Environmental pollution is relatively low, in line with the low human population. Half of Australia s population lives in just four coastal cities. Both countries have strong relationships with Pacific island countries, in some cases extending to specific constitutional responsibilities, and they are home to sizable populations of Pacific Islanders. Large populations outside the region are dependent on the region s agricultural exports. The two countries have open market economies, are members of the OECD, and in general have good access to the capital, technological, and human resources needed to adapt to the impacts of climate change.
Primary industries are a cornerstone of the region s economy.
Forestry, fishing, and tropical crops also are important. Australia is a major exporter of coal, as well as energy-intensive iron, steel, and aluminium. Coal reserves are about 100 billion tonnes, with annual production of about 200 million tonnes, mostly for export. Thus, regional exports are heavily exposed to fluctuations in world commodity prices and trading conditions. Socioeconomic trends in the region are similar to those in other developed countries.