22 June 2015

West Papua ties on Melanesian Spearhead Group Summit Agenda

Map of west papua
  1. West Papua or Western New Guinea was annexed by Indonesia from the Netherlands in 1969, which till then had been occupied by the Dutch, and is the western half of the island of New Guinea and smaller islands to its west. (Wikipedia)  Area: 162,371 mi² (420,540 km²)




By Nic Maclellan in Honiara

Solomon Islands Foreign Minister Milner Tozaka welcomed Melanesian Spearhead Group (MSG) delegations to Honiara, as MSG Foreign Ministers met in the lead up to this week’s MSG leaders’ summit.

Stating that “a strong and vibrant Melanesia is our objective,” Tozaka took over as chair the MSG Foreign Ministers Meeting from Caroline Machoro-Reignier of New Caledonia’s FLNKS independence movement.

In the opening ceremony, MSG Secretariat Director General Peter Forau noted a series of achievements since the last regional summit, including extensive work for the expansion of the MSG Trade Agreement, the MSG’s monitoring mission for the September 2014 national elections in Fiji, and the successful 5th Melanesian Festival of the Arts, held in Papua New Guinea.

The last MSG summit in Noumea in 2013 approved a “2038 Prosperity for All Plan”, charting the next 25 years of economic, social and environmental development across Melanesia. After two years of preparation by the MSG Secretariat in Port Vila, an implementation plan for this overarching strategy will be presented to leaders for endorsement this week.

The MSG Secretariat has also completed studies to address the economic vulnerability of MSG member states, highlighted by the devastation of Cyclone Pam in Vanuatu. These include studies for an Emergency Stabilisation Fund, and a scoping study on an MSG Development and Investment Fund.

Forau also noted that the issue of West Papua looms large on this week’s agenda, stating: “The world and our region are looking at us.”

In his opening address, Foreign Minister Tozaka noted that according to the Establishment Agreement of the MSG, “decisions are based on consensus. This means nothing is agreed unless everyone agrees.”

This art of consensus building will be sorely tested during this week’s crucial debate on West Papua. In the weeks leading up to the summit, statements from MSG leaders have highlighted clear divisions over relations with Indonesia and the United Liberation Movement of West Papua (ULMWP) – a coalition of West Papuan nationalist organisations that is seeking membership of the MSG.

Later this week, MSG leaders will have to decide on applications from Jakarta to upgrade its 2011 observer status to associate member, as well as the ULM’s bid for full membership. As delegations continue to arrive in Honiara, there is still lots of lobbying in the corridors.
As Chair of the FMM, Tozaka briefly opened Monday’s meeting to allow a delegation from the ULM to present a petition to the assembled ministers and officials. The petition, with 150,000 signatures collected across West Papua over the last four months, endorses the ULMWP’s membership bid.

ULM spokesperson Benny Wenda said the petition, collected by church, student, women’s and political groups, was received with “warm hearts” by the MSG foreign ministers.
“Today is a historic day, as the leaders have allowed us to bring these petitions on behalf of the people of West Papua,” he said. “We hope now the leaders can decide on our future.”

With an Indonesian delegation also present in Honiara to press Jakarta’s case, there will be further debate on the membership applications in coming days. The final decision will be taken by the MSG leaders, including Fiji’s Voreqe Bainimarama, PNG’s Peter O’Neill and New Caledonia’s Victor Tutugoro, who are scheduled to arrive in Honiara before Wednesday’s official opening of the leaders’ summit.


European Union releases world tax havens blacklist

The Economic Times



The list of 30 territories includes Hong Kong and Brunei in Asia, Monaco, Andorra and Guernsey in Europe and a series of Caribbean havens including the Cayman Islands and British Virgin Islands.
The list of 30 territories includes Hong Kong and Brunei in Asia, Monaco, Andorra and Guernsey in Europe and a series of Caribbean havens including the Cayman Islands and British Virgin Islands.

BRUSSELS: 

The European Union published its first list of international tax havens on Wednesday as part of a crackdown on multinational companies trying to avoid paying tax in the 28-nation bloc. 


The list of 30 territories includes Hong Kong and Brunei in Asia, Monaco, Andorra and Guernsey in Europe and a series of Caribbean havens including the Cayman Islands and British Virgin Islands. 

The European Commission proposals also include reforms to end sweetheart tax deals following a series of investigations into arrangements between EU countries and firms including Amazon, Apple and Starbucks. 

"We are today publishing the top 30 non-cooperative jurisdictions consisting of those countries or territories that feature on at least 10 member states' blacklists," EU Economic Affairs Commissioner Pierre Moscovici told a news conference. 

The former French finance minister said the publication of the blacklist was a "decisive step" that would "push non-cooperative non-EU jurisdictions to be more cooperative and adopt international standards." 

The full list is: Andorra, Liechtenstein, Guernsey, Monaco, Mauritius, Liberia, Seychelles, Brunei, Hong Kong, Maldives, Cook Islands, Nauru, Niue, Marshall Islands, Vanuatu, Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Grenada, Montserrat, Panama, St Vincent and the Grenadines, St Kitts and Nevis, Turks and Caicos, US Virgin Islands. 

But critics say the publication of the list risks being seen as an attempt to distract from the EU's need to tackle its own issues with tax avoidance. 

Wednesday's tax proposals are a response to the so-called "LuxLeaks" scandal that exposed deals with the tiny EU state of Luxembourg that saved some of the world's largest companies, including Apple, IKEA and Pepsi, billions of dollars in taxes. 

The dealings in Luxembourg have been particularly embarrassing for Jean-Claude Juncker, now the head of the European Commission, who was the small duchy's premier when the deals were made. 

The EU is also looking to build on existing probes into the tax dealings of Apple in Ireland, Starbucks in the Netherlands and Amazon and Fiat in the Luxembourg. 

"Corporate taxation in the EU needs radical reform," Moscovici said as he unveiled the plan. "Member States need to pull together and everyone must pay their fair share."

21 June 2015

IMF Executive Board Concludes 2015 Article IV Consultation with the Federated States of Micronesia




On May 11, the Executive Board of the International Monetary Fund (IMF) concluded the 2015 Article IV consultation1 with the Federated States of Micronesia (FSM).
Micronesia’s economy is stagnating, as externally-funded infrastructure projects are moving slowly while difficulties in the business climate, in particular those related to land tenure issues, continue to hold back private sector development. Staff estimates real GDP growth of around 0.1 percent for the fiscal year 2014 (ending September), while inflation has dropped to 0.7 percent on the back of falling oil prices. The current account strengthened in to 2½ percent of GDP in 2014, due mostly to a one-off increase in tax revenues and an increase in fishing license fees. Growth in 2015 is projected to remain subdued at 0.3 percent, while consumer prices are projected to further decline to -1.0 percent thanks to the continued pass through of low oil prices.
The Micronesian economy is projected to grow at 0.6 percent in the medium term, while risks on the outlook are tilted to the downside. The expiration in 2023 of grants provided under the Compact of Free Association with the United States is a significant challenge for Micronesia, requiring the country to implement wide-ranging reforms to enhance fiscal sustainability and private sector growth. Damages caused by the recent Typhoon Maysak have revealed again Micronesia’s vulnerability to tropical cyclones, while disaster assistance arrangements with the United States help the nation to recover from those damages.
Some reforms have been started recently, in particular, fiscal consolidation efforts by the state governments under the Long-Term Fiscal Frameworks (LTFF) and the establishment of the Unified Revenue Authority (URA). A new legislation on credit unions is being prepared to extend the supervisory authority of the Banking Board. The recently produced “2023 Action Plan” shows further policy actions that are required, including the implementation of the tax reform package and regulatory reforms. Most of these policy actions will require legislative measures – hence the critical importance in achieving a wide consensus in a nation with a loosely federated structure.
Executive Board Assessment2
Executive Directors noted that medium-term growth prospects in the Federated States of Micronesia (FSM) remain weak given sluggish private sector activity, while fiscal challenges loom ahead, in particular, with the expiration of Compact grants in 2023. They also expressed concern about the impact of the damage caused by Typhoon Maysak in April, notwithstanding the provision of emergency assistance by the international community. Directors stressed the importance of critical fiscal and structural reforms to help lift the economy’s growth prospects and achieve fiscal sustainability beyond the expiration of the Compact grants.
Directors called for the formulation of a realistic long-term fiscal framework based on a wide consensus across the national and four state governments, with a view to achieving budgetary self-reliance in the post-2023 period. While commending recent progress—including the establishment of the Unified Revenue Authority, the transfer of the 2014 fiscal surplus to the FSM trust fund, and the start of the Long-Term Fiscal Framework by the state governments—Directors encouraged the authorities to redouble their efforts in strengthening fiscal consolidation. They advised swift implementation of the long-debated tax reform package, in order to raise the revenue-to-GDP ratio closer to regional averages. Directors also noted the scope for improved prioritization of public spending, including through wage moderation and expedited implementation of an updated infrastructure development plan.
Directors emphasized that improving the investment climate is key to achieving private-sector-led growth in the FSM. They encouraged the authorities to undertake growth-enhancing policy actions, particularly by addressing land tenure issues through land surveys and registration. Efforts to strengthen investor protection and contract enforcement, and expedited investment application approvals would also help to attract foreign direct investment. In this regard, attention should be paid to safeguarding FSM’s cultural heritage and pristine environment. Directors also supported greater bank credit expansion, including to SMEs, in order to help boost economic activity and promote diversified growth. They noted that business skills of SMEs should be strengthened to support formulation of more bankable business projects.
Directors agreed that expanding regulatory oversight of credit unions would help to preserve financial stability. They supported the authorities’ efforts to prepare a new Credit Union Act that places credit unions under the supervision of the Banking Board, with technical assistance from the Pacific Financial Technical Assistance Centre(PFTAC).
Directors encouraged the authorities to redouble efforts to strengthen the capacity to produce timely economic statistics, with technical assistance from the Fund and other donors.
Micronesia: Selected Economic Indicators, FY2010–15 /1
Nominal GDP (FY2013):
US$315 million
Population (FY2013):
103,679
GDP per capita (FY2013):
US$3,034
IMF Quota:
SDR 5.1 million

FY2010
FY2011
FY2012
FY2013
FY2014
FY2015



Est.Proj.
Real sector (annual percent change)






Real GDP

3.21.80.1-4.00.10.3
Consumer prices

3.74.36.32.10.7-1.0
Employment

3.91.7-2.6-2.00.00.1
Public (incl. public enterprises)
1.1-0.4-0.8-0.70.00.0
Private

7.13.8-4.8-3.90.10.2
Nominal wages

2.70.43.81.61.81.9
public average wage/private average wage
2.22.12.02.02.02.0
Consolidated government finance (in percent of GDP)
Revenue and grants

68.265.066.062.368.661.9
Revenue

21.620.822.926.837.430.9
Grants 2/

46.644.343.135.531.231.0
Expenditure

67.865.665.359.656.159.0
Current

46.945.644.245.946.045.5
Capital

20.820.021.113.710.113.6
Overall balance

0.5-0.60.82.812.52.8
Overall balance (exc. Grants)
-46.1-44.8-42.4-32.8-18.7-28.2
Commercial banks (in percentage of GDP; end of period)
Loans

19.017.917.417.218.0…
Deposits

52.553.862.767.875.4…
Interest rates (in percent, average for FY)
Consumer loans

14.914.414.215.715.7…
Commercial loans

6.66.66.46.46.4…
Balance of payments (in millions of U.S. dollars)
Trade balance

-128.4-134.0-125.7-131.1-129.2-119.1
Net services and income

-29.8-32.5-25.8-11.75.55.6
Private and official transfers

113.8111.2110.3111.1131.7111.4
Current account

-44.4-55.3-41.2-31.68.0-2.1
(in percent of GDP)

-15.1-17.9-12.6-10.12.5-0.7
Current account excluding official transfers
-153.4-158.9-142.5-129.6-89.6-99.4
(in percent of GDP)

-52.2-51.4-43.7-41.2-28.5-31.5
External debt (in millions of U.S. dollars; end of period) 3/
Stock

86.489.890.385.283.083.7
(in percent of GDP)

29.429.127.727.126.426.5
Debt service

4.45.05.15.97.17.0
(in percent of exports of goods and services)
6.36.75.36.77.98.0
Exchange rate regime

U.S. dollar is the official currency
Real effective exchange rate 4/
109.9109.5112.4115.1115.8n.a.
Sources: FSM authorities and IMF staff estimates.






1/ Fiscal year ending September 30.
2/ Excludes grants to the Compact Trust Fund.
3/ Government and public enterprise debt only.
4/ Calendar year. 2003=100.

1 Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
2 At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country's authorities. An explanation of any qualifiers used in summings up can be found here: http://www.imf.org/external/np/sec/misc/qualifiers.htm.

19 June 2015

Marshall Islands advocate for nuclear test victims honoured in Taiwan



Logo



ps-darlene keju wcc canada 1983 425wide


The late Darlene Keju … a pioneering Pacific legacy. Image: WCC


Pacific Scoop:
Report – By Pacific Media Watch [2]

Nineteen years after her death from cancer, Marshall Islander Darlene Keju has been honored in Taiwan with the Global Love of Lives award from a Taipei non-profit foundation.

The Chou Ta-Kuan Educational and Cultural Foundation is honoring 19 people from around the world in an annual ceremony launched 18 years ago following the death of the foundation’s namesake, a Taiwanese boy who died at 10 from cancer.

Keju exposed a United States cover up of nuclear test-caused health problems in her islands and later formed the internationally recognised non-profit group Youth to Youth in Health in the Marshall Islands.

She was represented in Taiwan by Marshall Islands Journal newspaper editor Giff Johnson, her husband of 14 years.

The Chou Ta-Kuan Foundation described Keju as “the Environmental Godmother” of the Marshall Islands who revealed the story of the 67 US nuclear weapons tests at Bikini and Enewetak to protect the safety and health of Marshall Islanders.

Despite Keju’s death in 1996, the youth health organisation she established continues “providing Marshall Islanders with healthcare services and youth leadership training programmes,” said the foundation.


[3]
Darlene Keju’s life story, by her husband Giff Johnson.

Giff Johnson published a biography of Keju in 2013 titled, Don’t Ever Whisper — Darlene Keju: Pacific Health Pioneer, Champion for Nuclear Survivors [4].

Keju’s legacy
Keju is the only Pacific islander in the group that is being honored.

Radio Australia’s Richard Ewart spoke [5] to Johnson about Keju’s legacy,


“It’s sad to say that the US nuclear test legacy continues to this day unresolved and that’s one of the reasons why her advocacy 30 years ago is still relevant now,” he said.

Johnson said Darlene had a tendency to jump in on issues that others were ignoring.

“She definitely was a pioneer in getting out ahead of the curve and bringing people along,” he said.

“But I’m sure she would have found a niche that nobody else was developing.”

He said a priority for Keju was in “developing the skills of young people to be advocates and to get out and do work for other people”.

Other recipients
In addition to Keju, the winners of the foundation’s award this year are from South Korea, Norway, Turkey, Ecuador, China, Belgium, Japan, Germany and Taiwan.

They are active in a range of peace, climate, education, health, human rights, and artistic projects.

The 19 recipients were chosen from 2341 applicants from around the world.

During their visit to Taiwan this week, they will share their stories with high school students, meet with President Ma Ying-Jeou and the mayors of New Taipei City and Taichung City, and visit with children in local hospitals to share messages of hope.

Source: Pacific Media Watch 9290



Article printed from Pacific.scoop.co.nz: http://pacific.scoop.co.nz


URLs in this post:

[1] Image: http://pacific.scoop.co.nz/wp-content/uploads/2015/06/ps-darlene-keju-wcc-canada-1983-425wide4.jpg

[2] Pacific Media Watch: http://www.pacmediawatch.aut.ac.nz

[3] Image: http://www.amazon.com/Dont-Ever-Whisper-Giff-Johnson/dp/1489509062

[4] Don’t Ever Whisper — Darlene Keju: Pacific Health Pioneer, Champion for Nuclear Survivors:http://www.pmc.aut.ac.nz/articles/tribute-female-pied-piper-pacific-nuclear-justice

[5] Radio Australia’s Richard Ewart spoke: http://www.radioaustralia.net.au/international/radio/program/pacific-beat/prominent-marshall-islands-advocate-for-nuclear-test-victims-honoured/1452466