But first, let’s resolve the trust issue, says Movick


The lack of trust between those who govern and those who do business has been part of the history of each Pacific nation. But moving the region forward means a stronger mutual bond between the unlikely friends.

While the Pacific Plan and the recently endorsed regional private sector organisation are steps in that direction, the Pacific Islands Private Sector Organisation (PIPSO) chair James Movick says it’s time to increase the pace.

“It’s really a matter of the officials, leaders and ministers getting comfortable with the private sector being part of the FEMM process  and I expect that with some trust-building, that will be more tangible as we go forth.

“Sure, governments are always reserved, and officials more so than politicians, so it’s not going to mean a mad rush for change.”

But until that distrust is dealt with, it will continue to test the effectiveness of PIPSO’s role and credibility in the FEMM process. With 10 years of FEMM versus just over six months of PIPSO, Movick and his team are working to change that.

He says FEMM’s involvement with economic policy makes the 2006 summit in Honiara an ideal place to raise the issues.

But he is well aware that pushing for a more strategic engagement which locks in dialogue between the public and private sector at national level, is something better tipped for the  annual Pacific Islands Forum leaders meetings.

“Yes, we are asking via the channels to explore whether it will be possible to get something out at the Forum (in Tonga) or perhaps this will go forward to FEMM 2007. Whether we get it this year or next year, that’s the goal, and it’s now out there.”

The goal, according to a short and informal brief which went out to country teams at FEMM 2006, is to adopt a set of Guiding Principles towards public-private sector engagement. The principles would rest on a commitment to take on two or three consultations between the sectors on specific policy problems that hinder economic growth.

“As things stand now, we just keep talking and prescribing, but there are few concrete steps taken to actually give effect to this process and to see identifiable outcomes,” notes Movick.

His self-described “side letter” to FEMM 2006 was apologetic and direct.

“With the greatest respect to policymakers and officials, we strongly believe that we need to move beyond general statements and recognition (of problems), to undertake actual engagement and action. Talk alone will not bring economic growth.”

And it is clear that PIPSO has not relied on talk alone since its inception last November.

Just a month after the Forum Secretariat hosted the national private sector representatives to a meeting and signing ceremony for PIPSO, the newly confirmed FSM businessman was leading a private sector outreach mission to French Polynesia, whose business community has already confirmed interest in joining up.

In the months before FEMM 2006, PIPSO was an active observer at the Pacific ACP Trade Ministerial in Nadi, an invited speaker to the heads of Investment Promotion agencies meeting in Tonga, and an active participant at the APEC symposium on private sector development in Canada.

The special energy and focus of private sector work is also being called on to deal with regional trade issues, and PIPSO has been recognised as the focal point to the region by the International Kava executive committee.
Back on the issue of trust though, Movick notes that if the public sector doesn’t trust the private sector to do business, the potential for private sector growth and economic benefits which ultimately feed back into the public purse is lost.

“Government’s don’t engage well in business. They don’t have the funding or resources anymore to do it” says Movick.

His mantra of relying on private sector growth to drive the economy is a common one, which has support from both sides of the public-private divide.

It’s where governments fail to involve the private sector in economic policy formulation and implementation processes—particularly on the best use of state assets and monopolies that the friendship fails.

The PIPSO plea for engagement is aimed at moving past the rhetoric, and into the zone where a mutually beneficial feedback and action process on policies kicks in.

It also allows the people on whom the first impacts of economic policies are often felt, to have their say to do something that allows them to keep in business.

Selling the notion of closer relationships with the private sector has taken on a fresh spiel in this corner of Melanesia.  

“Our argument is basically if you want peace, security and stability in the region, the way to do that is to generate economic growth because at the end of the day if you don’t have economic growth then your options are limited. People don’t have jobs and there’s an environment of insecurity,” says Movick.

His hard sell on the mutual benefits of private-public sector engagement hasn’t fallen on deaf ears.

In fact, while the much-touted Pacific Plan and Australia Pacific 20/20 documents already call for engagement, it’s clear the leaders are already running at differing extents, into consultations with the private sector.

As Pacific feminists have argued for decades, shared decision-making doesn’t mean losing face, or power.

“At the end of the day, government still makes the decisions, no one takes that away from them...but at least they have the choice of making more informed decisions,” says Movick.

“All we want is for PIFS governments to at least try, where they haven’t done it before, to create a number of dialogue mechanisms focused on specific policy reform issues and then see if we can jointly come up with better solutions and see how we can implement them. Let’s see if this will work, and give people more confidence in the whole process. It’s important to stop the talk and get into action.”