Tuvalu country brief

Introduction

Tuvalu, formerly known as the Ellice Islands, became independent from the United Kingdom in October 1978. It comprises nine islands (four reef islands and five coral atolls), eight of which are inhabited, and is located midway between Hawaii and Australia in the South Pacific Ocean.

Political overview

Government

Tuvalu is a constitutional monarchy with a 15-member unicameral parliament elected every four years. Cabinet consists of the Prime Minister, elected by a majority of the members of parliament, and several 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.

HM Queen Elizabeth II is the Head of State and is represented in Tuvalu by the Hon. Iakoba Taeia Italei (Governor General). Prime Minister (and Minister for Home Affairs) the Hon Willy Telavi is the Head of Government and key Ministers in his Cabinet include the Hon Apisai Ielemia (Minister for Foreign Affairs, Environment, Trade, Labour and Tourism) and the Hon Lotoala Metia (Minister for Finance and Economic Development). The current Cabinet consists of eight members.

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 (the Falekaupule Trust Fund) was established.

Recent political developments

The most recent Tuvalu national elections were held on 16 September 2010 with ten of the fifteen incumbent members re-elected. On 29 September 2010, Maatia Toafa, who had served as Prime Minister from 2004 to 2006, was elected Prime Minister by the new Tuvalu Parliament by a margin of eight votes to seven. However, on 21 December 2010, the Toafa government lost a vote of no confidence with three government members crossing the floor. Following the vote of no confidence, Wily Telavi was elected Prime Minister and his new cabinet was sworn in on 24 December 2010.

Tuvalu's next General Election is due to be held in late 2014.

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), United Nations Educational, Scientific and Cultural Organization (UNESCO), International Monetary Fund (IMF) 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, New York, Brussels, London and at the United Nations. Tuvalu has an Honorary Consulate in Sydney, Australia, amongst others. Tuvalu signed a Treaty of Friendship with the United States in 1979 and has diplomatic relations with several other countries including New Zealand, Japan, the Republic of Korea, Finland, Luxembourg and the United Arab Emirates. 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. The population of Tuvalu is approximately 10 000 (2008). From 2008 to 2010, Tuvalu's GDP growth will have averaged approximately 1.5 per cent per annum. Most of the population is involved in subsistence fishing and agriculture. Remittances from seamen working on overseas vessels are a significant source of income for many families. The money economy is dominated by government activity. Fishing licences and marketing of its internet domain name '.tv' contribute to government revenue.

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 finance the gap between its annual budgeted revenue and expenditure. The Trust Fund remains an important source of funding for the Government of Tuvalu's recurrent budget (approximately 15 percent in 2009).

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

Australia provides technical and financial assistance to support maritime surveillance in Tuvalu's Exclusive Economic Zone. Through the Defence Cooperation Program, Australia provides in-country and Australia-based training in technical and professional skills, good governance and management. In 1994, Australia gifted a patrol boat, the HMTSS TE MATAILI, to Tuvalu. As well as maritime surveillance, TE MATAILI is also able to provide a search and rescue capability. Full-time, in-country Royal Australian Navy maritime surveillance and technical advisers ensure follow-on support for the vessel and the development of indigenous maritime surveillance and response capabilities. The Defence Cooperation Program recently completed a Life Extension Program Refit on TE MATAILI, ensuring the vessel's service life reaches 2024. The Defence Cooperation Program continues to support Tuvalu's Police Maritime Wing's operational ability through the provision of fresh water tanks, marine boarding ladders and sea anchor.

Australia is one of Tuvalu's most significant development partners. The estimated total aid budget for 2010-11 is A$8.9 million, of which A$6.1 million is bilateral and focuses on: annual contributions to the Tuvalu Trust Fund; improving access to quality education and vocational skills development to promote local livelihood opportunities and participation in regional and international labour markets; and where appropriate, targeted technical assistance in key central economic and oversight institutions.

The then-Prime Minister Ielemia signed a Pacific Partnership for Development between Australia and Tuvalu at the Pacific Islands Forum Leaders meeting in Cairns in August 2009.

Parliamentary Secretary for Pacific Island Affairs, the Hon Richard Marles MP, visited Tuvalu in December 2010. The former Parliamentary Secretary for Pacific Island Affairs, the Hon Duncan Kerr SC MP, visited Tuvalu in July 2009.

Bilateral economic and trade relationship

Australian exports to Tuvalu in 2009-10 totalled A$2.2 million (principally meat, sugars, molasses and honey, manufactured tobacco and electric power machinery and parts.). Australia imported A$572,000 of goods from Tuvalu in the same period (principally telecom equipment and parts). 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 and the official National Tourism website www.timelesstuvalu.com for travel advice.

Updated April 2011