Issue Analysis : Aid has failed the Pacific / Helen Hughes

Abstract

Per capita income has grown at less than 1 % a year in the Pacific during the past 30 years. In some islands it has declined. Population has grown at more than 3% a year. The discrepancy between population and income growth lies at the core of the Pacific's problems. The little income growth that has taken place has gone to small urban elites, so that village standards of living arc deteriorating. Economic decline has inevitably led to crime and violence. Australia is not keeping abreast of the Pacific's problems, allowing aid to add to the region's difficulties. Nauru and the Solomon Islands arc disintegrating and Papua New Guinea's problems arc acute.