Updated February 25, 2010 17:51:16

An Australian Senate inquiry has found that if Papua New Guinea and the Pacific Island states did more to grow their economies, their security capacity and outlook would be better. The Foreign Affairs, Defence and Trade References Committee has held a long inquiry into economic and security issues in the region, and its latest findings are the second part of its two part report. In its economic findings last November, it pointed the finger in part at Pacific states for allowing human capital to languish, agricultural productivity to decline and adverse business and investment climates to persist. Now, the committee's found that development shortcomings contribute to the region's long list of security problems.

Presenter: Linda Mottram abcwire.send-mungmung.rapb
Speaker: Senator Russell Trood, chair of Australian Senate Foreign Affairs, Defence and Trade References Committee

MOTTRAM: The report paints a picture of a region beset by security challenges. The committee's chair is Liberal Senator Russell Trood.

TROOD: The list of security challenges now faced by the region is depressingly long. It includes the breakdown of domestic law and order, transnational crime including smugling and money laundering, illegal fishing resulting in serious resource depletion, a high vulnerability to natural disasters and a potentially wide exposure to the dangers of climate change. The committee found that the island states had a limited capacity to respond effectively to many of these challenges. Their law enforcement mechanisms were limited, their capacity for effective border control overstretched, regulatory and administrative frameworks are under-developed, and their ability to respond to natural emergencies limited by weak infrastructure and an absence of financial reserves.

MOTTRAM: The report also points to a complex mix of domestic obstacles the limit Pacific states capacity to deal with security issues .. persistent matters such as unemployment, inter-ethnic tension, land tenure issues, gender inequality and political instability.

Australia has a wide range of security related programs in the region, which the committee sees in a largely positive light. It calls for the widening of some .. like the Pacific Patrol Boat Program and a weapons security initiative .. while it suggests some new efforts, like the establishment of a Regional Maritime Co-ordination Centre. There are also recommendations for broadening and deepening co-operation and co-ordination. And it calls for developing security partnerships. Australia's police, defence force, customs and border service, and AusAID are among the many institutions working on Pacific security programs, which gave evidence to the committee's hearings.

But the overarching question is why the security issues persist. Russell Trood told the Senate upon tabling the report that the committee found there is a close connection between security and development.

TROOD: Indeed Mr Acting Deputy President, the committee is strongly of the view that were all of the recommendations in volume one of its report to be implemented, it would greatly enhance their security and improve their capacity to meet security challenges that they face into the future.

MOTTRAM: Volume one of the committee's report focussed on economic development issues. And it found that despite years of external assistance, Pacific states are themselves are responsible to some degree for continuing economic shortcomings.

In that report, the committee pointed to a lack of investment by Pacific states in human capital .. kids not at school, workers not trained appropriately; it highlighted dramatic slides in agricultural productivity; and it found Pacific states had generally not done what's required to encourage development and investment in their economies. And that's on top of natural constraints like geography, population and technological limitations.

Overall, Senator Trood says the situation in PNG and the states of the southwest Pacific is likel to remain dire for the foreseeable future and in need of external assistance for decades to come.

Then, on top of all that, the committee notes the big, evolving security issue .. climate change.

Russell Trood again.

TROOD: At the moment these countries are under-prepared for these challenges. They are not likely to diminish and accordingly will probably demand considerable attention from external partners such as Australia.