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Home»World»Europe»France
France

In New Caledonia, the challenging birth of a new economic and social model

August 2, 2024No Comments3 Mins Read
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The first night of riots in New Caledonia saw cars set on fire at a car dealership in the Belle-Vie neighborhood of Noumea on May 14, 2024. Philippe Michel, a leader of the non-independence group Calédonie Ensemble, sarcastically commented on the proposal by Sonia Backès, the former Secretary of State for Citizenship of the Borne government and non-independence President of the South Province, to grant autonomy to the provinces. In a speech on July 14, Sonia Backès stated that the Kanak world and the Western world do not mix, suggesting instead to walk side by side, moving away from the spirit of the Nouméa Accord of 1998, which aimed to build a common destiny.

The idea proposed by Sonia Backès, although controversial, is seen as a response to a call by French President Emmanuel Macron for a “new social contract” to rebuild the common history. This call resonates with the idea of “refounding the social contract” laid out in the preamble of the Nouméa Accord, based on the recognition of the Kanak culture. The urgency to reform New Caledonia was already evident before the events of May 13, as Louis Mapou, the local executive president, noted the archipelago’s model was “at the end of its rope” due to stagnant tax revenues and rising expenses, especially in healthcare and social services.

The current government in New Caledonia, the first independentist government since the early 1980s, led by Jean-Marie Tjibaou, has shown ambitious reform plans. However, three years into their term, progress has been slow despite the conditions imposed by the state for structural reforms. This stagnation can be traced back to the colonial history of New Caledonia, where France relied on the local oligarchy to ensure cooperation from local leaders. This created a system of exemptions and tax breaks specific to New Caledonia, designed to appease various groups and interests, leading to a significant loss in tax revenue.

The challenges facing New Caledonia highlight the need for urgent reforms to address the economic and social issues affecting the region. The current political landscape, with tensions between independence and loyalty to France, adds complexity to the discussions on the future direction of New Caledonia. As the calls for a new social contract grow louder, the need for effective governance and economic stability becomes even more pressing. The events of May 13 serve as a wake-up call for all parties involved to work towards a more inclusive and sustainable future for New Caledonia.

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