Geopolitics on Pacific Islands

The Indo-Pacific region has become a critical arena for geopolitical competition, primarily between the United States and China, due to its strategic importance, economic vitality, and rich natural resources. The Lowy Institute's report highlights that Pacific island nations are leveraging this rivalry to negotiate better development benefits, but warns that the intense competition complicates governance and may distract from pressing local issues like climate change and political instability. China has significantly increased its influence in the region through development finance and infrastructure projects, challenging the traditional dominance of U.S. allies such as Australia and Japan. The report emphasizes that Pacific Islands have become diplomatic price-setters amidst this 'great game,' but warns that the competing interests of major powers could overwhelm small bureaucracies and hinder local priorities. Furthermore, the region's vulnerability to climate change is being exploited by external partners seeking strategic advantages. Overall, the geopolitical dynamics in the Indo-Pacific and Pacific Islands could reshape global security and economic landscapes in the coming years.