What are Pacific Island Nations (PINs)?

• These are 14 island countries in Pacific Ocean – Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu

• These countries range in land area from the largest Papua New Guinea (461,700 sq km) to the smallest Nauru (21 sq km)
• The size of their population ranges from Papua New Guinea (7.7 million) to Niue (1,500)
• Development indicators also vary widely with per capita income ranging from USD 27,340 (Cook Islands) to USD 1020 (Papua New Guinea)

Why study about PINs?

• On August 21, 2015 India hosted the second edition of Forum for India-Pacific Islands Cooperation (FIPIC) summit in Jaipur
• All the 14 nations of the group participated in the summit
• So obviously, this becomes an important topic for exam and you cannot ignore this as an unimportant grouping

Importance of the Pacific area:

• Though these countries are relatively small in land area and distant from India, many have large exclusive economic zones (EEZs), and offer promising possibilities for fruitful cooperation
• The Pacific Ocean is the earth’s largest ocean covering 46% of water surface and 33% of the earth’s total surface, making it larger than the entire earth’s land area
• It is bounded by 41 sovereign states plus Taiwan, and 22 non-independent territories
• It is rich in marine resources and accounts for 71% of the world’s ocean fishery catch
• The Pacific has for long been an area of geostrategic interest for countries such as the US, Japan, China, Russia, Australia, and Indonesia – large economies which lie on its boundary
• Two developed Pacific Island countries – Australia and New Zealand – have tended to dominate regional cooperation forums such as the Pacific Islands Forum (PIF)

Issues with PINs:

• They are dispersed and low populated countries
• They have logistics problems to develop their economies
• Less manufacturing activity
• With climate change and global warming, these countries fear of being drowned or disappeared
• Their natural resources are being depleted day-by-day – sugar, timber etc.
• India used to import phosphates from the Nauru Island, which is now being depleted
• Problems in sugar market due to global vagaries

External influences:

#1. Australia: These countries are highly influenced by Australia due to its close proximity – for example, Australia helping the development of natural gas of Papua New Guinea etc.

#2. China

• China has significantly expanded its foothold in the region, from increasing business and trade ties to setting up diplomatic missions in each of these countries
• More than 3,000 Chinese companies are already operating in these Island groups in various businesses.
• China is now the largest bilateral donor in Fiji and the second largest in the Cook Islands, Papua New Guinea, Samoa, and Tonga
• Last year, China provided around $2 billion credit to these nations collectively
  6 out of 14 Pacific Islands recognize Taiwan as a legitimate govt of China
• Taiwan is already holding annual meet with these countries to engage them

#3. These island groups are forming partnerships with EU and other economic groupings

Where can India engage?

#1. UNSC: These 14 nations are supporting India’s attempts to become permanent member of UNSC

#2. Agriculture:

• These are agriculture oriented economies
• Major products- palm oil, sugar, and timber
• We can do value addition to their products- copra, sugar, timber
• They are diversifying in oil production and we are short on edible oil so this is a major area to work on
• India can make use of the mahogany (timber) that is extensively grown in these islands, for getting raw materials for paper industry

#3. Minerals:

• These islands have plenty of oil, gas, and minerals in their sea beds
• For example, the Kiribati islands, they are spread over an area that is bigger than the Indian subcontinent and have rich sources of minerals
• India can form joint ventures and explore these minerals

#4. Disaster Management: These islands are frequently affected by natural disasters like typhoons, earthquakes etc. India can help them in disaster management

#5. Services sector:

• The other biggest potential area which India can leverage from these islands is the development of services sector – IT, tourism, healthcare and fisheries
• We can explore tourism options to these isolated beautiful spots
• Tourism also has an advantage from the fact that there are large number of ethnic Indians in these islands
• Many of these countries send their nationals to India for education though programmes sponsored by the Indian Council of Cultural Relations

#6. Energy:

• India is developing renewable energy and has set a target of 175 GW by 2022. It can help the Pacific Islands in this area and provide energy security
• We can transplant our experience of A&N islands in establishing isolated energy grids in these countries
• There has been lot of tree cutting for industrialisation and they are using more diesel for power. We can help them by providing assistance in renewable energy

#7. Democracy:

• In the past, these pacific islands have faced a threat to democracy
• For example- there was a coup in Fiji which overthrew the democratically elected government, there was a civil war in Papua New Guinea
• In this context, India can serve as a stable and solid partner, as it is one of the largest democracies in the world, so that these islands can have an assured trade and investment relations.

#8. Ethnicity:

• Unlike other proximate countries like Australia, India has intimate relations, going beyond exploration of natural resources, with these nations
• Culturally they are linked to India. For example, Fiji has huge number of Indian ethnic population
• We should leverage this advantage to engage & establish more intimate relations

#9. Climate Change: India should fight for their cause in the coming UN Climate Change meetings & should see to it that these islands get enough finances for disaster mitigation

#10. The Pacific Island groups have enthusiastically welcomed India’s offer in telemedicine, tele-education, space cooperation, fostering democracy and community activities

#11. These countries are in need of MSME and we have good experience in developing them

FIPIC:

• The Forum for India–Pacific Islands Cooperation (FIPIC) was launched during PM’s visit to Fiji in November 2014

• FIPIC includes 14 of the island countries – Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu

Why FIPIC?

• Though these countries are relatively small in land area and distant from India, many have large exclusive economic zones (EEZs), and offer promising possibilities for fruitful cooperation.
• India’s focus has largely been on the Indian Ocean where it has sought to play a major role and protect its strategic and commercial interests
• The FIPIC initiative marks a serious effort to expand India’s engagement in the Pacific region
• At this moment, total annual trade of about $300 million between the Indian and Pacific Island countries, where exports are around $200 million and imports are around $100 million
• This is a part of India’s extended Act East Policy

Summits:

#1. Suva, Fiji:

• One of the key outcome of the first summit in Suva, Fiji was that top leadership of both India and Pacific Islands decided to meet at a regular interval and an annual summit was instituted in this regard
• Other areas- visa on arrival for their nationals, funds for small business, line of credit for a co-generation power plant for Fiji, and a special adaptation fund for technical assistance and capacity building for countering global warming

#2. Jaipur, India:

• India announced to convene international conference on blue economy in New Delhi in 2016 and invited all the experts form the island nations
• Set up Space Application Center, in partnership with ISRO, in any of the 14 countries and friendly port calls by the Indian Navy
• Pacific leaders have expressed their concerns over climate change and its effect on their respective counties. India also assured them to voice their concerns and appropriate measures at the 2015 United Nations Climate Change Conference (COP 21) in Paris
• In return all the 14 visiting head of state/government reiterated their support to India’s bid for a permanent memberships at the reformed United Nations Security Council
• India offered to help the Pacific Islands with their hydrography and coastal surveillance, by engaging the Indian Navy. It would help them have a better understanding of their maritime zone and strengthen security of their EEZs
• India also announced FIPIC Trade Office at Federation of Indian Chambers of Commerce & Industry (FICCI) to promote Trade & Investment opportunities between India & Pacific Island Countries

Way ahead:

• China is already on there and giving large credit, so does it mean India can not build good relations with these nations? No
• We need to build on our advantages- health tourism, building democratic institutions which they need a lot
• India’s strong relations with Fiji, which has considerable influence in the region, is a strong point which could help counter the growing Chinese influence
• Relations with Fiji had improved in India’s favour in the past decade and not only those of Indian origin but also Fijians were friendly towards Indians, which worked to Indian advantage
• Most of the economies in the region are based on agriculture, fisheries and small-scale industries and India’s capacity in these sectors is even better than Europe and China

Published with inputs from Swapnil