From the Editor's Desk
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28 September 2010 | Vol. 1, № 36. From the Editor’s Desk Dear FDI supporters, Welcome to the Strategic Weekly from the United States, the Deputy Analysis . In this week’s edition, the Assistant Secretary for Africa at the Office Northern Australia and Energy Security of the Secretary of Defence. The visits Research Programme looks into increasing underscore the interest of larger powers foreign investment in the Northern in the tiny country and its importance to Territory’s booming resources sector in regional stability. light of the announcement that a third Chinese exploration and mining company Upcoming Strategic Analysis Papers from will be setting up an office in Darwin, with the Global Food and Water Crises programme include a closer look at the a view to uranium exploration. first five countries approved for funding The Global Food and Water Crises from the Global Agriculture and Food research programme investigates the Security Programme, a study of the effect finding of a report undertaken for the of migration on population pressures and Western Australian Government which an overview of aquifers around the world. calls for an increase in the number of agricultural graduates if the industry is to FDI welcomes comment on both SWA fully capitalise on the latest technology articles and Strategic Analysis Papers . Comments, as well as suggestions for and techniques. Also featured is an upcoming seminar to be held by the future articles, can be forwarded by Indian Government on the country’s food e-mail to Leighton G. Luke at [email protected] and water crises. Major General John Hartley AO (Retd) The Indian Ocean research programme Institute Director and CEO considers the two visits to the Red Sea Future Directions International state of Djibouti by the Deputy Commander of the Chinese Navy and, ***** Foreign Investment and Exploration on the Rise for NT Resources Background The minerals exploration and mining sectors contribute one-quarter of the Northern Territory’s Gross State Product. As these sectors continue to experience sustained growth, foreign companies are recognising the Territory’s opportunities. A third Chinese exploration and mining company, with interest in uranium exploration, has announced it will be setting up an office in Darwin. Comment In 2008-09, the minerals exploration and mining sectors contributed $4.9 billion to the Northern Territory’s Gross State Product. Investment in the Territory’s economy continues to attract attention from overseas companies. China’s Anhui Bureau of Geology and Mineral Resources will become the third Chinese company to set up an office in the Darwin region. Already present are Jiangxi Legend and HNC Australia Resources Pty Ltd. A Northern Territory Government statement on 22 September 2010 noted that ‘the Anhui Bureau purchased six exploration licences in the Northern Territory from local company Territory Uranium in 2009’. China’s Anhui Bureau has also made an application for a further four exploration licences and are expected to ‘commence active exploration programmes’. The Northern Territory’s Resources Minister Kon Vatskalis said: ‘We have had a co-operation agreement with the Bureau for more than ten years and they are a prime example of the way the Chinese Investment Attraction Strategy works.’ A long-term strategy of direct engagement between the Governments of China and the Northern Territory, such as high-level Ministerial meetings and visits, as well as ongoing resource discoveries, has delivered dividends to the Territory’s economy. During the NT Resources Week, a combination of the South East Asia Australia Offshore Conference (SEAAOC) and the Mining the Territory conference and exhibition, held on 22-24 September 2010, Minister Vatskalis said: ‘Exploration expenditure in the Territory reached a record $149.4 million last financial year, which is up two per cent on the previous year’s record.’ ‘There are a number of other advanced projects that have potential to come into production in the coming few years, such as the Bigryli uranium project and Nolans rare earths project in Central Australia.’ Engagement with North Asian markets by Northern Territory officials is not limited just to China. A Northern Territory Government delegation met with potential Japanese investors in Japan in early September 2010. It is a strategy that is seeking to forge strong regional relationships and foreign investment with the world’s second- (China) and third-largest (Japan) economies. Page 2 of 6 Gavin Briggs Manager Northern Australia and Energy Security Research Programme [email protected] ***** Agricultural Education Sector Requires Focus Background In the past week the Western Australian Government released a report into education in the agricultural sector. The report, Review of Post-Secondary Agricultural Education in Western Australia , by former deputy Western Australian Premier, Hendy Cowan, made it clear that agriculture and related industries in Western Australia were entering a challenging but exciting era. Comment A significant growth in world population, changing consumer tastes, international competition, climate change, water shortages, land degradation and decreasing energy resources were considered in the report as important challenges and opportunities for the sector. To capitalise on the opportunities, Mr Cowan called for more effort by the Government and universities to develop or foster skills in the agricultural workforce by increasing the number of graduates. The report called for the development of a Skilling Agriculture Council to ensure adequate skill development in the agricultural sector. More specifically, the report called for increased Western Australian Government funding of the Muresk Agricultural College, located in regional Western Australia. Of considerable concern is the shortage of labour and skills in the Western Australian sector. This is a result of the ageing of the workforce, the retirement by baby boomers, the seasonal nature of the lower skilled workforce and an inability to attract young people to work in the industry. Besides increasing the number of those participating in the sector, productivity is also seen as critical if Western Australia is to capture, or at the very least retain, its market share of agricultural products. In order to increase productivity in the sector, education is seen as being vital. The level of university trained members of the agricultural sector is said to be three times lower than that of the general workforce and enrolments continue to decline. Increasing participation in higher education will give the agricultural sector the ability to use increasingly sophisticated technology and techniques which come from a wide range of disciplines. Page 3 of 6 The report is one that should be considered by all Australian state, territory and federal actors in the agricultural sector if Australia is to take the lead in supplying the world with food, as well as assist the developing world in gaining greater self-sustainability. Gary Kleyn Manager Global Food and Water Crises Research Programme [email protected] ***** Indian Food and Water Crises Receive Government Attention On 1 October 2010, the Indian Government is sponsoring a state-level seminar which will consider the Indian Food and Water Crises. The seminar, sponsored by the University Grants Commission, will be held at the Bapatla College of Arts and Sciences. Acharya Nagarjuna University Rector K.V. Rao will deliver the keynote address, while Dr Vishnu Shankar Rao, Associate Dean of Bapatla Agricultural College, T.V. Satyanarayana, Associate Dean of College of Agricultural Engineering and John Weslay, ANGRAU University Head of Bio-Energy Department, will speak on different subjects. The seminar seeks to resolve some of the issues that have lead to a situation where India remains home to approximately 25 per cent of the world’s poor. Water is becoming scarcer in parts of the country and, while India produces enough food for its population, there are parts of the country where hunger is still an issue. Points to be discussed at the seminar include the use of food crops for biofuel needs, changes in consumption patterns, the effectiveness of a public distribution system and the privatisation of water sources, distribution and water markets. For more visit: http://www.bcasbapatla.ac.in/seminar.asp ***** Chinese, US Officials Beating Path to Djibouti’s Door Background Highlighting its importance to major powers, the strategically located Red Sea republic of Djibouti has received visits from a Chinese naval delegation on 22 September 2010 and, the following day, a high-level delegation of United States diplomatic and defence officials. While the two visits both focussed on building links with Djibouti, the Chinese delegation, led by Deputy Commander of the People’s Liberation Army-Navy, Vice Admiral Xu Hongmeng, took a conspicuously “soft power” approach, with the naval hospital ship Peace Ark providing free medical care to Djibouti locals over the course of its five day visit. Page 4 of 6 Comment An oasis of relative, but impoverished, calm in the Horn of Africa, the republic of Djibouti is strategically located adjacent to the narrow Bab el-Mandeb channel where the Red Sea joins the Gulf of Aden. The Djiboutian government, under President Ismael Omar Guelleh, maintains close relations with France, the former colonial power, and the United States, both of which maintain military contingents in the country. It has