Tuvalu Country Brief - July 2008
Introduction
Australia's close relationship with Tuvalu is based on trade, development assistance and defence cooperation.
Political Overview
Tuvalu, the former Ellice Islands, became independent from the United Kingdom in October 1978. Tuvalu is a constitutional monarchy with a 15-member unicameral parliament elected every 4 years. Cabinet consists of the Prime Minister, elected by a majority of the members of parliament, and up to nine ministers. There are no organised political parties and members usually align themselves in informal groupings. MPs have very close links with their island constituencies and effort is directed towards balancing island representation in Cabinet.
Government
HM Queen Elizabeth II is the Head of State and is represented in Tuvalu by Reverend Filoimea Telito (Governor General). Prime Minister (and Minister for Foreign Affairs and Labour) Mr Apisai Ielemia is the Head of Government and key Ministers in his Cabinet include Mr Tavau Teii (Deputy Prime Minister and Minister for Natural Resources and Environment) and Mr Lotoala Metia (Minister for Finance, Economic Planning). Previous Prime Minister Mr Kumata Laatasi is the Speaker of the Tuvalu Parliament. The current Cabinet consists of ten members.
Recent Political Developments
The Tuvalu national elections were held on 3 August 2006. Former opposition MP, Mr Apisai Ielemia, was sworn-in as the Prime Minister (replacing caretaker Prime Minister Maatia Toafa) on 14 August 2006 after being elected by a majority of 8 of the 15 members of the new Tuvalu Parliament.
Two additional Tuvalu Cabinet Ministers were sworn-in in early August 2007. The number of Cabinet Ministers now stands at ten - two thirds of the total Tuvalu Parliament.
Island communities set the development agenda
Each of Tuvalu's eight inhabited islands is based around a single village and has a distinct sense of community and identity. Traditional councils of chiefs operate in tandem with the established government and are the supreme authorities on matters of custom. Under the Falekaupule Act (1997), increasing autonomy was given to the island councils to determine development priorities within the central government's overall development goals of public sector reform, human resource development, improvement of the country's economic and education infrastructure and the further development of its capacity to manage its narrow resource base. A funding authority was correspondingly devolved from the central government and an outer island trust fund established.
Foreign Relations
The main focus of Tuvalu's foreign policy is the Pacific region. Tuvalu is a member of the Pacific Islands Forum and the Secretariat of the Pacific Community (SPC), the Asian Development Bank (ADB), UNESCO and World Health Organisation (WHO). Tuvalu has been a member of the United Nations since 5 September 2000 and a full member of the Commonwealth since 1 September 2000.
Tuvalu maintains a diplomatic presence in Suva, the United Nations, New York and at Tuvalu House in London. Tuvalu signed a Treaty of Friendship with the United States in 1979 and has diplomatic relations with several other countries including Japan and the Republic of Korea. Tuvalu also maintains diplomatic relations with Taiwan.
Economic Overview
The economy of Tuvalu - like the nation itself - is small, isolated and vulnerable to external influences, including the weather. Most of the population is involved in subsistence fishing and agriculture. The money economy is dominated by government activity. Remittances from seamen working on overseas vessels are a significant source of income for many families. Fishing licences and marketing of its internet domain name '.tv' contribute to government revenue. In 2005, Tuvalu’s GDP was USD 20 million.
The Tuvalu Trust Fund
In 1987, the Tuvalu Government established a publicly owned investment fund to provide a safety net against fluctuations in government income. The earnings of the fund are used to help the government to finance the gap between its annual budgeted revenue and expenditure.
The Governments of Australia, New Zealand and the UK have made major contributions to the Tuvalu Trust Fund, with smaller grants coming from Japan and the Republic of Korea. Australia is a member of the Trust Fund Board. Some earnings from the Trust Fund have also been reinvested. Revenue from the Trust Fund has enabled the government to undertake development programs including upgrading outer island schools and fisheries centres.
Bilateral Relationship
In 1994, Australia presented Tuvalu with a patrol boat, the "HMTSS Te Mataili" and continues to provide technical and financial assistance to support its operations in fisheries surveillance. Australia is Tuvalu's most significant development partner, and total Australian aid in 2007/08 is budgeted to be AUD$5.6 million. Of this amount, the AusAID country program is expected to be AUD$3.9 million in 2007/08.
Bilateral Economic and Trade Relationship
Australian exports to Tuvalu in 2007 totalled AUD$4 million. Australia imported AUD$489,000 of goods from Tuvalu in the same period. Australian currency is legal tender on Tuvalu, but Tuvalu also circulates its own coins.
Visitor Information
Australians entering Tuvalu for up to 30 days do not currently require a visa as long as they hold a valid passport and a return ticket. Australians intending to visit Tuvalu should check with their travel agent for full information on other requirements.
Australians travelling to Tuvalu are advised to consult the Smartraveller travel advice.