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Asia-PacificJuly 31 2019

Pacific Islands look to China to fill relief shortfall

The arrival of Chinese financing in the Pacific Islands has been met with some apprehension internationally, but it is providing the island nations with vital support. Kimberley Long looks at how the countries are managing their debt, alongside the perceived decline in support from the multilateral institutions.
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When Tonga was hit by Cyclone Gita in February 2018, it damaged 1100 houses, leaving 120 destroyed. The 230 kilometre-per-hour winds also destroyed part of the country’s historic parliament building. The storm caused $210m-worth of damage, equivalent to almost one-third of Tonga’s gross domestic product (GDP). 

In the following weeks, there was a global response to help rebuild the country. Donations poured in from across the international community. The Asian Development Bank (ADB) came forward with $6m to fund early recovery activities. New Zealand pledged NZ$750,000 ($508,000) and its defence forces, if needed. China also stepped forward with $1.3m in emergency financing. 

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Kimberley Long is the Asia editor at The Banker. She joined from Euromoney, where she spent four years as transaction services editor. She has a BA in English Language and Literature from the University of Liverpool, and an MA in Print Journalism from the University of Sheffield. Between degrees she spent a year teaching English in Japan as part of the JET Programme.
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