Tuvalu
p. 44 · Read in the full issue
can hardly be considered at the forefront of investment pros pects: the most recent census showed it had 8229 people on nine is lands. Nevertheless, the Government is attempting to reduce the country’s reli ance on foreign aid. In June, 1987, the Tu valu Trust Fund was established, with Westpac as fund manager. It is not in tended to replace aid, but to support the nation’s recurrent revenue base. Australia,
New Zealand and Britain have contrib uted about SAB million each, with small contributions from Japan and South Ko rea. The country will receive the fund’s earned income each year.
The administration is interested in tourist accommodation (a hotel feasibility study has been completed, but an overseas agencv for funding is still being sought), import substitution such as printing and service industries.
The problem with any tourist devel opment is the lack of accommodation, space for development (Tuvalu has 308 people per square kilometre), the high cost of getting there and the lack of aircraft ca pacity: Fiji Air flies three times a week from Suva, while Air Marshall operates once a week to the capital, Funafuti, on its Marshall Islands-Fiji service. Ships call every few weeks.
The country’s major exports are copra, stamps and handicrafts, and the per cap ita share of GDP is $479.
Tuvalu’s chances of accumulating suf ficient resources to achieve self-suffi ciency are therefore extremely remote. The one possibility of substantial economic development is a commercial fishing in dustry, but this would involve overcom ing the problems of poor transport to export markets, lack of storage in the is lands and a shortage of baitfish in Tuvalu waters. Agriculture, whose other main products are taro, coconuts and bananas, is hampered by poor soil and shortage of land. The reliance on copra makes the economy highly vulnerable to commodity price fluctuations.
In 1982, imports were valued at $A2.89 million, with exports earning just $A36,766. Australia, Fiji and New Zea land are Tuvalu’s main trading partners.
Commercial fishing may offer liivalu some financial security.