Tonga

Hoping to maintain harmony

'None of the most civilised nations have ever exceeded these islanders in the great order and regularity maintained on every occasion, in ready and submissive compliance with the commands of their chiefs, and the perfect harmony that subsists among all ranks.'

These were the words of Captain Cook who visited the Tonga archipelago several times on his voyages around the world in the eighteenth century. The famous explorer was obviously impressed by the social organisation of this island nation and, although it is more than two centuries since he undertook his Pacific voyages, many of his observations hold true today. Talk of submissive compliance may no longer be appropriate, but in contrast to the turbulence of much of the outside world, Tonga certainly ranks as a peaceful society, which is respectful of hierarchies and strongly attached to 'traditional values'.

The reference to harmony is particularly apposite, as The Courier discovered when we visited Tonga earlier this year. It was fortunate that our trip coincided with the King's birthday celebrations and we had the opportunity to enjoy the superb choral music which plays a central part in many important ceremonies here. Like their Polynesian cousins in Western Samoa (featured in our last issue), the Tongans seem to have a natural flair for music and a talent for spontaneous harmony. The question is whether these 'Friendly Islands' - a name they certainly deserve - can maintain their reputation for social harmony into the third millenium.

In order to answer this, one has to identify where discordant notes could creep in. The biggest challenge appears to come from the process of globalisation. New technologies, particularly in the field of communications, are rapidly breaking down barriers. The tide of the international economic system, with its emphasis on mass production, con sumerism and free trade, is lapping at the islands' shores And political systems everywhere are under pressure to con form to a 'democratic' model which some would argue places the individual above the community.

Of course, external influences can be both positive and negative Cultural exchanges can be enriching, and new ideas and techniques may offer opportunities for improving the quality of life. The key is to adapt without undermining the social fabric. And in Tonga, as in other countries, a harmonious future will ultimately depend on the way the country evolves both politically and economically.

Looking first at the current political set-up in Tonga, one cannot fault the use of the term constitutional monarchy which is the preferred description locally. It is important, however, to recognise that the constitution - which dates back to 1875 - gives considerable power to the monarchy. There is a measure of democracy in that all adults over 21 have a vote, but they only elect nine of the 30 Members of Parliament A further nine are chosen by the country's 30+ nobles while the twelve Cabinet Ministers, who sit in the House ex officio are nominated by the King. Tonga may' be small (it has fewer than 100 000 inhabitants) but it nonetheless attract: the interest of political scientists as one of the few remaining states with a hereditary ruler who wields substantial power.

Critics of the system view it as an anachronism, although their emphasis is on reform rather than revolutionary change. Defenders argue that the arrangement works well in a small, homogenous nation which values its unique culture and traditions (even if the constitution contains many 'British' elements). The latter also point, with some justification, to the attitude of the population. There are dissenting voices but the majority appears to be happy with the existing set-up, thereby lending it democratic legitimacy - at least indirectly.

There may not, at present, be any overwhelming demand for constitutional reform but things can change. In particular, a people's view of their political system and how it might evolve is likely to be influenced by the prevailing economic conditions.

Economic outlook

Tonga's economy is not exactly booming with the most recent estimates suggesting a 2% GDP drop in 1995-96. Several of the traditional problems faced by developing countries are to be found writ large here. The local market is not just small but tiny by global standards, and this makes it exceptionally difficult to achieve economies of scale. There is heavy demand for imported manufactured items and few viable export opportunities to balance the equation.

The education system compares favourably with those of other developing nations but the pool is so small that Tonga inevitably suffers from human resource shortages. This is exacerbated by a steady 'brain drain'. Qualified Tongans, who may already have experienced life abroad at college or university, are tempted by a range of attractions including higher salaries, better housing and more extensive career prospects. The skills shortage is particularly severe in the medical profession. In a recent issue of Matangi Tonga (the 'national news magazine'), it was reported that the country would only have one anaesthetist by 1997 - with a local doctor observing wryly that there was no need for one since the main hospital's only specialist surgeon had recently left to take up a post abroad.

Although it would be better for Tonga to retain its qualified people, the fact that the country 'exports' labour does have its positive side. Tongans have a strong sense of family and community, and overseas workers send significant amounts of money back home. This injection of 'foreign' funds boosts the local economy and reduces the overall balance of payments deficit.

Agriculture

Agriculture is by far the most important economic sector, with most crops being grown for local consumption. The islands benefit from a fertile soil and a tropical climate, allowing the cultivation of a wide variety of fruit and vegetables. All land is vested in the Crown, with estates allocated to the nobles. By law, each adult male is also supposed to be allotted three hectares although there is not enough land to go round. Despite this difficulty, which means that some people do not receive their allocation, the result is that most Tongans are involved in farming. The advantage of the arrangement is that it guarantees a living for the bulk of the population even if their cash income is low. On the other hand, it is obviously a feudal system which favours the upper echelons of Tongan society. In addition, it tends to hinder the development of larger units which could benefit from economies of scale. While anxious to make farming more efficient (and export-oriented), the government currently has no plans to introduce land reform.

In export terms, the main crop is squash (pumpkins). Production increased dramatically in the early 1990s when a market niche was identified in Japan and it soon became the country's biggest foreign exchange-earner. More recently, income has been depressed, with overproduction in 1994 leading to a drop in prices, and poor rainfall the following year reducing yields. The November export figures for the last three years (November is the month when squash deliveries peak) illustrate the extent of Tonga's reliance on this single product. In November 1993, the country's overall export income was T$15m - more than half of the annual total. Twelve months later, the figure had dropped to T$9m and last year, it fell below T$6m. When The Courier visited Tonga, the authorities were talking about limiting the amount of squash exported to Japan this year to 15 000 tonnes, in the hope of maintaining premium prices.

The government is also acutely aware of the risks of mono-dependence and is looking for other outlets for its agricultural produce. Demand for copra, Tonga's traditional export, has apparently been reviving, but the price has not been high enough to attract local farmers back into the market. Other crops sold abroad include vanilla, cocoa, coffee, black pepper and ginger.

One farmer who is doing his bit in the quest for export diversification is Masao Soakai, a former general manager of the Copra Board. He is now the managing director of a company that specialises in the import and export of produce. This energetic 73 year-old gave us a guided tour of the plots he had rented. He cultivates an astonishing range of different crops which include potatoes (for Fiji), cassava, taro, yams, carrots, broccoli, cauliflowers, strawberries, bananas and capsicums. He also rears cattle and pigs (a Tongan tradition). Masao Soakai stresses the importance of rotation in maintaining yields and believes strongly in planting for the future.

Other sectors

Wherever you happen to be in Tonga, the Pacific Ocean is never far away. Evidence of the country's maritime tradition can be found in accounts of the appropriately named William Mariner (see box article on this page). But while, in the past, Tongan vessels sailed far and wide, and the country has a huge exclusive economic zone (EEZ), the fishing industry is relatively undeveloped. The sector generates about 5% of GDP. A project sponsored jointly by the FAO and the UNDP revealed that there was considerable scope for expansion, both in the inshore and reef zones and in the deep sea area. The main species which could be exploited commercially are albacore, skipjack and yellowfin tuna. Tonga has received assistance to develop its fisheries from the USA and Japan, and the government has offered tax advantages in the hope of promoting investment, but there is still a long way to go before the country realises its full potential in this area. Hitherto, the country has not licensed foreign vessels to fish in its waters but there is talk of this policy changing.

Tourism could also generate a lot more income although it currently faces a number of infrastructural and practical constraints. The government is committed to expanding the sector but Mrs Papiloa Bloomlield Foliaki, the owner and manager of Nuku'alofa's third largest hotel (the 'Friendly Islander') feels that a lot more could be done. She pointed out to The Courier that a healthy tourist sector would provide employment as well as stimulating new business for food producers, builders and craft industries. She focused, in particular, on deficiencies in training and marketing, and suggested that some of the resources allocated to agriculture might be better spent in tackling these.

Tonga's natural assets make it a 'dream' location for visitors looking for a complete change of scene - particularly if they happen to be keen on sailing, snorkelling or scuba diving. The problem is that the country is so far off the beaten track that it is expensive to get to (some would see this as an advantage in deterring mass tourism). Nothing much can be done to change this but it does mean that they have to aim at the upper end of the market. This requires top quality accommodation - of which there is a distinct shortage at the moment. As regards marketing, Mrs Foliaki was hopeful that the recent formation of a hotel association would enable the Tongan tourist industry to raise its profile abroad. Despite her optimism - echoed by all those we spoke to in official circles - the latest figures for visitor arrivals show a downturn.

In the manufacturing sector, the story is, sadly, one of long term decline. Clothing production ceased in 1994 and the output of leather items has been falling. There are very few industrial activities in which Tonga has a comparative advantage (whether actual, or potential) and this is something which is recognised locally. There may be some scope for adding value to agricultural products through processing but it is unlikely that industry will take off in a big way in the foreseeable future.

The sale of passports (see the interview with Prime Minister Baron Vaea) is an issue which attracted publicity - not all of it favourable - some years ago, when the government launched the TPPP (Tonga Protected Person's Passport). This was designed to be a travel document which did not confer the right of residence in the country. The authorities adopted the scheme with an eye firmly on Hong Kong, a British colony which is due to be transferred to China in 1997. Some passports were sold but the project never really took off as the immigration authorities of other countries refused to accept the document. Now there are suggestions that the idea may be revived, although this time involving normal passports.

The foregoing survey of Tonga's economy does not paint a particularly happy picture but it should be stressed that there is very little real poverty in the islands. In many ways, the informal economy is more important, and subsistence agriculture and fishing ensure that people do not go hungry. With their traditional family structures and strong attachment to the Christian faith, the Tongans have not yet encountered many of the social problems associated with more consumption-oriented societies. But to paraphrase a famous saying, 'no nation is an island' nowadays - even if it happens to be surrounded by water! In an era of increasing globalisation, the key question is how to manage change. Let us hope that the people of Tonga can find the right answer.

Interview, Prime Minister Baron Vaea

'Constrained by our geography'

No-one can accuse Tonga's Prime Minister of being a starry-yed optimist. As the following interview reveals, Baron Vaea, who heads a twelve-member ministerial team, is refreshingly honest about the economic difficulties facing his small island country. The Courier interviewed him in July, at his office in Nuku'alofa.

· You have suffered a GDP drop and a general slowdown of activity in recent years. What is the government doing to restore the situation ?

- It is true that the economy has been declining. The main cause is the excessive demand from the private sector for imports from New Zealand and Australia, combined with diminishing exports. Our exports fell when the price of copra dropped. Another problem is New Zealand's quarantine rules. New Zealand is very particular on quarantine against insects, notably fruit flies, which may damage their own export trade. We have endeavoured to balance this out by selling squash to Japan and indeed, it has been a saviour as far as our economy is concerned. Squash is something our farmers know how to grow. Of course, the market goes up and down. Recently, we made the mistake of over-producing and quite a lot of the crop could not be sold abroad. I think our farmers are now realising this, and that they have to plant according to the quota that we ourselves have imposed. Tourism is another important area although levels of room occupancy are very dependent

on the economic situation in other countries. Then there are passport sales.

· Is this something you are still doing ?

- Yes, but it has been hit by technical difficulties. A number of Hong Kong Chinese bought our Tongan Protected Persons Passport (TPPP) in the hope that they could travel. The immigration authorities in other countries decided they would not accept the document so this source of income dried up. We have changed to national passports which people can use to travel. We are hoping to revive this in order to suit the conditions of the Hong Kong people.

· Is this being done on the assumption that the people who purchase such a passport would not ultimately settle here ?

- Yes. The main reason people in Hong Kong want a passport is to keep open the option of leaving after the changeover.

· Has this policy prompted any criticism from other countries ?

- No. The main problem is the Chinese themselves who are due to take over Hong Kong next year. It is possible that they will not recognise these passports. We are planning to have discussions with the Chinese on this.

· Going back to the agricultural sector, are you not putting too many eggs in one basket in focusing so heavily on squash. What efforts are you making to diversify ?

- We have just signed a trade agreement with Fiji. They are such a close neighbour yet we have had virtually no trade with them. This should change with the agreement, to the benefit of our economy.

· What products are we talking about here ?

- Mainly vegetables, particularly those that are favoured by the Indian community, such as chills and spices. A trade mission has just returned from Fiji where they picked up a number of orders. The representative of a group of growers also recently returned from Japan. He took a sample of dried pawpaw, a crop which is popular with the Japanese, and apparently received an excellent response. This is an area which is promising.

The key issue, however, is the amount of space available in the aeroplane. You can't ask everyone to grow pawpaw when the airline tells us that they can only take eight tonnes at a time. Only a limited number of farmers can be involved, so that we can continue to supply the tonnage that the airline can handle. We will encourage the rest of the farmers to concentrate on other products.

· What is your policy regarding foreign investment ?

- We encourage overseas investors to engage in activities that local people are not involved in. Land leases are available for anything they want to do which fits in with this policy.

Tonga has an extremely limited manufacturing sector and there appears to have been a long-term decline. What prospects are there for reversing this trend ?

- For many years, the policy of the government has been to encourage exports. We have had entrepreneurs here who have exported things like woollen garments, small boats, horse saddles and so on - but it didn't last. The sad fact is that hardy anything is exported from Tonga. The main reason is that we are constrained by our geography. We are so far away from the main markets. The raw materials have to be brought in and by the time the article is finished, there is no way that it can compete in price terms. This has always been our problem. We are always looking for new markets but it is not easy.

A second limitation is the private sector in Tonga. This is weak in terms of technology, marketing and product quality.

· What about further processing of local products - perhaps value-added agricultural activity ?

- Yes, this is something that we would hope to do, though the same kinds of problem arise. People don't set up the processing plant because they say there isn't enough local cultivation to make it worthwhile. And the farmers don't grow the crop because they say there is no market.

· So it is 'chicken and egg' situation ?

- Yes. The result is that people only grow for home consumption.

I should mention here that there are other resources we have yet to exploit, notably in our waters. We have reserved these for ourselves and do not allow foreign fishing vessels. So we are trying to recover resources from the sea.

There is also the possibility of drilling for oil. Research ships operating in the Pacific have found a limited number of locations where it would be worth looking for oil reserves and two of them are in our waters. We have been publicising this with a view to encouraging further exploration.

· This would presumably involve drilling licences for oil multinationals.

- Yes. Some companies have done this in the past although only on a small scale. The answer we got from the oil companies is that they are interested in exploitation - but not now because of the low oil price. When the price goes up, I think we may attract interest again but that is clearly only a long term possibility.

· A lot of young Tongans leave the islands to work overseas. What is the explanation for this ?

- It is true that a high percentage of our population migrates. These are people in search of a better life, who seek to reap the benefits of their abilities by working overseas. They can have a nice house and get a good education for their children.

I should stress that we have a good education system here but there is a heavy emphasis on gaining qualifications in order to get into the civil service. Where we are lacking is in the field of technical education. We have some facilities of course - an Institute of Science and Technology and a Marine Institute to train people to go to sea. This is very much in its infancy and we hope it will help for the future. But even some who have gone through this system end up looking for jobs overseas.

· Turning to political issues, you have a monarchy here which is still very powerful. Do you anticipate any changes in the system ?

- There has been some public pressure for change. I don't think people want a radical upheaval but there is a feeling in certain quarters that the present system could be improved upon. As you probably know, Parliament has nine members elected by the people and a further nine selected by the 28 nobles from among their own number. The third component is the government - 12 ministers who are appointed by the King. It has been suggested that qualified people who don't presently sit in Parliament should be there to help deal with the economy. One idea is to change the Constitution so that whole population elects 30 members. The King would then choose his ministers from these 30.

· Has this idea made any headway ?

- No, not so far. We are maintaining the old system. The proposal has been aired but it hasn't been passed in the House. There are a lot of people, I think, who prefer the present system because they feel the monarchy works for the benefit of all the people. Would a new team necessarily stick to this principle? There must be a danger that they would tend to favour just one section of the population.

· Can you comment, finally, on Tonga' relations with its partners in development cooperation ?

- As you know, we have good relations with the EU through the Lomé Convention. We also have strong bilateral links with Australia and New Zealand which have been giving us assistance. But I think we have to face up to the fact that the aid cannot continue. The UK, for example, used to provide us with our judges. That has been taken over by Australia and New Zealand - but for how long ? I think it is bound to be phased out.

So we will continue to have relations with our partners, but we need to recognise that they are concentrating their efforts now and adapt accordingly.

Profile

General information

Area: 669 km². Tonga has about 170 small islands and four main island groups (Tongatapu, Ha'apai, Vava'u and the Niuas). It has an Exclusive Economic Zone of approximately 700 000 km,).

Capital: Nuku'alofa (situated on Tongatapu)

Population: 99 000 (1994 census)

Population density: 149 per kilometre²

Life expectancy at birth (1992): 68 years Official languages: Tongan and English Currency: Pa'anga (T$) made up of 100 seniti. The currency is pegged to the Australian dollar. In September 1996, 1 ECU was worth T$ 1.57 (US$1 T$ 1.22)

Tonga

 

Polities

System of government: Constitutional monarchy based on the Constitution promulgated in 1875. Considerable powers remain vested in the King. The Parliament has 31 members - the Speaker, 12 ministers (including the Governors of Vava'u and Ha'apai) who are appointed by the King, 9 nobles chosen by the 33 members of the nobility and 9 People's Representatives elected by universal suffrage. There are no political parties although there has been talk of setting up a 'people's Party'. The twelve cabinet ministers hold office until they reach retirement age.

Head of State: King Taufa'ahau Tupou IV

Prime Minister: Baron Vaea of Houma

Economy (estimated 1995 figures unless otherwise stated)

Annual GDP per capita: approx US $1900

GDP growth rate: -2% (1995/96)

Principal exports: squash, vanilla, manufactured goods and fish. In the early 1990s, squash accounted for more than half the country's total export income. In 1995, however, the harvest was affected by drought and exports dropped significantly.

Balance of payments: A trade deficit of US $38.8m (exports - US $18.3m, imports - US $57.1 m). The current account deficit is much smaller thanks to 'invisible' earnings, notably from tourism and remittances from Tongans living overseas. Inflation rate (April 1995): 4.5%. Total external debt: T$ 44m (1993)

Sources: Tonga in Profile (on the Internet - http: 11l www. netstorage. com/kami/ tonga) Economic Intelligence Unit Country Report 1996.

Interview with people’s representative, Teisina Fuko

'There is much more political awareness'

People's representative, Teisina Fuko offers an alternative view

While Tonga has no political parties, and the main levers of power remain in the hands of the monarch, it would be a mistake to conclude that there is no questioning of the status quo in this small Pacific kingdom. As The Courier discovered on its recent visit, Tongans are happy to speak openly about their political system and to criticise (or praise) aspects of it me local media may not be particularly extensive but it nonetheless allowe for different viewpoints to be expressed, including criticism of the authorities.

Those who advocate political reforms in Tonga face something of an uphill struggle. There is no overwhelming demand for change and although the lever of popular support for the current system is not easy to judge, there appears to be widespread acquiescence - which effectively amounts to the same thing.

In recent years, the focus of 'opposition' has tended to be within the ranks of the people's representatives who sit in Parliament We spoke to one of these elected members, Teisina Fuko, who comes from the Ha'apai island group and began by asking how democratic the thought the system was.

- I would say about 50%. Up until the 1970s, the system was very traditional but we now seem to be westernising quite quickly. People are returning from overseas with different ideas and this is having an impact on the way we are governed.

· Do you think you will ultimately have a Parliament whose members are all elected by universal franchise ?

- I would say it is more certain now than ever before. There is much more political awareness. We see it in the schools, where children are being taught to think independently. There are also the new economic trends - commercialisation and the focus on foreign earnings which imply the need for modernisation.

· You sound quite enthusiastic about the 'westernisation' process. Are you not concerned about the possible negative aspects in terms of the survival of your traditional culture ?

- I think we have to strike a balance. We mustn't go to extremes. Our culture and traditions are important but there are new things we need to take on board and some old habits we should drop. Take business opportunities: we have to be more democratic in this area. If one group has all the power then they will tend to favour their friends which isn't necessarily efficient. What it boils down to is a lack of checks and balances.

Given the present economic difficulties, I also think we need to move quite quickly. I recently wrote an article arguing that the King should transfer his power to appoint ministers to the people. Ministers should be elected so that they can be accountable to the taxpayer. We are a close-knit family here and there is no question of getting rid of the monarchy. But we need to sit down and hammer out a compromise which will allow us to improve our economy and make it more competitive.

Let me give you a practical example. Defence is now third on our list of priorities. That doesn't make sense to me. We would be better spending the money on economic development. We also need to boost the private sector so it can create jobs, instead of tying its hands. At present, 50% of our revenue goes on paying civil servants. What for 7 It may create employment, but it is not productive. So the government has to be minimised. Having said this, there are some positive signs. I am glad, for example, to see new blood being brought into the ministerial team.

· Parliament is currently composed of three groups - twelve ministers, nine nobles and nine people's representatives. On paper, that suggests that no group can dominate ?

- Yes, but the ministers and nobles often work together and we are outvoted. It is difficult to imagine the nobles saying 'no' to the King although, to be fair, they do sometimes abstain and some of them recognise the need for certain reforms to the system.

· Turning to the economy, which areas do you think offer the best development prospects ?

- Tonga's potential lies in fishing. We are an island nation that has always depended on the resources of the sea and we have the necessary labour force. What the people need is the know-how - advanced technologies to develop this sector. We also have to set up credit programmes so that people can invest in boats and equipment. I believe we should spend a lot more on fishing.

Unfortunately the government does not take the same view. It has put a lot of resources into small industries, airlines and so on. Yet the reality is that these sectors are in decline. Manufacturing has fallen and so have agricultural exports. Fishing is the only sector that is expanding.

· What about the prospects for agriculture ?

- I think we have reached the limit in this sector. There is very little scope for expansion. I also believe we should be concentrating on what we can produce to use locally. There is very little more we can do in terms of commercial exploitation. Tonga is somewhat overcrowded and we cannot use too many chemicals because the water table is so low.

· One local issue, which presumably has economic implications, concerns the possible expulsion of foreigners who have been here for a certain amount of time. Apparently, the decision has been taken not to renew certain residence permits. What is your view on this ?

- I think Tonga should encourage skilled people who are here to stay. We should use make use of their skills, particularly where they have expertise that is lacking locally. At the same time, there are some people here who just came for a visit and ended up staying without doing anything very productive. There are also a number who came after the coup in Fiji and I think we should give them some leeway.

On the whole, I don't think it is a big problem. Tonga has traditionally been very liberal in the application of its immigration law. We have never been colonised so we tend not to have a suspicion of foreigners. And whatever we do must be in accordance with the law.

· Could you sum up your vision for the future ?

- You only need to look around you to see that we have a youthful population here: a lot of young people who need to be catered for. We are investing heavily in education which I think is good but we need to do more to adapt to the changing world. We were peaceful in the past because most Tongans were on roughly the same level in terms of wealth. Now the poor are getting poorer while the rich get richer. This could lead to an increase in social tensions. With a more democratic system, we should be able to close the gap and work for a peaceful and more prosperous future.

Seeking business overseas

New Minister outlines economic strategy

If the policy of appointing Ministers for life - or at least until retirement age - is maintained, then Dr Giulio Masasso Tu'ikolongahau Paunga can look forward to a long career in the Tonga Cabinet. At just 32, he has recently been been given the job of Minister for Labour, Commerce and Industries (with responsibility also for tourism). He may be relatively young, but the new minister has impressive academic credentials. He took a master's degree in Japan (in Japanese) and as we soon discovered, he has some new ideas about how to achieve economic development in his country.

Dr Masasso's portfolio covers a wide range of economic activities and we began by asking what he thought the main focus of his work would be. He identified three areas - agriculture, which is the single most important sector; fisheries which has potential for growth; and tourism. He would also like to see more manufacturing, particularly for export, but acknowledged that the current prospects in this area were very limited.

Looking first at agricultural production for export, we noted that a significant change had taken place over the last decade. Coconut-related products had been largely replaced by squash, a 'gap' in the Japanese market having been identified when other sources of supply were not available. Tonga may have been the first to spot the opportunity but was there not a danger that other countries might 'muscle in'? The government was 'very aware of this danger', said the Minister and was trying very hard to diversify its export products. He mentioned vanilla, papaya, beans and, in particular, carrots. The last-mentioned crop grows well in the islands and there is apparently a growing taste for carrot juice in Japan. A list of products with export potential, which could be grown successfully in Tonga, had been drawn up in cooperation with the Ministry of Agriculture, and Dr Masasso's department would be actively seeking new business overseas.

The government is obviously interested in developing trade with Japan and other countries in Asia, but the Minister felt that New Zealand and Australia were likely to remain the principal markets for Tongan farm products in the future. He was looking forward to easier access to New Zealand once new quarantine facilities had been set up at the international airport on Tongatapu. This, he said, should allow for a larger throughput of export crops.

Efficiency, of course, is the key to winning and keeping overseas customers. With this in mind, our discussion turned to the land tenure system. The allocation (at least in theory) of parcels of land to all male Tongans discourages the development of larger farms or plantations. Was this the most effective way of exploiting the country's fertile lands? Dr Masasso acknowledged that the system hampered efficiency but stressed that the question was a very sensitive one. The right to cultivate a plot of land is deeply rooted in Tongan culture, and radical changes to the property laws are not on the agenda. As the Minister put it; 'We are trying to maximise our efficiency under the present system of land tenure.'

Turning to tourism, Dr Masasso observed that 'this has been the most stable industry over the past ten years,' bringing an average of T$ 12 million into the country every year. In looking at possible growth, however, he stressed the need to take account of the environmental and cultural impact. 'Tonga is a very small country, and it would not be right to build too many hotels and related facilities. It might be possible, but the long-term effects would be a little too much for the country.' Dr Masasso said he favoured tourism which has 'e closer relationship with people - a cultural exchange, targeting people who really wish to understand our country.'

Fishing is a sector which appears to have huge potential given the size of Tonga's exclusive economic zone. Dr Masasso explained how Japanese assistance was being used in a boat building scheme designed to produce vessels that local people could afford. He also spoke enthusiastically of the research that had been carried out to determine the nature and size of the fish stocks. He recognised, however, that while most of Tonga's fishing was inshore, there was scope for a great deal more revenue from deep-sea fishing. In this connection, negotiations were underway with the United States, Taiwan and Japan, to allow vessels from these nations to fish in Tongan waters.

The conversation then moved on to the more general issue of entrepreneurship and the role of the state in the economy. The Minister indicated that the government believed in privatisation but stressed that this was not simply 'because other countries are doing ft.' The main issue at this stage, he said, was to create a sufficiently large pool of well-trained people to take over activities currently run by the authorities. 'The government wishes it didn't need to get involved but we are a small developing nation, and to get things started, you need capital and know-how - which locals sometimes don't have access to.' In these circumstances, the state had to activate projects which could later be privatised once the necessary skills had been built up. Another 'major strategy' was to develop a much closer relationship between the Ministry and the private sector.

This led us into a discussion about Tonga's attitude to foreign investors who might also be in a position to supply capital and know-how. The authorities had recently threatened that a number of residence permits would not be renewed. Was this not a disincentive to potential overseas investors ? Dr Masasso was keen to offer clarification. 'The media makes it look as if Tonga doesn't like investors but they have misinterpeted the situation. He insisted; 'we want the foreign investment here and are encouraging it in those areas where locals cannot get involved.' Defending the actions of the immigration authorities, the Minister stressed that what they were doing was normal practice. 'Those who stay here illegally and do not extend their visa have to be deported.' The action, he argued, was not directed against foreign investors and indeed, the latter should be encouraged by the government's commitment to upholding the law.'

Tonga-EU cooperation

Developing the Vava'u islands

by Myfanwy van de Velde

EC-Tonga cooperation began in 1975 with the first Lomé Convention, soon after Tonga gained full independence in 1970. Grant aid totalling ECU 19.8m (Lomé I - Lomé IV) has been allocated to the country during its 20-year membership of the Convention.

Under Lomé I, funds were directed principally towards two main projects: the construction of the wharf at Neiafu, Vava'u, and funding for the Ministry of Works to procure road maintenance equipment and build schools, rural health centres and small wharves at Ha'apai and Vava'u. Remaining funds were used to finance studies involving dredging, trade promotion and designs for Vava'u and Faua fisheries harbours. The EIB also financed a line of credit of ECU 130 000, under Lomé I, to the Tonga Development Bank.

Lomé II funds focused on the fisheries sector, and on initiating works relating to the upgrading of the Vava'u airport. There were also projects in the fisheries sector, aimed at encouraging fishermen to undertake commercial fishing to meet local demand. To this end, the Faua Fisheries Harbour for small boats was built, and marketing and cold storage facilities were provided.

By the time Lomé III funds came on stream, Tonga had adopted a regional development approach with regard to its various island groups. The aim was to have a coherent development programme taking account of the specific constraints and potential of each. The Vava'u group of islands became identified as the focal area for the use of EC assistance, and Lomé III resources (ECU 6.5m in grants and ECU 0.5m in the form of risk capital to be managed by the EIB) as well as Lomé IV funds (ECU 6m and ECU 1 m respectively) have duly focused on its development.

Located in the north of the Kingdom, Vava'u is the second group of islands both in terms of population (16 000) and land area. With an abundance of natural resources, the group is thought to have greater potential for agriculture and tourism than other parts of the Kingdom. However, this potential was largely untapped at the time Lomé III was initiated. This was due to a variety of constraining factors including relatively low productivity, undeveloped marketing infrastructures, substantial import levels and poor distribution of utilities and other public services. One particular constraint preventing the development of tourism was limited access caused by a lack of transport infrastructures.

Two main projects aimed at addressing these problems have been implemented. The first, costing ECU 1.24m, involved completing the upgrading of the local airport at Lupepau'u (begun under Lomé II). In addition to runway improvements, a new terminal building was provided, complete with safety and navigational equipment. Passengers began using the new facilities in early 1995. The second project, entitled the 'Vava'u Development Programme', was allocated the sum of ECU 5m. This money is being used to pay for a series of activities including road upgrading, the provision of photovoltaic equipment for household energy needs and the supply of equipment for vocational training colleges. New buildings being funded include health clinics, a market and an agricultural quarantine building. The funds also cover the cost of establishing the Vava'u Development Unit as the monitoring and implementing agency for the programme.

The Programme continues under Lomé IV, with about 85% of programmable resources for Tonga (approximately ECU 5m) set aside for activities in the focal area. Funds will be directed towards developing the Neiafu urban area, in recognition of the need to upgrade access and services in the commercial centre of Vava'u. The projects envisaged include upgrading the town centre and urban roads, port improvements, and measures to increase the capacity and improve the distribution of piped and rain water to households. In addition, a multi-annual micro-projects programme will lead to the construction of jetties on the inhabited outer islands of Vava'u, thereby improving access to Neiafu which is the main centre of the archipelago.

In addition to the above grant aid, Tonga has received funds in the form of Stabex transfers for losses in export earnings in respect of coconut products, bananas and vanilla. It also received emergency aid in 1977, following an earthquake, and in 1982 following Hurricane Isaac.

EIB interventions have contributed to the share capital of the Tonga Development Bank and have increased the Bank's lending capacity to small and medium-sized enterprises.

Switching on the Iights

Uelingatoni Tevita Vaea (known as 'T' to his friends), proved to be a mine of information for The Courier, when we visited the Vava'u island group in northern Tonga recently. 'T' is a Tongan engineer who returned to his native land from Australia to work as assistant project manager in the Vava'u Development Unit. His help was particularly useful during the highlight of our visit - a traditional celebratory feast laid on by the villagers of Nuapapu. This is one of Vava'u's inhabited outer islands and the celebration was staged to mark the installation of solar powered lighting, courtesy of Lomé Convention funds.

Nuapapu is one of a number of outlying villages to receive solar installations under the Vava'u Development Programme. In all, some 350 homes have been wired up. Units attached to individual buildings collect the power and convert it into electricity which is stored in a battery. When night falls, the lights can then be switched on. Although the bulk of the installation costs are covered by the project, each participating household is required to pay a lump sum to have a unit fitted. They are also contracted to pay a modest amount each month towards maintenance of the system.

It may all seem rather prosaic to those of us accustomed to electrical power at the flick of a switch, but for the people of the villages in the Vava'u group, the project is little short of revolutionary. For centuries, their daily rhythm has been governed largely by the rising and setting of the sun. The only 'artificial' light available after darkness came from fuel-burning (and more recently, battery) torches or lamps - enough perhaps to reveal a path or highlight the position of an object, but certainly not to read or do intricate work with one's hands.

The formal 'switching on' ceremony was performed by the Dutch Ambassador, Mr van Thessen and Jonathan Rodwell, who is the European Commission's resident advisor in Tonga.

This was preceded by a courtesy visit to the village chief and the above-mentioned feast, which gave the European visitors an authentic and memorable taste of traditional Tongan hospitality.

The food was brought from all quarters of the village on long rectangular trays covered with leaves. Each was laden with food.

The fare was predominantly local: the famous roast pigs featured prominently along with fish, chicken, bananas, coconuts and a variety of root and tuber vegetables.

There were also some 'imported' items: the corned beef which is so popular here, some packets of crisps to add colour to the guest 'table' and boiled sweets woven into garlands.

The trays were laid end to end, stretching perhaps 20 metres and woven mats were placed all around. Having received our garlands of flowers, we were invited to sit down.

The feast was interspersed by various speeches and 'T' helped out with a translation and explanation of the proceedings. We began with a prayer in Tongan, delivered by the local minister. This was followed by a speech of welcome and thanks by the matapule (spokesman) of the village chief.

High ranking people in Tonga always have a matapule to speak on their behalf on such occasions. Ambassador van Thessen and Mr Rodwell then replied on behalf of the guests, (in English, with consecutive translation provided).

They expressed thanks to the people of Nuapapu for their hospitality and wished them success with their new electric lighting. There was then a short discourse by the District Officer followed by a closing prayer.

References to all this speechmaking could leave a false impression that this was a formal and stilted affair.

In fact the reverse was very much the case: the mood was relaxed throughout and there is no doubt that the villagers know how to enjoy themselves. Music was supplied by a group of men playing a variety of instruments and the women joined in the festivities with what appeared to be spontaneous bursts of dancing.

There were also special solo dances performed by two young ladies whose bodies had been smeared with coconut oil.

As tradition dictates, once their performances (involving highly expressive hand and finger movements) were complete, the audience expressed their appreciation by slapping banknotes on the oily exposed surfaces of the dancers' bodies.

The light was fading as the feast ended and we moved to the brief 'lighting up' ceremony, carried out to the accompaniment of applause.

The guests (including the staff of the Vava'u Development Unit who have guided the project through its various stages) then took their leave of this hospitable community and set off by boat on the return journey to Neiafu. As the vessel drew away from the shore, we were able to look up and see, for the first time, the twinkling lights of Nuapapu.