GVijHj`jcVGdVY!BjVc^`Vj!HjkV!;^_^ Eg^kViZBV^a7V\!HjkV!;^_^ IZaZe]dcZ/+,.((&'+%%!;VXh^b^aZ/+,.(''%'&* :"bV^a/^c[d5[dgjbhZX#dg\#[_LZWh^iZ/lll#[dgjbhZX#dg\ Excelling together for the people of the Pacific Contents

Secretary General’s Introduction 2

Pacific Islands Forum Profile 6

Tribute to Late 8

Political Governance & Security 10

Economic Governance 20

Strategic Partnership & Coordination 34

Corporate Services 44

Audited Accounts 48

Excelling together for the people of the Pacific SECRETARIAT annual report 2 0 0 8

SECRETARY GENERAL’S INTRODUCTION

away on 9th August 2008. With the be the direction for the future. investment of leadership and effort Strengthening of regional institutions during Mr Urwin’s time, the Pacific and the deepening of cooperation Plan has now become the key and integration are absolutely regional framework that promotes essential. The Pacific Plan has and facilitates regional cooperation become the entry point for dealing and integration. with all of these issues.

As a servant of the region, my own In the period covered by this report, mission is to prepare the Secretariat the Pacific is being confronted by in the best traditions of public and major global challenges including regional service to deliver the vision climate change, ocean pollution of the Forum Leaders to seek a and depletion of marine resources, Pacific where its peoples can lead regional security issues and free and worthwhile lives. For this to now, an unprecedented global happen, we are all pledged to work financial crisis of the most worrying for a region of peace, harmony, magnitude. While efforts are ongoing security and economic prosperity. to determine more precisely the I am pleased to present this, my That vision acknowledges impacts and implications for the first annual report of the Pacific coordinated regional efforts and Pacific, we can be certain that Islands Forum Secretariat, since my behaviour, in a manner that allows none of the Forum countries will appointment as Secretary General us all to honour and treasure the be spared. All will be impacted in by Forum Leaders at their meeting diversity of the Pacific and to build some way. There is no question of in in August 2008 and, my on the strengths of diverse cultures the need to act now to respond to assuming office on 13th October and traditions. Central to all of this the crisis, to reform and strengthen 2008. A great deal has happened is the commitment to common systems and economies, and to since that time and despite the standards of quality governance, be both innovative and pro-active many challenges encountered, the the sustainable management in seeking solutions and, more Secretariat has continued to provide of resources and above all the particularly, to ensure no feasible to Member States normal services, observance of democratic values opportunity is lost. and as effectively as ever. and the promotion and defense of human rights. In this context, the environment in This is a report of many which the Secretariat operated in achievements. I pay tribute to the Given the geographic spread 2008 was especially challenging. staff of the Secretariat for these and vulnerable characteristics of Crowded as the year’s calendar results, as I pay tribute to those who the region, it is clear that regional always is, the Secretariat faced the have held office before me, the late cooperation and integration has additional demands of implementing Mr Gregory Urwin in particular, my much to offer the Pacific, and I its annual work programme against immediate predecessor who passed share the conviction that this must financial constraints, and also the

  annual report 2 0 0 8 PACIFIC ISLANDS FORUM SECRETARIAT

Decisions by the Leaders are reached by consensus and are outlined in a Forum Communiqué, from which policies are developed and a work programme is prepared.

need to develop a new corporate plan business for the Secretariat. It also refine its budgeting processes and to succeed the lapsed 2005 – 2007 streamlines and rationalises the reporting mechanisms. The 2009 Corporate Plan. The implementation previous nine programmes into Budget and Work Programme of related corporate reforms aimed four more strategically focused approved by FOC was aligned to at institutional strengthening also programmes, namely, Economic the new Corporate Plan and the had an impact on the operations of Governance, Political Governance supporting programme strategic the Secretariat. I am pleased though and Security, Strategic Partnerships plans. that the package of corporate and Coordination, and Corporate reform measures, including the new Services. The Corporate Plan is In addition to the successful 2008 - 2012 Corporate Plan, was supported by strategic plans for development and adoption of considered and adopted by the each of the four programmes which the corporate reforms in 2008, Forum Officials Committee (FOC) identify the Pacific context and the Secretariat was able to make during the year under report. challenges facing the programmes significant progress in implementing and the programmes’ responses. A its work programme. The new Corporate Plan provides new budgeting and finance system greater clarity for the future strategic was developed and implemented. The Political Governance and directions and scope of the core This enabled the Secretariat to Security Programme has managed

  PACIFIC ISLANDS FORUM SECRETARIAT annual report 2 0 0 8

...working with countries on the social impact assessment of trade agreements and economic reforms

activities to bolster regional security, expand law enforcement cooperation, address key causes of conflict and strengthen Pacific governance institutions.

A key focus in 2008 was to address the situation in in the wake of the December 2006 coup, given the failure of the Fiji Interim Government to return the country to democracy. There was a meeting of Forum Foreign Ministers and the convening of a Ministerial Contact Group on Fiji which visited Fiji twice to assess levels of government commitment and credibility of preparations for democratic elections by March 2009 as undertaken by the Fiji Interim Government and as agreed by Forum Leaders at their meeting in 2007. In another priority area, The Programme also played a major Island Countries Trade Agreement the Programme saw relations role in facilitating the annual Forum (PICTA) and its extension to include amongst the key stakeholders in the Leaders’ and related meetings and trade in services; the implementation Regional Assistance Mission to the the range of summits and high level of the Pacific Agreement on Closer (RAMSI) improved meetings between Leaders and key Economic Relations (PACER) remarkably given low points in partners. In 2008, this included the through the regional trade facilitation previous years, and this allowed Forum in Niue and the Inaugural programme and engagement significant progress to be made in – Pacific Islands in PACER Plus discussions; the overall operation of the Mission. Forum Ministerial Troika meeting. engagement in multilateral trade As the Pacific region continues to The Programme was also active issues, including the involvement face complex security challenges with a range of election observation of the region in the World Trade such as the threat of global terrorism activities in response to members’ Organisation (WTO) and initiatives and transnational organised requests. to develop a coordinated approach crime, support to law enforcement towards the delivery of aid for trade The Economic Governance agencies and other security sector in the region. Programme during the reporting organisations remains a high priority period continued to manage the Significant progress was also made within the Programme. Initiatives regional trade agenda through in implementing the decisions of such as the Forum Secretariat’s support to Members for ongoing the Forum Economic Ministers’ information management project, discussions and negotiations on: the Meeting (FEMM) which focused the criminal deportees project, Economic Partnership Agreement on continuing the momentum in small arms study, as well as work on (EPA) with the European Union; advancing national economic strengthening the maritime security efforts to implement the Pacific reforms. Specific initiatives such as domain contributed to improving the regional security environment.

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...working with countries on the social impact assessment of trade agreements and economic reforms

the regional bulk procurement of aviation, information communication petroleum products saw significant In addition to the and technology, strengthening movement and achievement successful development of integrity and accountability during the year culminating institutions, and climate change. in the conclusion of a Pacific and adoption of the Work on aid coordination and Petroleum Project Memorandum of corporate reforms in 2008, enhancing effective delivery was Understanding (MOU) which is now the Secretariat was able to also a key area of work for the available to interested Members for Secretariat’s Programme. The signature. Three countries signed make significant progress special requirements of the Smaller the MOU at the FEMM in in in implementing its work Island States were the focus of the 2008, and more member countries SIS Unit; and activities on social are expected to sign in early 2009. programme issues covered areas of education, Ongoing support has also been gender and disability issues. provided to Members for the capacity and positive progress was achieved building of the Private Sector to in the implementation of the Pacific Despite the considerable pressures engage in trade and investment Plan in 2008, in particular, in support of the annual work programme and activities. The implementation of of the Forum Leaders’ 2007 Vava’u constraints on the budget for 2008, the Pacific Regional Digital Strategy Decisions on the Pacific Plan significant progress was achieved. also gained momentum in 2008 priorities. While progress varied there I am confident that the package were achievements recorded in the of corporate and related reforms The Strategic Partnerships areas of fisheries, labour mobility adopted in 2008 will provide greater and Coordination Programme with the “Recognised focus for the work of the Secretariat is responsible for work on the Seasonal Employers’ Scheme”, and improve its efficiency to deal implementation of the Pacific Plan with increasing demands.

  FIJI ISLANDS NEW ZEALAND FSM NIUE MARSHAL ISLANDS SOLOMON ISLANDS VANUATU

Pacific Islands Forum Secretariat Staff 2008

The Pacific Islands Forum, formerly Islands, Tuvalu and Vanuatu. New by the Leaders are reached by the South Pacific Forum until a Caledonia and French , consensus and are outlined in a name change in October 2000, previously Forum Observers, were Forum Communiqué, from which was founded in August 1971 and granted Associate Membership in policies are developed and a work comprises 16 independent and 2006. Current Forum Observers programme is prepared. The annual self-governing states in the Pacific. include (2005), Wallis and Forum meetings are chaired by the The Forum is the region’s premier Futuna (2006), the Commonwealth Head of Government of the Host political and economic policy (2006), the Asia Development Country, who remains as Forum organisation. Forum Leaders meet Bank (2006), and Chair until the next meeting. annually to develop collective the Western and Central Pacific responses to regional issues. Fisheries Commission with Timor Since 1989, the Forum has held Leste as Special Observer (2002). Post Forum Dialogues with key The Forum’s membership has Dialogue Partners at Ministerial increased from the original seven The Forum has no formal rules level. There are currently fourteen founding members (Australia, Cook governing its operations or the partners – , People’s Islands, Fiji, Nauru, New Zealand, conduct of its meetings. The Republic of , European Union, Tonga and Western Samoa – now agenda is based on reports from , , , , Samoa) to also include the Federated the Secretariat and related regional , Republic of Korea, , States of Micronesia, Kiribati, Niue, organisations and committees, as , , United Republic of the , well as other issues that members Kingdom and the . A Palau, Papua New Guinea, Solomon may wish to raise. Decisions review of the Post Forum Dialogue

  AUSTRALIA COOK ISLANDS FIJI ISLANDS NAURU NEW ZEALAND TONGA SAMOA FSM KIRIBATI NIUE MARSHAL ISLANDS PALAU PAPUA NEW GUINEA SOLOMON ISLANDS TUVALU VANUATU

Pacific Islands Forum Profile

Fiji School of Medicine (FSchM) Pacific Islands Forum Fisheries Agency (FFA) Pacific Islands Development process was commissioned by the of development assistance to Programme (PIDP) Forum Secretariat following the member states, and undertakes directive of the Forum Leaders for the political and legal mandates of Pacific Power Association (PPA) a reassessment of its arrangements Forum meetings. The Secretariat Secretariat of the Pacific Community and the criteria for membership. The is funded by contributions from (SPC) report and its recommendations member governments and donors were considered at the 2006 Forum with a total budget in 2008 of around Secretariat Pacific Islands Applied Leaders Meeting, and work towards FJ$32.5 million. Geoscience Commission (SOPAC) improving the quality of dialogues South Pacific Board for Educational remains in progress. For more on The Secretariat is headed by the Assessment (SPBEA) the Post Forum Dialogue Review, Secretary General. The Forum visit the Forum Secretariat website Officials Committee (made up of Pacific Islands Forum Secretariat “Documents” section at www. representatives from all Forum (PIFS) forumsec.org. Governments) is the governing body Secretariat of the Pacific Regional for the Secretariat and oversights its Environment Programme (SPREP) The Forum’s administrative arm activities. The Secretary General is is the Pacific Islands Forum also permanent Chair of the Council south-pacific.travel (formerly the Secretariat, based in , Fiji. It acts of Regional Organisations in the South Pacific Tourism Organisation- as the Secretariat for Forum-related Pacific (CROP) that brings together SPTO) events, implements decisions by 11 main regional organisations in University of the South Pacific the Leaders, facilitates the delivery the Pacific region: (USP)

 LATE MR GREG URWIN - TRIBUTE annual report 2 0 0 8

It was with an enormous sense of regret approaches as responses to supporting his commitment and outstanding and sorrow that the region mourned the regional developmental priorities and contribution to the political, economic passing of the late Secretary General, addressing associated challenges. and social development of the Pacific Mr Gregory Urwin on 9th August, 2008 region. after a long battle with cancer. Mr Urwin had a distinguished career as a civil servant and diplomat for Australia The Forum Leaders also acknowledged The late Mr Urwin was appointed by and made outstanding contributions to his strong leadership as Secretary Forum Leaders at their meeting in regional cooperation and integration General - leadership that led to many Auckland, August 2003 and it was under through his role as Secretary General of major achievements, including the firm his leadership that Forum Leaders the Pacific Island Forum Secretariat. establishment of the Pacific Plan as adopted the Pacific Plan which has now the platform for ongoing, strengthened become the key regional framework During their meeting in Niue, 19 – 20 regional cooperation and integration that promotes and facilitates regional August, Forum Leaders expressed for the benefit of the people of the cooperation and integration, and the their profound sorrow at his untimely Pacific and his role in enhancing the development of coordinated collective passing away. They acknowledged international standing of the Forum.

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A TRIBUTE TO THE LATE GREG URWIN Secretary General AUG 03 – AUG 08

The Leaders noted that Mr Urwin was a Islands Prime Minister, Hon. Dr Derek strong advocate for the Pacific and his Sikua also announced to Leaders his passing represented a great loss. His Government’s intention to posthumously significant service to the Pacific Islands award the Cross of Solomon Islands to Forum would be remembered by all who Mr Urwin in recognition of his outstanding had the privilege of working with him. contribution to the Regional Assistance Mission to Solomon Islands (RAMSI). At the Leaders’ meeting in Niue the Prime Minister of Australia Hon. Kevin Greg Urwin was buried during a funeral Rudd, MP announced his Government’s service held in on 14th August and intention to fund the establishment, a memorial service was organised by through the Forum, of five Annual PIFS in Suva on 27th August 2008. He Leadership Awards, to be awarded by is survived by his wife Penny and three the Forum, its Chair and the Secretariat, children and six grandchildren. in the name of Greg Urwin. The Solomon

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Political Governance & Security Programme

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The Political and Security Programme, national and regional information the protection of sovereignty and in consultation with members, identifies management and data collection sovereign rights. This has been, and challenges to the stability and safety of models as well as consideration of continues to be, a significant factor for members and the region, and provides the establishment of more formal the Forum Secretariat when assisting policy advice and technical assistance arrangements to support the in the establishment of multi-lateral (both coordination and selective direct international exchange and subsequent frameworks for maritime security. assistance) to respond to the challenges. handling of law enforcement-related Integral to the Programme’s response information. The annual Pacific Transnational Crime is the promotion of the principles and Assessment informs the FRSC meeting practices of good governance across The issue of criminal deportees was (and others) of the extent and influence all levels and sectors in the region; and initially highlighted as an emerging law of transnational crime and other the pursuit of strengthened regional enforcement threat at the 2007 Forum security-related issues and provides a cooperation and integration. Regional Security Committee (FRSC) focus for discussions and decisions. meeting. Research and analysis of The redesigned 2008 Assessment Security this issue has highlighted a broader reflected improvements with new regional issue with respect to youth data which enabled a basic strategic Forum Regional Security offending rather than a specific deportee analysis. Future strategic assessments Committee related problem, which requires further will benefit from the augmentation support. of collection, storage and analytical The annual meeting of the Forum processes. Regional Security Committee is the Small arms and light weapons are principal meeting for setting a regional posing an increasing regional security Agency Cooperation security agenda and enhancing the issue. Small arms and light weapons capacity of members to respond to whether stolen or otherwise obtained The Forum Regional Security internal and external security threats. from security force armouries have Committee has strong support from key featured prominently in the Pacific’s regional law and border agencies as Security - Law Enforcement most recent conflicts. While these well as other regional and international weapons have been supplemented by stakeholders. The Forum Secretariat’s The Pacific region has a complex home-made firearms and small scale Law Enforcement Unit works closely security environment. In order to address trafficking, the majority of the weapons with the region’s specialist law challenges such as the global threat of to date have been obtained due to the enforcement and border agencies and terrorism and transnational organised lack adequate control and stock-take of together they support joint activities crime, support to law enforcement legitimate stocks of weapons in Pacific or agency specific projects. Partner agencies and organisations as well Island communities. The Programme is agencies include the Oceania Customs as government ministries engaged in working to help address these issues. Organisation, Pacific Immigration enhancing security in the region remains Directors’ Conference, Pacific Islands a high priority within the Programme. Pacific Maritime Security is also of Chiefs of Police, Secretariat of the increasing importance. Pacific Island Pacific Community Regional Maritime Initiatives such as the Forum Secretariat countries share a comprehensive view Programme and the Forum Fisheries information management project, the on maritime security which involves Agency. criminal deportees project, small arms consideration of economic, resource study, as well as work on strengthening and environmental security as well as Legal Drafting the maritime security domain contribute public health and social well-being. The to improving regional security. most significant challenge is obtaining Legislative drafting capacity within the resources required to respond to Pacific Island Countries is a critically The information management project maritime threats while also ensuring important infrastructure and is being encompasses the development of

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Political and Security Programme Staff

supported by the Programme. The capture the legislative obligations Biketawa Declaration, the Programme Programme continues to work with the under all the UN Counter Terrorism assists the Secretary General in his Commonwealth Secretariat, University Instruments, the Transnational Good Offices role which includes, as of the South Pacific (USP) Law School Organised Crime Convention and the required, the provision of advice on and Attorneys General from Member Protocols to the Convention. Drafting political and security developments to Countries to build sustainable legislative assistance was also provided to a member countries. drafting capacity in the region. number of Forum Island Countries This includes addressing issues of to adapt the model law. In addition, With the support of the UNDP Pacific recruitment, training, and support and assistance was provided to Forum Centre, work on the strengthening of retention of Pacific islands legislative Island Countries to adapt the updated conflict prevention and peace building drafters. Specific activities included a model legislation on Extradition, Mutual capacities continued. This included Legislative Drafting course, the Pacific Legal Cooperation and Proceeds of further work on the development of a Law Drafters’ Technical Forum, pairing Crime. three-year (2009-2011) Human Security and twining arrangements between Framework for Conflict Prevention. Pacific Island Countries Law Drafting Another major achievement in this The Framework will focus on three Offices and Australian and New area was the completion of the elements; addressing causes of Zealand Law Drafting Offices; and the Regional Model Law on Customs, in conflict; monitoring conflict escalation; development digitised templates and a collaboration with the Oceania Customs and strengthening conflict resolution Pacific Law Drafters’ website. Organisation. mechanisms.

Assistance with Honiara and Security – Regional and Human Security and Conflict Prevention Nasonini Declarations legislation International Issues: case studies in the Federated States of Micronesia, Kiribati, Samoa, and During the year, the revised Model Law Biketawa Declaration Vanuatu (literature reviews and scoping on Counter Terrorism and Transnational missions to each country) were Organised Crime was completed to Under the framework of the 2002 initiated. The case studies were aimed

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at strengthening the monitoring of, meeting regularly, providing a from Australia, Niue, Papua New and response to, conflict escalation at platform for more continuous, frank Guinea, Solomon Islands and Tonga national and regional levels. and constructive dialogue between were held in Honiara. Ministers have senior officials from Fiji and diplomatic endorsed the development of a Alongside this, the development of representatives of other Forum partnership framework between the track II processes in conflict prevention, members, on developments in Fiji and Solomon Islands Government and through engagement with civil society ways the Forum may further assist RAMSI which will among other things organisations, is continuing. A the speedy return to democracy. At set the strategic direction of RAMSI successful Track II meeting was held the Forum Leaders’ Meeting in Niue in coming years and develop jointly prior to the 2008 FRSC meeting, with in August 2008, Leaders expressed agreed conditions based and indicative another one planned for 2009. serious concern about the failure of timelines for RAMSI’s phasing down the Interim Government to expedite the across sectors. The holding of Session Two of the return to parliamentary democracy by FRSC in retreat format continues to March 2009 as previously promised, The efforts of the Forum Representative strengthen, with members contributing and will meet in January 2009 to to Solomon Islands continued to freely and very usefully to discussion consider further measures the Forum strengthen relations and engagement of issues formerly perceived as too should take in that regard. with the Government and stakeholders, sensitive. providing opportunities for constructive Regional Assistance Mission to dialogue and cooperation on RAMSI, Fiji Solomon Islands the Pacific Plan, and Forum and other CROP programmes. The Forum has demonstrated since The Regional Assistance Mission to the events of 5 December 2006 in Fiji, Solomon Islands (RAMSI) remains a Land Management and Conflict that it can play a strong leadership role critical Forum regional deployment, Minimisation project in the international community when underpinned by the firm commitment attempting to resolve crises within our of the Leaders in the purpose of Another area directly relevant to region. The Secretariat continues to the regional mission. Compared to Conflict Prevention is land ownership, work with Fiji and other Forum members 2007, relations between the Regional a singularly sensitive and charged to support and encourage an early Assistance Mission to Solomon Islands, cultural issue with land based resource return to parliamentary democracy in the Solomon Islands Government and management being at the core of many Fiji, primarily through the Ministerial the Forum were more cordial in 2008. disputes and conflicts in the region. Contact Group on Fiji and the Forum- This reflects the strong and enduring Phase 1 of the Land Management Fiji Joint Working Group on the situation partnerships developed between and Conflict Minimisation Project, in Fiji. The Ministerial Contact Group Solomon Islands parliamentarians, comprising desk and country case (MCG), consisting of Ministers from officials, the Solomon Islands people, studies, was completed in 2008 with six Forum member countries, was RAMSI’s principals and Forum members Leaders adopting principles and a established by Forum Foreign Ministers since RAMSI’s inception. guiding framework for effective land at their third meeting on the Fiji situation management and conflict minimisation in Auckland in March 2008, to monitor The Forum was pleased to learn that the in the region. Phase 2 of the Project the situation in Fiji and report to Forum new Solomon Islands Government had is being implemented in collaboration Leaders. During 2008 the MCG has decided to approve the 2007 RAMSI with the Secretariat of the Pacific visited Fiji twice to hold discussions Review Task Force report endorsed Community with an initial focus on land- with the Interim Government and other by Leaders in Tonga in 2007. Further related information and consultation stakeholders. Meanwhile, after a brief to this decision, two meetings of the processes. hiatus in mid-2008 the Forum-Fiji Joint Forum Ministerial Standing Committee Working Group has recommenced Meeting comprising Foreign Ministers

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Governance Pacific Centre to develop a programme support efforts to enhance regional of regional action, which will bear fruit cooperation in the legal sector, including In 2006, Leaders agreed that greater in early 2009 with the commencement in cooperation with the Pacific Islands attention be given to implementing of sub-regional workshops on the UN Law Officers’ Network (PILON). The Initiatives 12.5 and 12.6 of the Pacific Convention Against Corruption, national Programme has also continued its work Plan pertaining to human rights and anti-corruption planning and regional to promote regional legal infrastructure good governance issues. Activities in cooperation. development through the Pacific Plan, the last twelve months have included and hopes to secure funding to allow participation in in-country consultations Election Observation this work to progress further in 2009. in Niue and Palau in partnership with the New Zealand Human Rights The Forum continues to respond In addition, Programme’s legal staff Commission. These consultations have positively to requests from members has provided expert support for other proved invaluable in raising awareness to provide independent regional regional initiatives under the Pacific of human rights realities in each observation and reporting on their Plan, such as assisting the Economic country, and providing opportunities for elections. The Forum’s election Governance Programme develop legal the Secretariat and the New Zealand observation activities are welcomed arrangements for the Pacific Petroleum Human Rights Commission to flag by member countries as contributing Project and the Regional Audit Initiative; human rights as a topic of relevance, to their shared commitment to working with the Governance and including for discussion and further peaceful and democratic governance gender team on the electoral and legal dialogue. Preliminary work has begun in accordance with the Biketawa aspects of exploring special measures on the conceptualisation of a regional Declaration, as well as their individual to increase women’s representation human rights mechanism with the aim efforts to strengthen the integrity of their in parliament; and assisting with the of including it as a Pacific Plan initiative. electoral processes. negotiation of the Forum and Forum- Arrangements for the establishment of EU declarations on climate change. a Human Right Adviser position were In early 2008 the Forum completed progressed in 2008 with an appointment its observation of the November 2007 Nuclear Issues expected in early 2009. This position is election process in the Republic of the expected to consolidate and elevate Marshall Islands (RMI), with a return The Programme continues to assist human rights work in the region. visit to Majuro by one observer and the members in their collective activity on subsequent completion of the team’s nuclear issues as they affect the region. Assistance continues to be available report. The Forum responded at short With regard to nuclear shipments, to Forum Island Countries interested notice to a request from the Government contact was maintained in 2008 with in adopting leadership codes with of Nauru to observe its “snap” election the shipping states at the senior assistance being provided in 2008 to in April 2008, with a sub-group of the political level, as well as facilitation of a one Forum Island Country. Members team which observed Nauru’s 2007 working-level meeting between Forum who have yet to do so are encouraged election returning to monitor the 2008 member officials and representatives to adopt leadership codes as a poll. The Programme is now working of the shipping companies. The means of implementing the Leaders’ with Nauru, at its request, to identify and Progarmme has also continued to commitment to the principles in the seek the technical assistance necessary assist the RMI in coordinating regional Biketawa Declaration and the Forum to implement the recommendations of support for its advocacy with the United Principles of Good Leadership adopted the election observers’ reports. States Government on the impact of US by them in 2003. radioactive testing in RMI, pursuant to Regional Cooperation in the Legal the decisions of Forum Leaders. On the important issue of anti- Sector corruption, the Secretariat has been working in partnership with the UNDP The Programme has continued to

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Institutional Issues associate membership of the Forum, membership issue. the Programme undertook a visit to Leaders’ Summits in mid-2008 to Treaty Depositary Role discuss relevant issues with various The Programme plays a major role stakeholders, and report to the Forum The Secretariat acts as Depositary in facilitating annual Forum Leaders’ Officials’ Committee and Forum for nine regional treaties, providing and related meetings and the range Leaders. While Leaders decided not the Parties to each of those treaties of Summits and high level meetings to approve associate membership for and the wider public with up-to-date between Leaders and key partners. In Wallis and Futuna at this time, valuable information on their status. During 2008 2008, this included the Forum in Niue insight was gained into the challenges the Programme assisted the Parties and the Inaugural European Union – and interests the territory shares with to several of these treaties with legal Pacific Islands Forum Ministerial Troika other Forum members – particularly the advice and administrative support for meeting. smaller island states – and a platform amendment processes and other treaty has been established for enhancing actions, including in relation to the Associate Members and Observers Wallis and Futuna’s engagement Pacific Islands Civil Aviation Safety and with the Forum as an observer, Security Treaty (PICASST), the Pacific Following a request from the pending future review of the associate Island Countries Trade Agreement authorities of Wallis and Futuna that (PICTA) and the MOU establishing the the (observer) territory graduate to

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its partners achieved the following in government services, by supporting 2008. the creation and maintenance of strong ombudsman and allied Regional ombudsman initiative institutions;

The regional ombudsman initiative • Develop culturally appropriate is among the “package” of four resources and training support to governance initiatives which have a address common issues faced direct bearing on the success of the by the Pacific Ombudsman Pacific Plan. The others are a regional community; economic and technical assistance facility, a regional capacity to assist • Provide mutual support to help officials in Forum Island countries in members meet their obligations and collecting revenue and the regional responsibilities and improve their audit support. It was envisaged that if service delivery and effectiveness; these initiatives were implemented as a first-step confidence building measure, • Support the development of their success could provide the legislation and programs that necessary momentum for the longer recognise the right of citizens term vision of the Pacific Plan. to transparent and accountable government services through The output on this initiative is the Pacific effective complaints and oversight Ombudsman Alliance (POA) which was mechanisms; established on 29 September 2008. Its intent is to provide a service delivery • Enable the national ombudsman and mutual support organisation for institutions of the Pacific Islands Forum nations to provide a common Pacific Forum Line. Ombudsman and allied institutions that are members of the Pacific Islands or consistent approach in dealings Good Govenance Forum. The Alliance does not have any with international ombudsman legal powers in relation to Ombudsman bodies; The good governance pillar of the Pacific activities in the region. At its inaugural Plan seeks to achieve the objective of meeting, a charter which provides the • Foster and promote the work of improving transparency, accountability, governance framework for the operation ombudsman and allied institutions equity and efficiency in the management of the Alliance comprising membership, throughout the Pacific. of and use of resources in the Pacific Board and Secretariat was endorsed. Its PIFS is charged with implementing the through the implementation of nine principles are integrity, accountability, Non-Ombudsman Small Island States (9) initiatives, the latest addition being simplicity, flexibility, respect and Working Group (NOSISWG) and will the initiative on deepening of regional sustainability. The Alliance has seven explore sub-regional initiatives for cooperation between key actors in the objects: ombudsman functions, exploring the legal sector in the region. • Strengthen cooperation within the political commitments to sub-regional Building on the ongoing good community of Pacific Ombudsman initiatives, examining the feasibility governance agenda of the Forum as and allied institutions; of sub-regional initiatives, including a regional priority, the Secretariat and political and economic viability. The • Foster integrity in the delivery of next POA meeting is on 16 March 2009 in Rarotonga, Cook Islands. PIFS

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will present the work program at this senior officials from the Pacific to the convened the Sub-Regional Workshop meeting for the NOSISWG. value of freedom of information as an on Special Measures for Women in important tool for strengthening and , PNG on the 25 and 26 Anti-corruption institutions enhancing good governance in national September 2008. governance and the Pacific region. Work on getting FICs to ratify the UN The workshop which brought together Convention against Corruption (UN- Overall, the workshop was a tremendous participants from Papua New Guinea, CAC) stalled in 2008. It was anticipat- success for the Secretariat. First, this is the Solomon Islands, Vanuatu and Fiji ed that once approval was obtained the first regional workshop on FOI, a falls under the good governance pillar from the Government of Papua New milestone identified for implementation of the Pacific Plan, specifically, Initiative Guinea in 2008, that a sub-regional under the good governance pillar of the 12.6 on participatory democracy, workshop for Melanesian states would Pacific Plan which has finally been taken consultative decision making and be convened in Port Moresby after an forward. Second, and as a result of the electoral processes. The workshop unsuccessful attempt in 2007. The sub- workshop, the Secretariat is now in a followed-up on implementing one of the regional workshop is tentatively sched- better position to determine how best to Outcomes of the Rarotonga Workshop uled to be held on 24-26 March 2009. take this activity forward in consultation of 2006 wherein it was agreed that International organizations like UNODC, with the participants. Third and related the Secretariat organise sub-regional ADB-OECD and others are expected to to the second point is the interest the workshops on special temporary attend this workshop. Secretariat has generated on FOI in the measures in the region. The workshop region and the level of support out there is also consistent with the 2007 decision Forum Principles of Good amongst other development partners of Forum Leaders to explore ways Leadership to take this forward. for women participation in decision- making structures, in particular, Research on the Forum Principles Other national consultations, aside legislatures. While the long term of Good Leadership did not take from the Solomon Islands, are planned objective of the workshop is to increase place in 2008 due to an extensive for Nauru, Vanuatu, Palau and Tonga and sustain the number of women focus on ensuring that the processes in 2009. Collaborators include the in Pacific parliaments, this workshop for engaging the consultants was Commonwealth Human Rights Initiative, enabled participants from Melanesian thoroughly exhausted and negotiations RRRT, and Ombudsman offices in New members to discuss their different with the consultant to ensure that all Zealand and Australia. electoral systems vis-à-vis women’s the requirements for this exercise was participation in elections and map met. This research will be consulted Participation of Women in out ways for more women to become early 2009 and is expected to be Decision Making legislators after a full appreciation of completed in May 2009. the different special measures. Similar The Secretariat together with workshops are been planned for the Initiatives on freedom of UNIFEM Pacific, the Secretariat of information and information Polynesian sub-region tentatively in the Pacific Community, the UNDP Tonga and for the Micronesian sub- disclosure policies for selected Pacific Centre, the International FICs region (yet to be decided) and subject Development Law Organisation, to partners’ support. AusAID (Pacific Leadership Program), The Secretariat, in partnership with the the Inter-Parliamentary Union (IPU) The Pacific Leadership Program UNDP Pacific Centre held the Regional with the assistance of PNG Sustainable Freedom of Information (FOI) Workshop Development Program Limited The Pacific Leadership program is for Pacific Policy Makers in Honiara, (PNGSDP) in partnership with the PNG now established (the MoU between Solomon Islands from 30 June to 2 July Department of Community Development the Government of Australia and the 2008. The purpose of the workshop was to introduce policy makers and

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Forum Secretariat for the Granting promotes the regionalism which the Pacific economies and finance, multi- of Funds 2006-08) and settled in the Forum seeks by linking with like-minded level governance, democracy and Secretariat compound. Its operations regional organisations. The Secretariat’s the rule of law, perspectives from the and management of program activities representation at this meeting in Apia, civil society, peace and security, and are capably overseen by a Regional Samoa on 25-31 October 2008, for development. Program Director and a Regional the first time marked the formal and Program Manager with a strong official relationship between these two As it is, the PGN is the only regional secretariat support. organisations, cementing further the Type II Network arising out of the World ongoing activities and partnerships Summit on Sustainable Development The Advisory Panel of eminent Pacific entered into by these organisations now in its second year of existence. Islanders has been established before the MoU. Unanimous endorsement was received and positioned to provide strategic from participants for the Secretariat and direction. Also established is the Pacific Governance Network (PGN) USP to continue convening the PGN. To Research Steering Committee. strengthen its effectiveness, the support Inaugural meetings of these bodies About 20 representatives from several of a low cost secretariat support, were held in Brisbane in 2008. The regional organisations (UNESCAP, subject to funding will be essential. The next Advisory Panel Meeting is planned Commonwealth Local Government secretariat support will help to manage for April 2009 whereas the Research Forum Pacific Project, SOPAC, ICUN, the Pacific Islands Governance Portal Steering Committee convened its UNIFEM, UNDP Pacific Centre, the and Digital Library, manage links, second meeting in late 2008. Pacific Parliamentary Assembly on schedule meeting dates, and compile Population and Development and the Pacific Agreements, Development Partnership with the Forum Presiding Officers and Clerks Plans, key official documents; and Commonwealth Local Government Conference, PIANGO, University of the network member work programs. A Forum Pacific Project South Pacific and the Pacific Islands periodic newsletter and arrangements Forum Secretariat and others) gathered of periodic thematic meeting are some Forum Leaders appreciated the value at the University of the South Pacific, of the small things to be handled in that partnerships can bring in delivering Laucala Campus for the second Pacific 2009. the initiatives in the Pacific Plan. This is Governance Network Meeting, 1 – 2 clearly articulated in the Pacific Plan December 2008 to: In 2009, the PGN plans to hold two where Leaders “seek partnerships meetings under the proposed themes with neighbours and beyond to a) learn the essential features of as endorsed by the participants and develop our knowledge, to improve governance activities being members of the Network. Since the our communications and to ensure a undertaken by diverse agencies former Pacific Institute of Advanced sustainable economic existence for all”. and institutions; Studies in Development and It was in this spirit that the Pacific Islands Governance has now been abolished, Forum Secretariat sought to formalise its b) make connections; and, the RGA will be working closely with partnership through a Memorandum of senior academics from the USP’s Understanding with the Commonwealth c) help to clarify the Pacific Faculty of Business and Economics on Local Government Forum(CLGF). This Governance Network’s (PGN) this activity. MoU amongst others should continue agreed directions, methods of to expand the range and depth of operation, and activity areas for the Forum Secretariat’s partnership. the coming year. Our partnership with the CLGF also Themes for the Network included review of governance networks, governing

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Economic Governance Programme

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The Economic Governance Programme strived to deliver its core function and mandate by extending and coordinating policy advice and technical assistance in support of economic growth and sustainable development. In recognition of the limited national capacities and an increasingly complex international environment, the Programme strove to assist Members in the development of appropriate national, sub-regional and regional interventions through quality policy and technical advice, research and various forms of assistance.

Good economic governance ensures the sound management of a country’s resources. In the Pacific, where limited human, financial and natural resources are constraints on development, their efficient use is vital to promote sustained economic growth and to improve livelihoods. Forum Economic Ministers’ Meeting (FEMM)

The twelfth Forum Economic Ministers’ inefficient spending. The recent decline At the meeting, three countries Meeting (FEMM) was held in Port in food and fuel prices has vindicated – Tuvalu, Nauru and Cook Islands Vila, Republic of Vanuatu, in October these decisions, and most FICs have were able to sign the Memorandum 2008, with discussions centred on avoided the subsequent need for of Understanding (MOU) establishing the overarching theme of food and difficult readjustments. the Pacific Petroleum Project, which energy security given the adverse provides for regional negotiating impacts of high global food and energy FEMM acknowledged the need to machinery through which Signatories prices on FIC economies during the maintain the momentum on national of the MOU work together to negotiate year. These impacts have resulted in reforms and noted FICs’ plans for common terms and conditions for the adverse inflationary effects and internal reviving their agriculture sectors, as well procurement of petroleum in bulk. downward pressure on real incomes, as pursuing alternative energy options FEMM called on the Secretariat and as well as putting significant pressure and energy efficient initiatives. Ministers to assist in progressing work on balance of payments. In this context, noted the types of assistance that on this area as a matter of urgency, and Ministers noted the immediate, short donor agencies can provide to support requested the Pacific Energy Ministers term, responses by FICs during the national initiatives, and encouraged to consider work undertaken to date, year, which had been generally well development partners to strengthen and to prepare an update of progress to targeted to alleviate poverty, and were their cooperation on national and Forum Leaders in 2009 on the package encouraged by the general avoidance regional petroleum policies. of measures. of measures that would have resulted in

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of Supreme Audit Institutions (PASAI) and has been endorsed by Forum Leaders at their meeting in August in Niue. The overarching objective of PRAI is to raise public auditing to uniformly high standards, which in turn is expected to improve transparency and accountability in managing public resources.

Ministers also noted the outputs of the PRAI program period (2008 – 2012), with the initial emphasis on strengthening the PASAI Secretariat. The Secretariat will be responsible for setting up the sub- regional audit support programme for Kiribati, Nauru and Tuvalu; developing a long-term structured capacity- development programme; and initiating cooperative performance audits. Good economic governance ensures the Regional Regulatory Stepladder sound management of a country’s resources. FEMM also noted the outcomes of the regional workshop on Economic Regulation held in late August 2008, and in particular, endorsed the Regional Regulatory Stepladder that was agreed FEMM also noted the very serious mitigation measures, which include, to at the workshop and, which includes negative impact that the global consolidating fiscal positions, easing specific activities and actions that need economic crisis will have on regional monetary policy (where appropriate), to be taken at the national and regional growth prospects. While FIC banking and reinvigorating structural reform. levels in order to improve regulation systems have successfully weathered through regional cooperation. the most immediate effects of the FEMM also considered updates on financial crisis, the region is far regional approaches in a number of FEMM noted that establishing pre- from immune from the effects of the key areas, including public auditing and conditions at the national level to unfolding global economic crisis. economic regulation, and noted that support regional initiatives requires Ministers noted that likely impacts on significant progress had been made in urgent attention in the short term. FICs include adverse impact on trust these two areas. These pre-conditions include the funds, and superannuation schemes; formulation of common rules or adverse impacts on export prices for Pacific Regional Audit Initiative legislations and a mutually supportive commodities; difficulty in accessing (PRAI) policy framework. In this context, capital; and pass through effects on the Ministers directed the Secretariat to economy from the expected slowdown FEMM considered an update on the collaborate with other CROP agencies in tourism and decline in remittances. Pacific Regional Audit Initiative (PRAI), and relevant development partners to Ministers also noted some possible which is a Pacific Plan initiative that has the support of the Pacific Association develop a model regulatory and policy

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framework, and seek support for its Information and Communication implementation. Technology

FEMM also noted the possibility of The Digital Strategy is being vigorously setting up a regional regulator for one pursued by many agencies under the priority sector over the medium term, guidance of the Forum Secretariat and and that the Smaller Islands States is focused on policy and regulatory (SIS) have identified regional shipping, reform- through CROP agencies ICT and utilities as priority sectors. assisted by UNDP, connectivity – Ministers directed the Secretariat through the AUSAID funded PACRICS to also liaise with non-SIS FICs to satellite project in SPC, the SPIN identify priority sectors, and agreed and derivative projects in cables, e- that the Secretariat would, depending governemnt with the assistance of on progress with the establishment of , Distance education with pre-conditions outlined, put forward to the assistance of the OLPC project FEMM options to strengthen regional and various pipeline projects with the regulatory arrangements. assistance of EU and World Bank.

Infrastructure Development: , Multilateral Trade, and Trade Aviation Facilitation The Pacific Islands Air Services Pacific Island Countries Trade Agreement (PIASA) now has the Agreement (PICTA) requisite number of signatures for it to be in force. The challenge, in a period In taking the step toward establishing a of dramatic fuel price fluctuations and regional free trade agreement through global economic crisis will be to develop PICTA, the FICs recognise that regional mon Islands and Vanuatu were ready a formulae to exploit the willingness of economic integration is also part of a or had commenced trading under the countries to relax their barriers to open strategy for integration with the world Agreement. Five FICs - Kiribati, Nauru, skies. economy. Economic integration with PNG, Tonga and Tuvalu have com- close neighbours and with other pleted their notification requirement Transport compatible partner economies has under the Agreement. They will com- the potential to assist FIC economies mence trading under PICTA once they Shipping, a lifeline in the Pacific, prepare for the larger step of opening have put in place legislative changes particularly the smaller island states and to global competition. Regional to accommodate the Agreement. The domestic has suffered from neglect of economic integration can also provide Federated States of Micronesia have investments over decades. Increasing a basis for FIC partners to coordinate signed the Agreement and are at the priority attached to infrastructure their international economic policies, ratification process while Palau and the investment though major donors holds thereby assisting them to operate Republic of the Marshall Islands are promise that improved services can be more effectively within the international yet to accede to PICTA. In August this expected. The Secretariat along with economy. SPC has been mandated by leaders year, the Forum Leaders agreed that those Governments yet to do so would to provide support to the development The PICTA entered into force in 2003 complete their domestic legislation of smaller islands shipping capacity in and by end of 2008, six FICs namely and would announce their readiness particular. Cook Islands, Fiji, Niue, Samoa, Solo-

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Economic integration with close neighbours and with other compatible partner economies has the potential to assist economies prepare for the larger step of opening to global competition

to trade under PICTA before January FSM, Fiji, PNG and Tonga are expected movement of labour continued in 2008. 2009. Leaders directed the Secretariat to commence tariff reductions from Given the FIC Trade Ministers’ desire to work closely with the Governments 2007 while LDC and SIS FICs will for Trade officials to conclude a PICTA concerned to develop individual action commence reductions from 2009. trade in services agreement by 2008, plans to ensure that all FICs that have Following the entry into force of PICTA, a draft trade in service agreement as ratified PICTA will be trading by 2009. the focus has been on the completion an extension to PICTA was prepared This decision was also supported by of notification requirements, and Rules aligned to Ministerial decisions followed the Pacific ACP Trade Ministers Meet- of Origin (ROO) training. The aim is to by a regional pre-negotiation session ing in October 2008. Since these deci- have all PICTA parties complete their in February 2008. The objective of the sions, the Secretariat had been working notification requirements to facilitate meeting was to prepare Members for closely with FIC governments to devel- the tariff reductions. PICTA ROO the negotiations, which was launched in op individual action plans training has been targeted at national March 2008 followed by the first round and regional level in an effort to build of negotiations. Capacity building At this stage, PICTA provides for trade a pool of ROO resource trainers at the workshop in support of trade in services in goods only. Under the provisions national level. liberalisation was organized in June pertaining to tariff reductions in goods, 2008. The second round of negotiations Work on the extension of PICTA to cover was held in July 2008 where Members trade in services, inclusive of temporary further deliberated on the legal text

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and tabled indicative trade in services content to the PACER. It has achieved At the 2008 FTMM Ministers mandated and temporary movement of natural identifiable results in the opening of officials to continue informal discussions persons requests and offers. Given market access for FIC products to on PACER Plus, with three informal the extent of preparatory work involved Australia and New Zealand through meetings being hosted by Australia/ prior to the FICs agreeing on a potential the Quarantine component; and… New Zealand over the coming year. trade in services agreement among laying important foundations for trade them, the FICs acknowledged the need development through improvements in At the 2008 Forum Leaders Meeting for additional time in concluding the customs practices. The RTFP has also in Niue, Leaders reaffirmed the PICTA trade in services agreement. produced studies in standards and continuing importance of pursuing Negotiations will continue in 2009. conformance …that provide valuable greater economic integration and trade guide for future developments” …..and as a regional priority and endorsed the Pacific Agreement on Closer also acknowledged the important role outcomes of the Forum Trade Ministers Economic Relations (PACER) of IFSP in improving food standards Meeting in Cook Islands on 22 July and in the region. Given the positive in particular: One of the key initiatives under the contribution that the RTFP is making, PACER is the 5-year Regional Trade and with strengthened governance • the need for officials to formulate Facilitation Programme (RTFP) which system in place, the Report’s main a detailed road map on PACER began in 2005 aimed at strengthening recommendations were to provide Plus, with the view to Leaders the FICs’ capacities to trade amongst continued funding for all the components agreeing at the 2009 Forum to the themselves under the PICTA and with of the programme to ensure its continued commencement of negotiations; Australia and New Zealand. The success. The FTMM also established and RTFP has three technical components a formal RTFP Steering Committee – Customs implemented by the to have oversight of the RTFP and to • the strong shared desire and Oceania Customs Organisation (OCO), consider the implementation of the agreement to move forward with Quarantine by the Secretariat of the Report’s recommendations. With PACER Plus by commencing work Pacific Community (SPC) and the 2009 being the final year of the RTFP, to build national negotiation capac- Standards & Conformance (Track 2) a study will be commissioned in early ity of Pacific Islands Countries with Integrated Food Standards Project 2009 to develop concrete proposals support from Australia and New (IFSP) for the Pacific by the World for addressing capacity needs in the Zealand, recognising the priority health Organisation (WHO). In 2008 FICs, including in the three areas of the placed by Pacific Island Countries the PIFS continued to work with the RTFP, for assistance under the region’s on the early appointment of a Chief implementing agencies – OCO, SPC proposed Trade Development /Aid Trade Advisor. and WHO on the implementation for Trade Facility to be considered by The second informal meeting on PACER of their activities to strengthen and donors in 2009. improve customs, quarantine and food Plus was held in Tonga from 12-14 standards systems and laws in the FICs. PACER Plus November 2008. In line with the PACP A review of the Programme to assess Trade Ministers direction for the Forum its implementation and effectiveness Over the past years, Forum Trade Secretariat ‘to provide assistance to the was undertaken in April-May. The Ministers have discussed a range of Forum Island Countries in PACER Plus RTFP Review Report (June 2008) was issues relating to the deepening of trade activities until such time as the CTA is presented to Forum Trade Ministers and economic cooperation between appointed’ the Secretariat supported Meeting (FTMM) in July 2008. Amongst the FICs and ANZ, commonly known FICs during the second informal the Report’s main conclusions were as ‘PACER Plus’. discussions. In recognition of the priority that “the RTFP is well conceived and that Forum Trade Ministers attached to effective in giving immediate practical the establishment of the CTA Office, members noted that New Zealand

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and Australia would provide a formal are WTO Members and Observers. To During the year, the original Forum response to PIFS on the proposal for the date, the Forum Office has operated Representative to the WTO, H E Mr establishment of the office of the CTA. under the overall aegis of the Secretariat Robert Sisilo, a Solomon Islands The Secretariat would then disseminate and largely funded by the European national, concluded his term of service those comments to members and on Union, although it was agreed during and was commended by FIC Trade the basis of members’ feedback the the year that FIC WTO Members Ministers for his contribution to the proposal would be further developed and Observers should region. He was replaced as Forum for distribution to all members prior to steadily take ownership Representative by Mr Paulo Kautoke the next informal meeting, scheduled of the Office through of Tonga. The Representative pursues for 16-18 February 2009. making increasing the mandates given to him by Trade contributions to the Ministers in promoting FIC interests Multilateral Trade Policy operation of the in the WTO and provides updates Office. and advice to Forum Members on The Programme has been engaged in WTO developments as they take a number of activities throughout the place. year relative to multilateral trade policy, especially those pursued through the World Trade Organisation (WTO).

Six Forum Members are also Members of the WTO: Australia, Fiji, New Zealand, Papua New Guinea, Solomon Islands and Tonga. Samoa and Vanuatu are WTO observers and in the process of acceding to the WTO. At the same time, because of its central importance in the international trading system and the formulation of rules governing trade, events in the WTO remain of great interest to all Forum Members. At the meetings of Forum Island Country (FIC) Trade Ministers held during 2008, developments in the WTO’s Doha Round of Multilateral Trade Negotiations were discussed and negotiating positions agreed on issues being considered during the Round on fisheries subsidies and other matters.

Australia and New Zealand each have their own representatives to the WTO based in Geneva, while the Office of the Forum Representative in Geneva caters for the needs of the FICs, especially those which

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Economic Governance Programme Staff 2008

The Programme has also been and Spoke Project, administered by facilitate the gradual integration into the actively exploring how best trade and the Commonwealth Secretariat, funded world economy; thereby contributing to economic cooperation relations might largely by the European Commission sustainable development and poverty be promoted regionally between FICs and based in the Forum Secretariat, eradication in those countries. and the People’s Republic of China, the aims to promote the effective Republic of China/Taiwan and the United participation of Pacific Members of the • The Project has three deliverables: States. Studies were commissioned African, Caribbean and Pacific (ACP) training and sensitizing key and working groups established to Group, the Forum Island Countries, stakeholders in Pacific ACP pursue initiatives in 2009. in international trade negotiations and (PACP) countries on major trade reinforce their capacity to formulate trade policy issues; Hub and Spoke policies in compliance with their overall development strategy. This should • Supporting PACP countries in The regional component of the Hub formulating, negotiating and

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implementing trade policies; and two-year programme of assistance an end in June 2009. In preparation that focuses on the implementation the Secretariat undertook a needs- • Supporting PACP countries in of regional model laws to protect assessment study which amongst other developing national and regional traditional knowledge and traditional things, identified a number of strengths consultative networks. expressions of culture, in initially, six and achievements of that office over FICs (Cook Islands, Fiji, Kiribati, Palau, the last four years of operation. Since In 2008, Project personnel included PNG, Vanuatu). The initiative is led 2005, the Geneva Office has developed a Regional Trade Policy Advisor by the PIFS in collaboration with the expertise in particular areas of interest (RTPA), Trade Policy Analyst (TPA) and SPC, SPREP and the World Intellectual to the FICs such as on WTO rules (i.e., Administrative Assistant based at the Property Organization. PACP Trade fisheries subsidies). The Rotational Secretariat and TPAs based in national Ministers also formally endorsed the Representative (RR) programme governments in the Federated States of Model Law on Traditional Biological managed by the Permanent Micronesia, Samoa and Tonga. Efforts Resources, Innovations and Practices Representative (PR) has been very continued to finalise the placement developed by SPREP, for adoption by useful in building the trade-capacities of of a TPA in the Government of Papua the FICs. The Model Law, one of two FIC capital-based officials. Moreover, New Guinea. TPAs based in national regional frameworks of TK protection, the Geneva Office has built effective governments are responsible to and addresses the protection of the coalitions with other like-minded take directions from those governments content or substance of knowledge groups allowing the FICs to have and are supported in carrying out their resulting from intellectual activity broader representation on issues of duties by Project staff based at the in a traditional context. It includes other interests as well as strengthening Secretariat. agricultural, environmental and their voice in the negotiations. Perhaps, medicinal knowledge, and knowledge one of the biggest achievements of the Throughout the year, much of the associated with genetic resources. Geneva Office is, it has lifted the profile Project’s focus was on assisting and On developments in connection to the of the FICs in the multilateral trade supporting PACP Governments in creation of an institution to advocate arena and allowed them to effectively their Economic Partnership Agreement for and protect TK and Intellectual pursue their interests – something (EPA) negotiations with the European Property Rights (IPR) under the that could not have happened without Commission and other regional trade- Pacific Plan, Forum Trade Ministers a Representative office or if they were related activities. Wherever possible agreed that the study to consider the to be part of a more generic grouping, assistance was also provided to PACP feasibility of establishing such a body such as the ACP Group or a “small Governments at the national level in be commissioned and its outcomes states” grouping. trade policy formulation and other be made available to Ministers for their trade initiatives, especially those PACP consideration in 2009. In other areas, a The future direction of the Geneva Office Governments that do not have their regional system for the administration of depends on a number of external and own TPAs. It is anticipated that work at trademarks and a draft MOU that would internal issues confronting it. These the national level will intensify in 2009. form the basis of the system continues include the increase in the number of Free Trade Agreements (FTAs) being Intellectual Property Rights & to be the subject of on-going regional discussions. negotiated by the FICs, the prospects Traditional Knowledge for the Doha Development Round Forum Representative Office, negotiations, funding issues, having Notably, 2008 saw advancements in Geneva adequate and qualified staff, and the Secretariat’s capacity to assist support from the FICs. the FICs in Traditional Knowledge The bulk of the office is funded by the (TK) issues, an area of keen interest EU (90%) and this funding comes to to them. In March 2008 PACP Trade Ministers endorsed in principle, a

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Cotonou Trade Issues/ PACPS in the following ways: Economic Partnership Agreements • consolidation of the PACPS as an integrated regional unit through the Pacific Regional Economic establishment of a free trade area Integration Programme (PACREIP) covering the PACPS; and

The Financing Agreement, 9.ACP. • engagement of the PACPS as a RPA.006 for the Pacific Regional regional unit in the wider regional Economic Integration Programme and global processes, including (PACREIP) for 9.2 million Euros in negotiation and subsequent between the European Commission operation of trade with developed (EC) and the Pacific ACP States country partners such as the EU, (PACPS) entered into force on 7 and also in multilateral negotiations February 2004. The PACREIP began at the World Trade Organization operations in the second half of 2004 (WTO). and is scheduled to continue until June PACREIP has six components. Their 2009. PIFS through the Coordination key objectives are: and Management Unit of PACREIP has prepared and submitted a rider 1) The progressive implementation to the EC, requesting the extension of and development of the Pacific the operational phase of PACREIP for Islands Countries Trade Agreement another twelve (12) months, from 30th (PICTA); June 2009 to 30th June 2010. The EC has agreed in principle to the request 2) The successful establishment of but a formal approval is not expected new trade arrangements between until early 2009. the PACP region and the EU;

The overall objective of PACREIP is 3) Improved PACP capacity to the sustainable development of the negotiate and promote WTO related PACP economies as an economically issues; integrated region. Specifically, PACREIP supports and facilitates the 4) Strengthened PACP capacity to PACPS preparations for and conduct of manage the process of regional their Economic Partnership Agreement economic integration in the areas (EPA) negotiations with the European of Private Sector Development, Union (EU) with the aim of achieving a Trade Facilitation, Biosecurity, favourable outcome that fully reflects Trade Facilitation, Customs, the PACPS’ interests and aspirations. Financial Sector and Fiscal PACREIP contributes to the overall Reforms, and Environmental Impact process of enhancing regional Assessment; economic and trade integration not only within the PACP region but also globally. The PACREIP supports regional economic integration of the

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5) Regionally integrated development Key accomplishments in PSD: Participation at Business Conferences of environmentally sustainable and Exhibitions and Production of Small Medium Enterprises (SME)- Training of small business development Promotional Material. based tourism; and (SBD) agencies on Business Diagnostic Toolkits has been completed in all The Industrial Development & Training 6) Efficient coordination and FICs, and over 700 businesses have Programme (IDTP) has provided management of regional economic now used the Toolkit to assess their funding to SMEs for in-house training integration and development of businesses. This database of the and training attachments. appropriate policy framework. relative strengths and capability gaps of the local businesses was assessed at Investment Policy Development Component 5 of PACREIP which was two workshops organized by the Private implemented by South Pacific Tourism Sector Development Unit (PSDU) in The Commonwealth Secretariat has Organisation (SPTO) now south-pacific. conjunction with the Pacific Islands provided funding for the appointment travel had concluded on June 30th Private Sector Organisation(PIPSO) of a full time Investment Adviser in the 2007. that involved the national business Economic Governance Programme. development authorities (BDAs) The Adviser commenced in June and is Concept Note – PACREIP II and their equivalent private sector implementing a programme of support organizations (PSOs). These to assist the relevant agencies in FICs Following the decision of the PIFS workshops identified the areas where to increase the level of both foreign and executive, the management and local businesses are most in need of domestic investment. The principle coordination unit of PACREIP prepared assistance and provided guidance element of this is the implementation a concept Note for PACREIP II, with the to the BDAs on where they should be of an Investment Policy Support objective of securing funding under the concentrating their efforts. Significant Programme (IPSP) that initially involved EDF 10 Regional Indicative Programme gaps were identified in the ability of most six FICs (Cook Islands, FSM, Palau, (RIP), to sustain the ongoing work of BDAs to provide this assistance. From Samoa, Solomon Islands and Vanuatu). regional economic integration under this, the PSDU has developed a major These countries will be assisted in the PACREIP. The focus of PACREIP II new project to provide support to the preparation and implementation of project proposal was the same as BDAs and the PSOs. A Pacific Centre an Investment Action Plan (IAP). The the current PACREIP, but with more of Excellence in Business (PCEB) has Adviser has also provided assistance emphasis on institutional capacity been proposed as a major extension to Nauru in reviewing the investment building both at national and regional of the Business Diagnostic Toolkits environment and preparing investment levels. project. This will operate as a ‘hub legislation. Business Development, Export and spokes’ network linking individual Forum Trade Offices and Investment Promotion and businesses with ‘on demand’ business Import Management: advisory services. Provisional funding The Trade Offices in Auckland, Beijing, has been obtained with the project Sydney and Tokyo provided direct Private Sector Policy Development being implemented over 2009. support to the region’s private and public sectors. The support focused The Marketing Support Fund (MSF) The private sector continues to play an primarily on trade facilitation to assist continues to be a popular source of important role in the economic growth with exports; promotions for product assistance. The Fund provides small of the FICs. Therefore, assistance for and services; marketing; investment grants, ranging from F$5,000 – F$8,000 the development of the private sector promotion, business facilitation; tourism to SMEs who do not have extra resources remains an important component of the promotion; technical capacity building; for marketing and promotional activities. Economic Governance Programme. networking, and the dissemination of Activities funded under the MSF include information. Market Research and Exploration,

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During the year the Secretariat made by the Commission included to participate at significant holiday, travel welcomed two new senior staff to the the organizing of a Financial Literacy and tourism exhibitions in Australia and Beijing and Sydney Trade Offices. Mr Workshop in partnership with the in particular a major Pacific Cultural Samu Savou (Fiji) is the new Trade ANZ Bank for seasonal workers from Stage/Program in Sydney in early 2007. Representative in charge of the Pacific Samoa and Tonga; a business mission Additional support for the Cultural Islands Forum Trade Office in Beijing to Vanuatu by NZ RSE employers to Industries was assistance to artists and Mr Caleb Jarvis (Australia) heads explore opportunities for joint ventures from Fiji, PNG and Cook Islands under the Sydney-based Pacific Islands Trade in agriculture and tourism. The mission their Pacific Arts Alliance organization and Investment Commission. was ranked extremely useful by both to participate, exhibit and extend their in-country and visiting participants that contact network in Queensland at the The Secretariat is grateful for the the Commission has plans to run similar 2007 Indigenous Art Festival, “The services of Mr Rohan Ellis who returned exercises in other RSE pilot countries. Dreaming Festival”. to the Cook Islands after almost eight years of service and Mrs Aivu Tauvasa Pacific Islands Trade and Two important milestones were reached (PNG) who served the PITIC Sydney for Investment Commission, Sydney when PITIC Sydney directly introduced almost eleven years. and facilitated BBC Television and PITIC Sydney completed a number Discovery Channel to Imajica (PNG) Pacific Islands Trade and of projects in areas as varied as food Ltd to film a “Pacific Communities” Investment Commission (PITIC) packaging and labelling, website series focusing on Intangible Heritage Auckland design and development, promotion Tourism (IHT) projects, in particular, the of cultural industries and facilitating an Shark Callers of Tembin, New Ireland The Pacific Islands Trade and important trans-Melanesian roundtable (PNG) and the Dolphin Callers of North Investment Commission (PITIC), discussion on housing finance. Diverse Malaita (Solomon Islands). “The Shark Auckland worked with strategic partners as these themes may be, all projects Tribe” which was filmed on location in New Zealand Pacific Business Council, had one major priority and that is; New Ireland was aired on Discovery the Auckland City Council, the Pacific assisting Pacific Island businesses Channel during the annual “Shark Co-operation Foundation and New to better engage with themselves Week” series in August 2007. PITIC Zealand Dive Fish Snow Travel, Samoa commercially and with Australia and Sydney part sponsored and facilitated Hotel Association, the Ministry of Pacific with the rest of the world. A major a number of training attachment Island Affairs, Air New Zealand and revision of its product-specific guides programs and workshops ranging the Pacific Island Media Association was undertaken to update with current from website and database design to drive its trade promotion activities and accurate information. Joint- and modification to a specialised including the Pacific Trade Expo, venture opportunities for inter-regional Fisheries Training exercise and a series Pasifika Festival, Path2NZ.com, Niue investment was explored which resulted of Quarantine Workshops in Suva and Fakalataha Ki Mua and others. FIC in an investor mission by PNG officials Lautoka. The workshops were to help agricultural products were promoted at to their Melanesian counterparts in the Fijian farmers and business operators various culinary events while pacific art tourism (hotels/resorts) and financial update their knowledge of Australian was supported through an exhibition at services and infrastructure as well import requirements for fresh produce the Okaioceanikart Gallery, Auckland. as staff and skills training exchange and marine products exported from Fiji. The Commission took advantage of programs between PNG and Vanuatu PITIC’s Sydney enterprise development the Recognized Seasonal Employees superannuation funds. work involved working with SMEs in (RSE) scheme piloted by the New Vanuatu, Fiji and Tonga to improve their Zealand in 2007 to support trade and PITIC Sydney continued to support export capacity specifically in areas investment opportunities for the pilot including sponsor several FIC National such as packaging and labelling, point countries. Some of the notable in-roads Tourism Offices (Cook Is, Samoa, Niue, of sale materials. Tonga, Vanuatu and Solomon Islands)

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Pacific Islands Centre (PIC), Tokyo and high schools in Japan in response to several delegations approved to travel requests from the Ministry of Education to the FICs. The investment delegations With the limited number of staff, (three of Japan. The most challenging tasks are expected to cover industries such professionals plus part-time supporting for the PIC was to promote the FICs as Tourism, Agriculture and Fisheries staff), the Pacific Islands Centre (PIC) potential for trade, investment and and Construction to name a few. deployed its staff mainly in implementing tourism through carefully selected fairs four activities: and exhibitions. These included the Support and facilitation services were JATA World Travel Fair, Supermarket rendered to the Suzhou Youth Travel • management of the Centre’s Trade Show, Health Ingredients Trade Group to realize their 5 star hotel website; Show and others. The Centre’s Support investment in Nadi, Fiji. Construction is Program (Attachment Program B) was expected to commence in mid-2009. • participated in renowned events utilized by nine representatives from and trade fairs held in Japan, FICs for their participation costs in the Other notable developments included:- including the facilitation of business Supermarket Trade Show. The Program negotiations between Japanese provides FIC exhibitors/participants • a pilot project between PIFTO and companies and FICs’; with accommodation fee and daily the Chinese Scholarship Council allowances during the event. Business which saw seven academic • organized a trade missions to Missions to the region including in- scholarships awarded to a small PNG; country seminars proved extremely number of FIC nationals for study in useful for Japanese businesspersons China for the 2008/2009 academic • organized a seminar with UNIDO who gained firsthand accounts of year; Tokyo Office and PNG Embassy. opportunities for join ventures with • partnered with PIFS to participate local entrepreneurs. Results of In view of the vast distances between in the Trade, Investment and business missions to PNG could see Japan and the Pacific region and Tourism Ministerial Economic the establishment of a processing in the absence of a Pacific Island Development Forum, Xiamen, factory for dried bonito and the transfer community in Japan, the PIC placed a Fujian Province; lot of emphasis on using the website of Japanese experts to the agricultural as a tool to disseminate information. sector. • coordinated in-country programme The beginning of this process saw the for visiting consultants to undertake Pacific Islands Forum Trade Office website undergo substantial changes to a review of the operations and (PIFTO), Beijing make it more user-friendly and pleasant management of PIFTO; in appearance. The results have seen The better part of 2008 was spent re- a marked increase in the number of grouping, reviewing and assessing visits to the PIC website up by 53.6 % strategies and the delivery of services to compared to the same period in 2006. stakeholders as well as strengthening On average the site recorded 900 visits partnerships with the public and private per day. E-commerce was introduced sectors in China. through the introduction of the Virtual Shopping Mall. Japanese tourists had The PIFTO was actively involved in Trade the luxury of visiting FIC hotels on line and Investment Fairs and Seminars which was made possible through across China to develop Chinese the introduction of “hotels.com”. PIC investment interest in the Forum Island Tokyo introduced a new program called Countries (FICs). Outcomes from these “Seminars on FICs” at selected tertiary events will be realised in 2009 with educational institutions like universities

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Strategic Partnership & Coordination Programme

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The Strategic Partnerships and and monitoring of key regional and These include: Coordination Programme support international issues. the regional coordination role of the a) Progress by members Forum Secretariat and facilitate the on implementing the 2007 Vava’u development and nurturing of strategic Pacific Plan Declaration on Fisheries. For example, partnerships and the mobilization of the Parties to the Nauru Agreement regional resources to implement the Pacific Plan Implementation (PNA) adopted a Third Implementing regional development priorities as Arrangement, which include stringent The implementation of the Pacific Plan prescribed by the annual meeting of conditions of fisheries access that successfully continued over 2008. the Forum Leaders. compel foreign fishing vessels to As highlighted in the 2008 Annual adhere to the same conditions in Pacific Plan Report submitted to the The key areas of activities under this the high seas as those set for the Forum Leaders, work continued in programme include the coordination and national waters of PNA member. implementing initiatives across all implementation of the priority initiatives These developments send a strong four of its pillars, and in particular, of the Pacific Plan; social development message about the Forum members in support of Forum Leaders’ 2007 policy issues; maintenance of relations commitment to addressing over-fishing Vava’u Decisions on the Pacific Plan amongst regional organizations of the by distant water fishing nations and the priorities. Pacific and with development partners; serious threat of illegal, unreported catering for the special development and unregulated fishing depleting the While progress varied, a number of key needs of the smaller islands states; region’s tuna stocks. achievements merit specific mention.

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b) The launching of the year, deregulation of the mobile phone have directed the prioritization of Recognised Seasonal Employers’ market has been highly successful in a number of sectors over 2009 in scheme which has seen around expanding coverage and reducing support of the Pacific Plan as a way 4,500 people take-up short-term user costs in Papua New Guinea and of addressing common and very real employment in New Zealand in the Vanuatu. threats to the People of the Pacific viticulture and horticultural sectors. In enjoying sustainable social and addition to economic benefits flowing f) The strengthening of integrity economic prosperity in a secure and to partner countries, this has helped and accountability has been a major well governed region. up-skill workers and opened up other theme. The Pacific Association of development opportunities. Supreme Audit Institutions (PASAI) While ranging in scope, Leaders has agreed to substantially strengthen have continued to accord priority to c) The bulk fuel procurement its Secretariat to assist national audit fisheries, energy, trade and economic initiative was progressed significantly offices through training, advice, as integration, climate change and over 2008, with the adoption and well as direct service delivery of audit transport, in addition to information and signature of a Memorandum of functions. This has been driven by the communication technology, health, Understanding (MOU) by three region’s Auditors-General; and education, and good governance. countries. The MOU provides for the Land has also been identified by Forum establishment of a regional centralized g) In the priority area of Climate Leaders as an emerging region-wide mechanism that will be empowered Change, considerable progress has priority, noting its potential as a source to negotiate fuels prices on behalf of been made in mainstreaming Climate for conflict. participating member states base on Change concerns and issues at their accumulative fuel requirements. the national level through National The Pacific Plan Office The initiative is expected to be fully Development Plans and Disaster implemented in 2009 with the requisite Risk Management Plans, as well as The Pacific Plan Office continued its number of states subscribing to the sectoral plans, in particular in the areas support for refining the governance MOU. of water, and coastal management. mechanisms that guide the Financing options to address climate implementation of the Pacific Plan. d) The continuing liberalisation change efforts are being identified from The annual Pacific Plan priorities of aviation that has provided exciting various sources such as the Global setting process was further refined new opportunities, supported key Environment Facility, the European to provide Forum Leaders with key industries such as tourism, and lent Union, Australia and other partners with recommendations for consideration on momentum to increasing regional steps being taken to improve access the future direction of the Pacific Plan economic integration. Other important to predictable funding options for the drawing on the technical expertise of developments include the entry region’s priorities. the CROP and the guidance of Forum into force of the Pacific Islands Air Members through the Pacific Plan Services Agreement (PIASA) and the Despite such progress challenges Action Committee. commencement of full operations of the remain and determined work must Pacific Aviation Safety Office (PASO) continue in 2009 to ensure the ongoing This has resulted from critical analysis to assist members to meet relevant momentum of greater regional of key risks, issues and challenges international civil aviation standards. cooperation and integration. In moving facing the region over the short, forward, another key objective will be medium and longer terms involving e) The continuing deregulation to address currently pressing issues, all of the aforementioned parties and in the ICT sector, which has reduced notably the global financial crisis, food has provided considerable focus in costs to consumers and improved security and climate change. progressing forward the implementation service delivery in a number of of the Pacific Plan through the Pacific countries. For example over the last As with previous years, Forum Leaders’ Plan Action Committee which is the

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only mechanism in the region bringing The Forum Secretariat coordinated international conventions on disability together all Forum members and all closely with other development issues. Heads of CROP to consider the Pacific’s partners in the implementation of some key developmental challenges. aspects of the FBEAP, like the Pacific The first regional meeting of government Regional Qualifications Register, which focal points on disability was convened The Pacific Plan Office continued its the South Pacific Board for Educational in November. The meeting agreed schedule of monitoring and review of the Assessment will manage and host. on the relevance and applicability of progress made in the implementation of This work will lead to a common international and regional commitments the Pacific Plan over 2008. This involved currency of qualifications across the such as the Convention of the Rights significant liaison with Forum members, region which will facilitate movement of Persons with Disabilities, related CROP and other key development between educational institutions and millennium development goals, and partners. These reports are presented will facilitate greater labour mobility. the Biwako Millennium Framework for to Forum Leaders twice a year for Action. their consideration and have become The increased interest in labour a valuable tool for demonstrating the mobility has lead to greater emphasis The DCO has also supported work progress made in implementing key on technical and vocational education of the Pacific Disability Forum (PDF) initiatives as well as those areas where and training to ensure that there is and represented the Secretariat at a more work is required. a supply of trained workers to meet consultation meeting in Sydney with the demand. The regional study on the Australian Disability Task Force ‘Skilling the Pacific’ was funded by on the Australian Disability Strategy Social Issues the and for Asia and the Pacific. He also executed by the Forum Secretariat presented a paper titled “disability a Regional Education Issues and was launched in 2008, providing cause and consequence of poverty” a useful analysis and status report on at the Australian Disadvantage and The Forum Education Ministers meeting technical and vocational education n Development Consortium in in 2007 endorsed a comprehensive the region. in October. evaluation of the Forum Basic Education Action Plan (FBEAP) to The emerging social impacts of labour Gender Equality take place in 2008. The review was mobility and other programmes of undertaken in 2008 with visits to all 14 the Secretariat are also being closely Investing in gender equality is central Forum Island Countries and interviews monitored and evaluated. to sustainable development and the with almost 200 people. There was an attainment of human and political overwhelming support by countries for Disability Issues security, good governance and the a regional education framework such management of resources. Thus it is a as the FBEAP. The main mechanism Since the establishment of the post critical and cross-cutting consideration for implementing the FBEAP is the of the Disability Coordination Officer in development policy and planning. regional education project PRIDE and (DCO) at the Secretariat, greater As such, under strategic objective 8 this received a vote of confidence coordination and management of of the Pacific Plan, gender equality is in the review. Countries would like a disability issues has been provided highlighted as an overarching objective successor to PRIDE once its funding to member countries. The DCO has across the plan to ensure sustainable expires. There was also support for worked closely with national focal development for our members. continuation of the Forum Education contacts on disability issues to develop Ministers’ Meetings, of which there their national disability policies and In 2008, the Secretariat made have been six since the first one in legislative framework and to prepare tremendous strides towards honoring 2001. them fulfill their obligations under the 2007 Leaders’ decisions on “exploring more ways and opportunities

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Strategic Partnership and Coordination Programme Staff, 2008 in decision making particularly for Relations with Partners and contributions of development women”. Together with other key partners to the implementation of development agencies, the Secretariat Development Assistance the Pacific Plan, in particular along convened the first sub-regional the five priority areas endorsed by workshop for Melanesian countries The Paris Declaration on Aid Forum Leaders in 2007. A matrix was on special measures for women in Effectiveness (2005) and its regional developed documenting the respective Papua New Guinea. In addition to this counterpart, the Pacific Principles on contributions of the development a key resource book was produced in Aid Effectiveness adopted in 2007 partners to the Pacific Plan priorities collaboration with the UNDP Pacific prescribe key principles that should and other priorities identified by other Centre “A Guide to Temporary Special govern the relationship between the sectoral ministerial meetings. Measures” which included country by development partners and the donor country options and examples of model recipient countries on the delivery of A Pacific Regional Workshop on Aid special measures. This resource book aid and development assistance in the Effectiveness was held immediately was the first of its kind for the Pacific region. prior to the PIC-Partners meeting region. Further initiatives are planned in 2008 to considered progress in for 2009. A number of communication As part of the revised format for the implementation of the Pacific Principles materials on supporting women in post forum dialogue, the Pacific Island on Aid Effectiveness. Discussions parliaments and gender and land were Countries - Development Partners (PIC- focused on constraints, good practice also published and are all available on Partners) Meeting, traditionally held and lessons learnt in implementing the Secretariat website. back to back with the Forum Economic the Pacific and Paris Principles on Ministers Meeting (FEMM), was Aid Effectiveness, incorporation of The Secretariat continues to ensure convened for the first time as a stand these principles into policies and gender issues remains a critical area alone meeting in 2008. Its agenda was practices at country level, and their of policy and planning and more also expanded to not only focus on the resource implications and streamlining concerted efforts need to be targeted outcomes of the FEMM but to consider mechanisms at country level. The to advancing gender equality in the the regional development priorities as workshop was also held to facilitate region in accordance with regional and identified by the Leaders meeting and discussions around preparations and international gender commitments. other sectoral ministerial meetings. issues for the Third High Level Forum on Aid Effectiveness (HLF-3), 2-4 The PIC-Partners meeting in 2008 September 2008, Accra, Ghana. considered what further assistance

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The Secretariat was represented at the The Secretariat is developing a template correspondence with partners has HLF-3 which was convened to solicit for Pacific Partnerships that validates enabled another successful PFD stronger international commitment to the credibility of regional partnerships Plenary conducted at the Forum in achieve the Paris Declaration’s 2010 set up to implement regional priorities Niue, 2008. In addition to the Chair targets, through agreement on more identified and endorsed by Ministers presenting the region’s priorities, Pacific urgent and detailed action in key and Leaders and reflected in the Pacific Leaders made statements on four areas of aid effectiveness. Specifically, Plan and/or the Leaders Communiqué. critical areas to the region including, the Accra Agenda for Action calls for This will be based on a review of the climate change, fisheries, energy and strengthened and more specific action existing partnership mechanisms in food security. PFD partners spoke to in ‘strengthening country ownership the region including the CROP working these issues and offered political and for development’, ‘building more groups. This is an important step in development assistance support to the effective and inclusive partnerships being able to formalise a model for region. Records of the PFD Plenary are for development’, and ‘delivering and ‘partnerships’ in the region. available on the PIFS website. accounting for development results’. The Secretariat continued in 2008 to The strengthening of bilateral Partnerships under Pacific Plan support members, on request, in their relationships with many of the PFD engagement in relevant international partners has also been a part of The Secretariat continued to advocate meetings. This has included, amongst implementing the new PFD process the Pacific Plan and its initiatives and others, the an annual UNESCAP and has been successful thus far with partnerships to the Commission on Commission meeting; the Commission considerable satisfaction expressed Sustainable Development (CSD) on Sustainable Development; the by PFD partners. 2008 saw the first and Inter-Agency Task Force for United Nations General Assembly; and high level meeting, at ministerial level, the implementation of the Mauritius other UN related meetings. between the Forum’s Troika and that of Strategy within the United Nations the EU’s. The first high level meeting system. This has assisted to secure The Secretariat has a long standing between Pacific Islands Forum the United Nations Secretary General’s relationship with the UNDESA SIDS members and Italy was also conducted recognition of sustainable development Unit and UN Partnerships Office and in 2008. being measured in the Pacific by way of continues to advocate the Pacific the Pacific Plan reports instead of only Plan and Partnerships as a means In addition other interested partners through the United Nations Department to implement the Barbados Plan seeking strengthened relationships of Economic and Social Affairs of Action and Mauritius Strategy of with the region held high level meetings (UNDESA) on the basis of international Implementation in the region. This is with Forum members including a strategies including the Barbados aimed at avoiding the development Ministerial Meeting with and Programme of Action and the Mauritius of parallel processes that are often Ambassadorial meetings with Strategy of Implementation. The Pacific driven by international multilateral and Austria. Plan is recognized at the UN level as mechanisms as tends to happen in the Pacific’s regional interpretation some of the other SIDS regions. The links between the new PFD process of its priorities in the MSI and other and the PIC Partners meeting have been international agreements. The Pacific The Forum and its Dialogue strengthened with Leaders agreeing that Plan now also reflects language that Partners progressive steps towards Post-Forum embraces the MSI and BPoA that will Dialogue Partner status should include make it more appealing to international There has been a considerable initial engagement in the Pacific Island partners including the UN and Post increase in contact with PFD partners Countries and Development Partners’ Forum Dialogue (PFD) partners. over the last couple of years with Meeting, before a comprehensive the implementation of the new PFD analysis of their application for Post- process. Regular meetings and Forum Dialogue status is undertaken.

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In addition the Secretariat will be the PIFS to the SPC in particular in the Disappointing progress was made on developing, for Leaders’ consideration, areas of ICT and transport. the sub-regional air service initiative a mechanism to reassess Post-Forum despite the high importance accorded Dialogue partnership status for existing Smaller Islands States Issues to it by the SIS Leaders. This was due Post-Forum Dialogue Partners with a principally to the lack of commitments view to ensuring continued relevance SIS Unit and lack of data on definitive air service of all Post-Forum Dialogue Partners requirements of potential participating over time. The Smaller Island States (SIS) Unit countries. The SIS Unit completed a within the Secretariat continues to play survey of these requirements in early The Forum and other Regional a supportive role in implementing the 2008 and the survey outcomes were Organizations SIS Leaders’ decisions and support discussed at the SIS Leaders meeting address the special requirements SIS. in Niue. Two CROP Executives Meetings were The Unit worked closely with the other held successfully in March and June programmes of the Secretariat and the A study on the sub-regional development 2008. CROP Executives are now CROP agencies to implement the SIS financing mechanism was completed acknowledged as the most senior Leaders decisions and advancing SIS in June 2008. The study examined the technical advisory body to Pacific Plan sub-regional initiatives. financing needs of the SIS, existing Action Committee (PPAC). This has available financing services in these resulted in a more transparent process The key SIS initiatives that the SIS Unit countries and the potential role of of CROP engagement in the region’s continued to focus on includes sub- setting up a sub-regional financing prioritisation processes. regional shipping and air services; institution to support the development labour mobility; bulk procurement financing needs of the SIS. SIS Leaders Building on the need for continued of fuel and pharmaceuticals; tasked the Secretariat to consult widely improvement in the coordination development financing; renewable on the recommendations of the study within CROP as well as with other energy; emerging health issues; and and make suggestions on the future partners in the region, CROP regional meteorological services. course of this initiative and work on this Executives commissioned a review initiative will continue in 2009. into the CROP working groups and The SIS Leaders agreed for the use other partnership mechanisms in the of Kiribati shipping vessels to provide Access to regular, timely, and quality region. The findings of the review will shipping services connecting Fiji, weather and climate information is of be considered by CROP Executives in Tuvalu, Kiribati and Nauru as a short extreme importance to people in the 2009. Streamlining of CROP working term solution to the shipping service Pacific. In recent years, there has been groups with Pacific Partnerships is a requirements of the participating increasing interest in the provision of critical part of making the best use of states. Further agreed was reached for better meteorological services in the existing mechanisms to forge ahead the Secretariat in collaboration with the region. At their meeting in Tonga in with relevant stakeholders. This will be Secretariat of the Pacific Community 2007, the SIS Leaders called for the built upon in 2009. (SPC) to pursue the two other longer immediate strengthening of regional term options, namely the procurement and national institutions and services High Level Conferences were of a purpose built ship to service these for monitoring and communicating conducted between senior executives countries and the establishment of a weather, climate and extreme events of both PIFS and SPC in line with the regional shipping service commission to support basic livelihood, wellbeing spirit of the RIF. This has resulted in that would regulate the provision of and security of the Pacific people. They better alignment of the work of both shipping services to the participating called on the Secretariat in collaboration organisations and the transfer of countries. with SPREP and SOPAC, to review technical components of work from

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current arrangements and propose governments; particularly in increasing Under the Taiwan/Republic of China- options for sustainable service delivery their accessibility to available regional PIF Scholarship Scheme, at the end in this crucial area. programmes to support their respective of 2008, 21 students were enrolled development initiatives. at six campuses campus across the In response to this directive, the region, namely, USP Laucala Campus, Secretariat formed a Technical Working Pacific Regional Assistance to USP Emalus Campus, USP Alafua Group comprising representatives Nauru (PRAN) Campus, the Fiji School of Medicine, from PIFS, SPREP, SOPAC, WMO, the Fiji Institute of Technology and the Cook Islands (as the current Chair of The PRAN was developed pursuant to College of Micronesia. The breakdown the Regional Meteorological Service a directive from the Forum Leaders’ of current awards by country are as Directors F), Fiji Meteorological Service in 2004. It was designed to assist the follows; Fiji (3), FSM (1), Kiribati (2), and Australian Bureau of Meteorology. Government of Nauru in its financial Nauru (1), Niue (2), RMI (2), Samoa The TWG developed a roadmap and economic recovery and reform (1), Solomon Islands (4), Tuvalu (4) towards the implementation of the efforts as a result of unprecedented and Vanuatu (1). SIS Leaders directive which included financial and economic crisis. a consultancy commissioned by the 10th European Development Secretariat to consider options for the The Secretariat, with financial Fund provision of meteorological services contribution from several development in the region. The SIS Leaders in 2008 partners, supports Nauru in the The Secretary General as Regional in Niue discussed the report of this placement of a number of key experts Authorising Officer signed on 15th technical working and concluded that in several line positions in government November, 2008 the Regional Strategy the Secretariat, in close collaboration critical to the economic recovery of Paper and Regional Indicative with SPREP and SOPAC, continues Nauru. The positions supported in 2008 Programme for the 10th European with the search for a practical regional under PRAN include; Secretary Foreign Development Fund (EDF), together collaborative solution to build the Affairs; Planning Specialist; Secretary with the EC Commissioner for resilience of the Pacific region in for Justice; Resident Magistrate; and Development Luis Michel. The 10th monitoring the weather and climate a Resource Specialist. EDF has a financial envelop amounting extremes. to 95 million euro for the period of 2008 Special Purpose Funds to 20013 and allocated to two focal SIS Pacific Plan Desk Officers areas namely the regional economic The Secretariat through its strategic integration (45 million euro) and the The Secretariat continues to support partnerships programme is also sustainable management of natural the positions of the Pacific Plan desk responsible for the coordination and resources and the environment (40 officers for the SIS. The desk officers’ management of several funds with million eoru). There is also a non focal positions in Nauru and RMI were the specific purposes, provided to the area to support the participation of non only two positions that were vacant Secretariat on trust for the benefits of state actors and capacity building during the year but attempts will be member countries. These include the measures with an allocation of 10 made to fill these positions in 2009. European Development Fund Technical million euro. The Secretariat, and the other CROP Cooperation Facility; Japan-Pacific agencies and the SIS governments Islands Development Cooperation The programming stage of the 10th have continued to benefit directly from Facility; Short Term Advisory Service; EDF will intensify in 2009 with funding the services of these desk offices. Forum Secretariat Fellowship Scheme; under the new cycle of EU funding These desk offices have continued the Taiwan/Republic of China-Pacific expected towards end of 2009. The to provide an invaluable link with the Islands Forum Scholarship Scheme; office of the Secretary General countries and the CROP agencies, and the Regional Natural Disaster continues to be the Regional Authorising and support the capacities of the SIS Relief Fund.

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Officer under 10th EDF and is supported by the TA Support Unit to the RAO. Media Unit

The Media Unit, staffed by two Media Officers, continues to build understanding and support, and maintain a positive image for the Forum and the Forum Secretariat. The means for disseminating information include the Secretariat’s website: www.forumsec.org, a quarterly publication, Niu Pasifika with a focus on the implementation of the Pacific Plan, a monthly radio programme, the Forum Report; press statements and other promotional materials. The Unit also coordinated the printing of the 2007 PIFS annual report and the 2009 PIFS Diary. A survey was conducted towards the end of the year with the users of the website and the findings will be used for an upgrade of the site in 2009. A survey was also conducted on the monthly radio programme earlier in the year and recommendations have been implemented including more coverage on what other CROP agencies are doing and news snippets at the end of each programme. The Media Unit assisted the Pacific Islands News Association (PINA) coordinate the Forum Media Workshop held during the Forum Leaders’ meeting in August in Niue. Work has also started on developing a communication strategy for PIFS which is expected to be ready in 2009.

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Corporate Services

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Corporate Services Staff 2008

The Corporate Services Programme and resources, we are committed to A new Corporate Plan was plays a crucial role in the delivery developing a healthy work environment developed in consultation with of the Forum Secretariat’s services that stimulates productivity, strengthens members and other stakeholders to members through providing the communication and supports for the five year period 2008 to organisation with a full range of teamwork. 2012. The new plan streamlined services in the areas of Organisational and rationalised the previous Development, HR and Administration, The year has been one of nine programmes into four Financial Services, Information institutional strengthening through more focused and strategic Services, Information Technology and a series of strategic corporate programmes: two in the areas of Property Services. The Corporate reforms to refocus the energy and economic governance, and political Services Teams provide the support, commitment of the Secretariat to governance and security where the service and infrastructure necessary ensure continued effectiveness Forum Secretariat provides direct for the Forum Secretariat to pursue its and efficiency in the delivery of policy advice; the other two relate goals, while at the same time strive to services to members. to the regional coordination role improve what we do and how we do of the Secretariat and Corporate it. Although often constrained by time Services.

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Supporting the Corporate Plan, Secretariat more broadly as phase and procedures. A system for strategic plans were developed II of the implementation occurs in publishing the policies and for each of the four programmes, 2010. procedures on the intranet has namely: Economic Governance; been designed which will make the Political Governance and Security; Organisational development information readily accessible by Strategic Partnerships and through delivery of training staff and other stakeholders. Coordination; and Corporate continues to be a priority, with a Services. These are three year number of in-house workshops In Information Services, digitisation plans with set out priorities, detailed offered during the year covering: of the library and registry material objectives, outputs and activities project management; business and continues and is providing (with indicators and means of policy writing; customer services; opportunities for streamlining of verification) for implementation performance management processes as well as providing over a three-year timeframe, and including giving and receiving research material “on-the-desktop” include a three-year budget. feedback; time and stress for staff. Protecting our intellectual management; and communication property our intellectual property The 2009 annual work programme and presentation skills. In-house is paramount: new server was and budget formats were training is proving to be cost- purchased for storage of the digital redeveloped to provide more effective and participation rates are collection; and the depository clarity for members and stronger high. policy was developed and has linkages to both the new Corporate been implemented. Plan and the programme strategic A Corporate Lawyer has been plans. A framework for reporting taken on with the assistance of Communication internally and and monitoring against the plans VIDA (Volunteering for International externally has been strengthened was drafted and will form the basis Development from Australia). This through ongoing development for a new evaluation methodology has been a positive experience of our information technology for the Secretariat. for both the Secretariat and the infrastructure. Additional individual involved. bandwidth, at competitive rates, Further institutional strengthening has been purchased which has occurred through a review of the Improving what we do and how improved our access to the internet organisational structure to ensure we do it is a key area where and email. The internal network that the organisation had the human Corporate Services contributes has been reinforced with new resources required to implement to organisational effectiveness. switch gear and wireless access its plans; and the development of Significant progress was also to the internet is now available for a funding strategy to facilitate the made with respect to the detailed visitors to the Secretariat. necessary financial resources. documentation of the Secretariat’s finance policies and procedures, Three long serving staff retired At the operational level, significant which will be finalised with a review at the end of 2008, each with in opportunities for the Secretariat of the Finance regulations also excess of 30 years service. Their to enhance its financial planning, scheduled for 2010. A revision of contribution was celebrated at monitoring and reporting were the Secretariat’s Staff regulations the staff Christmas luncheon and realised through implementation was supported by the Forum we wish them a long and happy of a new finance and budgeting Officials Committee (FOC) at retirement with their family and system. This system will also its December meeting, paving friends. enhance productivity of not only the the way for a complete overhaul Finance Team but also across the of the associated HR policies

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2008 Audited Accounts

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Secretary General’s Statement

In the opinion of the Secretary General: (a) the accompanying consolidated income and expenditure statement is drawn up so as to give a true and fair view of the results of the organisation for the year ended 31 December 2008, (b) the accompanying balance sheet is drawn up so as to give a true and fair view of the state of the organisation’s affairs as at 31 December 2008, (c) the accompanying statement of changes in funds is drawn up so as to give a true and fair view of the movement in funds of the organisation for the year ended 31 December 2008, and (d) the accompanying statement of cash flows is drawn up so as to give a true and fair view of the cash flows of the organisation for the year ended 31 December 2008.

Dated at Suva this day of 2009

Tuiloma Neroni Slade Secretary General

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Consolidated Income and Expenditure Statement For the Year Ended 31 December 2008

Note 2008 revised 2008 actual 2007 actua l budget $ $ $ Income Contributions from Member Countries 2 3,471,979 3,502,979 3,502,979 Interest 586,671 471,640 732,378 Other income 3 726,082 236,691 238,488 Trust fund income 5 27,667,883 20,463,028 21,643,338 Benefits derived from property, plant and equipment - 310,304 337,940 32,452,615 24,984,642 26,455,123

Expenditure Economic Governance 12,004,785 12,339,891 8,491,128 Political and Security Governance 3,873,919 3,850,699 3,482,061 Policy Coordination and Advice 1,473,493 1,242,675 1,474,541 Stakeholder Coordination and Support - - 491,150 Strategic Partnerships 3,479,447 3,766,192 4,268,036 Special Projects 534,649 457,914 4,902,306 Corporate Services 2,979,189 2,481,479 2,267,378 Management of the Secretariat 1,375,924 1,507,136 1,406,486 25,721,406 25,645,956 26,783,086 6,731,209 (661,314) (327,963)

Transfer to Trust Fund - - (658,318) Foreign exchange (loss)/gain - (800,624) 229,997 Deficit of Income over Expenditure 6,731,209 (1,461,938) (756,284)

For the Notes, please refer to a copy of the 2008 Audited Accounts on the Forum Secretariat website; www.forumsec.org

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General Fund Income and Expenditure Statement For the Year Ended 31 December 2008

Note 2008 revised 2008 actual 2007 actual budget $ $ $ Income

Contributions from Member Countries 2 3,471,979 3,502,979 3,502,979 Interest 586,671 466,415 727,255 Other income 3 726,082 236,691 238,488 4,784,732 4,206,085 4,468,722

Expenditure Economic Governance 4(a) 105,581 102,024 112,352 Political and Security Governance 4(b) 75,187 76,770 97,746 Policy Coordination and Advice 4(c) 34,283 35,763 39,829 Stakeholder Coordination and Support 4(d) - - 110,954 Strategic Partnerships 4(e) 228,883 236,235 - Special Projects 4(f) 196,987 184,874 - Corporate Services 4(g) 2,767,887 1,959,873 1,929,498 Management of the Secretariat 4(h) 1,375,924 1,507,136 1,406,486 4,784,732 4,102,675 3,696,865

- 103,410 771,857

Transfer to Trust Fund - - 658,318 Foreign exchange (loss)/gain - (800,624) 229,997 Surplus/ (Deficit) of Income over Expenditure - (697,214) 343,536

For the Notes, please refer to a copy of the 2008 Audited Accounts on the Forum Secretariat website; www.forumsec.org

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Trust Fund Income and Expenditure Statement For the Year Ended 31 December 2008

Note 2008 revised 2008 actual 2007 actual budget $ $ $

Income Trust fund income 5 27,667,883 20,463,028 21,643,338 Benefits Derived from Property, Plant and Equipment 310,304 337,940 27,667,883 20,773,332 21,981,278

Expenditure Economic Governance 11,899,204 12,237,867 8,378,776 Political and Security Governance 3,798,732 3,773,899 3,384,315 Policy Coordination and Advice 1,439,210 1,206,912 1,434,712 Stakeholder Coordination and Support - - 380,196 Strategic Partnerships 3,250,564 3,529,957 4,268,036 Special Projects 337,662 273,040 4,902,306 Corporate Services 211,302 521,606 337,880 20,936,674 21,543,281 23,086,221

Deficit of Income over Expenditure 6,731,209 (769,949) (1,104,943)

For the Notes, please refer to a copy of the 2008 Audited Accounts on the Forum Secretariat website; www.forumsec.org

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Reserve Fund Income and Expenditure Statement For the Year Ended 31 December 2008

2008 2007 $ $

Income

Interest Earned 5,225 5,123

Total Income Received 5,225 5,123

Expenditure - -

Surplus of Income over Expenditure 5,225 5,123

For the Notes, please refer to a copy of the 2008 Audited Accounts on the Forum Secretariat website; www.forumsec.org

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Balance Sheet As at 31 December 2008

Note 2008 2007 $ $ Current Assets Cash at Bank and on Hand 6 11,350,998 12,290,394 Inventories 7 13,965 23,187 Receivables – Members 8 60,697 33,035 Other receivables and prepayments 9 385,523 349,692 Total Current Assets 11,811,183 12,696,308

Non-current Assets Property, plant and equipment 10 8,169,873 8,508,646 Intangible assets 11 162,670 - Total Non-current Assets 8,332,543 8,508,646 Total Assets 20,143,726 21,204,954 Current Liabilities Current Payables 12 1,828,803 1,127,243 Contributions Received in Advance – Trust Fund 13 8,624.696 9,394,645 Total Current Liabilities 10,453,499 10,521,888 Net Assets 9,690,227 10,683,066 Accumulated and Reserve Funds General Fund 2,905,386 3,602,600 Reserve Fund 266,456 261,231 Capital Reserve 6,518,385 6,819,235

Total Accumulated and Reserve Funds 9,690,227 10,683,066

Signed in accordance with a resolution of the Secretariat.

Tuiloma Neroni Slade Stephanie Jones Secretary General Director Corporate Services

For the Notes, please refer to a copy of the 2008 Audited Accounts on the Forum Secretariat website; www.forumsec.org

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Statement of Changes in Funds For the Year Ended 31 December 2008 2008 2007 $ $

General Fund Balance at the beginning of the year 3,602,600 3,259,064 Surplus (Deficit) of income over expenditure (697,214) 343,536 Balance at the end of the year 2,905,386 3,602,600

Reserve Fund Balance at the beginning of the year 261,231 256,108 Surplus of income over expenditure 5,225 5,123 Balance at the end of the year 266,456 261,231

Capital Reserve Balance at the beginning of the year 6,819,235 7,054,740 Purchase of XB assets 9,454 102,435 Depreciation expense (310,304) (337,940) Balance at the end of the year 6,518,385 6,819,235

This statement is to be read in conjunction with the notes to and forming part of these financial statements set out in a copy of the 2008 Audited Accounts on the Forum Secretariat website; www.forumsec.org

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Statement of Cash Flows For the year ended 31 December 2008

2008 2007 $ $ Cash Flows from operating activities Contributions from member countries 3,336,735 2,279,734 Trust Fund Income 20,463,028 19,647,574 Programme and project costs (20,933,158) (22,340,851) Other operational costs (3,352,459) (4,953,577) Interest received 458,292 872,785 Rent and other income 347,564 806,328 Realised exchange gain (loss) 16,184 -

Net cash flow from operating activities 336,186 (3,688,007)

Cash flows from investing activities Proceeds from sale of property, plant and equipment - 3,000 Payments for property, plant and equipment (458,774) (314,553)

Net cash outflow from investing activities (458,774) (311,553) Effect on exchange rate changes (816,808) 229,997 Net decrease in cash held (939,396) (3,769,563) Cash at the beginning of the year 12,290,394 16,059,957 Cash at the end of the year 11,350,998 12,290,394

This statement is to be read in conjunction with the notes to and forming part of these financial statements set out in a copy of the 2008 Audited Accounts on the Forum Secretariat website; www.forumsec.org

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Notes

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Notes

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