The results of the May 12, 2019 parliamentary elections in New Caledonia reflect a lingering political split in this French territory, comprising dozens of islands in the South Pacific. French loyalists won 28 seats in the 54-strong local legislature, just two seats more than the advocates of the region’s greater autonomy and even complete independence from Paris.
The local society is divided along political and geographical lines. The indigenous Melanesians (Kanaks) have been in the minority since 1969, and currently account for 39 percent of the islands’ population. They make up a 70-percent majority in two of the three provinces of the archipelago (the Northern Province and the Province of Loiote), and a 26-percent minority in the Southern Province, where pro-French sentiment is strong.
Elections in New Caledonia are more than just a local development and are a source of serious concern for both France and Australia.
France’s position. New
Caledonia is France’s most faraway colony (17,000 km). The New Caledonians may hold two more referendums on
independence before 2022 in keeping with the terms of the Noumea
agreement of 1998, which allows a second vote if the first one leaves the
proponents of independence in a minority. During the first plebiscite held on
November 4, 2018, 57 percent of New Caledonians voted in favor of preserving
the archipelago’s status as an overseas French territory.
If New Caledonia gains broad autonomy, let alone independence, from France, this would change the strategic security pattern in the region, giving a boost to secessionist sentiments in US and European overseas territories (French Polynesia, Reunion, Wallis and Futuna with an exclusive economic zone of 226,000 sq. km.), and seriously impairing Paris’ influence in the region.
The Indo-Pacific region (IPR) is viewed by France as the Paris-New Delhi-Canberra-Noumea axis. (Noumea is the capital of New Caledonia).
By maintaining its sway over New Caledonia, France will retain its membership of the club of world powers, its continued role in the IPR and participation in theQuadrilateral Security Dialogue (Quad) between the United States, Japan, Australia and India, designed to check China’s attempts to secure for itself a place in the Indo-Pacific region.
Paris fears that an autonomous or fully independent New Caledonia would seek financial assistance from Beijing in exchange for allowing Chinese companies access to the archipelago.
New Caledonia is also a mainstay of French military presence in the Pacific, a platform for scientific research and a source of strategic resources, such as chromium, cobalt, manganese, gold, copper, lead, and nickel. The archipelago boasts the world’s fifth largest reserves of nickel, whose exports are projected to reach 4 million tons in 2021.
Therefore, Paris is trying, first and foremost, to minimize the consequences of the current divisions within the local pro-French political parties – Calédonie Ensemble, Le Repubilcans Calédoniens, etc. And with good reason too, because even despite their defeat in the May 12 vote, the secessionist forces have been gaining strength increasing their presence in the local parliament from 18 to 25 seats in the decade between 2004 and 2014, and, according to the results of the May 12 elections, bringing their membership to 26.
The indigenous Kanak population is getting politically active too, showing a hefty 81 percent turnout in the November 4, 2018 independence referendum, which exceeds by more than twice the 40 percent voter turnout in national elections in France proper. Moreover, a meagre 3 percent of ethnic Kanaks voted for loyalists. By 2022, the number of Kanak voters is expected to rise even further, while that of French voters will remain at the present level.
Australia’s position. In the southwest, New Caledonia borders on the exclusive economic zone of Australia, with which it shares the region’s potential hydrocarbon reserves. In the southeast, it borders on the island state of Fiji, which is busy building up ties with China.
Canberra worries about the impact that the developments in New Caledonia could have on the secessionist movements on the Island of Bougainville in Papua New Guinea and West Papua (a province of Indonesia), all the more so given the threat of Islamism and illegal migration. Canberra also prioritizes cooperation with Indonesia in the field of economics, science, culture, defense, and in tackling the consequences of natural disasters.
An uncontrolled process of sovereignty declarations in the South Pacific region threatens to destabilize the regional security system Canberra has been building there for quite some time now. New Caledonia’s potential independence would jeopardize an existing defense agreement between Australia and France, which provides the Australian Navy with access to French military bases in the archipelago.
Differed as they are on the format of cooperation with China, the Australian government and the opposition still recognize the need for building up trust between the two countries, and, above all, for promoting closer economic ties with Beijing.
Here, however, Canberra’s vision about future of the IPR differs in many respects from Paris’. Australia is careful to avoid a head-on clash with China in the region, preferring instead to seek a balance of interests, mindful of the positions of all regional actors, especially international associations, such as the Quad, FRANZ, ANZUS, APEC, Pacific Islands Forum, etc.
France, for its part, sticks to a more confrontational tactic as it tries to maintain its status as a Pacific power. However, the financial assistance that the states of Oceania are getting from Australia ($1.3 billion) is way bigger that what is provided by France ($100 mln.). (2)
Simultaneously, Canberra would like to see a rise in the humanitarian aspect of the French policies in Oceania.
First published in our partner International Affairs
In Myanmar, Better Oversight of Forests a Vital Step in Transition to Rule of Law
Authors: Art Blundell and Khin Saw Htay
For the first time, the Myanmar Extractive Industries Transparency Initiative (MEITI) has opened the books to share information with the public on revenue Myanmar’s government collects from harvesting timber. Last month, the MEITI released two reports juxtaposing statistics on production and tax payments from government ministries’ ledgers with corresponding figures reported by the state-owned Myanma Timber Enterprise (MTE) and forestry companies.
The reports are an important step toward improved transparency and accountability in Myanmar’s forest sector because they shine a light on irregularities that may point toward mismanagement or illegal activities. Unclear legal frameworks and weak enforcement in Myanmar’s forestry sector – a remnant of decades of military rule – have created an environment ripe for illegal logging and illicit trade, and mismanagement of natural resources.
The role of forests in Myanmar’s transition to democracy cannot be overemphasized. Money from illegal logging helped to fuel Myanmar’s decades-long civil war. Smuggling of illegally harvested timber to countries like Chinahas led to the loss of millions of dollars each year in government revenue. Corruption also fuels continued violence and prolongs armed conflict, especially in the heavily forested states that are home to most of Myanmar’s ethnic minorities.
The MEITI is committed to sharing its results at the state level—especially in Myanmar’s forest-rich regions. Myanmar’s citizens have the right to understand how their forests are being managed for the public good.
The EITI framework was launched globally in 2003 with a focus on oil, gas, and mining, given that these lucrative sectors are often key drivers of corruption in resource-rich countries. Myanmar is one of only a few countries (following Liberia’s lead) to add forestry to its EITI reporting, thanks to advocacy from civil society.
Myanmar’s newest MEITI reports are a commendable step by the government toward transparency. But producing a report like this is not easy. The reporting highlights numerous disparities and irregularities in government record-keeping. This is not unusual for a first EITI report. It is also a major objective of the EITI: transparency leads to meaningful discussion about necessary reforms, while regular reporting creates an accountability mechanism to demonstrate progress. MEITI is now preparing their next report covering fiscal years 2016-2017 and 2017-2018.
The MEITI is already driving progress. Myanmar’s Ministry of Planning and Finance (MoPF) has announced it will close the so-called “other accounts” maintained by State-owned Economic Enterprises, like the MTE, that have kept more than half their profits separate from the government’s central budget. Data in the MEITI report suggest that MTEretained74% of its $1 billion profits from fiscal years 2014-2015and2015-2016 in these other accounts–significantly more than the 55% that is permissible.
Myanmar’s Ministry of Natural Resources and Environmental Conservation (MoNREC) now holds important data that can be used to investigate and resolve irregularities uncovered by the MEITI reporting. For instance, the Forestry Department’s data on production does not match the data provided by the MTE, and it is substantially more than the Annual Allowable Cut (a government-determined sustainable level of harvest). Likewise, the MTE indicated that more teak was sold than its total reported supply. The source of the additional volume of teak logs is unexplained.
Reforms should help MoNREC address these irregularities. Current reporting is obviously insufficient to capture reality. With the help of a workshop that followed the MEITI launch, stakeholders are working with MoNREC to develop appropriate reforms for MTE and the Forestry Department, and to improve forestry sector governance in general.
Opacity hurts the country in more ways than one. Illegal logging, corruption, and smuggling siphon off revenues meant for programs serving the public. Illegalities also threaten forests – and the communities that rely on forests for their livelihoods – and they drive off credible investment, leaving a gap often filled by investors with less regard for environmental and social regulations.
It is important to note that the MEITI reports cover only the period from April 2014 through March 2016, prior to Aung San Suu Kyi’s NLD Party coming into power. The current administration has committed to fairer distribution of benefits from Myanmar’s natural resources among its citizens, yet systematic barriers remain. Endorsing the recommendations from the MEITI report and implementing a roadmap for reform would signal the NLD’s commitment to good forest governance. Meanwhile, companies should do their part to comply with the law and accurately report production, sales, and other data in an accessible manner that allows for independent monitoring.
Myanmar’s forest resources hold great promise for the country’s people, its economy, and the government budget, if managed responsibly. The MEITI has a clear role in charting that path forward and in helping Myanmar manage its natural resources based on the principles of good governance.
South-East Asia youth survey: Skills prized over salary
Young people in South-East Asia face a relentless challenge to upgrade their skills as technology disrupts job markets, according to research released today by the World Economic Forum and Sea.
In a survey of 56,000 ASEAN citizens aged between 15 and 35, some 9% of respondents say their current skills are already outdated, while 52% believe they must “update their skills constantly.” Only 18% believe their current skills will stay relevant for most of their lives.
These concerns about skills are reflected in attitudes to jobs. ASEAN youths say the number one reason they change jobs is to learn new skills – the desire to earn a higher income comes second. 5.7% report having lost a job either because their skills were no longer relevant, or because technology had displaced them. Other reasons include the desire to create a more positive social impact and to have a more innovative working environment.
The survey also shows 81% of ASEAN youths believe internships are either equally important or more important than school education. In addition, over half are keen to spend time working overseas in the next three years, probably to gain new skills, with a significant portion wanting to work in another ASEAN country.
“It is impossible to predict how technology will change the future of work.” said Justin Wood, Head of Asia Pacific and Member of the Executive Committee at the World Economic Forum. “The only certainty is that job markets face accelerating disruption, where the lifespan of many skills is shortening. It is encouraging that ASEAN youths are aware of these challenges and show a deep commitment to lifelong, ongoing learning.”
Soft versus STEM skills
Overall, ASEAN youth attach greater importance to soft skills, and less importance to STEM skills – science, technology, engineering and maths. They see “creativity and innovation” as the most important skill – in which they also rank themselves highly – followed by the ability to speak multiple languages. They are confident about their soft skills, such as emotional intelligence, and list the two least important skills as “maths and science” and “data analytics”. They are particularly positive about their ability to use technology such as social media platforms, e-commerce sites, and e-payment systems.
Santitarn Sathirathai, Group Chief Economist of Sea, noted: “While it is essential that the region continues to invest in developing STEM skills among young people, we can also see that soft skills will have a vital role to play – even in the tech sector. In the world where knowledge becomes obsolete more quickly, soft skills such as adaptability, leadership and creativity will be crucial in ensuring young people have the resilience to constantly evolve their skill-sets in step with a changing market.”
The importance of re-skilling
Responding to the need to train workers in the face of technological change, the ongoing ASEAN Digital Skills Vision 2020 programme, launched by the Forum in Bangkok in November 2018 is assembling a coalition of organizations to train 20 million workers at ASEAN SMEs by 2020, and to provide internship and scholarship opportunities.
“The World Economic Forum’s ASEAN Digital Skills programme is delivering significant impact. In its first eight months, the initiative has already secured commitments to train over 8.9 million workers at SMEs, and to provide over 30,000 internships,” said Mr Wood.
Some 16 organizations have so far joined the programme: BigPay; Certiport, a Pearson VUE Business; Cisco; FPT Corporation; General Assembly; Golden Gate Ventures; Google; Grab; Lazada; Microsoft; Netflix; Plan International; Sea; thyssenkrupp; Tokopedia; and VNG Corporation.
“Government policy and business practices need to catch up to what is happening on the ground. Advances in technology will continue to impact labour markets into the future, and this requires ongoing education and skills training,” said Saadia Zahidi, Managing Director and Head of the Centre for the New Economy and Society at the Forum. “Anything less than a systematic shift in our approach to education and skills risks leaving people behind.”
When asked what type of organization they work for today, and where they would like to work in the future, ASEAN youths show a strong preference for entrepreneurial settings. Today, 31% are either entrepreneurs or work for a start-up. In the future, 33% want to work in an entrepreneurial setting. 19% of young people also aspire to work for foreign multinationals in the future (the current figure is 9%).
Traditional SMEs (as opposed to start-ups) are seen less favourably. While SMEs form the backbone of ASEAN labour markets, the survey reveals that small companies face recruitment challenges. 18% of youths work for SMEs today, but only 8% want to work for an SME in the future. One reason for the low interest is because young people say they receive less training at small companies compared to larger ones.
When asked what industry sectors are most attractive, the results reveal a clear preference for the technology sector, with 7% working in the industry today and 16% aspiring to work there in the future. In comparison, more traditional parts of the economy may face recruitment challenges. For example, 15% of youths work in manufacturing today, but only 12% want to work there in the future. Likewise, 8% work as teachers, yet only 5% want to work in education in the future.
Being Wealthy Helps Singapore’s Naval Ambition
There’s an image that has been imprinted in the minds of the millions about Singapore, that it is a tiny yet wealthy city-state and an important Asian financial hub. But many are unaware of the fact that Singaporean armed forces are stronger than many regional forces, as it has one of the best navies, airforces and armies in the region.
Singapore’s navy, officially known as the Republic of Singapore Navy (RSN), in particular has been shaped over the years into a maritime force which is highly sophisticated and well-trained. An article on The National Interest ranked the RSN among the top five Asian navies, even when Indian Navy did not find a place in the list.
According to the aforesaid article, the RSN is a better navy than the Indian Navy in terms of quality, operation and policy-making, though the RSN lacks the experience, manpower and size of the Indian Navy. Arthur Waldron, an International Relations academic at the University of Pennsylvania, believes that if Chinese Navy, necessarily dividing the fleet, sends a taskforce to subdue the RSN at the Philip Channel, the narrowest part of the Strait of Malacca, the RSN would beat the Chinese taskforce.
Ambitious Procurement Plans
Singapore intends to build a navy that could protect its territories and economic interest from the potential hostility by any immediate larger neighbours, and more importantly a navy that could become lethal if combined with other regional and extra-regional navies (like Australia and Indonesia) against a greater navy (e.g. against Chinese navy). That is why, the RSN is currently on a spree to acquire more capabilities and next-generation platforms.
As part of its submarine force renewal program, the RSN is acquiring four Type 218SG submarines from Germany to improve the operational and combat capabilities of its submarine fleet. These new submarines will be having far more capabilities and durability — and are built to stay submerged about 50% longer — than those of the existing ones.
It’s worth mentioning here that submarines, unlike surface warships that have both peactime and wartime functions, is built to shoot and destroy targets as well as to conduct surveillance, even surveilling foreign coasts to gather vital intelligence. The very fact that a small city-state like Singapore has submarines in operation and is now renewing its fleet with even more capable submarines — shows how ambitious Singaporean navy has become about increasing its naval power.
Because of the larger capacity, these submarines have plenty of scopes for future upgrades, meaning that these submarines could be equipped with weapon systems such as long-range missiles to carry-out an offensive strike.
There’s more to the Singapore’s naval ambitions. Take for example the Joint Multi-Mission Ships (JMMSs), one of the RSN’s major new procurements. With full-length flight deck, these vessels would be almost 540 feet long with an estimated displacement of around 14,500 tons, and are expected to carry five medium and two heavy helicopters on a flight deck. What’s more, these vessels could potentially support limited operations of fixed-wing aircraft, including the F-35B warplanes which Singapore airforce is expected to purchase from the U.S. sometime in near future. Therefore, these vessels could potentially serve as aircraft carriers.
The RSN is also very well aware of the fact that wars these days are fought from a distant with the help of unmanned drones and unmanned vessels that carry cameras and weapons in order to see farther and respond quicker. Hence, the RSN plans to procure new vessels that will be having multiple unmanned air and surface vehicles to extend their reach and flexibility against threats. Take the eight new Littoral Mission Vessels (LMVs) for example. These LMVs will have a helicopter landing pad that will be able to carry an unmanned aerial vehicle. The aforesaid JMMSs and the new Multi-Role Combat Vessels (MRCVs) too will have unmanned air and surface vehicles.
Being Wealthy Helps
An Asian financial hub, the city-state of Singapore has a lot of wealth. The tiny landmass of the state and the already developed infrastructures allow the Singaporean government to allocate comparatively lesser wealth on infrastructures and other conventional sectors and to invest more on innovation and technology as well as defense and security. This is how the tiny state affords to make the quality defense procurements.
Singapore has been the Southeast-Asia’s largest military spender for several years now. Singapore was the top regional military spender in 2018 with an expenditure of US$10.8 billion and the Southeast Asian neighbour with the closest figures was Indonesia with an expenditure of US$7.4 billion. For 2019, Singapore has allocated US$11.4 billion for defense on its budget — something which amounts to about 19 percent of total government expenditures and around 3.3 percent of national GDP.
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