Pacific debate an opportunity for collaboration with China

Debate is again raging about Australia's role in the Pacific.

It has recently been reported that the Fijian Government has insisted it will not re-join the Pacific Islands Forum (PIF) until Australia or New Zealand is kicked out and consideration is given to admitting China. This is a debate that Fiji's newly elected Government want to have.

The reality is the membership of the Pacific Islands Forum is a decision for its members; the 16 island nations, including Australia and New Zealand that have an equal say in the Forum's future.

Both Australia and New Zealand are founding members – Australia provides more than half the PIF's running costs – and play a well-respected role in the region.

Regarding Fiji's agitation, to defuse the situation Foreign Minister Julie Bishop suggested a meeting of Pacific leaders in Sydney in March to discuss the architecture of the Forum and how it "best meets the needs of the region in the 21^st Century".

The meeting never went ahead due to a lack of participants.

Australia and New Zealand will remain members of the PIF.

However, the debate about the increasing role of China in the Pacific should not be ignored.

Australia needs to begin engaging with China and other Asian nations about collaboration and cooperation in the Pacific, particularly when it comes to aid expenditure and delivery.

Already some development aid associated with infrastructure in the region has led to problems through vanity projects with no real development value and soft loans raising levels of indebtedness. Chinese insistence on the use of their companies for projects has led to social unrest and claims of insufficient environmental protection, not to mention a lack of transparency and accountability.

Beijing's aid budget in the Pacific has grown dramatically in recent years having spent about US$1.4 billion since 2006. In November 2013, the Chinese Government announced a new assistance package for the Pacific Islands, potentially worth more than US$2 billion. The package is made up of two loan facilities for use in infrastructure development, of up to US$1 billion each.

China's eagerness to become more involved in the region should be welcomed. It also provides Australia with an opportunity to discuss greater collaboration and cooperation regarding development in the Pacific.