Tonga

Country Information

Location and People Historical Background

Socio- Economic Conditions Country Outlook

Location and People

The 170 islands of Tonga lie directly south of Samoa, and are spread across 360,000 square kilometers in the South Pacific Ocean. The islands are divided into three groups: the Tongatapu Group, the Ha’apai Group, and the Vava’u Group. The total land area of the islands is about 750 square kilometers (718 in CIA World Factbook), but only 36 islands are permanently inhabited. About 70% of the population of approximately 101,000 resides on the main island of Tongatapu. Tonga is at the heart of Polynesia, and nearly all the inhabitants are Tongan.

Historical Background

The archipelago of "The Friendly Islands" was united into a Polynesian kingdom in 1845. It became a constitutional monarchy in 1875, and a British protectorate in 1900. Tonga acquired its independence in 1970, and is the only remaining monarchy in the Pacific. Tonga is also the only country in the region that succeeded in protecting itself from colonization, an important factor in the continuing strength of its aristocratic system and cultural values.

Socio-Economic Conditions

The islands of Tonga are of volcanic and coral origin. They are highly fertile, and are well endowed with agricultural and marine resources. Land resources are limited. Mangrove forests have been cleared and filled to make home sites. The conversion of forestland to agriculture purposes virtually destroyed Tonga’s entire indigenous forest resources.

Coastal and near shore fisheries are heavily exploited. Traditional species are over exploited due to unregulated fishing by an increasing number of artisanal and commercial fishermen, and the use of more efficient fishing technology.

Agricultural crops provide the narrow export base, consisting mainly of squash, coconuts, bananas, and vanilla beans. Agricultural exports make up two-thirds of total exports.

Key Social and Poverty Indicators
Indicators	‘00	‘01	‘02	‘03	‘04	‘05
Total population (‘000)	98.9	99.2	99.6	99.9	100.2	100.5
Annual pop. growth (%)	0.3	0.3	0.3	0.3	0.3	0.3
Pop. below poverty line (%)	—	—	22.3	—	—
Unemployment rate (%)	13.3a	—	—	5.2	—
Maternal mortality rate (per 100,000 live births)	77.5	—	78.2	0.0	—
Infant mortality rate (per 1,000 live births)	13.0	13.1	9.8	12.8	—
Life expectancy at birth (years)	70.0	70.0	70.0	70.0	—
Adult literacy rate (%)	98.8a	99.0	—	—	—
Human development index	0.647b	—	0.787c	—	—
— = not available; a 1996 census data; b Pacific HDI calculations using 1998 data; c Global HDI calculations

Tourism has been expanding in recent years and is the second-largest source of hard currency following remittances from Tongan communities overseas. These hard currency sources are supplemented by external aid to offset the country’s trade deficit, caused by the high proportion of food supplies that must be imported.

The Tongan economy averaged moderate growth during the last half of the 1990s. Growth spiked sharply upward in the Millennium year, but has since stagnated. Inflation accelerated to over 10% beginning in 2001, but moderated slightly in 2004.

Tonga has reasonably sound basic infrastructure and well-developed social services. Its population has a high level of human development by regional and international standards. However, economic deterioration in recent years has given rise to increasing unemployment, and a rural/urban drift toward the main island of Tongatapu.

Overall, hardship and poverty in Tonga are neither deep nor severe.  However, a household income and expenditure survey in 2003 yielded estimates that about 23% of all households had income below the basic needs poverty line. Particularly affected are youth, those with limited education and skills, and the elderly.

Mother, 48 years Old (taken from Priorities of the People: Hardship in the Tonga) “My husband and I are not originally from ‘Eua. We met here when I accompanied my father to farm his land. I left school at Form 2 and am now the major income earner of the family.” “We have six children, aged 9 to 22. Our only son 15, but he is no longer in school because we cannot afford his school fees. There is no one to help his father but myself. My husband’s leg is paralyzed because he fell off the horse twice. Our third daughter is sitting her university entrance exam—she is the only child we are able to put through school with assistance from my eldest daughter who is living in New Zealand.” “Our monthly income is T$150, sometimes more, sometimes less, or nothing for weeks.  We earn money from the sale of root crops that my son and I plant. We also plant paper mulberry to make tapa (a valued handicraft).  Every week, my daughter beats enough paper mulberry to sell in the local market.” “Every day, my son and I work at the plantation and collect food for the day.  Then we help my daughter beat the paper mulberry for the weekend sales. These sales cover our daily needs such as soap, laundry detergent, sugar, flour, fish, and if we can afford it, other necessities. Although it is embarrassing for women to do activities traditionally done by men like till the soil, I would rather break tradition and keep my family afloat than starve, especially when all our relatives have their own families to care for.” “I have to keep working hard for my family, look after my husband, encourage my children to finish their education, and find ways to put new flooring on our small house. Since my son is too young to earn, and there are no available jobs here, there is no one I can turn to.” “I wish I could get some help to build a better home for my sick husband. Then maybe life would be a lot easier for me. And if the government and the church’s education system would allow drop-outs to go back to school, my two children would be able to complete their education.” “At times I think that if we had kept the tradition our grandparents talked about—how everyone used to look after one another, I would not be so burdened.  The sharing and caring are lost from Tonga.  Now everyone is becoming individualistic.” Read and understand the needs and views of those facing hardship in Tonga Priorities of the People:  Hardship in Tonga

Women in Tonga have traditionally had a nominal status generally superior to that of men. This is based on the cultural obligation of men to their sisters. This status, however, is gradually declining as a result of demographic and social changes. Rapid urbanization has resulted in a decline in traditional values, emerging pockets of urban poverty, and landlessness. One consequence of large-scale international migration is that women are often left behind as single parents.

Women are key players in agricultural work. Their role in commercial agriculture has become increasingly important. However, access to credit is more difficult for women despite better repayment rates and overall creditworthiness than men. This is because of women’s negligible land rights. Consequently, few women are able to access loans for commercial crops.

Country Outlook

Vegetable market

The private sector of Tonga remains small, with the vast majority of enterprises small or micro in size. Many economic activities continue to be carried out in the informal sector. The economy’s domination by the large public enterprises continues, reinforced by business regulations inadequate to ensure fair competition and a scarcity of management skills. This is despite the Government’s commitment to build a dynamic private sector.

However, the Government is pressing ahead with public sector reform following enactment of several important pieces of legislation. It also continues work on reducing barriers to foreign investors and to facilitating investment in agriculture, fisheries, and tourism. These efforts will need to bear tangible results before a viable small and medium-size enterprise sector becomes a reality in Tonga.

Tonga’s limited land resources, combined with a growing urban population, are increasing pressure on the country’s natural resources and worsening its environmental problems. The Environmental Impact Assessment bill enacted in late 2003 is expected to enhance the capacity of the Department of Environment to effectively monitor compliance with environmental requirements.

Haapai – copra drying

The high level of youth unemployment and the rise in crime will continue to be major social issues. An effective program of rationalization of the public sector may contribute to the unemployment problem unless foreign investment in the private sector can create jobs. For this to occur progress is needed in the long-discussed action to remove delays in issuing visa and work permits for foreign investors. Additionally, the length of land leases and frequency of land rent reviews need to be reformed.