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Official Name -
Tuvalu
Land Area - 26 sq km - nine islands - 5 atolls and 4 coral islands
Population - 11,190 (2004)
Capital - Fongafale
Main Atoll - Funafuti
Religions - Ekalesia Kelisiano Tuvalu (Congregationalist): 97%; Seventh-Day Adventist: 1.4%; Baha'i: 1%; Other: 0.6%.
Language - English, Tuvaluan (a Polynesian dialect); I-Kiribati (Gilbertese)
Currency - Australian Dollar (with Tuvaluan coins circulating on par with Australian coins)
EEZ - 757,000 sq km
Political system - Constitutional monarchy with a parliamentary democracy.
National government - Cabinet of up to five members of parliament, appointed by the Governor General on the recommendation of the Prime Minister.
National legislature - A 15-member unicameral parliament or Palamene, also called House of Assembly, elected every four years.
Last election - August 2006
Next general election due - August 2010
Head of State - Queen Elizabeth II, represented by Governor-General Rev Filoimea Telito (since April 2005)
Head of Government - Hon Apisai Ielemia, Prime Minister
Speaker of Parliament - Hon Kamuta Latasi
Key Opposition MPs - No organised political parties.
Main political parties - There are no political parties but members usually align themselves in informal groupings.
GDP - A$27.5m (2002)
GDP per capita - A$2,478 (2002)
Real GDP growth - 3.0% (2004 est)
Exports (FOB) - A$147,000 (2003) (Germany 35%, Poland 26%, Philippines 13%, Fiji 8%)
Imports (CIF) - A$24.0m (2003) (Fiji 43%, Japan 20%, Australia 11%, Poland 10%, New Zealand 4%)
Main exports - Copra, handicrafts, fish
Inflation - 2.8% (2004)
NZ Exports (FOB) - NZ$1.75 million (2006)
Main Exports - Prepared meats, timber, hand/power tools
NZ Imports (CIF) - NZ$663 (2006)
Main Imports - Air/vacuum pumps
Tuvalu was part of the British colony of the Gilbert and Ellice Islands from 1892. Formerly the Ellice Islands, it was administered together with the Gilbert Islands (now Kiribati) until 1975. This union, linking the Micronesians of the Gilbert Islands with the Polynesians of the Ellice Islands, was largely a colonial convenience. Tuvalu, which means “eight islands together”, became an independent constitutional monarchy on 1 October 1978, with Queen Elizabeth II as Head of State. In 1986 Tuvalu approved a new, locally written, Constitution. Tuvalu is ranked as the fourth smallest country in the world.
The eight islands, from north to south, are: Nanumea, Nanumaga, Niutao, Nui, Vaitupu, Nukufetau, Funafuti (capital), and Nukulaelae. The ninth island, tiny Niulakita, was inhabited only since the 1950s by people from Niutao Island. Since the late 1940s, a Tuvaluan community has been living on the island of Kioa, off the east coast of Fiji's Vanua Levu, to avoid overcrowding on Vaitupu.
Most Tuvaluans are members of the Christian Church of Tuvalu (Ekalesia Kelisiano o Tuvalu), autonomous since 1968 and derived from the Congregationalist foundation of the London Missionary Society. Life, especially on the outer islands, revolves around religion.
Tuvalu has an elected fifteen-member legislative chamber. The legislature elects a Prime Minister, who then chooses up to five Ministers of Cabinet, selected from the Parliament. The Governor General is appointed by the Queen, on the recommendation of the Prime Minister who will have consulted with parliament.
In recent years, Tuvalu political situation has remained fluid with several changes of leadership. Following the August 2006 elections, Hon. Apisai Ielemia was elected as Tuvalu’s tenth Prime Minister. The previous general election was in July 2002, when Hon Saufatu Sopoanga was appointed as Prime Minister. On 25 August 2004 the Sopoanga government lost a parliamentary vote of no-confidence moved by Ielemia who was then Leader of the Opposition. Sopoanga resigned as Prime Minister and a Member of Parliament on 28 August 2004. On 7 October he was re-elected, through a by-election, as Member of Parliament in the seat of Nukufatau and was subsequently sworn in as the Deputy Prime Minister. Maatia Toafa was elected Prime Minister in place of Sopoanga.
Members of Parliament have very close links to their island constituencies. They are not organised into any formal political parties.
A comprehensive review of the programme of public sector reforms was initiated under the previous Government’s medium to long-term Vision 2015 development strategy. The reform programme included the reduction of government expenditure and the public service, corporatisation, facilitation of private sector development including the establishment of a new legislative framework for direct foreign investment, decentralisation of government to the outer islands, improving public sector performance, and further outer island development.
The Falekaupule Act gives island councils - comprised of traditional leaders - responsibility for managing their own finances from a budget allocated by central government. The Falekaupule Trust Fund, with initial capital of $12m (in two tranches over 1999 and 2000) was established in 1999 for this purpose. Funded by a loan from ADB, the Tuvalu government agreed to match this loan from its own resources.
Despite severe development constraints, Tuvalu achieved an average real GDP growth rate of 5.6 per cent per annum during 1996-2002, one of the best performances among Pacific Island economies. There has, however, been a slowing down in growth since then. The Government's financial position is becoming less certain, with accumulating debt and falling income in recent years. As a result, Tuvalu has become more dependant on seeking external donor support in the form of cash grants to fund recent budget deficits.
Tuvalu is a United Nations designated Least Developed Country, in recognition of its small size, almost total lack of exploitable resources and very limited potential for economic development. Most Tuvaluans are involved in traditional subsistence agriculture and fisheries, which are highly susceptible to adverse weather conditions, notably climate change and rising sea levels.
Around two thirds of the formal workforce is employed by the Government, leaving little room for private sector activity. Development of the economy is heavily reliant on overseas aid, traditionally from Australia, the United Kingdom and New Zealand, and now, increasingly from Japan, the EU and Taiwan.
The Tuvalu Trust Fund plays an important part in the economy. The Tuvalu Trust Fund (TTF) was created out of donations from the governments of New Zealand, Australia, the United Kingdom and Tuvalu in 1987, and is regarded as a success. With an initial capital of about NZ$30 million at independence, it now totals about NZ$90 million. Tuvalu is today the largest contributor. The capital is invested globally and distributions are paid back into the government’s consolidated account. At about 2.5 times GDP, the TTF has contributed roughly 11% of the annual government budget each year since 1990. This provides an important cushion for Tuvalu's highly variable income from fishing and royalties from the sale of the dot-TV domain.
Tuvalu has been able to capitalise on its fortune in having the right to the highly marketable internet domain name “.tv”. By selling rights to the suffix to California company Idealab for approximately NZ$55m over 12 years, and by retaining a 20 per cent share in the “dotTV” company, Tuvalu hopes to receive significant profits over the following decade.
Fishing licence fees provide another important source of foreign exchange. Tuvalu has fishing licence agreements with Taiwan and Japan and is also party to the multilateral fishing agreement with the United States. Tuvalu has also sold shares in an international telecommunications venture which leases Tuvalu lines and markets them internationally.
Remittances from Tuvaluans employed overseas, particularly until recently in the phosphate mining industry in Nauru and as seafarers on German ships, have played a significant part in the economy. Annual remittances from the more than 1,000 Tuvaluans working overseas were estimated to be about A$4.5-$5 million in 2003. As phosphate mining has wound down in Nauru, however, around 300 Tuvaluans have returned home in the last few months. This should provide a short-term boost to Tuvalu's economy.
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There are no streams or rivers on Tuvalu, and groundwater is not potable; most water needs are met by catchment systems with storage facilities (the Japanese Government has built one desalination plant and plans to build one other). Other environmental concerns include erosion of sand dunes and coastline, excessive clearance of forest undergrowth for use as fuel, and damage to coral reefs from the spread of the Crown of Thorns starfish. Tuvalu is concerned about global increases in greenhouse gas emissions and their effect on rising sea levels, which threaten the country’s underground water table. The highest point of elevated land in Tuvalu is between 4-5 metres, which provides the basis to their concerns regarding the effects of climate change and the threat of sea level rise.
The fragility of the island group was underscored in 1997 when a damage assessment team estimated that approximately 6.7% of Tuvalu’s total land mass had been washed away by Cyclones Gavin and Hina.
The main focus of Tuvalu’s foreign policy is the Pacific region, but Tuvalu has become increasingly active in regional and international forums.
Tuvalu has a High Commission in Suva, and a mission in New York. Tuvalu signed a Treaty of Friendship with the United States in 1979 and has entered into diplomatic relations with a range of other countries including Japan and the Republic of Korea. Tuvalu has also maintained diplomatic relations with Taiwan.
Tuvalu is a member of the United Nations (since 2000), the Commonwealth, the Pacific Islands Forum, the Forum Fisheries Agency, the South Pacific Regional Environment Programme (SPREP), the South Pacific Applied Geoscience Commission (SOPAC), Secretariat of the Pacific Community (SPC), South Pacific Board for Educational Assessment (SPBEA), South Pacific Tourism Council, and the University of the South Pacific. Tuvalu is a member of the African Caribbean and Pacific group of developing countries associated with the European Community under the Lome Agreement (ACP), the UN Economic and Social Commission for Asia and the Pacific (ESCAP), and an associate of the International Federation of Red Cross and Red Crescent Societies (IFRC).
Tuvalu is a non-signatory user of the International Telecommunications Satellite Consortium (INTELSAT), a participant in the International Telecommunications Union (ITU), and a member of the Universal Postal Union (UPU).
Tuvalu is party to a number of international environmental agreements including those related to: the Kyoto Protocol, Desertification, Endangered Species, Marine Dumping, Ozone Layer Protection, Shipping Pollution, Biodiversity and the Law of the Sea.
A key factor in the bilateral relationship is the development cooperation programme between New Zealand and Tuvalu. The New Zealand and Tuvalu governments agreed on the strategic direction of the programme for 2002-07 at consultations in Funafuti in May 2002. The programme’s goal is to support the efforts of Tuvalu’s Government and people to achieve equitable and sustainable development. The total NZAID allocation for Tuvalu for 2006/07 is $2.050m. Strategic priorities are support for the Tuvalu Trust Fund (NZAID meets the costs of an advisor on the Trust Fund Advisory Committee and a Board Director for the Fund and makes occasional annual contributions), Human Resource Development (including early childhood education, tertiary development scholarships and short term technical and vocational training), and Outer Islands Development.
Under the latter category New Zealand is funding a design study to assess how best to upgrade reef channels and related infrastructure in the outer islands to facilitate safer and more efficient movement of passengers and cargo between Tuvalu’s inter-island vessels and the atolls. NZAID is also supporting capacity building activities for Kaupule and Falekaupule (Island Councils), particularly in skills to administer the Falekaupule Trust Fund (FTF). NZAID also provides an annual capital contribution to the FTF ($350,000 p.a.) the focus of which is to help fund small to medium-scale development projects in each island.
NZAID is involved in donor coordination processes to improve development assistance to Tuvalu, for example in the education sector. Other donors in education include ADB, AusAID, EU, and Japan.
NZAID has appointed a Tuvalu national (Ms Pasemeta Talaapa) as In-Country Coordinator to help with ODA management activities. Funding and responsibilities of this position are shared with the European Union and Australia.top of page
Tuvalu owns shares in Air Fiji which has three scheduled flights a week between Nausori (Suva) and Funafuti. Although postponements and cancellations have been relatively common, the service has improved in recent months with the chartering of a plane from Air Chathams. Tuvalu comes within the Nadi flight information region.
The Safetravel website provides a travel advisory for travellers to Tuvalu [external link].
