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Energy & Economics
Middle East Conflict. Conceptual photo

How might a wider Middle East conflict affect the global economy?

by Ahmet Kaya

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском The world economy is underperforming as a result of tight monetary policies, weaker global trade, a slowing Chinese economy and uncertainty around the US election. An escalation of conflict in the Middle East could increase uncertainties, harming inflation reduction efforts and hurting growth. It has been over a year since the Hamas-led attack on Israel. Israel’s response in Gaza has resulted in widespread destruction and significant loss of life. The conflict has since expanded beyond Gaza, involving the Houthis in Yemen, Hezbollah in Lebanon and Iranian strikes targeting Israel. In addition to the awful humanitarian cost of the conflicts, the war and the possibility of its further expansion pose significant repercussions for the global economy. This article discusses three potential ways in which the current conflict and a wider conflict in the Middle East could affect the global economy. Increased geopolitical uncertainties First and foremost, an escalation of the Middle East conflict could lead to greater geopolitical uncertainties. Figure 1 shows the evolution of the geopolitical risk (GPR) and geopolitical acts (GPRA) indices (Caldara and Iacoviello, 2022) – these are text-based measures of heightened uncertainties due to adverse geopolitical events such as wars, terrorism and international tensions. (See this article for more discussion about these measures.) Following the Hamas-led attack on 7 October 2023, both the overall GPR index and its ‘war and terror acts’ component spiked strongly, to a level higher than that seen during the ISIS attack in Paris in November 2015. Both indices eased significantly in the months following October 2023 despite the continuation of the conflict. But they jumped again following Israel’s attack on southern Lebanon in September 2024. As of mid-October 2024, the GPR and GPRA remain, respectively, 21% and 35% higher than their historical averages.   What might be the consequences of such elevated levels of risk? Research tells us that higher geopolitical risk raises oil prices (Mignon and Saadaoui, 2024). It also reduces global investment and increases inflation (Caldara et al, 2022). Greater geopolitical risk has a significantly negative impact on business and consumer confidence in several advanced economies (de Wet, 2023). This is because consumers typically cut non-essential spending and businesses postpone investment decisions during turbulent times. This reduces firm-level investment, particularly for businesses with higher initial investment costs and greater market power (Wang et al, 2023). Higher geopolitical risks also reduce global trade and financial flows, causing greater volatility in capital flows in emerging markets (Kaya and Erden, 2023). Oil production cuts and higher energy prices The second way in which the Middle East conflict could affect the global economy is its impact on energy prices, both directly through production cuts and indirectly through greater uncertainties. In response to Israel’s actions against its neighbours, the Organization of the Petroleum Exporting Countries (OPEC) could reduce oil production to penalise countries supporting Israel. A similar action in the 1970s led to a significant jump in oil prices, which contributed to years of stagflation, with higher global inflation and recessions in major economies. Before Israel's attack on Lebanon at the end of September, oil prices had been declining due to falling demand, particularly from China. On the supply side, oil production had increased in Canada and the United States, countering the production cuts by OPEC, and Saudi Arabia was expected to increase oil production from December. But the situation quickly reversed following Israel’s attack on Lebanon. Oil prices jumped by nearly $10 per barrel within a week, before easing by around $5 per barrel. While the immediate oil price impact of Israel’s attack has mostly faded, the potential for higher oil (and other energy) prices still poses a risk to global inflation and economic activity (Liadze et al, 2022). To provide further context for the potential scale of this impact, we can show what would happen if oil and gas prices were to remain $10 higher for two years than the baseline levels projected in the Summer Global Economic Outlook from the National Institute of Economic and Social Research (NIESR), using NIESR’s Global Macroeconometric Model (NiGEM). The results demonstrate that the $10 rise in oil and gas prices increases inflation by around 0.7 percentage points in major economies in the first year (see Figure 2). The impact is higher in China, where the economy relies relatively more on oil imports for its strong manufacturing industries. The inflationary pressures persist for two years despite central banks’ efforts to curb inflation by increasing interest rates.   The effect of higher oil and gas prices on real GDP is shown in Figure 3. In the scenario described above, GDP would fall by 0.1-0.2% in major economies immediately. Partly due to higher interest rates, real GDP would continue to weaken for three years following the shock. After this, economic activity would start to return to base levels as oil and gas prices revert to their levels in the baseline forecast.   Increased shipping costs and supply chain disruptions A wider conflict in the Middle East could also affect the economy through higher shipping costs and supply chain disruptions. Houthi attacks on commercial ships in the Red Sea in late 2023 showed that such disruptions can have a huge impact on global trade through shipping, which comprises 80% of world trade volume. Following the rocket attacks by the Houthi rebels, some commercial shipping re-routed from the Red Sea to the Cape of Good Hope, leading to significant delays in travel times and increased freight costs. As a result, the Shanghai Containerized Freight Index – a measure of sea freight rates – rose by around 260% in the second quarter of 2024 with additional disruptions to supply chains. Our analysis shows that an increase of 10 percentage points in shipping cost inflation can lead to import prices rising by up to around 1% and consumer inflation increasing by around 0.5% in OECD countries. As Figure 4 shows, the impact of shipping costs on inflation shows its full effects over six quarters. This means that inflationary concerns could be with us for the next year and a half as a result of higher shipping costs that may emerge from any possible escalation of the Middle East conflict.   Wider economic implications and policy responses While rising geopolitical risk and increased oil and shipping costs can each individually exert upward pressure on inflation and may slow down economic activity in the global economy, the combined impacts are likely to be greater. Countries with stronger trade and financial ties to the Middle East and those that rely heavily on oil imports as an input for domestic production would be most affected. On the monetary policy front, central banks may have to take a more hawkish stance in response to rising inflationary pressures from the Middle East conflict. This could lead to higher interest rates, which would further dampen economic activity, particularly in an environment where there are already recessionary concerns in some major economies. Beyond its immediate economic implications, an escalation of the Middle East conflict could trigger large-scale displacement of people, which would increase economic and social pressures on neighbouring countries. Many countries may also have to increase their military spending in response to growing regional tensions. Given that public debt levels are already elevated in many countries due to successive shocks to the global economy over the past decade, any additional defence spending could come at the expense of public infrastructure investments that would otherwise boost productivity growth. Overall, the global economy is already underperforming as a result of the lagged effects of tight monetary policies, weaker global trade, a slowing Chinese economy and uncertainties surrounding the upcoming US election and possible changes to US trade policy. A potential escalation of conflict in the Middle East could exacerbate the situation by increasing uncertainties, harming efforts to bring down inflation and reducing global GDP growth. Over the medium and long term, it could further damage the global economy, with the possibility of refugee crises as well as increased defence spending, making the effects more complex and longer lasting. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Diplomacy
The tenth Pacific Islands Leaders Meeting

Who speaks for the Pacific?

by Kerryn Baker , Theresa Meki

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском As the Pacific Islands Forum came to an end, the underlying questions remain: who has a voice and legitimacy to influence the region, and who doesn’t  The Pacific Islands – a grouping largely made up of small island developing states – is in the middle of an increasingly contested strategic space, making regional politics an important, and closely observed, site. At the end of August, Pacific Islands Forum heads of government met in Tonga for the organisation’s annual leaders’ meeting. Along with the Pacific heads of government, other dignitaries were also present, including United Nations Secretary General António Guterres. This is the apex event on the regional calendar, and it came with a crowded agenda, including issues like climate change, transnational crime and health security. But one of the pressing issues facing the Forum is an existential one, as membership debates and geopolitical tussles highlight: the question of who and what the Forum represents. In recent years, divisions within the region have become apparent, including the perceived marginalisation of North Pacific countries in what was initially called the South Pacific Forum. These tensions culminated in the decision by five Micronesian states to leave the Forum in 2021, although this was later reversed. Yet, the final Forum communiqué demonstrates that Pacific leaders are on the same page on many issues, covering agreed outcomes relating to health, education, fisheries and other key issues. Climate change was highlighted as ‘a matter of priority to the Pacific region’ and as an intersecting and broad-ranging issue affecting Pacific states. A new Pacific Policing Initiative – a proposal to create a multinational Pacific police force and invest in subregional policing hubs – was endorsed, although in a nod to some debate surrounding its implementation, leaders emphasised the need for further consultation. Emerging geopolitical frictions  A controversy over the final version of the communiqué, however, highlights enduring divisions in the Forum. In the communiqué initially published online on Friday afternoon, paragraph 66 read that ‘Leaders reaffirmed the 1992 Leaders decision on relations with Taiwan/Republic of China.’ This refers to Taiwan’s established status as a ‘development partner’ of the Forum. After public statements from China’s special envoy for the Pacific Qian Bo criticising this language, the communiqué was taken offline and revised, with the paragraph referencing Taiwan removed. Forum officials blamed the confusion on an administrative error. Three of the 18 full members of the Forum recognise Taiwan: Marshall Islands, Palau and Tuvalu. While the Pacific was once a key focus of Taiwan’s diplomatic strategy, its influence has waned in the region in recent years with moves from Solomon Islands, Kiribati and Nauru to shift recognition to Beijing, prompted by a diplomatic offensive by the People’s Republic of China. In an increasingly contested geopolitical context, Taiwan’s status in regards to the Forum is likely to remain a difficult topic for member countries. The concept of sovereignty has always been relatively flexible in the Forum: founding members include the Cook Islands and Niue, which are countries in free association with New Zealand and are not UN member states. In light of rising strategic competition, issues of membership of the Forum also raise existential questions for its future. In 2016, the French territories of New Caledonia and French Polynesia became full Forum members. But their political status does pose interesting questions for the Forum, especially considering the recent riots and ongoing tensions in New Caledonia. In the Forum communiqué, leaders reaffirmed a decision to send a mission to New Caledonia, a move that has been fraught; prior to the meeting, the French Ambassador to the Pacific had asserted that ‘New Caledonia is French territory and it is the [French] State which decides on who enters’. The communiqué also endorsed the applications for associate member status for Guam and American Samoa, two US territories with clear ambitions to accede to full membership status in the future as New Caledonia and French Polynesia have. The concept of sovereignty has always been relatively flexible in the Forum: founding members include the Cook Islands and Niue, which are countries in free association with New Zealand and are not United Nations member states and also do not issue their own passports. Yet, the 2016 decision represented a substantive shift in the principles of Forum membership, one likely to bolster the claims to full membership of other territories. On the one hand, it can be argued that the Forum is becoming more representative in encompassing more Pacific polities and acknowledging the remarkable diversity in political status that exists in the region. On the other, an expanding membership raises questions of the influence of metropolitan powers like France and the US in the Forum. This is an already fraught conversation given the perceived outsized influence of founding member states Australia and New Zealand. Pacific leaders have in the past been outspokenly critical about the role of larger countries in the Forum, given the power differentials and differences in policy on key issues like climate change. France and the US, along with Australia and New Zealand, all have colonial histories – and, for many, an enduring colonial presence – in the region. Given this context, their present and prospective roles in the Forum have been critiqued as preventing the institution from being a truly Pacific space. Pacific leaders like former Fijian Prime Minister Frank Bainimarama have in the past been outspokenly critical about the role of larger countries in the Forum, given the power differentials and differences in policy on key issues like climate change. Behind all of these decisions and controversies are fundamental questions: who has a voice in the Forum and who does not; who has the legitimacy to exert influence in the region and who does not. Resolving these issues in a way that strengthens the Forum’s own legitimacy as the primary regional institution is a pressing and existential matter. In the midst of this, what was not on the Forum agenda is also worth considering. Even in the presence of two elected women heads of government – President Hilda Heine of Marshall Islands and Prime Minister Fiamē Naomi Mata’afa of Samoa – and even following last year’s endorsement of a Revitalised Pacific Leaders Gender Equality Declaration, gender equality is absent from the 2024 communiqué.

Defense & Security
Solomon Islands

Russia and China co-ordinate on disinformation in Solomon Islands elections

by Albert Zhang , Adam Ziogas

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Moscow and Beijing likely worked together to sow disinformation globally that was propagated locally by political parties in the lead-up to Solomon Islands’ national and provincial elections on 17 April 2024. Both countries’ propaganda systems accused the United States, without evidence, of using its foreign aid and networks across the country to interfere in voting and of preparing to foment riots and orchestrate regime change in response to an unsatisfactory election result. This campaign adds to a growing body of evidence showing that China’s and Russia’s ‘no limits’ partnership extends to coordinating their disinformation campaigns in the Indo-Pacific. The narratives haven’t gained widespread attention or media coverage in Solomon Islands. Australia, the United States and other Pacific partners should nonetheless be concerned, as Russia and China can be expected to learn from this campaign and will likely use the lessons to further improve their influence operations in the region. Individually, China and Russia are adept and expert at pushing disinformation to disrupt other nations but, by coordinating their efforts, they have a force-multiplier effect. The campaign consisted of an alleged ‘leaked’ letter, articles published on authoritarian state-controlled media outlets and a fringe journal publication, which were then shared and amplified on social media platforms. A fortnight before election day, an unknown author by the name of Richard Anderson published an explosive article in CovertAction Magazine alleging that the US was seeking regime change in Solomon Islands. The US-based magazine was co-founded in 1978 by the late Philip Agee, a former CIA officer who after his retirement became a vocal critic of the agency and of US policy and had reported links with Soviet and Cuban intelligence. The magazine was set up ‘on the initiative of the KGB’, the Soviet Union’s main intelligence agency, according to a book by KGB defector Vasili Mitrokhin and British intelligence historian Christopher Andrew. Anderson had no previous history of writing for CovertAction Magazine. A week after that article was published, Russian state-controlled media agency Sputnik further fuelled the allegations, writing that the US was ‘plotting [an] electoral coup’. This article cited an anonymous source who had ‘intimate familiarity’ with the activities of USAID, the main United States foreign aid and international development agency. This mirrored how Anderson is described in his CovertAction Magazine bio, though Sputnik’s article did not explicitly mention him or his article. Sputnik’s claims were amplified four days later by the Chinese state-controlled tabloid newspaper the Global Times, which did directly reference Anderson’s article and has the potential to legitimise these narratives to an audience the Chinese Communist Party (CCP) is actively targeting. During the same period, a poorly fabricated letter from an unconfirmed (and potentially non-existent) IFES project consultant was circulated among Solomon Islanders by an unknown source claiming that the US was seeking a ‘democratic transition by violent means in necessary circumstances.’ The text in this letter mirrored language used by Sputnik’s alleged anonymous source. Figure 1: Paragraph from Sputnik article (top) and a screenshot of the alleged IFES letter (bottom).     To be clear, there is no evidence that the US, or any other country, is supporting violent riots or interfering in Solomon Islands. Ann Marie Yastishock, US Ambassador to Papua New Guinea, Solomon Islands, and Vanuatu, has strongly refuted these allegations. This is not the first time the CCP-controlled media has spread disinformation in Solomon Islands or accused the US of seeking to instigate riots in the country. Following the 2021 Honiara riots, the CCP falsely accused Australia, the US and Taiwan of organising the riots, fomenting unrest and discrediting the relationship between Solomon Islands and China. In contrast, Russian media outlets also covered the 2021 Honiara riots but didn’t promote any explicit accusations of US or foreign interference. This time, China and Russia have been in lockstep. In the lead-up to the April elections, Russian state media was more direct and damning in its reporting with the release of Sputnik’s original article and in the subsequent coordination and dissemination of false narratives alongside Chinese state media. While Sputnik published only one follow-up article to the initial investigation, China’s Global Times was more prolific and varied, with six articles alleging US meddling in Solomon Islands. Of these six articles, four explicitly referenced Sputnik’s claims and two referenced US influence operations in more general terms. The indications of Russia-China propaganda coordination in this campaign were further supported by China’s Ministry of Foreign Affairs (MFA) post on 19 April 2024 titled ‘The Hypocrisy and Facts of the United States Foreign Aid’. The post on their website claims the US is giving aid to Solomon Islands, among other countries, only because it sees it as a political threat. This was the first article ever published by the MFA to smear USAID. Moscow, however, has consistently campaigned against USAID since it ejected the US agency from Russia in 2012 for ‘meddling in politics’. Russian media has pushed a consistent narrative that the organisation is a US imperialist tool of regime change, accusing it of fomenting civil unrest and coup attempts as far afield as Belarus, Cuba, Georgia and Mexico. However, this latest attack against USAID appears to be the first where Russia’s narratives are working to the benefit of CCP interests. It’s been clear since at least 2018 that Russian and Chinese state media are converging on media narratives that serve their governments’ strategic and political interests. According to leaked documents from Russian state broadcaster VGTRK, Russian and Chinese propaganda entities also signed an agreement to ‘further cooperate in the field of information exchange, promoting objective, comprehensive and accurate coverage of the most important world events’. While previous ASPI research has demonstrated Russian and Chinese state-coordinated narratives on the Russia-Ukraine conflict, the repeated re-airing of Sputnik’s conspiratorial claims of interference in Solomon Islands’ elections in Global Times articles indicates this propaganda cooperation is now a global initiative. There was also some evidence of amplification by inauthentic accounts on social media of these narratives, but they were limited and it is unclear whether they were state linked. For example, one X account with the handle @jv79628 shared the original Sputnik investigation. The account posts links almost exclusively from Sputnik, Global Times, Australian website Pearls and Irritations and videos with artificial intelligence-generated voices from the pro-CCP YouTube channel Chinese Revival, which may be linked to the Shadow Play network previously uncovered by ASPI. Other accounts sharing the original Sputnik report, such as @de22580171, pose as pro-Russian US citizens. They share articles mostly from Sputnik or Russia Today. At the time of publication of this report, Russia’s and China’s state media articles, and the accusations contained in them, have had minimal reach into online Pacific communities. In the public Solomon Islands Facebook groups ASPI viewed, online discourse remains more focussed on the emergence of new coalitions and the election of a new Prime Minister than on discussion of foreign influence or interference. According to Meta’s social monitoring tool, CrowdTangle, none of the articles from the Global Times have been shared in open and public Solomon Islands Facebook groups. However, Sputnik’s first article may have been more successful in reinforcing anti-Western sentiments in outgoing Prime Minister Manasseh Sogavare’s O.U.R. Party, who are strong contenders to be part of the coalition that forms the next government. That article was posted on the O.U.R. Party Solomon Islands Facebook page, which is run by the party, on 10 April. It was reshared to several public Facebook groups in Solomon Islands, including news aggregation sites and local island forum pages. This is significant because it is the first time a news article has been posted on the O.U.R. Party Solomon Islands Facebook page, which typically shares positive images of the party’s activities and political campaigns. As of 1 May 2024, the post (below) has had over 180 interactions, which is higher than the average number of interactions a typical post has on this page. Figure 2: Screenshot of Sputnik article posted in O.U.R Party Solomon Islands Facebook page.     Sogavare, a founding member of the O.U.R. Party, has made similar remarks about ‘foreign forces’ previously. According to an article published in the Solomon Star, when US Ambassador Yastishock visited Solomon Islands in late March to present her letter of credentials to Governor-General John Oti, Sogavare claimed foreign forces were ‘intervening in the national general election’ and ‘may fund some political parties and plan to stage another riot during the election to disrupt the electoral process and undermine social stability’. Despite the low online interaction so far, the barrage of US regime change allegations lays the foundation for future narratives that may resurface if Solomon Islands experiences future unrest. Beijing and Moscow can be expected to learn from these disinformation efforts, leaving the US, Australia and their Pacific partners no room for complacency about the threat the regimes pose, nor the need for effective strategic communication. The Russian and Chinese governments are seeking to destabilise the Pacific’s information environment by using disinformation campaigns and influence operations to undermine traditional partnerships. In this digital age, leaders of governments and civil society across the region need to consistently confront and counter baseless lies pushed by authoritarian state media, such as accusations that the governments of Australia and the US are instigating riots. If they fail to do so, partnerships with, and trust in, democratic countries are at risk of deteriorating, which can reduce the development benefits provided to Pacific Island Countries by Western partners. Australia, the US, and other close Pacific partners, such as Japan, New Zealand and the European Union, must take a stronger stance against false and misleading information that is starting to circulate in the region as a result of authoritarian state-backed disinformation campaigns. These nations must also better support and encourage local media and governments to take further steps to identify and combat false information online. This includes providing more training packages and opportunities for dialogue on media-government communication procedures to tackle disinformation and misinformation. Countering the effects of disinformation requires ongoing efforts to call out false statements, educate the public, and build country-wide resilience in the information environment. Greater transparency and public awareness campaigns from the region’s partners can also help to ‘prebunk’—or anticipate and delegitimise—disinformation and alleviate concerns about malign activity.

Defense & Security
Australian flag and South Korean flag

Press Conference, Melbourne. Australia-Republic of Korea 2+2 Foreign And Defence Ministers’ Meeting

by Richard Marles , Cho Tae-Yul , Penny Wong

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Joint transcript with: The Hon Richard Marles MP, Deputy Prime Minister and Minister for Defence Subjects: Australia-Republic of Korea 2+2 Foreign And Defence Ministers’ Meeting; AUKUS Pillar Two; Hanwha bid for Austal; foreign interference; Korean peninsula security. 01 May 2024 Deputy Prime Minister, Richard Marles: Well, welcome everyone. Today, the Minister for Foreign Affairs and I have had the pleasure of being able to welcome Minister Cho and Minister Shin, the Foreign Minister and the Defense Minister of South Korea to a 2+2 with Australia. In December of 2022, the Republic of Korea released its Indo-Pacific Strategy. And it described an assessment of the region and a response to it, which represented Korea looking to take its place in the region and the world. That is remarkably similar to the assessment that we made a few months later in the Defence Strategic Review. And it speaks to the fact that both Korea and Australia have a close strategic alignment and a shared vision about our place in the region and the world. And what was immediately obvious from that moment was the opportunity to take the relationship between our two countries to the next level. And today's 2+2 is very much an expression of that. We are seeing increased engagement between our two countries across the board. We are certainly seeing that in the realm of defence. Last year, Korea had its largest participation in Exercise Talisman Sabre, which is our major bilateral defence exercise. This year, we will see more Korean engagement in Exercise Pitch Black, Exercise Kakadu, Exercise Southern Jackaroo and we are very appreciative of Korea’s participation in those exercises, as we are in the way in which Korea and Australia are working together to uphold the rules-based order within our region and in fact, within the world. Both countries, as we've discussed today, are playing our part in supporting Ukraine in its resistance of the appalling aggression that is being forced upon it by Russia. We are working very closely together within our region to uphold the global rules-based order here as well, and that's seen in a greater engagement that both of us are doing with the countries of the Pacific and the countries of southeast Asia. We are particularly aware of the efforts that have been put in place for Korea to build its relationship with Japan and we see this as a very, very positive step forward in the strategic landscape of the region, and represents a huge opportunity for Australia to engage with both Korea and Japan. Finally, in respect of defence industry, we are seeing a blossoming of the relationship between our two countries in respect of defence industry. Yesterday, Minister Shin and I visited Hanwha's facility in Geelong, which is building for the Australian Army both the Huntsman and the Redback, which will be very central to our capabilities for the Army. But we're also very hopeful that these platforms represent an opportunity for greater industrial activity there, where we can see export to the world. Across the board, this is a relationship which is going to a new place, a place which is much deeper and much closer and we are very, very grateful for the presence of Minister Cho and Minister Shin in Australia today and we've really enjoyed the meeting that we've had this morning. Republic of Korea Minister of Foreign Affairs, Cho Tae-Yul: [spoken in Korean] Good afternoon, ladies and gentleman. I am Cho Tae-Yul, Minister of Foreign Affairs of the Republic of Korea. I am grateful for the successful organisation of the sixth Republic of Korea-Australia 2+2 Foreign and Defence Minister’s Meeting and I extend my deepest thanks to Mr Richard Marles and Ms Penny Wong for the warm welcome toward our delegations. It is with great pleasure that I make my first visit as Minister of Foreign Affairs to Australia to, our esteemed regional partner. Together with Mr Shin Won-sik, Minister of National Defense. During the first day of our visit on the 29th of April we paid tribute to the enduring legacy of 17,000 Australian veterans at the Australian National Museum Korean War Memorial in Canberra, commemorating their profound sacrifices for peace. The sacrifices of Australian veterans have laid a solid foundation for the prosperity of our relationship and on behalf of the Korean Government and people, I’d like to express heartfelt gratidude to the Australian veterans for their unwavering dedication. Today’s meeting holds significant importance as it is the first gathering of its kind following the installation of our current governments and Korea’s announcement of our Indo-Pacific Strategy. This occasion is further distinguished by its location in Melbourne, a symbol of our robust cooperation in defence industry. The Ministers of the two countries engaged in extensive discussions aimed at deepening strategic cooperation and communication, reinforcing our shared vision at both regional and global levels. Both parties recognise each other as pivotal partners in the realisation of our respective Indo-Pacific strategies, and as likeminded nations agreed to enhance our cooperation at bilateral, unilateral and multilateral levels. We acknowledge the remarkable progress in our bilateral cooperation with national defence and defence industries, highlighted by the signing of a contract for the delivery of Redback IFVs and the participation of Korean military personnel in Exercise Talisman Sabre and we said that we will be strengthening our cooperation into the future. In the realms of cyber and maritime security, we agreed to collaborate in blocking North Korea’s access to funding for illicit nuclear and missile developments, and to thwart illegal activities such as arms trading between Russia and North Korea. Our Australian counterparts have expressed their steadfast support for enhancing the human rights of North Koreans and for our policies aimed at reunification. Furthermore, we resolved to continue our close collaboration with ASEAN and the Pacific regions which hold great significance for both our countries. We will also expand our cooperative efforts for comprehensive security in cyber and maritime security, as well as economic security and climate change. I am confident today’s meeting will mark a significant milestone in strengthening our partnership built on the shared foundations of liberal democracy and mutual trust, and will further our commitment to a rules-based regional and global order. Foreign Minister, Senator Penny Wong: Thank you very much. Can I first express my deep appreciation to Minister Cho and Defense Minister Shin for their travel to Australia for this Foreign and Defence Ministers’ 2+2 meeting. We appreciate you coming to Australia and we have deeply enjoyed the dialogue this morning. This is the first 2+2 for us Ministers. We recognise that this dialogue is a cornerstone of our comprehensive strategic partnership with Korea. Can I start by appreciating the Minister's acknowledgement of the role that Australia and Australian veterans have played in this bilateral relationship. We thank you for honouring those Australians who have served. It is a testament to the historic strength of our relationship. But more importantly, today, what we focus on is the increasing strategic and economic convergence that exists between our two nations. And the focus of our meeting was how to translate that convergence that the Deputy Prime Minister and Foreign Minister Cho have articulated, how we translate that convergence into tangible and practical actions in southeast Asia, in the Pacific and more broadly in terms of our cooperation in in the Indo-Pacific. We are very interested not only in increasing our cooperation and our engagement in defence industries, but also in increasing our collaboration diplomatically and economically. I make note, as Foreign Minister Cho did, of our collective condemnation of North Korea's continue provocative, destabilising activities and we will continue to work together to ensure that this risk and threat to our collective security continues to be met in solidarity between our countries and other countries of the world. As you will see from the joint statement when it is released, discussed a range of other matters, including the Middle East, where we shared our perspectives. I thank, again, my counterpart, the Foreign Minister for his engagement. We were an early call for him and we appreciate it. And we appreciate the efforts that the Ministers have made in coming to Australia for this very important 2+2. Republic of Korea Minister of National Defense, Shin Won-Sik: [spoken in Korean] Good afternoon, I am Shin Won-sik, Minister of National Defense of the Republic of Korea. First of all, I would like to express my deepest appreciation to Mr Richard Marles, Deputy Prime Minister and Ms Penny Wong, Minister of Foreign Affairs for the warm reception of our delegations. We are externally grateful for the noble sacrifices made by the 17,000 Australians during the Korean War who fought for freedom and peace in our country. On behalf of our people, thank you. During the ROK-Australia Foreign and Defence Ministers’ Meeting we engaged in extensive discussions on a range of issues concerning the Korean peninsula, Indo-Pacific region and boarder global foreign affairs and defence matters and reaffirmed our commitment to further develop our bilateral future oriented relationships. Firstly, we agreed to continue enhancing our mutual and beneficial partnership in defence industry. It is with great pleasure that I know a Korean company was selected in Australia’s next generation Infantry Fighting Vehicle project, valued at $250 million USD. This follows the successful collaboration on the self-propelled artillery project in 2021. Yesterday, the Deputy Prime Minister, Mr Marles, and I visited the construction site of a Korean company in Geelong where we witnessed firsthand our flourishing bilateral cooperation in the defence industry. This collaboration is set to not only modernise Australia’s military capabilities, but also stimulate the local economy and strengthen the strategic solidarity between our nations. Secondly, we agreed to enhance our joint military training to improve interoperability and foster conditions for regional peace and stability. Last year, a significant contingent of Korean armed forces participated in Exercise Talisman Sabre, yielding fruitful outcomes. This year, the Australian military took part in Korea’s Freedom Shield exercises, as a member of United Nations command, enhancing its capabilities for joint operations. We are committed to continuing these joint exercises in various forms and further elevating the level of cooperation between our armed forces. Thirdly, recognising the importance of building trust in our national defence and defence industry partnership, we agreed to expand human exchanges among defence related organisations. Republic of Korea and Australia, as key strategic partners in the Indo-Pacific region, share profound strategic views and interests. We will build on the achievements of today’s meeting and collaborate earnestly for the peace and stability of the Korean peninsula, Indo-Pacific region and the international community as a whole. Speaker: Questions? Journalist: South Korean Minister for National Defence, Shin Won-sik, there's been speculation about countries like South Korea joining the AUKUS Defence technology. Did you discuss this today? And does South Korea believe that it could engage in useful cooperation under Pillar Two of AUKUS? And Minister Marles, Hanwha has made a bid for Austal. Was this big discussion discussed in your meetings over recent days? And would such a bid likely be permitted under the new foreign investment framework being unveiled by the government today? Defence Minister Shin: [spoken in Korean] The Korean government, to enhance the regional peace, we support the AUKUS Pillar Two activities, and we do welcome that AUKUS members are considering Korea as the AUKUS Pillar Two partner. Korea's defence science and technology capabilities will contribute to the peace and stability of the development of AUKUS Pillar Two and the regional peace. And during today's meeting, we also discussed the possibility of partnering with AUKUS Pillar Two. Thank you. Deputy Prime Minister Marles: So, perhaps I might address both issues in relation to AUKUS Pillar Two. And we did discuss this both yesterday and today. AUKUS, as you know, is a technology-sharing agreement. It's not a security alliance. And Korea is obviously a country with deeply impressive technology, where we do have shared values, where we have strategic alignment, where we engage closely together. We already engage closely together in relation to technology. So, as AUKUS Pillar Two develops, I think there will be opportunities in the future, and we're seeing that play out in relation to Japan as well and we talked about that. In respect of Austal. Look, ultimately, this is a matter for Austal. They are a private company. From the government's perspective, we don't have any concern about Hanwha moving in this direction. We have identified Austal as a strategic shipbuilder for Australia in WA. Wherever Austal goes, whatever it does, there will obviously need to be security arrangements put in place in respect of sensitive technologies and intellectual property that would have to be managed no matter what the future of Austal. And were there anything that were to transpire in relation to Hanwa that would need to be managed in that context as well. But fundamentally, this is a matter for Austal as a private company. Journalist: And to Foreign Minister Wong. Australian officials have confirmed that India’s government was behind the nest of spies the Director General of Security described in 2021. Should Australians in the diaspora community be concerned about Indian government surveillance? And what message does the Australian government have to the Indian government about the acceptability of these activities and to Foreign Affairs Minister Cho Tae-Yul, the ABC has today reported South Korea is one of the friendly countries with a good relationship with Australia, which nonetheless engages in espionage here. Has there ever been a point of tension between the two countries, or are there clear shared understandings about the operation of intelligence agents in both countries? Foreign Minister Wong: Well, you would be unsurprised to hear me respond that we don't comment on intelligence matters. But at a level of principle about the democracy, I think you would have heard me and other Ministers on many occasions assert the importance of our democratic principles, assert the importance of ensuring that we maintain the resilience of our democracy, including in the face of any suggestion of foreign interference, and we have laws to deal with that. And to continue to say that we deeply value the multicultural fabric of the Australian community. It is a strength and we welcome people's continued engagement in our democracy. Foreign Minister Cho: [spoken in Korean] In regards to your question, I haven't heard anything and I am not sure against which context you are asking this question, so I have nothing to answer to that question. Journalist: Thank you. Minister Cho, you've both spoken today about the tensions across the Korean peninsula. These aren't always discussed when we're talking about issues like defence arrangements in the Pacific and the AUKUS deal as such. Why do you believe that close-knit ties with Australia in defence and these types of engagement is something that does have an impact on that relationship? Foreign Minister Cho: [spoken in Korean] Korea's security focuses on the North Korea's threat, but it's not the only focus. But as you can see, there's huge geopolitical changes taking place and the security in the Indo-Pacific region is closely linked to the security of other regions of the globe. So, we live in such a geopolitical era and Russia and North Korea are cooperating in the Ukraine war. And it shows that the Indo-Pacific region’s security is closely linked to the security of Europe as well. So, Korea's security is closely linked with Australia's security, and that's the world we live in. So, against the context of Indo-Pacific region and from the regional point of view, Australia and Korea share a lot of values and it's very good, not only in terms of economy, but also in security for our two countries to cooperate. So, in that context, we discussed the security partnerships between our two countries. Foreign Minister Wong: I might just add to that, if I may, Richard, that I think history shows us that what happens in the Korean peninsula matters to the security and stability of our region. We have no doubt that North Korea's destabilising, provocative, escalatory actions are contrary, are a threat to international peace and security, as well as to the peace and security of the ROK. We see it as very important that the international community exert and assert as much pressure as possible on the DPRK, including in relation to the regime of sanctions. And as Foreign Minister Cho has said, the actions of Russia in undermining that - those sanctions, in undermining the isolation of the DPRK, in participating in the provision of materiel, in contravention of UN resolutions and sanctions, is destabilising and undermines peace and security for the whole of the globe. And so I think it is important for us to continue not only to express solidarity with the Republic of Korea in the face of this aggression but also to call out Russia's behaviour as irresponsible and destabilising. Journalist: And Minister Wong, you touched on the reports of espionage before - Foreign Minister Wong: No, I was asked about them and I said we don't comment on intelligence matters. Journalist: Sure, I understand that that's the general principle on these matters, but given Australia's close-knit ties with India in the situation of the Quad, as a general principle, could I ask you, do you believe Australia would feel empowered enough to be forthright in raising concerns of these nations with the Indian government if they did it right? Foreign Minister Wong: Well, again, say we don't comment on intelligence matters, but as a matter of general principles, Australia remains consistent to our interests and to our values in all of our engagements. Speaker: Great. Thank you very much.

Energy & Economics
President of Ireland Michael D. Higgins giving speech at World Food Form

Keynote address the Closing Ceremony of the World Food Forum

by Michael D. Higgins

Director-General, Your Excellencies, Distinguished Guests, Dear Friends, Young and Old, This week, as we have gathered here at the World Food Forum in the headquarters of the Food and Agriculture Organisation of the United Nations in Rome to discuss the necessary transformation of our agri-food systems, we must not only be conscious of targets missed or imperfectly achieved, but of the need for courage, and to generate new capacity to move to new models of better connection between economy, social protection, social justice and ecology. We are confronted with a climate and biodiversity emergency that cannot be handled by the tools that produced it or by the architecture of how we made decisions before. We are called upon to, once and for all, tackle with alternatives and sustained effort and innovation, the vicious circle of global poverty and inequality, global hunger, debt and climate change, our interacting crises. That is the context in which sustainable food systems must be achieved. I ask you all gathered today to respond in the most meaningful way within your capacity, within your generation, in a way that includes all generations, to the challenge set out by United Nations Secretary-General António Guterres in his recent statements: This is how the Secretary-General put it: “The Sustainable Development Goals aren’t just a list of goals. They carry the hopes, dreams, rights and expectations of people everywhere. In our world of plenty, hunger is a shocking stain on humanity and an epic human rights violation. It is an indictment of every one of us that millions of people are starving in this day and age.” It can be put right but we must change and there is work involved in upskilling in such a way that we can not only identify and critique assumptions of failing models but be able to put the alternative models in place. We have had so many broken promises. Only 15 percent of some 140 specific targets to achieve the 17 UN Sustainable Development Goals are on track to be achieved. Many targets are going in the wrong direction at the present rate, and not a single one is expected to be achieved in the next seven years. However, we have some reasons to be hopeful. When I look around this room today, I see so many engaged and committed people, including young people who have the enthusiasm, energy and creativity needed to tackle the serious structural causes of food insecurity and global hunger. But it is important to acknowledge that young people are not alone in seeking authenticity of words delivered into actions that have an ethical outcome. There are those who have spent their lives seeking a fairer world, one in which hunger would be eliminated – as it can be. We must recognise their efforts. We must work together to harness this collective energy and creativity into strong movements that will deliver, finally, a food-secure world for all. This will require, I suggest, moving to a new culture of sharing information, experiences, insights. As the cuts have taken effect, we must take the opportunity of developing a view, post-silo culture, of sharing insights, and I see FAO as uniquely positioned for this. As Glenn Denning, Peter Timmer and other food experts have stated, achieving food security is not an easy task given how food hunger is “deeply entwined with the organisation of economic activities and their regulation through public policies”, given, too, how governments and markets must work together, how the private, public and third sectors must work together. All of our efforts must have the character of inclusivity. Each of us as global citizens has a responsibility to respond. To ignore it would be a dereliction of our duty of care to our shared planet and its life-forms including our fellow humans and future generations. The Secretary-General’s pleas in relation to the consequences of climate change are given a further terrible reality in the increased and spreading threat of hunger, a food insecurity which is directly affected by the impact of climate change. For example, figures published by the Food and Agriculture Organization of the United Nations show that 26.2 percent of Africa’s population experienced severe food insecurity in 2021, with 9.8 percent of the total global population suffering from undernourishment the same year. It is time for us all, as leaders and global citizens, to take stock of how words are leading to actions, to increase the urgency of our response to what is a grave existential threat and to achieve change. It is clear, as the Secretary-General’s powerful statement shows, that we need to begin the work of reform in our international institutional architecture, such as UN reform at the highest level, including the Security Council and the Bretton Woods institutions, if we are to achieve what the Secretary-General has suggested is the challenge to “turn a year of burning heat into a year of burning ambition”. Let us commit then to sharing purposes, projects, resources, seeking a new culture for sustenance solutions. Those of us who have spent much of our lives advocating UN reform believe that its best prospects are in the growing acknowledgement of the importance of the vulnerabilities and frustrated capacity of the largest and growing populations of the world being represented, not only nominally but effectively, through a reform that includes reform of the Bretton-Woods Institutions. As Secretary-General Guterres has said on a number of occasions, it is time to reform what are 1945 institutions, including the Security Council and Bretton Woods, in order to align with the “realities of today’s world”. We have to acknowledge too that the development models of the 1950s and 1960s were part of the assumptions that brought us to the crises through which we are living. New models are needed and the good news is that a new epistemology, our way of looking at the world, of sufficiency and sustainability, is emerging. We are seeing good work already occurring. Good development scholarship is available to us. I reference, for example Pádraig Carmody’s recent book, Development Theory and Practice in a Changing World. Such work builds important bridges from the intellectual work that is so badly needed and is welcome at the centre of our discourse on all aspects of interacting crises, including global hunger, and the need to link economy, ecology and a global ethics. What we must launch now is a globalisation from below. Replacing the globalisation from above that has given us a burning planet and threatened democracy itself, with a globalisation from below of the fullest participation, we can establish and indeed extend democracy, offering accountability and transparency of our work together. Writers such as Pádraig Carmody are not alone in suggesting that achieving the Sustainable Development Goals provides the opportunity for moving past the worst contradictions of failed models and dangerous undeclared assumptions. The demise of hegemonic development theory and practice may be a result of several factors, such as the rise of ultra-nationalism around the world, the increasing importance of securitisation where the most powerful insulate their lives from the actions of the excluded, and the existential threat posed by the climate crisis. Such research adds to the growing body of development literature that argues for a pro-active, structural-focused, tailored approach to development. The Hand-in-Hand Initiative of the FAO, details of which were discussed at this week’s parallel session, is a most welcome initiative, one that aims to raise incomes, improve the nutritional status and well-being of poor and vulnerable populations, and strengthen resilience to climate change. It heralds a belated recognition too of the insufficiency of a reactive emergency response to famine and hunger crises. It suggests a move towards one that tackles the underlying structural causes of hunger. Young people will need patience and to dig sufficiently deep to achieve these necessary changes. They are right in seeking to be partners, so much more than being allowed as attendees. Hand-in-Hand recognises the importance of tailor-made interventions to food security, using the best available evidence in the form of spatial data, validated on the ground through local diagnostics and policy processes, to target the most food insecure, the most hungry, the poorest. It recognises that context-specific employment and labour market policies are part of the sustainability challenge. I believe that evidence from below is crucial to achieving globalisation from below and that it can be achieved by a reintroduction of new re-casted anthropology guided by, among others, the new African scholars now available, whose work is empirical and peer-tested, can be invaluable in giving transparency on projects and investments – a strategy for fact-gathering for empowerment of rural people so like the 1955 fact-gathering with rural people of the FAO – first published in 1955 and used by me in 1969! Young people must be about upskilling to be able to critique all of the assumptions guiding the policies on to their lives. A key objective for us now must be to strengthen institutional capacity on the ground, not only at the strategic level, but also fundamentally, so that the public, farmers, and other stakeholders’ institutions are enabled to participate in territories-based agri-food systems. Such a move is fundamental to a successful food security strategy. Our institutional architecture and the multilateral bodies within it, must be made fit for purpose if we are to tackle effectively and meaningfully our contemporary food insecurity crisis which is worsening according to the 2023 Global Report on Food Crises, with 258 million people across 58 countries suffering acute food insecurity. Perhaps most crucially, we must acknowledge, as United Nations Programmes such as the Hand-in-Hand Initiative does, the critical importance of partnership and collaboration in addressing global hunger. We must do everything we can to ensure cross-sectoral co-ordination, foster coherent development actions, under a common, shared vision. We must end all wasteful competitive silo behaviours, create a culture of openness and co-operation. The FAO is well positioned to lead on this with its new invigorated partnerships with the World Food Programme (WFP) and the International Fund for Agricultural Development (IFAD). Co-operation in the development and implementation of new models will be key to the achieving of any targets that seek to be sustainable and inclusive. For example, I suggest it will achieve best results if funders, such as the African Development Bank, are enabled and funded to work closely with research institutes, both at the national and international level, but particularly take account of field studies conducted over time at local level in the new anthropology so as to ensure that findings from the latest research feed into the design and implementation of any financial supports and investments. By providing a platform, a shared interactive transparent space for national authorities and producers, national and global businesses, multilateral development banks and donors to discuss and advance ways and means to finance the supported national food programmes, initiatives such as Hand-in-Hand are proving to be an effective flagship programme of the Food and Agriculture Organisation of the United Nations. Co-operation must work both ways. For example, the parts of the so-called ‘developed’ world suffering from problems of high levels of obesity and food wastage must learn from the deep knowledge and wisdom existing in the most populated continents, as well as the science, which points to a new ecological revolution, one in which agroecology – the bringing of ecological principles to develop new management approaches in agroecosystems – can play a fundamental role, especially for the poorest of our global citizens. We have seen the destructive impact of colonial models of agronomy promoting an over-reliance on a small number of commodity crops, herders incentivised to become less mobile and store less grain in order to maximise commodity crop production, and increasing imports in conditions of near monopoly of seeds, pesticides and fertilisers. This had the deadly effect of opening up farmers not only to the full force of extended droughts, the ravages of variable climate conditions, and a reliance on non-indigenous inputs, but also to global spaces where they have insufficient influence. We must retreat from these dysfunctional food systems model, with their related dependencies, with urgency and embrace models of sufficiency and effective local markets and see the value of making our way too that includes agro-ecological models that promote food security and development opportunities for the poorest people on our fragile planet. Adaptation and responding to the already changing climate is crucial for all of us, and especially in the most food-insecure nations. We must restore degraded ecosystems, introduce drought-resistant crops, ensure accessible digital services for smallholder farms, while creating new, sustainable green jobs for young people so that we may forge a smart, sustainable, climate-resilient development path for the continent. This week we have to acknowledge the many challenges we face including, inter alia, the energy, climate and biodiversity crises, war and conflict which exacerbate food insecurity, ensuring enabling policy environments, and reaching the long-term goal of sustainable food system transformation. Any agri-food initiative, be it for Africa, the Middle-East, Central or South America, or other food-insecure regions, must place inclusivity at its core. Specifically, more vulnerable, smallholder farmers must be targeted for inclusion as programme beneficiaries, not just large-scale, industrial level farmers and ever-expanding commercial plantations. Research has shown that irresponsible agri-business deals are sometimes falsely legitimated by the promotion of alleged achievement of Sustainable Development Goal Number 2 at any cost, without care as to consequence, ignoring the reality that smallholders need enabling policies to enhance their role in food production; that food insecurity is linked to rights, processes, and unequal access to land resources; and that dispossession disproportionately affects women farmers. On this latter issue of gender, achieving zero hunger requires gender-inclusive land and labour policies. Actions must prioritise the inclusion of women and girls who are more food insecure than men in every region of the world. Women must have a right to land recognised and enshrined. The gender gap in food security has grown exponentially in recent years, and will only deteriorate further in the absence of targeted intervention. Women are obviously the most impacted victims of the food crisis, thus they must be a part of the solution. Women produce up to 80 percent of foodstuffs. Empowering women farmers can thus serve as a transformative tool for food security. However, female farmers have, research tell us, limited access to physical inputs, such as seeds and fertiliser, to markets, to storage facilities and this must be addressed. Climate change, and our response to it, addressing global hunger and global poverty, exposing and breaking dependency is a core theme of my Presidency. It is the most pressing existential crisis that our vulnerable planet and its global citizens face. Throughout the world, young people and the youth sector have been at the vanguard of efforts to tackle climate change. Young people have demonstrated, time and again, how well-informed and acutely aware they are of the threat that climate change poses, as well as its uneven and unequal impacts. May I suggest to all of you that, as young innovators and future leaders in your respective fields, you will be at your best, achieve the greatest fulfilment for yourself and others, when you locate your contribution within a commitment to be concerned and contributing global citizens. Take time to ask how is my energy in the tasks of hand and brain being delivered and for whose benefit. May I suggest, too, that you will be remembered and appreciated all the more if you work to ensure that the results of science, technology are shared and that all human endeavours are allowed to flow across borders for the human benefit of all and with a commitment to ecological responsibility and inclusivity. Offer your efforts where they can have the best effect for all. Locate yourselves in the heart of the populated world, as Nobel Laureate William Campbell did with his research on river blindness. Changing our food systems is, however, let us not forget, an intergenerational challenge that requires an inter-generational approach. We must now empower youth to be in the driver’s seat to build a new, better, transparent model of food security in a variety of different settings. Let us endeavour, together, in our diverse world, to seek to build a co-operative, caring and non-exploitative global civilisation free from hunger, a shared planet, a global family at peace with nature and neighbours, resilient to the climate change that is already occurring, one based on foundations of respect for each nation’s own institutions, traditions, experiences and wisdoms, founded on a recognition of the transcendent solidarity that might bind us together as humans, and reveal a recognition of the responsibility we share for our vulnerable planet and the fundamental dignity of all those who dwell on it. Thank you. Beir beannacht.

Diplomacy
Rock Islands on the Pacific Ocean

China is playing the long game in the Pacific. Here’s why its efforts are beginning to pay off

by Graeme Smith

A week-long trip to Beijing by the Pacific’s most flamboyant statesman Manasseh Sogavare, was always going to cause concern in Canberra. The substance of the visit was as expected. The relationship between China and the Solomon Islands was upgraded to a “comprehensive strategic partnership” (on par with Papua New Guinea, the first Pacific nation to sign up to the Belt and Road Initiative). Nine agreements were also signed covering everything from civil aviation and infrastructure to fisheries and tourism. The Chinese premier, Li Qiang, who inked the deals with Sogavare, made a point of not mentioning the controversial policing cooperation agreement, the draft of which was leaked more than a year ago to New Zealand academic Anna Powles. Despite repeated calls from Australia and New Zealand to release the text of the policing agreement, there is no indication the Chinese or the Solomon Islands leadership will do so. There were also moments of theatre in Sogavare’s trip. The prime minister declared “I’m back home” when he arrived in Beijing in a clip posted by China Global Television Network. He then said in a longer interview on the same network that his nation had been “on the wrong side of history” for the 36 years it recognised Taiwan instead of the People’s Republic of China, and lauded President Xi Jinping as a “great man”. Sogavare saved his biggest serve for his return to the Solomon Islands, though. He accused Australia and New Zealand of withdrawing crucial budget support and hinted he would look to China to fulfil his ambitions to establish an armed forces, should Australia be unwilling to help.China’s slow start in the PacificSome key questions have been overlooked this week in the pantomime about what Australia should or shouldn’t do to shore up its relationship with an important Pacific partner. (We could start by accepting that Sogavare will never love us, and avoid getting into an arms race in the Solomon Islands with China.) What’s been somewhat lost, though, is how China has made inroads so quickly in a region that it still officially classifies as “peripheral”. China has certainly had to work harder to gain a foothold in the region. Relative to other regions, it has a lack of historical state ties with the Pacific. In Africa and Southeast Asia, China can draw on memories of shared anti-colonial struggles and aid projects like the Tanzam railway. In the Pacific, the Chinese Communist Party is a latecomer. Also holding it back is the remoteness and small population of the region. This has not made the Pacific a good fit for China’s Belt and Road Initiative, which has flourished in countries with rapid transport and communication links, substantial Chinese diasporas and leaders who are easily reached. Most of China’s own Pacific experts were baffled when the region was belatedly included in the project. Yet despite these obstacles, it’s clear the Chinese state’s approach in the Pacific has shifted, most remarkably in its diplomacy and the role state-linked companies are expected to play. Diplomats with serious intent China’s wolf warrior diplomacy has received plenty of attention, but the picture in the Pacific is less straightforward. The recently appointed special envoy to the Pacific, Qian Bo, undoubtedly styles himself as a wolf warrior. Under his tenure as Fijian ambassador, a Taiwanese representative was assaulted by Chinese diplomats for the crime of displaying a Taiwanese flag cake. Yet, other appointments suggest China is appointing higher-calibre diplomats to the region. These include Li Ming, the current ambassador to the Solomon Islands, and Xue Bing, the former ambassador to Papua New Guinea who now holds the challenging post of special envoy to the Horn of Africa. With experience in the region and good language skills, these diplomats have been more able to engage with Pacific communities than their predecessors, who largely focused on sending good news back to Beijing. More serious representatives suggest more serious intent.Chinese companies exerting influence, tooChina’s state-linked companies remain the driving force behind China’s engagement with the Pacific. Unlike the embassies, they are well-resourced and have skin in the game. Many company men (in construction, where Chinese companies dominate, they’re mostly men) are based in the region for decades, developing a deep understanding of how to win projects and influence political elites. Failed projects generate plenty of headlines, but many companies – such as COVEC PNG and China Railway First Group – are effective operators. They are building infrastructure cheaply in the Pacific and winning the favour of multilateral donors, particularly the Asian Development Bank. For larger state-linked companies, like China Harbor Engineering Company and the China Civil Engineering Construction Corporation (CCECC), the geopolitical game has shifted. In the past, they could rely on their standing within the Chinese political system (their parent companies often outrank the Ministry of Foreign Affairs) to resist pressure to act on behalf of state. Now, they are expected to carry geopolitical water for Beijing. Often this can benefit the companies. For instance, when CCECC lobbied the Solomon Islands leadership to switch their allegiance from Taiwan to the People’s Republic of China, it helped the company when it came to bidding for projects for the Pacific Games in Honiara. The leaders of these companies realise it can harm their image when they are seen as Beijing’s pawns. Yet, the companies, diplomats and Pacific leaders who choose Beijing’s embrace know times have changed. China is now a serious player in the region with a development philosophy to sell. It’s no longer enough to read Beijing’s talking points. You have to look like you mean it.

Defense & Security
Oceania political map. Region, centered on central Pacific Ocean islands with Australia

Australia should not overstate the threat of China in the Pacific, and mend relationships in the region

by Melissa Conley Tyler

The signing of a security agreement between Solomon Islands and China in April 2022 brought geopolitical competition and militarisation in the Pacific to the fore of public discussion. Australian policymakers and the public are concerned about the potential for a Chinese military base in the Pacific region. They harbour wider concerns that China’s influence is becoming sharper and more destructive. At a time of intensifying geostrategic competition, Australia may feel pressure to take a short-term and transactional approach towards the Pacific. Such crisis thinking would be unnecessary and counterproductive. Australia should frame its relationship with the Pacific in terms of long-term, generational partnership. It should be responsive to the Pacific’s priorities for development with a clear eye on a shared, long-term future. The Pacific will always be of great strategic significance for Australia. Peace and stability in Pacific island countries goes to the heart of Australia’s security, prosperity and national interest. This means Australia’s interest in the region, and the attention it pays to it, should remain clear, consistent and coherent, irrespective of whether there are crises or not. Genuine, consistent Australian engagement should address each Pacific island country’s unique needs through both bilateral and regional Pacific-led initiatives. There is a danger that a focus on China could overtake other priorities. This would undermine trust and lead to Australia’s diplomatic intentions not always being well-received. If Australia privileges its own institutional requirements and solutions above local agency and solutions, it can feed negative perceptions about Australia’s intent. Foreign Minister Penny Wong has spent much time in the Pacific since Labor won office. AAP/AP/Department of Foreign AffairsWhen Pacific leaders look at regional security they have an expanded view, which includes climate change, human security, gender equality, environmental and resource security, transnational crime and cybersecurity. This reflects insecurity in the Pacific at multiple levels: - globally, as a warming planet presents ecological and civilisational threats- regionally, as players and relationships change- nationally, as countries respond to the effects of COVID-19, natural disasters, illegal fishing, transnational crime and other threats, compounded by gender inequality- locally, where community leaders and security agencies struggle to control violence and conflicts in several countries. In some areas, law and order challenges and the proliferation of firearms mean the risks to individual safety and tribal and political violence are extremely real. These shared challenges and mutual threats require the long-term attention of Australia and Pacific island countries. We need to move beyond paying lip service to each others’ security concerns and develop a common security framework that responds to the full set of peace and security challenges in the Pacific. This requires deepening relationships and making sure shared concerns are not lost along the way. The good news is there are strong foundations to work on in Australia-Pacific co-operation. Australia has security co-operation arrangements with most Pacific Island states. These include police-to-police co-operation, defence capacity-building and joint military exercises. There are development programs designed to address drivers of fragility such as inequality and inclusive economic growth. There has been co-operation on climate science, sustainable fisheries and preserving maritime boundaries in the face of sea-level rise. Australia has goodwill in the region to draw on. There is a risk that Australia’s concerns about geopolitical change lead it to overstate differences with Pacific island countries. There will always be areas where views and interests align, and others where they do not. Australia needs to envisage Pacific island countries as a network of interaction, trade, exchange, communication and influence reaching across much of the Pacific Ocean. Strong relationships are not made up only of defence and security ties, and do not come into play only in situations of threat. They are the product of long-term, consistent and multifaceted engagement, genuine partnership with and respect for countries that are equally sovereign, and exchange that takes seriously all parties’ priorities, concerns and values. The opportunity exists for a rhetorical reset framing Australia as a generational partner for Pacific societies. Faced with a challenge to its profile and influence, Australia should pursue a long-term approach. The focus should be on economic integration, reciprocity and sustained commitment to generational progress. Australians should accept that Pacific island countries will engage with other countries, and work towards bridging the gaps in our defence, development and diplomatic relationships with the region.