The Cost of Doing Business in the Pacific Islands: The Case of Fiji

Pacific Islands Local Government
Association Network (PILGAN) Meeting
Port Moresby, PNG
23 May 2014
Henry Sanday
Suva, Fiji
[email protected]
Outline of Presentation
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Terms of Reference
Definitions of LED
Kiribati
Cook Islands
Suggested Way Forward
Terms of Reference
• Review key documents and interview relevant stakeholders to
determine LED potential, opportunities & constraints
• Assess relevant laws and regulations to identify areas that can
facilitate and boost LED
• Consult relevant stakeholders to determine their views and
opinions on national development strategies on LED
• Develop appropriate LED strategies that will be an integral part of
existing LG Strategic Plans
Country Missions
• Tarawa, Kiribati: 27-31 January 2014
• Rarotonga, Cook Islands: 13-18 April 2014
Definitions of LED
• “a participatory process in which local people from all
sectors work together to stimulate local commercial
activity, resulting in a resilient and sustainable economy”
(UN-HABITAT 2005)
 a way to help create decent jobs and improve the quality of life
for everyone, including the poor and marginalised
• “a process which brings together different partners in a
local area to work together and harness local resources for
sustainable economic growth” (2012 PLGF)
 ways to delivering benefits to the community and also helps
broaden the income base of local governments
 Local Solutions by Local Stakeholders for Local Economic
Problems
Context of Kiribati
• Population 100,000 on 21 inhabited islands
• 23 Local Councils:
3 urban (Betio & Teinainano [50% population] &
Kiritimati)
20 island councils
Administered under the Ministry of Internal Affairs
Members of Kiribati Local Government Association
(KILGA)
• Total Govt Grants to Councils in 2013: AU$1.3m
• Support to Elderly Fund in 2013: AU$22,920
Kiribati Development Plan 2012-15
KPA2: Economic Growth & Poverty Reduction
• Expanding and diversifying government revenue base
• Implementing a new tax regime and modernising tax system
• Reviewing vocational training and tailoring courses to internal
and external labour markets
• Accelerating private sector development (incl. creation of a
conducive environment for PPPs in eco tourism, in-country
fish processing and sea-bed exploration & research)
• Improving public finance management system
• improving government fiscal position by improving
performance of state-owned enterprises
• Improving livelihoods through effective implementation of
subsidies such as copra and sea weed
Betio Town Council (BTC), SP 2013-16
• Vision: “a progressive and prosperous town
with educated people living in a good, clean
and happy environment”
• Local problem: “unemployment or limited
options for breadwinners of large extended
families to earn income, which has resulted in
a lowering of their social and economic
wellbeing”
BTC, SP 2013-16: Economic Strategies
1. “reduce unemployment rate by 10% for age group between 18-25 by 2015”
 create job opportunities in partnership with Government and private sectors in
country and abroad
 provide and support business skills training for women and youth on income
generation
2. “support to private sector development”
 develop PPP relationships with partners including KCCI, Government organisations
by 2013
 rationalise business by-laws and rates
 upgrading of the BTC CBD Business Centre by 2015
3. “enhance and support existing and new self-employment community and individual
business operations 2013-2016”
 fisheries and agriculture based businesses enhancement/training programs
 fisheries & agriculture projects (ramp, sea wall and market)
 special license fees/rates for the sectors of fisheries and agriculture
* Fish
marketing by women contributes to LED
Teinainano Urban Council (TUC), SP 2013-16
• Vision: “people on South Tarawa enjoying a
healthy, productive, and peaceful lifestyle”
• Local problem: “congested homes or
squatters, lack of open and ‘fresh’ spaces,
shortage of ‘clean’ water, polluted air and
lagoon, high rates of crimes (especially among
youth), dangerous driving, lack of nutritious
foods, high cost of living etc.”
TUC, SP 2013-16: Economic Strategies
1. “establish local markets”
 carry out a survey to identify the sites and the number of potential
markets along TUC area
 consult land owners about the markets and identify people to look after
the market
 write up a funding proposal for setting up required markets for TUC area
2. “improve and construct fishing passages”
 undertake a survey to identify communities or localities needing a fishing
passage
 consult all stakeholders incl. Environment & Fisheries Departments
 write a funding proposal for the identified fishing passages
3. “set up a big shopping mall in Bairiki”
 follow up on the plan and work that have been made earlier on the
project
Key Issues
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Recognise LED nationally, locally & outer islands
Align LG budgets with KDP framework
Strategic Plans for MIA & Island Councils
Institutional capacity, funding & governance of Councils
Political vs. Development-orientation of Councils
Ministry-Council collaboration
Archaic & inconsistent (national vs. Island) business regulations
Representative policy dialogue with Government
Women in business (fees & discrimination)
Import substitution esp. food production on Eutan
Donor help (NZAID & Taiwan)
Practices of Asian-owned businesses
Issues with land, finance, environment & education (USP training)
Opportunities at Bonriki Airport
Issues with KILGA (impact on LED)
• Post-CLGF funding & sustainability
• Planning for Mayors Conference in April
• Strengthening relations with:
Urban & Island Councils
Government
Private sector through KCCI
Donors
NGOs
• Support for business & export development
Context of Cook Islands
• Population 15,000 (Rarotonga has 2/3)
• 11 Outer Islands or Pa Enua
Exclude “urban” Rarotonga
6 in Southern Group & 5 in Northern Group, governed
by 10 Island Governments
Administered under the Pa Enua Division, Office of the
Prime Minister
Members of Island Governments Association of Cook
Islands (IGACI)
• Total Welfare payments: NZ$410,000/month or
$4.9m/yr
• Total Govt Budget resources 2013/14: NZ$10.5m
Cook Islands National Sustainable
Development Plan (NSDP) 2011-15
• Envisages “a vibrant Cook Islands economy” where
“ingenuity and connection to our culture and environment
underpins the ability of our people to build business and
enterprise for national economic growth”.
• To be pursued through:
 Objective 1: An energised and growing green economy
through supporting our key economic drivers and
encouraging environmentally sound innovation in potential
areas of growth
 Objective 2: Enterprise is enabled by establishing an
innovative environment conducive for existing businesses to
confidently grow and for new businesses to start, grow and
thrive in our communities
 Objective 3: Our Cook Islands environmental and cultural
values are integral to business decision making and practice
NDSP Economic Strategies
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Ensure our tourism excellence
Unlock our potential from our marine resources
Unlock our potential from our agricultural production
Identify and exploit trade opportunities
Build our financial services
Ensure that our cultural and creative Industries are a key
force in job and wealth creation and nation building
• Sustain macro-economic stability
• Ensure proactive economic development policies
Revitalising Growth in the Pa Enua
• Review of Outer Island Govts by ADB in 2011
• Island Government Act 2013 (devolution of powers)
• Island Government Business Plans 2013/14
• 2014/15 Priority Areas to support the Pa Enua (impact
on LED) are as follows:
 growing island economies
 improving infrastructure to support the pillars of
sustainable development
 building resilience in the country
 improving transportation and in particular shipping
 improving social development outcomes
 improving governance
Priority Areas for Development in the Pa Enua, 2013/14
Island
Priority Areas for Development
Aitutaki
Island Council; Administration; Infrastructure; Agriculture; Women, Culture,
Youth and Sports; Waste Management
Atiu
Agriculture; Infrastructure; Energy; Corporate Services
Mangaia
Agriculture; Tourism and Community Development; Infrastructure; Public
Utilities; Finance and Administration; Island Council Management
Manihiki
Gender, Youth and Sports; Infrastructure; Energy; Finance and Administration;
Council; Agriculture; Corporate Services
Mauke
Infrastructure; Energy; Water; Finance and Administration; Agriculture; Gender
and Development; Island Council
Mitiaro
Island Administration; Island Council; Social and Economic Growth (income
earning activities) ; Infrastructure; Energy; Agriculture
Palmerston
Administration; Agriculture; Education; Energy; Infrastructure; Island Council;
Corporate Services
Pukapuka/
Nassau
Infrastructure; Energy; Finance and Administration; Island Council; Women,
Youth and Sports, Culture
Rakahanga
Agriculture; Marine; Beautification; Infrastructure; Energy; Administration;
Island Council
Key Issues
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Depopulation & labour mobility
Inter-island transportation
Disparity between Rarotonga and Pa Enua
Island Govts – Development vs. Political
National vs. Local Regulations
Resource Owners
PSD: BTIB (Foreign vs. Domestic)
Tax registration for >$40k
Suggested Way Forward
1.
National Government
 Mayoral Conferences
 Streamlining of National/Local business regulations
 Development Partners
2. Island Councils/Governments
 Inter-Island Council/Govt collaboration
 Private sector & communities
3. National LGA
 Linkages with PILGAN
 Advocacy with National Govt
4. CLGF Pacific
 Sharing of international best practices via NLGA
 Institutional capacity building for Councils
Vinaka vakalevu