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Overcoming political divisions between Pro-France Loyalists and the Pro-Independence movement is a major challenge in ongoing negotiations between the French Government and leaders in New Caledonia to define the territory's future political status. Credit: Catherine Wilson/IPS

By Catherine Wilson
SYDNEY, Jun 17 2026 (IPS)

The French overseas territory of New Caledonia in the Pacific will hold elections on 28 June in the wake of the latest agreement on its political status with France being rejected. The representatives elected in the three provincial assemblies and territorial congress will then determine a new round of negotiations as the mission of achieving consensus on New Caledonia’s future continues.

New Caledonia is one of 17 non-self-governing territories due for decolonisation according to the United Nations. However, its highly divided politics is a major obstacle to reaching a unified agreement on its future. An estimated 41 percent of New Caledonia’s population of about 265,000 people are Kanak islanders, of whom most are Pro-Independence supporters, and about 24 percent are European, predominantly Loyalist voters.

“Our people are entitled to the exercise of their inalienable right to self-determination… with a cycle of inclusive dialogues open to all components of our society, including youth, women, customary authorities and economic actors,” Pierre Chanel Tein Tutugoro, President of the Pro-Independence UC (Caledonian Union) Party in the FLNKS (Kanak and Socialist National Liberation Front) coalition, stated last year.

It is a view that resonates widely across the Pro-Independence movement. “Whatever the outcome [of the election], the state must play a strictly neutral role, working towards the emancipation of the Kanak people,” Maurice Sitrita, an Independence supporter in Noumea, told IPS. And in any future agreement, “the inclusion of Kanak sovereignty in the French constitution must not be called into question so that we can build the country together.”

Doriane Nonmoira of the Union of Francophone Women of Oceania, in New Caledonia, told IPS that there are currently five women candidates vying for primary seats in the June vote, including three Kanak women. “The upcoming elections will be the scene of a significant political transition for the country,” she said, emphasising that “decolonisation from France” was essential.

Meanwhile, the Pro-France Loyalists bloc is campaigning to strengthen security, the economy and unity while defending their place in the French Republic.

New Caledonia is considered a wealthy territory. Its GDP per capita is USD 29,213, compared to USD 6,425 in the nearby Melanesian state of Fiji, according to the World Bank, but there is deep inequality. A high standard of living, most visible in the capital, Nouméa, is supported by major annual funding of about 1.5 billion euros (USD 1.7 billion) by the French Government. Despite efforts to bridge the development gap, the poverty rate is still 30 percent higher in the outer Loyalty Islands, where the population is mostly Kanak, compared to the central Southern Province.

The last pact with France was the Noumea Accord, signed in 1998, following Kanak protests about dispossession and disenfranchisement in the 1980s. It stipulated the right of New Caledonia to hold referendums on its future. And following indigenous opposition to France’s policy of encouraging European migration to the islands, the territory’s electoral roll was restricted to Kanaks and long-term settlers only.

Kanaks are now better represented in the territory’s politics. From 2004 to 2014, the number of Loyalist seats held in the 54 seat New Caledonia Congress diminished from 36 to 29, while those held by Pro-Independence members increased from 18 to 25. And the current representative of New Caledonia in the National Assembly in Paris, Emmanuel Tjibaou, is a Pro-Independence Kanak leader from the rural North Province.

But three referendums on Independence have not led to a political solution. The first vote held in 2018 resulted in Loyalists securing 57 percent of votes, followed by 53 percent in the second 2020 referendum. The third vote in 2021, boycotted during the pandemic by the majority of Kanaks, saw an overwhelming 96.5 percent oppose Independence, an outcome that has never been accepted by the Independence movement.

Today a new strain of activism for self-determination is driven by the younger Kanak generation. They were a major presence in street protests that erupted in May 2024 following the French Government’s plan to expand the territorial electoral roll to include thousands of recent settlers. The electoral reform bill was then suspended after unrest resulted in loss of life, the destruction of homes, infrastructure and a shattered economy.

Last year, Manuel Valls, Minister for Overseas France, led new talks with both political camps to work toward a new pact on relations. The outcome was the Bougival Accord, an agreement of compromises, signed on 12 July 2025. It offered a New Caledonian ‘state’ within the larger nation of France with a further devolution of powers, such as foreign affairs, although France would retain defence and security. However, after further consultations, the UC party rejected the agreement in August. ‘As far as we’re concerned, Bougival, it’s over,’ Mickaël Forrest, UC Vice-President, told local media, claiming that ‘the document is perceived as a project for an agreement to integrate (New Caledonia) into France under the guise of a decolonization.’

France is unwilling to severe ties with New Caledonia, which represents a major strategic asset in the Pacific. It expands France’s exclusive economic zone, provides an important military and naval base in the region and inclusion in Pacific leadership forums.

However, Dr Pierre-Christophe Pantz, a researcher at the University of New Caledonia, told IPS that “the trauma of the events of 2024 has also played an important role [in negotiations], producing a coercive effect on national political leaders, who are often led to seek a rapid stabilisation of the local political system” rather than a sustainable long-term solution. But he added that “it is questionable whether there is any likelihood of an agreement that will have the unanimous support of all New Caledonian political forces.”

Yet the final failure of the Bougival Accord occurred in the French National Assembly, when parties across the political spectrum, legal experts and New Caledonia’s representative rejected the constitutional reform bill on 2 April.

Final preparations are now being made for this month’s election in which, despite protests two years ago, there will be an increased number of voters. In May, the French Constitutional Council approved the voter roll to include an extra 10,500 residents, both Kanak and non-Kanak, who were born in New Caledonia after 1998. French Prime Minister Sébastien Lecornu said the reform was imperative to recognize the democratic rights of all people living in New Caledonia, with the restricted roll now denying 17 percent their right to vote.

The vote “should contribute to reshuffling the cards of the political balance of power in New Caledonia”, Pantz predicted, and “future negotiations will depend very directly on their updated electoral weight, which could strengthen or weaken certain political lines.”

At the same time, Nonmoira stressed there was a need for women’s voices, especially Kanak women’s, to be heard in political discussions, with their current absence leading to their exclusion in the territory’s future. “In a future agreement, France should be committed to legal and institutional decolonisation; New Caledonia should be accountable to CEDAW (Committee on Elimination of Discrimination against Women) and it should be stated that gender equality is an essential lever for building a peaceful future,” she declared, adding that “there will be no decolonisation without gender justice.”

After the election, all parties have committed to resume talks with France in July. But they will occur in an environment of uncertainty until the outcome of the next French Presidential Election in 2027.

IPS UN Bureau Report

 

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By Warren Krafchik and Paolo de Renzio
Jun 17 2026 (IPS)

In the human body, connective tissue rarely gets the attention given to the heart, lungs or brain. But without it, even the strongest organs cannot function as a system. It binds, supports and connects a healthy body.

Fiscal systems work in a similar way.

Warren Krafchik

For decades, the global public finance community has focused heavily on strengthening the “organs” of fiscal management: finance ministries, budget systems, fiscal rules, audit offices and transparency tools. This work has mattered. Strong public finance institutions are essential to sound fiscal management.

But they are not enough.

The fiscal crisis is already here, and so is the crisis of trust around it. As governments face harder choices over debt, climate costs, slower growth, inequality and public investment, the challenge is no longer simply to balance the books. It is to make fiscal choices more accountable, equitable and trusted by the public.

That cannot be achieved by strengthening finance ministries or other individual institutions one by one. It requires investing in the connective tissue between these institutions: the relationships among legislatures, auditors, courts, civil society, journalists, reformers inside government and citizens that support legitimacy and effective scrutiny.

Case in point: Brazil, Indonesia and South Africa have all strengthened public finance institutions in important ways, yet still face deep challenges around oversight, legitimacy and equity, according to the synthesis paper, Strengthening Fiscal Ecosystems for Accountability and Equity. In each country, formal systems may look strong on paper, but fiscal decisions can still be shaped by political capture, weak scrutiny and unequal access to power.

The reason is that public finance is not simply a technical exercise. It is a political one. Budgets determine who gets health care, education, infrastructure, climate protection and social support. Tax systems determine who contributes and who is spared. Debt decisions can bind future generations. Fiscal choices are among the clearest expressions of a government’s priorities.

Paolo de Renzio

Yet too often, reform has treated accountability as something that can be solved inside one institution at a time. Strengthen the finance ministry. Improve the audit office. Support parliament. Publish more budget data. Each of these reforms can be valuable. But accountability does not happen simply because individual institutions have better rules, mandates or tools.

Accountability happens when those institutions are connected to one another and are able to collaborate. It happens when civic actors can engage them, when media can investigate, when courts can intervene where necessary, when legislatures can scrutinize executive decisions, and when public pressure can turn information into consequences.

Such a “fiscal ecosystem” includes ministries of finance, legislatures, supreme audit institutions, courts, civil society organizations, journalists, reformers inside government, social movements, citizens and the relationships among them. It also includes the informal realities that shape how power actually operates, such as party bargains, patronage networks, institutional rivalries, elite coalitions and unequal access to decision-makers.

This gap between formal rules and real power is where many fiscal reforms fall short. A country may have a budget law that clearly defines the role of parliament, but legislators may lack the independence or capacity to challenge executive choices. A supreme audit institution may produce strong reports, but those findings may go nowhere if the executive does not act on them. Civil society organizations may uncover misuse of public funds, but struggle to get a response from those with the power to impose sanctions.

Brazil, Indonesia and South Africa each followed different reform paths. But across all three cases, especially during crises, accountability often depended not on a single institution performing perfectly, but on formal and informal collaborations forming across the fiscal ecosystem. Auditors worked with communities. Media investigations collected evidence and amplified public pressure. Courts intervened when other institutions fell short. Reformers inside and outside the state found ways to connect scrutiny with action.

These efforts are often fragile. They are also essential.

The global public finance community should draw a clear conclusion. The next phase of fiscal reform must move beyond an institution-by-institution approach, and invest in the relationships, coalitions and channels that connect oversight actors and allow accountability to take root.

For international financial institutions, development agencies and technical assistance providers, this means recognizing that fiscal legitimacy cannot be built through executive capacity alone. Supporting ministries of finance remains important, but it should be matched by greater attention to the institutions, inside and outside government, and the connections between them that balance fiscal power.

For ministries of finance, it means supporting connected oversight systems by responding in a timely way to legislature and audit processes and recommendations and creating additional formal spaces for civil society organizations and communities to contribute to policy choices and implementation. Oversight bodies need pathways for their actions to matter.

For civil society and media, it means ensuring that transparency is not treated as the end goal but as a starting point. Public access to fiscal information is only powerful when citizens, journalists and civic actors have the resources, protections and channels needed to use it.

For philanthropy, the implication is especially urgent. Too much support for accountability work remains fragmented by institution, sector or issue area. Funders have a critical opportunity to invest in the connective tissue executive, oversight, and civic actors that makes fiscal accountability possible. That means supporting civic actors who can follow public money, connect budget decisions to lived experience, work with the ministries of finance and oversight institutions and help communities demand answers when public resources are at risk.

Fiscal reform must therefore be understood as a democratic project, not simply a managerial one. Strong finance ministries are necessary. But they cannot carry the burden of legitimacy alone. If governments want citizens to accept difficult trade-offs, they must build systems where people can see how decisions are made, contribute to those decisions, challenge abuses of power and trust that public resources are being used in the public interest.

The future of fiscal reform will not be won by strengthening one institution at a time. It will depend on building fiscal accountability ecosystems strong enough to keep public finance connected to the public good.

Warren Krafchik is a Public Finance Consultant at the Trust, Accountability and Inclusion Collaborative and Co-lead of the Strengthening Fiscal Ecosystems project.

Paolo de Renzio is a Senior Lecturer at the Brazilian School of Public and Business Administration of Fundação Getúlio Vargas in Rio de Janeiro, and Co-lead of the Strengthening Fiscal Ecosystems project.

IPS UN Bureau

 

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