Countries and Regions

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p. 3 of 19 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Assessment of Socio-Environmental Performance D. Governance: Sound Development Management E. Implementation Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Cook Islands : I. Country Performance Assessment

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B. Poverty Assessment

6. In general, poverty has not been regarded as a problem in the Cook Islands. GDP per capita is over $4,000; and Cook Islanders may move freely to New Zealand and access its job markets and welfare system, remitting funds to family back home. The Cook Islands' Human Poverty Index is the second lowest among PDMCs (6.1 as against 52.2 for Papua New Guinea)¹. This index reflects the relatively low percentage of people not expected to survive to the age of 40 (6.4 percent); a low illiteracy rate (6.8 percent); the low percentage of people without access to safe water (5 percent); a zero percentage of people without access to health services; and a relatively low percentage of children under 5 years of age who are underweight (10 percent). No country-specific poverty line has been calculated.

7. There is a concern over inequality of income between the main island of Rarotonga and the outer islands, where approximately 40 percent of the population lives. The Cook Islands Economic Report of 1995 showed that income levels in the Southern and Northern groups were half to two thirds the national average, and that around 90 percent of government expenditure occurred on Rarotonga. Access to the basic services of health, education, water, and sanitation in the outer islands is poor by comparison with the main island, and tends to perpetuate relative poverty.

8. The Government is keen to work with the ADB to achieve a better understanding of poverty issues in the outer islands. Accordingly, the forthcoming economic report on the Cook Islands (for circulation in 2001) will give special emphasis to outer island issues and concerns. The outcome of this study is expected to lead to preparation of an outer islands development loan for consideration in 2003.

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