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A Review of New Zealand Policy Toward the Cook Islands, Niue, Tokelau, Kiribati and Tuvalu

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A Review of New Zealand Policy Toward the Cook Islands, Niue, Tokelau, Kiribati and Tuvalu New Zealand and its Small Island Neighbours: A Review of New Zealand Policy Toward the Cook Islands, Niue, Tokelau, Kiribati and Tuvalu I.G. Bertram and R.F. Watters INSTITUTE OF POLICY STUDIES WORKING PAPER 84/01 October 1984 INSTITUTE OF POLICY New Zealand and its Small Island Neighbours: A STUDIES WORKING Review of New Zealand Policy Toward the Cook PAPER Islands, Niue, Tokelau, Kiribati and Tuvalu 84/01 MONTH/YEAR October 1984 AUTHORS I.G. Bertram and R.F. Watters [email protected] [email protected] ACKNOWLE- DGEMENTS School of Government INSTITUTE OF POLICY Victoria University of Wellington STUDIES Level 5 Railway Station Building Bunny Street Wellington NEW ZEALAND PO Box 600 Wellington NEW ZEALAND Email: [email protected] Phone: + 64 4 463 5307 Fax: + 64 4 463 7413 Website www.ips.ac.nz The views, opinions, findings, and conclusions or DISCLAIMER recommendations expressed in this Working Paper are strictly those of the author. They do not necessarily reflect the views of the Institute of Policy Studies, the School of Government or Victoria University of Wellington. The aforementioned take no responsibility for any errors or omissions in, or for the correctness of, the information contained in these working papers. The paper is presented not as policy, but with a view to inform and stimulate wider debate. New Zealand and its Small Island Neighbours: A Review of New Zealand Policy Toward the Cook Islands, Niue, Tokelau, Kiribati and Tuvalu In 1984 the Ministry of Foreign affairs and trade commissioned the Institute of Policy Studies to conduct a wide-ranging review of New Zealand policy in the South Pacific. Five cases were selected for study: three sub-national jurisdictions linked to New Zealand (Cook Islands, Niue and Tokelau) and two sovereign independent nations (Kiribati and Tuvalu). The report draws together the results of extensive field research, a major literature review, long-run data analysis, and over 150 interviews with key informants. Its analysis of economic development and aid led to the original formulation of the now-familiar and widely-cited “MIRAB” (migration-remittances- aid-bureaucracy) model of economic development in small islands. After analysing the issues surrounding constitutional evolution of New Zealand’s former island territories in the Pacific, the report proposed a revival of the concept of sub-national jurisdictions in the small-island context, and identified the risks associated with emergence of an opportunistic political elite in the process of “decolonisation”. NEW ZEALAND AND ITS SMALL ISLAND NEIGHBOURS A Review of New Zealand Policy toward the Cook Islands, Niue, Tokelau, Kiribati and Tuvalu I.G. BERTRAM AND R.F. WATTERS INSTITUTE OF POLICY STUDIES VICTORIA UNIVERSITY OF WELLINGTON WELLINGTON 1984 RESEARCH TEAM Ray Watters and Geoffrey Bertram were assisted by: Perry Bayer Michael Bodensteiner David Booth Matthew Everett Carolyn Kelly Chapter 15 was written by Tom Kennedy SOUTH PACIFIC COMMITTEE INSTITUTE OF POLICY STUDIES Mr K.W. Piddington, Commissioner for the Environment (Chairman) Dr I.A.M. Prior, Director, Epidemiology Unit, Wellington Hospital Mr C.D. Beeby, Assistant Secretary, Ministry of Foreign Affairs Mr S. Muliaumasealii, Barrister and solicitor Sir Frank Holmes, Victoria University Associate Professor R.F. Watters, Geography Department, Victoria University Dr I.G. Bertram, Senior Lecturer, Economics Department, Victoria University Mr M.J.C. Templeton, Director, Institute of Policy Studies, Victoria University Mr P.J. Hall, Director of Administration, Institute of Policy Studies, Victoria University NEW ZEALAND AND ITS SMALL ISLAND NEIGHBOURS A Review of New Zealand Policy toward the Cook Islands, Niue, Tokelau, Kiribati and Tuvalu I.G. BERTRAM AND R.F.WATTERS INSTITUTE OF POLICY STUDIES VICTORIA UNIVERSITY OF WELLINGTON WELLINGTON 1984 TABLE OF CONTENTS CHAPTER PAGE PART ONE: Background and Basic Issues 1. New Zealand in the South Pacific 1 2. The Island States: Population, Area and Society 21 3. Decolonisation and Nationhood 31 4. Agriculture and the Village Mode of Production 75 5. Development, Dependence and Viability 82 PART TWO: Country Studies 6. The Cook Islands 129 7. Niue 183 8. Tokelau 210 9. Kiribati 238 10. Tuvalu 264 PART THREE: Some Policy Areas 11. Political Affairs 298 12. Defence 313 13. Shipping, Industrial Development and Trade Access 332 14. Fisheries 350 15. Education 361 16. Aid in Development 373 PART FOUR: Conclusions 17. The Wider Pacific Scene 403 18. Conclusions and Recommendations 406 Appendix 1 Coconut Replanting in Tokelau 413 Appendix 2 Improved Communication: the Construction of Airstrips in Tokelau 415 References 416 Chapter Summaries i List of People Interviewed lx Bibliography lxviii DETAILED TABLE OF CONTENTS CHAPTER PAGE PART ONE: Background and Basic Issues 1. New Zealand in the South Pacific 1 1.1 Introduction 1 1.2 International and regional background 3 1.3 Review of trends over past thirty years 6 1.4 Cook Islands 6 1.5 Social and constitutional development 7 1.6 Western Samoa 8 1.7 Niue 9 1.8 Tokelau 9 1.9 Regional developments 10 1.10 Assessment of New Zealand’s policies 13 1.11 The objectives of New Zealand policy 16 2. The Island States: Population, Area and Society 21 2.1 Introduction 21 2.2 Size of the Island states 21 2.3 Societies 29 3. Decolonisation and Nationhood 31 3.1 Introduction 31 3.2 Decolonisation 33 3.3 The alternatives 36 3.4 Why not integration? 40 3.5 Why not independence? 49 3.6 The concept of free association 57 3.7 Rethinking free association 66 3.8 Some final policy notes 71 3.9 Postscript: Tuvalu independence 73 4. Agriculture and the Village Mode of Production 75 4.1 Introduction 75 4.2 Is agriculture to blame? 75 4.3 Subsistence affluence 76 4.4 Agricultural enterprise 76 4.5 The South Pacific agricultural survey 77 4.6 The village mode of production 77 4.7 Evolution of the MIRAB economy 80 4.8 An emerging “smallholder plantation” mode? 80 4.9 Interests of Government and individuals are different 81 5. Development, Dependence and Viability 82 5.1 Introduction 82 5.2 Goals of policy 84 5.4 Import affluence and the “jaws effect” 88 5.5 The “widening of the jaws” effect 95 5.5 Differences in the five economies 102 5.6 Official culture and “development” policy 106 5.7 Dualist policy dilemmas 110 5.8 Why dependence does not matter 116 5.9 Politics and economics again 124 PART TWO: Country Studies 6. The Cook Islands 129 6.1 Introduction 129 6.2 Society 130 6.3 Birth of the “MIRAB” society 133 6.4 Population and migration 135 6.5 The effects of migration 139 6.6 The economy 143 6.7 Structural long-run trends 144 6.8 Labour force and occupation structure 145 6.9 Export and import trade and the economy 147 6.10 Export production and earnings 149 6.11 Apparel industry 152 6.12 Agriculture 154 6.13 Distorted, uneconomic production systems 154 6.14 Citrus 154 6.15 Pineapples 159 6.16 Bananas 160 6.17 Air freight production 162 6.18 Agricultural policy 164 6.19 Institutions 165 6.20 Remittances from New Zealand 167 6.21 Official flows 171 6.22 Tourism 173 6.23 Estimating the balance of payments 174 6.24 Some notes on economic policy 179 7. Niue 183 7.1 The Niuean malaise 183 7.2 Society 183 7.3 Environment 184 7.4 Soils 184 7.5 Climate 185 7.6 Water supplies 185 7.7 The characteristics of agriculture 187 7.8 Passionfruit 187 7.9 Some comments on exports and imports 1944-1971 190 7.10 Agricultural policy 192 7.11 Niue as part of the New Zealand economy 193 7.12 An outlet for Tongan migration? 194 7.13 The case for radical surgery 194 7.14 Population 195 7.15 A view of the migration process 199 7.16 Balance of payments 200 7.17 New Zealand subsidies – the driving force of the economy 200 7.18 Aid and productive activity 201 7.19 Philatelic sales and financial accountability 201 7.20 The Government sector 202 7.21 Danger of inappropriate policies 205 7.22 A retrospective view of constitutional and political change 205 7.23 Issue for the future 207 8. Tokelau 210 8.1 Limited room for manoeuvre 210 8.2 Population 212 8.3 The role of the Tokelau community in New Zealand 212 8.4 Economic and social trends 216 8.5 Quality and usefulness of Tokelau statistics 221 8.6 “Administrative decolonisation” 223 8.7 The Olohega case 233 8.8 Time for a pause, rethinking and improved communication? 236 9. Kiribati 238 9.1 Population 238 9.2 The economy 241 9.3 Consumption 244 9.4 Development strategy 245 9.5 Diversification of exports 246 9.6 Incomes 246 9.7 Priorities of the Fifth Development Plan 247 9.8 Employment 248 9.9 Balanced development 249 9.10 The copra industry 250 9.11 Low nutrient status of soils 251 9.12 Coconut timber project 253 9.13 Fisheries 254 9.14 Artisanal fishing 255 9.15 Shipping 255 9.16 The Cooperative movement 256 9.17 Telecommunications 257 9.18 Christmas Island 258 9.19 The “modernisation” of the Abemama economy: the growth of dependency 259 9.20 Population policy 262 9.21 resettlement 262 9.22 The future a retreat into subsistence? 262 10. Tuvalu 264 10.1 Society 264 10.2 Resources 264 10.3 Political resources and constitutional factors 265 10.4 The independence settlement 266 10.5 Goals of development 266 10.6 Economic viability 267 10.7 Population 268 10.8 The Tuvalu economy 271 10.9 Fisheries 275 10.10 Copra and motivation 276 10.11 Soil nutrient deficiencies 277 10.12 Local cash crops 278 10.13 Natural resources 278 10.14 Philatelic sales and handicrafts 278 10.15 Employment 279 10.16 Export of labour 279 10.17 Overseas labour and remittances 280 10.18 The absence of trade unions 281 10.19 Enterprise 281 10.20 Cooperatives (Fusi) 282 10.21 The Fusi and nutrition 283 10.22 Importing and procurement 284 10.23 Shipping 285 10.24 Health and nutrition 285 10.25 Current Government strategy 287 10.26 Revenue and expenditure 288 10.37 Import substitution 288 10.28 Aid 289 10.29 The internal air service 290 10.30 International air transport 291 10.31 Technological change, training and self-sufficiency 292 10.32 Pattern of New Zealand aid and the local context 293 10.33 The question of budget aid 295 10.34 Conclusion 296 PART THREE: Some Policy Areas 11.
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