The island trade: an analysis of the environment and operation of seaborne trade among three island groups in the Pacific

Abstract

Part I considers physical conditions affecting navigation and trade. These are: island types, remoteness from international trade routes, fragmentation of territory, difficulties of access, currents and tides. Environment and population are also considered in relation to exploitable resources. Populations are growing rapidly but the range of marketable resources are limited often due to inadequate transport services, and all agricultural resources are liable to diminish with destructive droughts and hurricanes. Part II traces the development of the trading systems. Historically the archipelagoes have followed similar lines. First came itinerant traders, then the creation of port bases and the spread of resident agents. The exchange economy was thus established. With colonialism came port of entry restrictions and the rise to power of Anglo-Australasian companies, especially in Suva. The companies competed in various ways but the trend. was towards oligopoly. The islanders did not emerge as traders, although they did have indigenous trading systems. The extended family was one factor against participation in the commercial system, but islanders did protest against commercial exploitation, and some attempts were made to usurp the role of alien traders and to operate island shipping. Only with the emergence of co-operatives have islanders had significant successes in trading ventures. Part III deals with present day trade. Many islands are threatened with economic isolation for freights are expensive, services poor and the risks great. Shipping where cash is received from phosphate workers the position organisations differ in the three territories but nowhere are they profitable - unless maintenance is neglected and safety factors reduced. In Tonga and the GEIC government supports shipping. Reasons for low profitability are: long hauls for small quantities, rising crew costs and repair costs, intensive competition (in Fiji) and marine accidents. Under these conditions freights must be high if vessels are to operate. It is possible that standards could be improved and ships made more viable. Before this is considered the study looks in detail at marketing and retailing in the hinterlands, the functions of shipping, and the degree to which communities are dependent on trade. In the GEIC virtually all commercial activities are in the hands of co-operatives. In Tonga the government controls marketing and private enterprises control retailing. In Fiji marketing and retailing is, apart from co-operatives, under private enterprise. The GEIC system gives a more equable distribution of cash returns, but highest returns are received by estates in Fiji and lowest by people in the outer islands of Fiji. In these latter areas there is no central trading place. A more consolidated system of marketing and retailing appears to be desirable. Patterns of ship movements in the archipelagoes are determined by copra production, and many islands with high potentials for fresh products cannot market these. A certain amount of fresh produce is carried by passengers and passenger traffic to and from the port towns is extensive. On outward voyages cargoes comprise foodstuffs, oils and building materials. Tonnages depend on regional incomes and these in turn generally on copra. But not entirely so, for cash comes from sources external to the islands (from phosphates especially). It is shown that all islands are truly dependent on cargoes and in the GEIC where cash is received from phosphate workers the position will be serious in the small Ellice Islands and drought-prone southern Gilberts when phosphates are exhausted. Part IV is the conclusion, this considers trends and future prospects in island trade. In the past development has centred mainly around port towns, planning is required to spread development outwards. All archipelagoes have adopted plans but outer areas do not always figure in these and in the GEIC plans are inadequate to meet the future. Port towns continue to attract people ahead of urban employment, opinion is divided on the value of this. These towns are now part of the archipelago community - not simply alien entrepots. To spread development outwards from the towns there has to be adequate shipping. Two courses are open, either subsidise ships or rationalise the trades. Already limited rationalisation has taken place in Fiji. The solution appears to be consolidation of trading places to speed turn-around times. This would also facilitate the centralising of commercial activities and minimise the amount of money and time spent on travelling to port towns. In the GEIC rationalisation might involve altering international channels of trade. Links between GEIC and Australia could be altered to links between GEIC and Fiji and the locational disadvantages of the small Ellice Islands and drought islands would be changed. Part V is a postscript emphasising that islanders are not simply becoming 'economic men'. There is a non-commercial trading system still operating. Nowadays this relies on inter-island and inter-territorial commercial shipping. It is unprofitable by commercial standards but must be taken into account when planning island transport. Show more