NEW ZEALAND – Foreign Affairs Minister Winston Peters has promised to increase New Zealand’s development spending in the Pacific as part of a regional “reset”.

Peters spoke about the changing dynamics in the Pacific region during a speech to the Lowy Institute in Sydney, Australia, on Thursday night.

New Zealand is the Pacific’s second-largest donor, accounting for around a tenth of total development spending in the region.

The call to help Pacific neighbours comes as Jacinda Ardern, and other New Zealand leaders, touch down in Australia ahead of the trans-Tasman leaders forum.

Following the trip to Australia, the New zealand contingent leaders will embark on a tour of the Pacific.

About 60 per cent of New Zealand’s total aid spend goes to its Pacific neighbours, however, that spending has not kept pace with commitments.

New Zealand’s spending as proportion of gross national income declined from 0.3 per cent in 2008 to 0.25 per cent in 2016.

Peters has said aid expenditure was in “serious need of review”, following “nine years of underfunding by the previous government”.

He added that the Ministry of Foreign Affairs and Trade had not had a budgetary increase since 2008.

If not arrested, aid spending would fall below 0.21 per cent of GNI by 2021, Peters said.

“New Zealand is a small, realistic and pragmatic country. We know we cannot help the Pacific solve its problems on our own – as there will always be someone with deeper pockets than ours and some Pacific leaders are attracted to easy sources of funding.”

Peters appealed to Australia to work with New Zealand on its renewed development focus in the Pacific, saying there had not been a time since 1945 when it was so important the two nations join forces to help its Pacific neighbours.

He cited the cohesive and unhesitating collaboration by the trans-Tasman partners in the wake of natural disasters like Cyclone Gita, saying that sort of collaboration should be applied when dealing with others issues in the Pacific.

“As part of the Pacific family, New Zealand is conscious that our identity, our national security and our prosperity are inextricably linked. We have, in a very genuine sense, a shared Pacific destiny.

“For these reasons the new government in New Zealand is undergoing a Pacific reset.”

In order to create a plan to help tackle the big issues, including climate change, and a move towards social and economic independence, Peters, along with Prime Minister Jacinda Ardern and other Cabinet ministers, would be spending more time in the Pacific during 2018.

This effort would begin next week with the New Zealand Pacific Mission to the Cook Islands, Niue, Samoa and Tonga.

The promise of a new strategy, and more money comes amid concerns about the changing geopolitical landscape in the wider Asia-Pacific region.

“It shouldn’t be underestimated just how much change is underway in the region,” Peters said.

“It has become increasingly obvious that the perception of New Zealand by Pacific leaders is changing.

“This reflects a new generation of post-colonial Pacific leaders who are increasingly confident, independent and assertive regionally and internationally. They are more comfortable in courting a range of external partners.

“These dynamics are changing New Zealand’s relative influence. At one level we are moving from a post-colonial influence to a mature political and development partner. At another level we have to work harder to maintain our positive influence.”

The Pacific had become a “contested strategic space”, giving the Pacific Island leaders more options, Peters said.

“This is creating a degree of strategic anxiety.”

While Peters did not say it in as many words, he was in part referring to the growing influence of China in the region.

It is understood the mega power was moving to gain more of a foothold in the region, and play a larger role in economic and infrastructure development in the Pacific. - RNZI