Regions and Countries

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p. 3 of 18 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 - Tonga : I. Country Performance Assessment

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B. Poverty Assessment

4. In general, poverty has not been regarded as a problem in Tonga. GDP per capita is in excess of $1,500; private remittance flows from Tongans living abroad have been substantial; and the extended family system has functioned as an effective means of redistributing income. Tonga’s Human Poverty Index (HPI) is the lowest among PDMCs (5.9 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 (8.4 percent); a low illiteracy rate (1 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. No country-specific poverty line has been calculated, but the Government of Tonga, with ADB assistance, intends to undertake a household income and expenditure survey in 2000, in order to provide data for the measurement of poverty and for a poverty profile. Details of the country economic performance and socio-environmental indicators are in Appendix 1, pages 1 and 2.

5. Although poverty is not a severe problem, Tonga is especially vulnerable to external economic shocks and natural disasters which threaten the sustainability of livelihoods. The United Nation’s Conference on Trade and Development (UNCTAD) has calculated a composite vulnerability index that ranks Tonga as the third most vulnerable of 111 developing countries.²

6. In addition, there is a growing concern over rising urban unemployment, and inequality of income between the main island of Tongatapu and the outer islands. There are indications that pockets of poverty are developing in some sections of Tongan society. The search for employment, cash income, and education has resulted in a high concentration of the population on the main island of Tongatapu. In 1986, one third of the population lived in the capital, Nuku'alofa. By 1996, this figure had risen to 68 percent. The rate of urban population growth is now more than five times higher than that in the rural areas. Squatter settlements exist in Nuku’alofa and Pangai in particular, where people live in poor conditions, often in makeshift housing in swamps or by rubbish dumps, without clean water supply and adequate sanitation. There have been cases of child malnutrition and food deprivation within the poorer sections of society, including severe cases of marasmic malnutrition (protein and calorie deficiency).

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