14. maiava

Green Growth Potential in the Pacific

Islands: Why, Where and How?

Iosefa Maiava

Head , ESCAP Sub-regional Office for the Pacific

Suva, FIJI

2011 Pacific Regional MDGs Tracking Report (PIFS)

The Pacific Ocean: Big and Critical

• 165.2 million square

kilometres, about

one-third of the

Earth’s total surface

area, and larger than

all of the Earth's land

area combined

• Rich resource base

(fishery, biodiversity,

minerals) and

provides

ecosystems services

(e.g., climate

regulator) critical to

the survival of the

planet

Islands: Small and Vulnerable

Size and GDP-weighted Distance from Production (World Bank, 2012)

TON FJI

VUT

WSM TUV SLB KIR

MHL

FSM

TMP

PLW

3,000

5,000

7,000

9,000

11,000

-3 -2 -1 0 1 2 3 4

GD

P w

eigh

ted

dis

tan

ce (

km)

Log (pop)

World

PICs

Carribeans

(1k) (1m) (1bn)

High production costs! World Bank, 2012

0

10

20

30

40

50

60

70

Electronic Assembly Clothing Hotels and Tourism Co

sts

of

Pro

du

ctio

n a

s %

Co

sts

in M

edia

n

Eco

no

my

Small economy (4 million) Threshold (1.6 million)

Very small economy (200,000) Micro economy (12,000)

Costs of Production by Country Size as Percent of Costs in Large Economy

Impact of the GEC! IMF, 2012

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1971-80 1981-90 1991-00 2001-10

Annual Average Real GDP Growth (In percent)

LICs Small States ECCU PICs

WHEN and H0W:

“Turning crises into opportunities is like surfing waves,

not drowning! Only the Brave jumping into the water can swim and/or surf”

New Consumers still want MORE, but they are defining

that differently. Not more shiny trifles and mountains of

consumer goods but, rather, more meaning, more

deeply felt connections, more substance and a greater

sense of purpose. •72% say they are trying to improve the way they live

•71% are trying to improve who they are as individuals

•59% worry that society has grown too disconnected from the

natural world

•55% worry more about their future or that of their family that they

used to

•51% would like to be part of some important cause

•67% believe most people would be better off if they lived more

simply

•69% claim to be smarter shoppers than they were a few years

ago

•64% say that making environmentally friendly choices makes

them feel good about themselves.

Nature Business Opportunities

Patterns of Coral Diversity: The Coral Triangle

Source: J.E.N. Veron and Mary Stafford-Smith. Corals of the World (Cape Ferguson: AIMS, 2000)

Marine Management Sites

Tuna: Scope for better “returns” from, and sustainability of, the stocks

60% global tuna stocks;

Total landed value annually of around US$2

billion and an estimated market value of

US$3-4 billion;

Access agreements for distant-water fishing

nations US$60–70 million annually and

increasing;

Uneven proportion of catch value retained

by PICs;

Yellowfin and bigeye tuna at serious risk of

overfishing.

THE RISK TO FOOD SECURITY IN THE PACIFIC HAS BEEN RECOGNIZED AT THE HIGHEST POLITICAL LEVEL.

Local Produce

At the 39th Pacifi c Islands Forum, held in Niue from 19 to 20 August 2008,

Forum Leaders:

“Acknowledged the high importance of food security as an emerging issue

which poses challenges for the future well- being of people across the

region” and “called on all countries to maintain open markets and, where

possible, to increase the production and supply of healthy food”.

Leaders “committed their governments to immediate action to address

food security issues nationally and, where possible, regionally through a

range of measures across key sectors such as agriculture, fisheries, trade

and transport”.


Tuna fishing boats damaged by a cyclone in French Polynesia (Ph. F. Sodter)


Forum Leaders:








and transport”.


Traditional Fishing Method


Forum Leaders:








and transport”.

Fuel: scope for lessening vulnerability including through bulk buying

Total Oil Consum

ption (Ktoe)

Oil Compone

nt of Imports of Goods and Services %

Oil Component

of Goods and Services

Exports %

Oil Imports as % of GDP

Cook Islands

19.4 31.4 2070.1 28.8

PNG 840 3.3 3.3 2.1 Samoa 69.2 17.9 30.1 9.4 Tonga 45 29.6 103.1 15.1 Vanuatu 33 14.3 15.9 6.9

And Renewables: Several PICs have ambitious targets

• Tokelau: independence from imported fuels by progressively increasing the use of renewable energy with the ultimate goal of 100% renewable energy;

• Cook Islands: 50% of electricity from renewable energy sources by 2015 and 100% by 2020;

• Nauru: 50% of energy demand provided by ‘…alternative sources of energy, including through renewable sources…’ by 2015;

• Tonga: 50% of electricity generation through renewable resources by 2012; and,

• Tuvalu: 100% renewable energy for power generation by 2020.

Regionalism: scope for managing cross-border and production issues

Shared regional institutions

• Achieve economies of scale • Help overcome capacity constraints

Harmonization of laws and regulations

• Ease cross-border business • Help overcome capacity constraints

Labor market integration

• Allow people to move to areas where opportunities exist

• Allow access to necessary skills and capacities

Better transport and communication links

• Reduce costs of business • Facilitate flow of knowledge and ideas

Government have to jump start GG

• By closing 2 gaps

Price Gap: by internalizing Ecological Price into

Market Price by Ecological Tax Reform (ETR)

Time Gap: by investing in long term gains

through Green Budget Reform (GBR)

• GG is not just an incremental change promoting green technologies, agro-forestry and removing subsidies, it should be greening whole economy.

Economic

Ecological Social