with our near neighbour New Zealand, and it has a smaller population than Melbourne.

Moving 'beyond cricket, curry and the Commonwealth'
New Delhi lawyer Talish Ray had never visited Australia until 2015, but has visited more than annually since. She said Indians now have a more nuanced understanding of Australia — beyond cricket, curry and the Commonwealth.

"While it's not right there on the front page, it's all tremendously exciting," she said.

"More and more there are people who already have interests [in both countries]. As opposed to a year back, a decade back, it was difficult to find somebody who was as familiar with Australia as they were with India."

Ms Ray has partnered with Women's Legal Service Tasmania to replicate its 'respectful relationships' website for an Indian audience.

"Economically it is building up and the momentum we've seen in the past few years has been very rapid," she observed.

"That's because both nations like to take time to think of each other and look at each other, rather than just rushing in to short-term gains."

Australia targets agribusiness, resources and tourism
Mr Varghese's report, 'An India Economic Strategy to 2035', looks at what we have to offer to India, and who might be interested in buying it.

It suggests parlaying our successful export of education into three key fields — agribusiness, resources and tourism — and six "promising sectors" — energy, health, financial services, infrastructure, sport, and science and innovation.

With the first three, the plan is to be inside the top five providers within the next two decades.

Similarly, instead of tackling India's diverse and vast landscape, it wants to focus efforts in just ten of India's 36 states and territories: Maharashtra, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, West Bengal, Punjab, the National Capital Region of Delhi and Uttar Pradesh.

The report says these states have greater stability in the "access to land, regulation of labour, provision of infrastructure, the application and interpretation of regulation" needed for foreign businesses to succeed.

Management consultant Jasmin Craufurd-Hill, attending the dialogue, said better relationships can be built off the back of our success in attracting secondary and university students from India.

"When we look at what's the third largest trade, for Australia, for export, it's education [and] the second largest population of that student population is Indian students," she noted.

"What can we learn from that? What can we learn from building up similarities and understanding that then has the potential over the years to fully develop as trade and other relationships?"

Australia hasn't 'deepened that connection' with India
Amit Singh has worked as a policy analyst for prime ministers Kevin Rudd and Julia Gillard, and Opposition Leader Bill Shorten.

He is now based in San Francisco, working for Uber as their head of global policy for work, and sees the current relationship between India and Australia as broad but not effective.

"We just haven't deepened that. I think if you think about the things we have in common: we've got the Commonwealth, we've got curry, we've got cricket, but we haven't really deepened that connection," he said.

"India is now the second largest population, it's the largest democracy. There are ways in which we can actually do much more to deepen that understanding."​
The 2016 Census revealed there were 455,0000 people born in India living in Australia, and the size of the Indian diaspora has since exploded to top 700,000 people according to Mr Varghese's report. That is more than ten times the number of Japanese-born Australians, but the nation's lack of cultural affinity with Japan has not held back trade with that country.

Mr Singh said Australia now risks being left behind unless it gets on the front foot, as other countries make investments.

"We're moving towards an economy that is more digital, an economy that is more based around information and the nature of how we use technology," he said.

"That's something in which Australians have traditionally tended to lag, but do well when we've been given the opportunity. It's something that Indians do particularly well.

"I think the connections we're able to build in this future economy between those two societies, these two countries, is a giant opportunity for us."
India has 1.3 billion people. So why have we done more trade with New Zealand?
 
  • Informative
Reactions: Gautam
The textbook’s authors are Xu Jixing 徐纪兴 and Ha Wei 哈伟, the heads of Chinese at two of Melbourne’s most prestigious private schools, Scotch College and Camberwell Grammar.
 
  • Haha
Reactions: Kiduva21