Samoa Country Brief - July 2008
Introduction
Australia's relations with Samoa are strong and productive, underpinned by our aid and defence cooperation programs as well as good people-to-people links. There is a significant Samoan community in Australia, estimated to number 17, 223 (Migration Australia 2004-05 ABS Cat. No. 3412.0)
Political Overview
In 1962, Samoa became the first Pacific island country to achieve independence. It is a stable parliamentary democracy with certain concessions to local cultural practices. The Constitution provides for a Samoan Head of State and a unicameral legislature elected by universal suffrage. All but two seats in the 49 member Parliament are reserved for matai, who are recognised chiefs of Samoan villages. Samoa has an independent judiciary, including a specific court to resolve disputes over land and traditional titles. Parliamentary elections are held every 5 years.
Executive authority is vested in the Head of State. The Samoan Government is administered by the Cabinet, which consists of the Prime Minister and 12 Ministers selected by the Prime Minister. All other Government MPs are regarded as associate ministers. All laws passed by the Legislative Assembly require approval of the Head of State. The Constitution provides for a Council of Deputies to act in place of the Head of State if that office is vacant, or if the holder of the office is absent or incapacitated.
Government
Samoa’s Head of State is His Highness Tui Atua Tupua Tamasese Efi. Under Samoa’s Constitution, the Head of State is appointed by the Legislative Assembly for a five-year term. The Head of Government is Prime Minister and Minister for Foreign Affairs, the Hon Tuilaepa Lupesoliai Sailele Malielegaoi MP. Key Ministers include: Deputy Prime Minister and Minister of Commerce, Industry and Labour, the Hon Misa Telefoni MP; Minister of Natural Resources and Environment, the Hon Faumuina Tiatia Liuga MP; Minister of Education, Sports and Culture, Hon Toomata Alapati Poese Toomata MP; and Minister of Finance, Hon Niko Lee Hang MP.
Samoa has one major political party: the Human Rights Party (HRPP) led by Prime Minister Tuilaepa.
Recent Political Developments
In elections held on 31 March 2006, the Human Rights Protection Party (HRPP), which has governed Samoa since 1982, was returned to power with an increased majority. It now holds 35 of the 49 parliamentary seats. Prime Minister Tuilaepa has been Prime Minister since 23 November 1998.
Samoa’s parliament does not have a formal opposition. The main opposition party was the Samoa Democratic United Party (SDUP), but parliament withdrew that recognition after SDUP in-fighting in late 2006 amongst opposition MPs resulted in a split, leaving the party without the minimum number of MPs necessary to be recognised as a party under the standing orders.
In April 2008, two members of the Government resigned citing differences of opinion with the HRPP’s controversial policy to switch Samoa from a left hand drive nation to one that drives on the right. These two members then joined with 11 independents (including some former SDUP members) to form a new yet to be named and recognised opposition party. The new ‘party’ plans to provide a new united opposition going in to the next election in 2011.
Foreign Relations
Samoa has supported the Regional Assistance Mission to Solomon Islands (RAMSI), deploying a small group of police since its inception in July 2003. It also has police deployed on peacekeeping operations in East Timor, Sudan and Liberia. Samoa is an active member of the Pacific Islands Forum (PIF), the Secretariat of the Pacific Community (SPC) and the Secretariat of the Pacific Regional Environment Programme (SPREP), which is based in Samoa. The Pacific regional office of the Food and Agriculture Organization (FAO) is also located in Apia as are regional offices for the United Nations Development Programme (UNDP), United Nations Educational, Scientific and Cultural Organization (UNESCO) and the World Health Organization (WHO). The Pacific Transnational Crime Coordination Centre relocated to Apia in January 2008. Samoa hosted the 35 th Pacific Island Forum meeting in August 2004.
Economic Overview
Samoa has a small and developing economy with a GDP of around AUD600 million at the end of 2007. According to the Samoan Finance Minister Lee Hang, Real GDP grew by 6.1% in 2007, significantly higher than the 1.9% growth in 2006, and the highest growth rate in the past decade.
Historically, the economy had been based on primary industries such as agriculture and fishing but its proportion of GDP has declined steadily over the decades. Large numbers of Samoans still work in the sector according to the 2006 Census (almost 19,000 persons). A large proportion are employed informally and work on subsistence or low level commercial ventures.
The mainstays of modern Samoa’s economy are remittances, tourism and foreign aid. In 2007, remittances to Samoa from the Samoan communities in New Zealand, Australia the USA and elsewhere totalled approximately AUD$130 million. The tourism sector has been growing steadily over the past few years with receipts of approximately AUD$116 million in 2007, an increase of 23 per cent over the 2006 figures, reflecting the increase in the number of holiday makers and the visitors to the South Pacific Games. Foreign development assistance in the form of loans, grants and direct aid is an important component of the economy. Samoa is reliant on foreign imports and has a large trade deficit. Samoa’s own indigenous exports consist mainly of fish and agriculture products and totalled around AUD16 in 2007.
22,000 persons were in formal paid employment in 2007, according to government statistics. This figure does not include the estimated 3,000 Samoans working in the fish cannery industry in American Samoa. The 2006 Census indicates another 24,000 were employed in some capacity in the informal sector.
Samoa's private sector is dominated by Yazaki Samoa, a company producing wire harnesses for motor vehicles which comprise the bulk of Samoa's exports to Australia. Yazaki is given concessional access to the Australian market under SPARTECA. Yazaki is Samoa's largest private sector employer, with approximately 1,500 workers. (These exports are classified as re-exports by Samoa and do not appear in Samoan Government statistics.) The remainder of Samoa's light industrial sector concentrates on providing local substitutes for imports.
Samoa has had limited success in attracting foreign direct investment despite its stable political environment and extensive economic reforms.
The United Nations reviewed Samoa’s Least Developed Country (LDC) status in March 2006 and in December 2007 recommended graduation to Developing Country status in 2010.
Samoa experienced major economic disruption in the early 1990s due to poor economic management and successive natural disasters. However, strong political leadership and pragmatic economic policies have formed the basis for sustainable economic policies since 1995. The framework for economic and social development in Samoa is the Strategy for the Development of Samoa (SDS) 2008-11. The SDS identifies six key development priorities: the private sector; agriculture; tourism; community; education; and health. The Samoan Government remains committed to macroeconomic stability, implementing measures to contain government expenditure. Its program of public sector reform has seen a rationalisation in the number of agencies from 28 departments to 14 ministries.
Polynesian Blue, a joint venture airline between Virgin Blue, the Government of Samoa and a Samoan business, commenced operations in 2005. The airline is profitable and the venture has helped to free up government funding that had in the past been used to support the state-owned Polynesian Airlines. Polynesian Airlines has now been downsized to a regional and domestic role.
Samoa applied for membership of the World Trade Organisation on 15 April 1998, and has since made offers on goods and services to other WTO Members. The accession Working Party circulated its first draft report on progress in the negotiations in November 2006. Negotiations are continuing at a bilateral level to resolve outstanding market access and other issues.
Bilateral Relations
Australia has a long relationship with Samoa. Its first representative was accredited in 1971 and a High Commission was formally established in Apia in 1977.
Australia is a significant development partner to Samoa and the largest grant donor, providing approximately 30 per cent of direct bilateral aid. The aid relationship between Australia and Samoa is robust, assisted by strong Samoan Government commitment to development and public sector reform and the past achievements of Australian aid. Total Australian aid to Samoa in financial year 2008-09 is estimated at AUD$28.3 million with AUD$19.6 million programmed bilaterally and AUD$8.7 million allocated from regional funds. In support of Samoa's development strategy, the Australian aid program contributes to improvements in: effective and accountable public sector administration; opportunities for employment and investment; enhancing law and justice; education outcomes and opportunities; health outcomes with a focus on primary and preventative health; and management of natural resources.
Australia's Defence Cooperation Program (DCP) with Samoa centres on the Pacific Patrol Boat (PPB) program. Australia provided a Pacific Class Patrol Boat to the Samoan Police Service’s maritime wing in March 1988. Full-time, in-country Royal Australian Navy maritime surveillance and technical advisers ensure the follow-on support of the vessel and the development of indigenous maritime surveillance capabilities. In March 2006, an AUD$1.7 million Pacific Patrol Boat berthing facility, constructed under the Defence Cooperation Program, was handed over to the Government of Samoa. The Defence Cooperation Program also funded the construction of an armoury and magazine at the new Samoa Police Service Headquarters, a project managed by AusAID and opened in February 2008.
The Minister for Home Affairs, the Hon Bob Debus MP, visited Apia to open the Pacific Transnational Crime Coordination Centre on 9 June 2008. Parliamentary Secretary for Pacific Island Affairs, The Hon Duncan Kerr, SC, MP, accompanied Mr Debus. The Parliamentary Secretary for International Development Assistance, The Hon Bob McMullan MP together with Mr Kerr visited Samoa from 31 January-3 February 2008. The Governor-General, His Excellency Major General Michael Jeffery AC CVO MC, represented Australia at the funeral of Samoan Head of State, His Highness Susuga Malietoa Tanumafili II, in Apia on 18 May 2007. A large Australian Parliamentary delegation visited Samoa for the Commonwealth Parliamentary Association's 36th Presiding Officers and Clerks Conference in July 2005, former Prime Minister John Howard attended the 35th Pacific Islands Forum in 2004 and delegations from the Senate Committee on Foreign Affairs, Defence and Trade and the Australian Parliamentary Pacific Friendship Group visited Samoa in 2003.
Samoa and Australia enjoy strong people-to-people links. An increasing number of Australians are visiting Samoa each year as tourists. The number of Samoans travelling to Australia is also increasing. There are also a range of community level links. Australia is also home to a modest sized Samoan expatriate community.
Bilateral Economic and Trade Relationship
Samoa, unlike most Pacific island countries, enjoys a balance of trade surplus with Australia, owing to its exports of motor vehicle wire harnesses (produced by Yazaki EDS Samoa) to Australia. Australia's merchandise imports from Samoa were valued at AUD$92 million in 2007. Australia's merchandise exports to Samoa totalled AUD$29 million in 2007 and included electrical equipment for circuits, equipment for distributing electricity, milk and cream and plastics.
Samoa has a number of Australian investors. Both Wespac and ANZ operate commercial banks in Samoa. The Fosters Group owns Samoa Breweries.
Visitor Information
The Samoa Immigration website advises that visitors to Samoa do not require an entry permit for stays of less than 60 days, but must have an onward or return ticket and a passport valid for six months or more. An entry permit is required for visits longer than 60 days. Permits can be obtained from the nearest Samoa Consulate General or High Commission.
For information on accommodation and sightseeing options in Samoa, visit the Samoa Visitors Bureau website.
Australians travelling to Samoa are advised to consult the Smartraveller travel advice.