20 ANNUAL 10 REPORT CONTENTS Motto, Leaders Vision and Mission ....................................... 1 Secretary General’s Introduction ........................................... 4 The Pacific Islands Forum ...................................................... 7 Political Governance & Security Programme ........................ 9 Economic Governance Programme ..................................... 21 Strategic Partnership and Coordination Programme .......... 25 Corporate Services .............................................................. 37 Audited Financials 2010 ....................................................... 41 MOTTO Excelling Together for the People of the Pacific LEADERS’ VISION “Leaders believe the Pacific region can, should and will be a region of peace, harmony, security and economic prosperity, so that all of its people can lead free and worthwhile lives. “We treasure the diversity of the Pacific and seek a future in which its cultures, traditions and religious beliefs are valued, honoured and developed. “We seek a Pacific region that is respected for the quality of its governance, the sustainable management of its resources, the full observance of democratic values and for its defence and promotion of human rights. “We seek partnerships with our neighbours and beyond to develop our knowledge, to improve our communications and to ensure a sustainable economic existence for all.” PAGE 1 PACIFIC ISLANDS FORUM SECRETARIAT 2010 ANNUAL REPORT LEFT 2010 Pacific Islands Forum Leaders with Secretary General, Pacific Islands Forum Secretariat RIGHT Forum Secretariat Senior Management Team 2010 (absent Feleti Teo) MISSION, GOALS & ROLES Our mission is to ensure the effective implementation of the Leaders’ decisions for the benefit of the people of the Pacific. Our goals are to stimulate economic growth and enhance political governance and security for the region, through the provision of policy advice; and to strengthen regional cooperation and integration through coordinating, monitoring and evaluating implementation of Leaders’ decisions. In achieving these Goals, the Primary Roles of the Forum Secretariat, as set out in the 2005 Agreement Establishing the Pacific Islands Forum, are to provide: • Policy advice and guidance in implementing the decisions of the Leaders • Coordination and assistance in implementing the decisions of the Leaders • Support to the Leaders’ meetings, ministerial meetings, and associated committees and working groups PACIFICEXCELLING ISLANDS TOGETHER FORUM SECRETARIATFOR THE PEOPLE 2010 OF ANNUAL THE PACIFIC REPORT PAGE 2 PACIFIC ISLANDS FORUM SECRETARIAT STAFF 2010 *Photographs in this publication are from the Forum Secretariat, the Secretariat of the Pacific Community and the Regional Assistance Mission to Solomon Islands. PAGE 3 PACIFIC ISLANDS FORUM SECRETARIAT 2010 ANNUAL REPORT SECRETARY GENERAL’S INTRODUCTION Pacific countries faced major challenges during 2010 affecting directly efforts to pursue development aspirations and the quest for improving the lives of their communities. The obstacles notwithstanding, it is pleasing to note in this Annual Report a range of positive results in the implementation of Forum Leaders’ mandates. The effects of the global financial and economic crises and the associated high costs of fuel and food as well as the impacts of climate change continued to register their mark on the economies of countries throughout the region. While economic recovery was experienced in much of the world, the results were mixed in the Pacific. Higher expenditure for food and fuel put inflationary pressure on prices, making it more difficult for communities to afford basic goods. Overall, resource rich countries registered economic improvements, while other countries experienced lower levels of growth. Important meetings were held in the region during 2010 in an attempt to address the multiple challenges, including the Pacific High Level Dialogue on the Five Year Review of the Mauritius Strategy for the further implementation of the Barbados Plan of Action, the Pacific Conference on the Human Face of the Global Economic Crisis and the Pacific Food Summit. At the Pacific Conference on the Global Economic Crisis, held in Vanuatu in February 2010, Pacific Leaders discussed the impact of the crisis on Pacific island communities and the region’s development. Leaders recognised the broader social impacts of the crisis on families, stresses on the delivery of essential health and education services, efforts to alleviate poverty and the region’s progress in achieving the Millennium Development Goals (MDGs). The conference discussions and outcomes necessarily set the direction for the Secretariat’s work programme in 2010, especially with respect to the range of initiatives to help improve Forum island countries’ (FICs) economic, trade and EXCELLING TOGETHER FOR THE PEOPLE OF THE PACIFIC PAGE 4 intellectual property frameworks and to help provide them with stronger economic foundations in the face of continued economic challenges. The Secretariat was able to strengthen its work to promote trade and support private sector development in FICs, improving the performance of its four trade offices in Auckland, Beijing, Sydney and Tokyo, and coordinated the first private sector dialogue with Forum Leaders at the Leaders’ meeting in Port Vila, Vanuatu in August 2010. A particular focus of the technical work and trade policy undertaken in 2010 was on making progress in the Economic Partnership Agreement (EPA) negotiations with the European Union. Negotiations continued on the PACER Plus arrangement with Australia and New Zealand, and good progress was made on the Pacific Island Countries Trade Agreement (PICTA) and the work on trade in services. The 10th anniversary of the Biketawa Declaration was celebrated with a major photographic exhibition on the work of the Regional Assistance Mission to Solomon Islands (RAMSI) which was officially launched by the Prime Minister of Vanuatu as Forum Chair at the Forum Leaders’ meeting in Port Vila in August. RAMSI was the first Mission undertaken under the Biketawa Declaration and it represents a unique and highly effective operation which is seen internationally as an innovative response by the Forum region to the difficult challenges of crisis management and resolution. Its success under the Biketawa Declaration continues to draw on the support of all Forum member countries, and RAMSI remains an outstanding demonstration of what can be achieved through committed and well calibrated regional cooperation in times of crisis. The situation in Fiji continued to be a great concern for all Forum members during the year. The Forum Ministerial Contact Group (MCG) on Fiji, which was mandated by Forum Leaders to monitor the situation, was unable to visit Fiji during the year despite an invitation issued by Fiji’s Foreign Minister at the MCG meeting in Auckland in May 2010. Nevertheless, the Group submitted a report on the situation in Fiji to Forum Leaders at their meeting in Port Vila. In their response, Leaders highlighted the clear commitment of all Forum members to continue to offer Fiji assistance in addressing its challenges and to encourage full restoration of parliamentary democracy The 41st Pacific Islands Forum in Vanuatu provided clear mandates and essential guidance on climate change financing, strengthening development coordination in the Pacific, maximising returns from fisheries resources, supporting Pacific peoples with disabilities and advancing trade and economic integration in the region. Forum Leaders also adopted the Port Vila Declaration signalling their continued commitment to accelerating progress on the achievement of the MDGs. PAGE 5 PACIFIC ISLANDS FORUM SECRETARIAT 2010 ANNUAL REPORT The implementation of the Pacific Plan during 2010, its fifth year of operation, remains a principal focus for the Forum Secretariat and for all other CROP organisations, in particular with respect to the key priorities of the Pacific Plan for the period 2010 to 2013. There was considerable and committed effort employed in the implementation of the Forum Compact on Strengthening Development Cooperation which was adopted by Forum Leaders in Cairns in 2009. The challenges encountered, in what was the Compact’s first year of field operation, were almost inevitable. Still, important and very pleasing results were achieved in 2010. Two related reports, the 2010 Pacific Regional MDGs Tracking Report and the 2010 Tracking the Effectiveness of Development Efforts Report were developed by the Forum Secretariat in consultation with Forum member countries and development partners. The Pacific Regional MDGs Tracking Report was also launched at the United Nations High Level Summit on the MDGs in New York in September 2010. The Secretariat continues to pay particular attention to the maintenance and strengthening of its professional and corporate standards and culture to ensure the efficiency and improvement of its corporate arrangements and staff performance in the delivery of services for member countries. The Secretariat’s work programme for the year and the specific tasks implemented are covered in detail in the Report. What was undertaken in 2010, and the results achieved, reflect directly on the value of working together as a region. On behalf of all staff of the Forum Secretariat I take the opportunity to extend to all Forum member countries our deep gratitude for guidance and for the support so readily provided at all times. We have been particularly