Foreign Aid Delivery: Modes and Modalities in the Pacific

Abstract

Despite criticisms over its use, the term ‘fragile state’ has been adopted by much of the international community. According to the World Bank’ s Country Performance and Institutional Assessment (CPIA) ratings, seven Pacific countries have been classified as fragile in recent. years (Fiji, Kiribati, Nauru, Papua New Guinea, the Solomon Islands, Tonga and Vanuatu). Arguably, other Pacific micros ta tes could be added to this list due to high levels of vulnerability. Historically, Papua New Guinea and the Solomon Islands have experienced civil conflict, and Fiji has experienced a number of military coups. However, fragility in the Pacific is characterised more often by poor governance exacerbated by extreme vulnerability. Vulnerability in Pacific countries stems from small domestic markets, limited resource bases and great distances from major markets, as well as the experience of external shocks such as natural disasters and price hikes in key commodities. State-society relations in these countries are particularly weak, with often large proportions of the population living a semi-subsistence lifestyle in rural areas with very limited access to basic services and interaction with national politics. In Melanesia, high levels of ethnic diversity and loyalties to clan, tribe and language group can lead to nepotism and political instability. In recent decades, the region has experienced a poor economic record, and poverty is increasing (Aus AID 2009).