WELLINGTON, New Zealand — New Zealand is reevaluating its development funding for the aid-reliant island nation of Kiribati after a diplomatic encounter went sour between government officials. This reconsideration comes in light of the abrupt cancellation of a scheduled meeting between Kiribati’s President Taneti Maamau and New Zealand’s Foreign Minister Winston Peters, as confirmed by Peters’ office. This decision signifies increasing frustration over Kiribati’s lack of engagement with New Zealand and Australia, which together accounted for a significant portion of the country’s foreign development assistance in 2022.
The relationship between Kiribati, home to approximately 120,000 residents, and New Zealand, which has a much larger population of 5 million, is crucial despite its modest appearance. The underlying tension reflects broader anxieties among Western nations about China’s growing influence in the Pacific, especially since Kiribati adopted a favorable stance towards Beijing in 2019 and began forming various agreements with the country.
Kiribati, one of the globe’s most aid-dependent nations, hinges its economy significantly on international support, with foreign aid making up around 18% of its national income as of 2022. New Zealand has been a crucial player in providing this aid, contributing approximately 102 million New Zealand dollars (around $58 million) from 2021 to 2024. However, officials in both New Zealand and Australia have expressed their discontent over Kiribati’s lack of proactive engagement regarding ongoing development projects. These tensions worsened when Kiribati initiated a halt on foreign visits in August, indicating the need to prioritize domestic government activities after the recent elections.
Since switching allegiance from Taiwan to China in 2019, Kiribati has joined a cohort of other Pacific nations gravitating towards Beijing, amid China’s increased provision of aid to the island country. The situation became further complicated when the anticipated meeting between Peters and Maamau, scheduled for January 21 and 22, was unexpectedly called off. This meeting was significant as it would have marked the first visit from a New Zealand minister to the nation in over five years.
Peters’ office expressed that the absence of political dialogue has created hurdles in establishing joint priorities for development programs, making it difficult for such initiatives to be strategically aligned. As a result, New Zealand is poised to assess all forms of development cooperation with Kiribati moving forward. In response to inquiries, the Kiribati government remained silent, although its Education Minister defended the president’s decision by citing longstanding commitments in his home island and denied any diplomatic slight.
The ongoing diplomatic strains have the potential to yield wider implications, particularly affecting residency visas for Kiribati citizens in New Zealand and participation in a renowned seasonal workforce scheme that allows Pacific Islanders to work in New Zealand’s horticulture and viticulture sectors. New Zealand is seen as a favorable destination for many from Kiribati and other island nations seeking better opportunities.
While New Zealand’s approach to reevaluating development funding represents a significant shift, it notably contrasts with Australia’s recent tactics. Australia, Kiribati’s largest donor, has maintained a softer diplomatic strategy. Australian Defense Minister Richard Marles continued with scheduled engagements in Kiribati this month, including delivering a patrol boat promised to the nation without a meeting with President Maamau, further demonstrating Australia’s commitment to its ties with Kiribati.
In light of these developments, New Zealand asserts its readiness to engage with Kiribati at higher diplomatic levels, despite the ongoing tensions. The ongoing situation between the two nations underlines the complexities involved in international relations within the Pacific and the growing influence of China, particularly in countries that rely heavily on foreign aid.
