The proposal, from international policy think-tank the Lowy Institute, was prompted by what it describes as a “bleak” economic outlook for the region and a call from Malcolm Turnbull for a “step change” in engagement.
It also includes a more modest suggestion in which Australia attracts around 3000 Pacific Islanders per year to work permanently to deliver more benefits to the region by 2040 than the current aid program.
Jonathan Pryke, one of the report’s authors, said there was a “real need for change in the way we engage with the Pacific”.