New Caledonia

Prelims – World

Context :

Recent French efforts to establish a new political settlement in New Caledonia have failed.

Overview of New Caledonia

New Caledonia is a French overseas territory situated in the Pacific Ocean’s seismically active “Ring of Fire,” located around 1,500 km to the east of Australia.
It comprises the main island Grande Terre (home to the capital Nouméa), the Loyalty Islands (Ouvéa, Lifou, Tiga, and Maré), the Belep Islands, the Isle of Pines, and other smaller islands.

According to the 2019 census, its population exceeds 270,000, with Kanaks—the indigenous Melanesian people—making up about 39%. The rest include individuals of European, Polynesian, Vietnamese, Indonesian, and Algerian heritage.

Though it enjoys autonomous status under French law (referred to as sui generis), New Caledonia’s residents are French citizens and can vote in French elections. However, the territory is not part of the European Union or the Schengen Area, despite its status as an EU-associated overseas country and territory (OCT).

Historical Background

Originally settled by the Kanaks, the archipelago was colonized by France in 1853. Post-World War II, Kanaks were granted French citizenship.
The arrival of a large number of French settlers in the 1960s shifted the demographic balance, diminishing the Kanak majority and fuelling the independence movement.

Escalating tensions led to the Matignon Agreements (1988) and the Nouméa Accord (1998), which introduced a phased devolution of powers and authorized up to three independence referendums.

• 2018 and 2020 referendums resulted in majority votes to remain with France.
• The 2021 vote, which faced a boycott by many Kanaks due to COVID-19, also showed support for continued ties with France, triggering backlash from pro-independence groups.

Strategic Importance

• Nickel Resources: New Caledonia holds between 10% and 25% of the world’s nickel reserves, crucial for the global supply chain.
• Economic Status: It boasts one of the highest average incomes in the Pacific.
• Environmental Significance: Its coral reefs and lagoons are listed as a UNESCO World Heritage Site (since 2008).
• Geopolitical Role: Plays a key part in France’s Indo-Pacific strategy, helping to balance China’s influence in the South Pacific.
  France seeks to leverage New Caledonia to strengthen regional partnerships, especially with India and Australia, as part of a broader Indo-Pacific framework.