Last week New Zealand’s foreign affairs minister Winston Peters announced an aid program that will deliver two billion dollars (NZ$) to nations in the south Pacific over the next eight years. The generous amount may be an attempt to compete with China- who’s aid to the Pacific now exceeds New Zealand’s. China’s aid is (probably quite correctly) seen as “checkbook diplomacy” China sees Taiwan as a province, but six tiny island nations officially recognise Taiwans independence, causing an aid bidding contest for recognition between the two nations. While the motives behind New Zealand’s aid are not as immediately noticeable, New Zealand’s relations with the Pacific largely serve its own interest, rather than those of Pacific Islanders.

For many island nations, which face limited development opportunities due to their size and isolation, a large source of income is remittances from islanders working overseas, many of them in New Zealand. Pacific Islanders in New Zealand are usually working in low wage jobs, and often on work schemes that only allow them to be in the country temporarily. Commenting on the seasonal work scheme introduced in 2006 Peters stated “The earnings they send home will support families, help pay for education and health, and sometimes provide capital for those wanting to start small a business,” Peters did not elaborate on how this would all by paid for by workers at the bottom end of a country with a low wage economy.

Pacific nations could be helped by New Zealand raising the minimum wage, and opening its borders to workers from the islands, rather than only letting in a few though restrictive immigration and work schemes. The two billion dollars that New Zealand is sending to Pacific nations will be a help to these countries, but an ulterior motive is maintaining influence in what is a source of cheap migrant labour for New Zealand employers.