36 Asia The EconomistNovember 9th 2019
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Banyan Islands in a steam
T
his weekthe president of the Micro-
nesian state of Kiribati, Taneti Maa-
mau, lost his governing majority when 13
of his mps crossed the floor. The defec-
tors claim they are unhappy that in
September the atoll nation of 110,000
souls, spread over 3.5m km^2 of the south
Pacific, severed diplomatic ties with
Taiwan and initiated them with China
instead. Something similar may be about
to happen in the more populous Solo-
mon Islands. Its government has also
just switched allegiance to China. The
opposition reckons that it will soon be
able to peel off eight government mps to
win a vote of no-confidence over the
decision. If so, it would be the fourth
time Manasseh Sogavare has been un-
seated as prime minister. His latest stint
in the job began only in April.
Why such instability? Don’t overplay
the China factor. Mr Maamau complains
the defectors never even raised their
grievances with him. In the Solomon
Islands, China hardly featured in the
election campaign earlier this year. That,
of course, is one of the reasons pro-
Taiwan mps are crying foul. But relations
with China have not destabilised two
governments in the region because they
are a burning issue. It just does not take
much to destabilise Pacific governments.
In the Solomon Islands, only a single
government has survived a full term, and
that was under the auspices of ramsi, an
Australian-led international policing
mission that concluded in 2017. Especial-
ly in the Melanesian states of Papua New
Guinea (png), the Solomon Islands and
Vanuatu, governments are plagued by
chronic instability. Ministers show little
loyalty. The business of government is
driven by the exigencies of holding
together fragile coalitions.
After each general election in the
Solomon Islands, a “second election” takes
place as mps establish camps in the main
hotels in the capital, Honiara, and wait for
offers of ministerial portfolios or “refund
of campaign expenditures”. Parties lack
discipline (and policies). Mr Sogavare’s
Ownership, Unity and Responsibility
(our) Party had little force or numbers this
year until the second election. At times
like this “yo-yo” politicians, the most
opportunist or feckless, can exert great
influence, as can the logging companies
who often bankroll rival factions. Nor does
it take much to whip up an angry mob. One
trashed the hotel in which Mr Sogavare
was forming a government in 2006.
ourParty’s discipline is about to be
tested. Ministers and mps are miffed, the
opposition claims, that the 2m Solomon
dollars ($242,000) they were each alleged-
ly supposed to receive two days after the
switch to China has not materialised. That
will help the opposition in the no-confi-
dence vote, although a majority that relies
on yo-yos is always fragile.
In many respects, the instability is
unsurprising. The Solomon Islands was
never quite the failed state that Austra-
lian politicians claimed when ramsiwas
set up. But it has always been a thread-
bare one, with weak institutions and
feeble central authority. The country is
extraordinarily diverse, with 70 lan-
guages spoken across a swathe of often
thickly forested islands. Many of its 50
parliamentary constituencies are rural
and remote. Party affiliation is irrele-
vant—more important are promises of
corrugated iron for roofs. When mps
move to Honiara, they take pains to
conceal their mobile number from wan-
toks(“one-talks”—people who speak the
same language or come from the same
place) to ward off endless requests for
financial assistance.
Both the Solomon Islands and png
have adopted laws to strengthen party
discipline and thus end instability. They
have backfired. In pngthey encouraged a
proliferation of microparties; in the
Solomon Islands politicians simply
adjusted by running as independents.
Perhaps Westminster-style parliamenta-
ry systems simply don’t fit the region,
many conclude.
Here, Kiribati is an outlier. First, it has
a presidential rather than a parliament-
ary system. Moreover, if the president is
removed from office by parliament,
parliament is dissolved too. That will
make mps think twice before booting out
Mr Maamau.
Yet elsewhere democracy stumbles
on. It helps that judiciaries are usually
independent and the press uncon-
strained. Would-be authoritarians, Mr
Sogavare among them, struggle to retain
power in the face of the threat of defec-
tion and resistance to central authority.
As bad as the constant churn is for Pacific
democracies, a more authoritarian sys-
tem is unlikely to be any better.
Why politics in the south Pacific are so precarious
elections on January 11th, in which Ms Tsai
is seeking a second term. The Chinese au-
thorities probably did want to present a
friendlier face, having appalled many Tai-
wanese with their intransigent response to
pro-democracy protests in Hong Kong and
with their ongoing efforts to win over the
few remaining countries that have dip-
lomatic relations with Taiwan. But they are
also conscious that China is not quite as al-
luring a destination for Taiwanese firms as
it used to be.
Although Taiwanese firms still invest
more in China than anywhere else, the
sums involved have fallen sharply in re-
cent years (see chart on previous page).
China accounted for 84% of Taiwan’s for-
eign investment in 2010. In the first nine
months of this year, that had fallen to
34%. The rising cost of labour in China had
already led Taiwanese manufacturers of
mundane goods like umbrellas and shoes
to move their factories to South-East Asia.
Now the trade war between America and
China has prompted tech firms to recon-
sider their investment strategy. Taiwanese
officials say that 151 Taiwanese companies
operating in China have returned home
this year, with plans to invest $20.5bn. Jay
Chen of Academia Sinica, a state research
institute in Taiwan, doubts the 26 sweeten-
ers will reverse the trend.
The Mainland Affairs Council argues
that last year’s 31 measures and related fol-
low-ups were badly implemented. For in-
stance, although Taiwanese were theoreti-
cally granted the same access to services as
mainlanders if they had lived in China for
six months, many still found it difficult to
obtain a local credit card. Taiwanese often
remark that living in China tends to make
their compatriots more patriotic. 7