NEW ECONOMIC REGIONALISM & GLOBALISATION

Does Pacific Islands' New Economic Regionalism Counters Globalisation?

Contents

Introduction1

Discussion3

Does Pacific Islands New Economic Regionalism Counters Globalisation?3

The Pacific Plan4

Economic Regionalism & Globalisation4

Pacific Island Forum5

South Pacific Commission6

Objectives of Pacific Island Countries Trade Agreement (PICTA)7

Melanesian Spearhead Group & The Free Trade Agreements8

Australia & New Zealand's Role12

Major Economic Issues in Pacific Islands13

Conclusion14

References16

Does Pacific Islands' New Economic Regionalism counter Globalisation?

The New Economic Regionalism in the Pacific Island has led to a number of changes in the functioning of countries under the paradigm of Pacific Islands. In this paper, we would attempt to find out if the new Economic Regionalism and similar initiatives have managed to adequately counter globalization. In today's fast paced world of innovation and rapid advancements; the dynamics of Pacific Islands have changed drastically. The countries in Pacific Islands need to pursue improvised trade agreements, policies and long term goals and objectives to counter globalization. We would attempt to answer our hypothesis if “the New Economic Regionalism in Pacific Islands counters Globalisation?”

Introduction

Over the past decade, major economies of the world were highly affected by the global wave of financial crises and economic turmoil. A similar scenario has been witnessed in all the countries under Pacific Islands. A cumulative effort has been synchronized in the form of economic regionalism to counter globalisation. The reforms, treaties, policies and pursuance of state and federal legislations with regards to globalisation are vital to the functioning of countries under Pacific Islands. Narsey (2006) defined Pacific Islands as a conglomerate of small states with low populations. The maximum population of Pacific Island countries account to 300,000. In a detailed demographic, political and geographic categorization of Pacific Islands; the countries were distinguished as Polynesia, Micronesia and Melanesia (Narsey, 2006, pp. 20).

Economic regionalism plays a vital role in the development and enhancement of living standards in Pacific Island countries. The countries in Pacific vary from each other in terms of population, resources and size. Some of the most smallest and vulnerable microstates function under Pacific Islands; while resource rich islands i.e. Papau New guinea and Fiji are also vital to the economic stability in the region. Both countries have enjoyed over 40 years of political independence; and share a history of mutual cooperation with neighbouring countries (Hughes, 2006, pp. 9).

The regional economic cooperation between Pacific Island nations could be traced back to World War II. At that time, the whole region comprised of dependent territories. Later, in the 1970s some regions broke away and formed their own governments as sovereign states. The economic functioning of these newly formed states was critical and proposed a number of vulnerability threats for their economies. Experts on the region; have long advocated economic regionalism in Pacific Islands so that a stability and progress in economy can be achieved. By the year, 1992 seven major intergovernmental organisations were connected under the South Pacific Organisations Coordinating Committee. Ever since, the formation of Council of Regional Organisations in the Pacific (CROP), non-governmental organisations operating nationally and internationally have grown in the ...