11 Jun 2008

China's secretive aid programme to Pacific region is breeding suspicion says report

9:50 am on 11 June 2008

A report just out says China's secretive aid programme to the region is breeding suspicion and inhibiting donor co-ordination.

The study was written for the Australian based Lowy Institute, an independent international policy think tank.

The author, Fergus Hanson, says the opaque way Beijing operates undermines efforts to promote good governance and accountability.

"If you are the major donors in the region and you are also being asked to underwrite regional security, then I think you have an interest in making sure other major donors in the region are working towards the best interests of the Pacific and your own objectives."

But Fergus Hanson's report also suggests that Australia and New Zealand could learn from the high level of respect which China affords Pacific leaders.