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1. Geopolitics in the Pacific Islands: Playing for advantage

Author:
Meg Keen and Alan Tidwell
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Pacific Islands Countries are leveraging geopolitical rivalries to maximise their development options. But unmanaged competition for influence among key development partners can compromise good governance and privilege geopolitical posturing over local priorities. Australia, the United States, and other traditional donors can capitalise on areas of strength, such as social inclusion and regional and multilateral initiatives. Joint efforts along these lines and the pooling of resources would scale up impact and set higher accountability standards. Despite the risk that higher standards will open gaps for non-traditional donors with less burdensome criteria, there is much long-term value in traditional development partners collaborating in a “race to the top” in meeting the region’s needs.
Topic:
Foreign Policy, Development, Regional Cooperation, Foreign Aid, Geopolitics, and Donors
Political Geography:
China, Australia, Australia/Pacific, United States of America, and Pacific Islands

2. Outrage is not a policy: Coming to terms with Myanmar’s fragmented state

Author:
Morten B. Pedersen
Publication Date:
05-2024
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
This paper analyses the evolution of Myanmar’s civil war with a view to identifying optimal international policy responses. The sharp escalation of armed resistance since late 2023 holds out the tantalising prospect that the once seemingly invincible military regime could be defeated. Yet it remains an open question whether anti-junta forces will be able to carry the momentum from their recent victories in the forest-covered, mountainous borderlands across the open plains of central Myanmar to take the capital or other major cities. Even if resistance forces ultimately emerge victorious, the goal of building a genuine federal democracy will likely take years of highly complex and politically fraught negotiations. While the outcome of the civil war remains uncertain, new resistance groups have started building state-like structures and delivering public services in “liberated areas”, much like the older ethnic armed organisations have been doing since the 1960s. The longer Myanmar remains mired in warfare, the more crucial these plural governance systems will become to the welfare of millions of people, with lasting implications for the nature of state-building in the country. To more effectively support the Myanmar people, Western governments and likeminded actors will need to come to terms with the reality of an increasingly — and quite possibly, permanently — fragmented state. The paper thus calls for greater investments in “parallel state-building”, focused on strengthening the collective capabilities of a wide range of emerging political authorities and community-based organisations to carry out traditional state functions and serve vulnerable populations.
Topic:
Foreign Policy, Civil War, Development, and Governance
Political Geography:
Southeast Asia and Myanmar

3. The case for an Indo-Pacific Economic Resilience Bank

Author:
Michelle Lyons, Roland Rajah, and Grace Stanhope
Publication Date:
10-2024
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The world faces a triple crisis of economic insecurity, climate change, and stalled development, but there are deep tensions between the policy agendas being deployed to address them. We propose a new Indo-Pacific multilateral bank that can turn these tensions into complementarities. The bank can accelerate clean energy funding by mobilising new public and private capital investments, primarily for projects in the Indo-Pacific’s developing economies. And it can create multilateral economic security by diversifying green supply chains to dilute the current excessive dependence on China. The bank would create benefits for both developing and advanced economies, fostering new industries and diversified, resilient markets while helping build the multilateral cooperation and capabilities needed to construct a more secure and sustainable world.
Topic:
Climate Change, Development, Banking, Supply Chains, Economic Security, Energy, and Green Transition
Political Geography:
Indo-Pacific

4. Southeast Asia Aid Map - Key Findings Report

Author:
Alexandre Dayant, Grace Stanhope, and Roland Rajah
Publication Date:
06-2023
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Official development finance plays an important role in financing Southeast Asia’s development, equivalent to around 10% of total government development spending in the region. China is Southeast Asia’s single largest development partner and leads infrastructure financing. Yet, implementation problems have seen the scale of China’s financing decline in recent years. Traditional development partners collectively still dominate development financing in Southeast Asia at 80% of the total. The multilateral development banks lead the way, followed by Japan, Europe, and South Korea. The United States and Australia are mid-sized players. India and the Middle East have become notable sources of non-traditional development finance, with the Islamic Development Bank playing an important role. Climate development finance is increasing, but Southeast Asia will need more support if it is to transition towards resilient, low-carbon development. Intraregional development cooperation is growing, but only makes up a small part of development finance in Southeast Asia.
Topic:
Climate Change, Development, Humanitarian Aid, Finance, and Economy
Political Geography:
Asia and Southeast Asia

5. Ocean of Debt? Belt and Road and Debt Diplomacy in the Pacific

Author:
Roland Rajah, Alexandre Dayant, and Jonathan Pryke
Publication Date:
10-2019
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
China has not been engaged in debt trap diplomacy — at least not yet. China has not been the primary driver behind rising debt risks in the Pacific, although a continuation of business as usual would risk future debt problems in several countries. There is scope for a new Australian infrastructure financing facility to provide loans to the Pacific without causing debt problems, particularly as it has adopted key sustainable lending rules. Pacific nations have an opportunity to obtain more favourable financing from official development partners but care must be taken to avoid overly geopolitical aid.
Topic:
Debt, Development, Infrastructure, Geopolitics, Soft Power, and Belt and Road Initiative (BRI)
Political Geography:
China, Australia, and Asia-Pacific

6. Internal Security in Papua New Guinea: Trends and Prospects

Author:
Sinclair Dinnen
Publication Date:
12-2017
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Concerns about personal security have been prominent in Papua New Guinea for many years. Personal security figures regularly in travel advisories issued by foreign governments. International news coverage of Papua New Guinea is often about violence or crime, reinforcing the country's reputation as a dangerous and lawless place. A visitor to Port Moresby, the sprawling national capital, sees evidence of this in the elaborate security arrangements that shape the urban landscape. Drivers of insecurity in this young nation are complex and multidimensional, stemming from the legacies of a recent colonial past, along with the ongoing challenges of state consolidation and the uneven effects of economic globalisation. The main security threats are non-traditional, including urban crime, gender-based violence, corruption, arms trafficking, border protection, resource poaching, climate change, natural disasters, and transnational crime. Although some view China's growing presence as a potential threat, its activities in Papua New Guinea have been largely confined to diplomacy, development assistance and investment. Prime Minister Peter O'Neill has acknowledged the absence of any "distinct conventional external threat", while PNG's National Security Policy recognises the developmental and political character of the country's security challenges.
Topic:
Security, Crime, Development, Natural Resources, and Rule of Law
Political Geography:
AustralAsia and Papua New Guinea

7. Infrastructure Challenges for Papua New Guinea

Author:
Craig Lawrence
Publication Date:
12-2017
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Climate, topography, population, culture, economics, and finance all conspire to raise significant barriers to providing economic and social infrastructure critical to Papua New Guinea's future development. Compared to developed economies, the physical stock of infrastructure assets in Papua New Guinea is insufficient to deliver the economic and social services needed to drive faster economic growth and improve human development. It faces significant choices as a result that may also be influenced by the public infrastructure requirements of foreign direct investment in export oriented extractive resource sectors. A lack of effective national infrastructure planning and funding constrain PNG's economy and its ability to improve the lives of its citizens through provision of these infrastructure services. This paper briefly reviews several key infrastructure sectors - telecommunications, transport, energy, and urban water - to provide snapshots of their status, identify challenges, and where possible make relevant international comparisons. It also looks at ways to improve the delivery of relevant economic infrastructure: (i) effective planning and prioritisation; (ii) funding strategies for infrastructure investment; (iii) funding of ongoing infrastructure operations; and (iv) consideration of infrastructure life cycle issues. In addition, in the future effective economic regulation of PNG commercialised infrastructure services will help ensure that consumers benefit from these services. The Independent Consumer and Competition Commission will therefore have an increasingly important role to play.
Topic:
Development, Energy Policy, Infrastructure, and Economic Growth
Political Geography:
AustralAsia and Papua New Guinea

8. Future Scenarios for Papua New Guinea

Author:
Jonathan Pryke
Publication Date:
12-2017
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Until recently, visitors making their way to the immigration checkpoint at Jacksons International Airport in Port Moresby were greeted with a sign exclaiming, "Welcome to Papua New Guinea: The land of the unexpected". In a nation that is so self-aware of its unpredictability, forecasting future scenarios is like staring into a crystal ball. Quality data is scarce and incomplete, trends are difficult to establish and validate, and prognostications on PNG's future are often dogmatic and politicised. Over the past 42 years Papua New Guinea has defied many of the most negative projections for its future, and navigated a huge number of 'crossroad' situations. Even before 1975, some were arguing that independence would be an unmitigated disaster, and the risk of Papua New Guinea becoming a failed state is a question that has permeated its short history. It is a question that is now being asked more frequently. On one view, Papua New Guinea has managed to "muddle through", largely on the strength of its peoples' resilience in the face of adversity. However, this resilience may be dwindling, and rather than "muddling through", Papua New Guinea may instead be on a "muddling down" trajectory. Its politicians, on the other hand, claim that the country's prospects have never been better. In a nation with so many development challenges and such porous data, it is difficult to identify future scenarios, let alone determine which is most likely. How does one define a failed state in Papua New Guinea, where most of the nation is not dependent on a properly functioning state? Without accurate data, how can one track trends in human development over decades? Should the focus be placed on the country as a whole, or on urban areas, on rural areas, or areas critical for economic development? How can new technological advancements be appropriately accounted for? Drawing on the papers in this series, five variables from each of the sectors addressed in the papers have been identified as critical influences on PNG's development over the next ten years and beyond. From these variables, three potential scenarios emerge, with the most likely scenario that Papua New Guinea will continue to 'muddle through' as it has in the past, failing to meet many expectations of development but defying the country's many detractors, and avoiding state failure.
Topic:
Security, Development, Politics, and State
Political Geography:
AustralAsia and Papua New Guinea

9. A Bumpy Road: Societal Trends in Papua New Guinea

Author:
Jonathan Pryke and Paul Barker
Publication Date:
12-2017
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
On many indicators, Papua New Guinea's rapid population growth is outpacing development progress. Service delivery across the country is in decline. Growing urbanisation is increasing the burden on service providers as people who move from rural areas generally lose access to their customary land and become less self-sufficient. More than 40 per cent of the population is under the age of 14. The resulting youth bulge is outstripping very limited formal sector employment opportunities. The needs of the private sector are evolving, and skills development is critical. New immigrant groups are moving in to Papua New Guinea and taking over small and medium businesses that have typically been run by locals, adding further societal and employment pressures. This paper will chart these trends in Papua New Guinea, and the impact they will have on political stability, policymaking and development. It will look at trends in service delivery, employment, and skills development. It will look at the role of new immigrants in Papua New Guinea and future workforce capacity, and assess the government's capacity to deal with these challenges.
Topic:
Demographics, Development, Immigration, Urbanization, and Youth
Political Geography:
AustralAsia and Papua New Guinea

10. Melanesia New Voices: Investing in the Next Generation

Author:
Jenny Hayward-Jones
Publication Date:
06-2015
Content Type:
Working Paper
Institution:
Lowy Institute for International Policy
Abstract:
Melanesian countries need to better cater for their growing young populations, including through establishing youth centres and targeted programs. Prosperity and peace is achieved through embracing the dignity of Melanesian identity, which includes respecting the New Caledonian decolonisation process and acknowledging West Papuan aspirations for human rights and self-determination. Melanesian countries are making good use of technological innovation, but infrastructure gaps and limited access to finance constrain the development of innovative small businesses.
Topic:
Development, Economics, Human Rights, and Infrastructure
Political Geography:
Australia/Pacific