Economy of Oceania

The economy of Oceania comprises more than 14 separate countries and their associated economies.

On a total scale the region has approximately 35,834,670 inhabitants who are spread among 30,000 islands in the South Pacific bordered between Asia and the Americas. This region has a diverse mix of economies from the highly developed and globally competitive financial markets of Australia (1st) and New Zealand (2nd) boasting parity with much of Western Europe, to the much less developed economies that belong to many of their island neighbours.

Economic Development

Future

As the worlds regions become increasingly interlinked to form trade blocs the future which entails Oceania could lead to either increased unity or separatism. Future issues such as Global Warming, the Kyoto Agreement, and the subsequent possibility of the Carbon Trade could increase the regions viability to become a more centralised region. Greater unity and therefore sustained prosperity among Oceanian countries could be achieved through increased co-operation between nation states Economically, Politically and Socially. The implementation of these factors could perhaps provide the region with a similar framework to the European Union in its most fundamental form. Perhaps the formation of a common currency in the South Pacific, similar to that in Europe may be the first step in the right direction.

Regional variation

"to be completed"

Trade blocs

Many of the smaller Pacific nations rely on trade with Australia, New Zealand and the United States for exporting goods and for accessing other products.

Australia and New Zealand's trading arrangements are known as Closer Economic Relations. Australia and New Zealand, along with other countries, are members of Asia-Pacific Economic Cooperation (APEC) and the East Asia Summit (EAS), which may become trade blocs in the future particularly EAS.

Currency

Below is a list of the currencies of Oceania, with exchange rates between each currency and both the "Euro" and "US Dollars" ^{as of 28th October 2007}.

"Table correct as of 28th February 2008"

Economic sectors

ervice Industry

The overwhelming majority of people living in Oceania work in the service industry which includes tourism, education and financial services. Oceania's largest export markets include Japan, China, the United States and South Korea.

Manufacturing

The Manufacturing of clothing is a major industry in some parts of the Pacific, especially Fiji, although this is decreasing.

Tourism

Tourism has become a large source of income for many in the Pacific; tourists come from Australia, New Zealand, Japan, the United Kingdom and the USA. Fiji currently draws almost half a million tourists each year; more than a quarter from Australia. This contributes $1 billion dollars or more since 1995 to Fiji's economy but the Government of Fiji islands underestimate these figures due to invisible economy inside tourism industry.

Agriculture and Fishing

Agriculture and natural resources constitutes only 5% to 10% of Oceania's total jobs, but contributes substantially to export performance. It should be noted that the most populous two nations Australia and New Zealand are also the most developed and have majority service industries this dilutes the data from the less developed Pacific Island nations who have major agricultural economies. Most of the Pacific countries excluding Australia and New Zealand)the primary industry is agriculture. Many nations are still quintessentially agricultural; for example, 80% of the population of Vanuatu and 70% of the population of Fiji works in agriculture. The main produce from the pacific is copra or coconut, but timber, beef, palm oil, cocoa, sugar and ginger are also commonly grown across the tropics of the Pacific. Old growth logging is exploited on larger islands, including the Solomons and Papua New Guinea. Fishing provides a major industry for many of the smaller nations in the Pacific, although many fishing areas are exploited by other larger countries, namely Japan. Natural Resources, such as lead, zinc, nickel and gold, are mined across the West of the region, in Australia and the Solomon Islands. Oceania's largest export markets include Japan, China, the United States and South Korea.

International Aid and Charity

Oceanian Donor Nations

Oceania's most populous nations Australia and New Zealand are both highly developed nations and are large international aid donors. These two wealthy nations share the region with less developed nations which still rely on foreign aid for development. In the 2007 to 2008 financial year Australia provided $3.155 billion dollars worth of official development assistance of which $2.731 billion will be managed by AusAID. Every week, each Australian puts in around $2.40 to pay for Australia's aid program amounting to around 1% of the Australian Federal Government expenditure compared to the 42% spent on social security and welfare.

Oceanian Recipient States

In the Solomon Islands 50% of Government spending is paid for by International donors; namely Australia, New Zealand, the European Union, Japan and the Republic of China (Taiwan).

Global trade relations

Economy by country

ee also

*Oceania