This paper documents and analyses a range of literature and policy statements that identifies issues and looks at the role which adult education plays in building communities and peace in post-conflict states. This paper explores and documents these developments in countries in close proximity to Australia which have been viewed by the former Australian government as constituting an "arc of instability". This is a term which will be critically discussed in the paper for the way in which it positions the nations of the Pacific and Australia's foreign policy as well as its aid and development policy. This paper reviews existing orthodox approaches to the region and development and discusses the criticisms that have been levelled at the status quo. (Contains 1 table.)