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                                          T E K A K E E G A I I                                           

National Strategy for Sustainable Development: 2005 - 2015 

T E  K A K E E G A   I I

National Strategy

for Sustainable Development

2 0 0 5  -  2 0 1 5

November 2005

TUVALU GOVERNMENT

Economic Research and Policy Division Ministry of Finance, Economic Planning and Industries

Private Mail Bag, Funafuti, Tuvalu

Tel: (688) 20408 • Fax: (688) 20210  •  Email: [email protected]

This work is not copyrighted. It can be reproduced in all, or in part, stored in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the express written consent of the Tuvalu Government. But if any part is used this work must be cited.

The opinions, views, policies and other information expressed in this work are solely those of the Tuvalu Government, delegates to the National Summit on Sustainable Development, and their representatives who signed the Malefatuga Declaration.

Design and layout by James M. Conway and Envisage Co. Ltd, Suva, Fiji Production by Envisage Co. Ltd • Printed by Quality Print, Suva,  Fiji

Photographs used by permission (except source unknown)

Source unknown : pp. 7, 10, 22 • Peter Bennetts © : pp. 6, 12, 18, 20, 23, 26, 28, 31, 39, 41, 42, 48

• Jocelyn Carlin: p. 2, 24 (top) • James M. Conway: pp. 8, 15, 34, 37, 44, 51 • Semi Malaki: p. 25.

Map: Asian Development Bank.

the economy; the private sector and job creation; social services; outer islands and Falekaupule; education and training; infrastructure; and natural resources.

The contents of Te Kakeega II reflect the views and opinions of an enormous number of people: every member of Parliament, island chiefs, island presidents, government officials, businessmen, NGO representatives, religious leaders, the women’s community, and youth. Over 250 people in all, they represented the entire spectrum of Tuvalu society today.

Aid donors and regional organisations played a pivotal role in the NSSD. I place on record my gratitude for the bilateral financial, technical and other support provided by Australia, Italy, New Zealand, Republic of China, Republic of Ireland, and United Kingdom. I am equally grateful to these multilateral institutions: Asian Development Bank, Forum Secretariat, Secretariat of the Pacific Community, South Pacific Applied Geoscience Commission, South Pacific Regional Environment Programme, United Nations Development Programme, United Nations Economic and Social Commission for Asia and the Pacific, and University of the South Pacific.

A special thanks to all the Tuvaluan expatriates who attended the NSSD and offered their time, expertise, and, most importantly, their unique perspectives.

Many people played key roles in turning the NSSD and Malefatuga Declaration into Te Kakeega II. I wish to single out staff from the Ministry of Finance who oversaw the entire NSSD process, coordinated the preparation of Te  Kakeega II and   readied it for publication.

        Foreword

pre-summit consultations were held around the country that culminated in the National Summit on Sustainable Development (NSSD), held at the Tausoalima Falekaupule* from 28 June to 9 July 2004, in Funafuti. The upshot of the NSSD is the Malefatuga Declaration,** which is the foundation of Te Kakeega II.

It was decided early on to seek greater public ‘ownership’ of national development policy. Pre-summit, a team of government and non-government officials toured the country to meet with each island community, including outer island communities that live in the capital. These consultations and subsequently the NSSD itself led to eight strategic areas the nation should focus on in the next ten years: governance,

* Tausoalima means “hand of friendship”. Here the term, Falekaupule, means traditional island meeting hall. Under the Falekaupule Act it means “traditional assembly in each island [or traditional island decision- making body]...composed in accordance with the Aganu of each island”; the meaning in Te Kakeega II. Aganu means traditional custom and culture.

** Malefatuga is the area bounded by the Funafuti lagoon foreshore and the Fetu Ao Lima (“Morning Star”), where the Tausoalima is located. The old meaning of malefatuga is “challenge”, the place where conflicts were resolved. Its modern usage is “place of identity and confidence, where good deeds are recorded”.

I could not have co-chaired the NSSD without the support of my Cabinet colleagues and fellow members of Parliament, in particular the Hon Kamuta Latasi (NSSD Co-Chair), all of whom supported the NSSD from the outset and provided me with valuable guidance along the way. To all the NSSD delegates who gave their time, views and opinions that ultimately led to Te Kakeega II, I am thankful beyond words.

I am confident Te Kakeega II embodies the spirit of Tuvalu because of the many willing and talented people who played a part in its creation. I believe Te Kakeega II is right for Tuvalu, its development and its future.

Rt. Hon Bikenibeu Paeniu

Minister of Finance, Economic Planning and Industries

        Map of Tuvalu                                                 

            Contents

        1.    The Vision

The National Summit for Sustainable Development posed a question: How do we, the people of Tuvalu, raise the national standard of living, for every citizen? The Malefatuga Declaration, which arose from the  NSSD, contains the “Vision” that was unanimously endorsed by the delagates at the NSSD:

WE, the representatives at the Tuvalu National Summit on Sustainable Development; comprising all island Head Chiefs and Presidents of Island Councils, Cabinet Ministers and Members of Parliament, representatives of civil society and the private sector, government ministries and departments, development partners and Tuvalu expatriates;

RECOGNISE the importance of sustainable development - [that is] development without compromising the ability of future generations to meet their needs-and endorse the Vision of  “By 2015, guided by strong spiritual values enshrined  in its motto -’Tuvalu mo te Atua’1 -we will have achieved a healthy, educated, peaceful and prosperous Tuvalu.”2

1          Tuvalu for God; God for Tuvalu.

2          Annex 1 contains the full text of the Malefatuga Declaration.

The foundation of Te Kakeega II is the “Vision”,3 contained in the Malefatuga Declaration. Each segment of Tuvalu society - young and old, male and female - has a role to play to turn this vision into reality. To achieve it the public and private sector must work together, alongside those who represent ‘civil society’. With the right commitment by each individual, and the community each represents, the standard of living in Tuvalu will rise and it should rise rapidly, especially for those who are poorest or at the greatest disadvantage.

In July 2004, the NSSD chose a development strategy by national consensus, including the areas judged to be the development priorities: good governance; economic growth; job creation; more economic opportunity; better health and education; improved basic infrastructure; social development (youth, housing, gender equality, sports and recreation); natural resources (agriculture, fisheries, tourism, environment); and social stability. Each strategic development priority has a vital role to play to attain the “Vision”: To achieve a healthier, more educated, peaceful and prosperous Tuvalu.

The NSSD “Vision” is a statement of national commitment to achieve those ends.

3          vision / noun 4 the ability to think about or plan the future with imagination and intelligence (Oxford English Dictionary) 

1. Millennium Development Goals

Goals 1 through 7 are the agenda for action by developing countries. Goal 8 sets down the responsibilities of developed countries to assist developing countries to achieve the MDGs. The NSSD was framed around the MDGs and the challenges Tuvalu faces now and will face in the future: Each MDG is enmeshed in Te Kakeega II. Tuvalu’s commitment to reaching the MDGs is embodied in the Malefatuga Declaration (unanimously endorsed):

REAFFIRMING...our commitment to achieving sustainable development in line with the United Nations Millennium Development Goals and [the] international sustainable development agenda.

In Annex 2 are the MDGs, MDG targets and the progress Tuvalu has made against each target (as of September 2005).4

2.1     Special Issues and Concerns

Tuvalu has made significant progress on some MDGs, but not on others: caution and over-optimism are watchwords. Overall, Tuvalu is a long way from hitting many MDG targets. In Box 2.1 are some broad but key issues and concerns if Tuvalu is to reach all the MDG targets, and hit those targets in a way that is ‘sustainable’ over the long term.

4          Annex 2 is adapted in highly abbreviated form the National Millennium Development Goals Report: Tuvalu (in draft, jointly prepared by the Secretariat of the Pacific Community [SPC] and Tuvalu Government, version 15/04/05). See the draft MDG Report for more background, detail, and technical analysis.

1. Challenges and Constraints

In Box 3.1 are the key development challenges and constraints. Most are domestic and well outside Tuvalu’s direct influence or control.

With a micro-economy and population of only 10,000, two primary constraints cut across the whole spectrum of development: a shortage of labour and capital. But with coherent government policies, combined with international aid, some of the challenges and constraints can be overcome.

In Box 3.2 are the main structural weaknesses in the Tuvalu economy. Some of these weaknesses can be overcome, to a certain degree, through policymaking and with donor support.

Boxes 3.1 and 3.2 largely define the fragile nature of the Tuvalu economy, which historically has relied heavily on aid to generate development and economic growth. Leveraging national assets, such as income earned from the Tuvalu Trust Fund, fish licensing, its Internet country-code Top-Level Domain name, ‘.tv’, and using other sources of general revenue has helped Tuvalu balance its external accounts and cover shortfalls in the national budget. But over the years this structure has done little to build the (non-government) domestic economy.

Innovative policies and an inclination to embrace economic and structural reforms as recommended at the NSSD will lead to economic growth, job creation, possibly less internal migration from the outer islands, and higher standards of living overall. Tuvalu has been a leading innovator in development management. The TTF, FTF, and the past and current form of EU budgetary assistance were new concepts developed to meet the specific needs of Tuvalu. Now widely recognized as successful development models, the inherent constraints on domestic development require that other innovative approaches be found and pursued.

1. Strategic Framework

4.1                       The Strategies

Delegates at the National Summit on Sustainable Development produced a very clear set of strategic directions the nation should take, based on the issues  that are considered to be (and are) national priorities.

In Box 4.1 are the eight strategic areas (or sectors) defined by the NSSD. The strategic areas set out the broad priorities for development over the next ten years. In Box 4.2 are the expected results.

Cutting across the eight strategies are any number of important issues, for example: outer island depopulation and urbanisation of Funafuti; declining rural agricultural production, food security; increasing youth unemployment; nutrition and the incidence of non-communicable disease (NCD); the threat of HIV/AIDS; and the solutions to hardship and poverty experienced by many families.

Good Governance. Inspired leadership, as well as honesty, transparency and consistency in the application of the rule of law is a pre-condition for the other seven strategic areas to make a difference (i.e., to achieve the vision of Te Kakeega II).

Economic Growth and Stability. Sound economic management, fiscal discipline, the right policy environment (fiscal, monetary, regulatory), strong and well managed institutions that offer a high standard of governance, a cost- effective, efficient and customer- oriented public sector, are but a few of the desired results to be achieved.

Social Development. Health and social welfare, including issues of nutrition, youth, gender, age and other special needs; good health and ensuring that the social and welfare needs of the various sections of society are catered for will help to ensure a stable social environment; HIV/AIDS, NCDs and hardship and poverty are emerging issues and need to be considered as potential threats to the achievement of the Vision.

Falekaupule and Outer Islands. The outer islands have always been regarded as  the heart of the nation, however in the last decade the heart has become weaker as outer island populations have declined and production in the traditional subsistence economy has fallen. To counter this the Falekaupule Trust Fund was established and the challenge now is to identify strategies that will reverse the outward migration and falling output from the outer islands and to help ensure that the outer island economies are sustainable in the long term.

Employment and Private Sector Development. Private sector development and employment creation, including in tourism, agriculture and fisheries; creating an environment in which economic opportunity is created forms the core of the strategic framework.

Education and Human Resources. Education, training and human resource development are essential to the achievement of each individual’s own potential  and aspirations; they are also central to the nation’s ability to achieve sustainable development. Education and training will target the skill and manpower demands in the different sectors of the economy.

Infrastructure and Support Services. Reliable, competitively priced economic infrastructure and utilities are an essential requirement for sustainable development. Without these supporting services it will be impossible to attract investment, create employment, new wealth and opportunities for the people. The strategies will put in place whatever support services are needed which provide the nation with a satisfactory quality of service at a reasonable price.

4.2                       Performance Monitoring

The details of the planning and monitoring processes are outlined and discussed in Chapter 13 where the linkages between the national strategies, which are developed in this document, the national budget and its multi-year framework, the public sector investment programme, and departmental sector master plans are outlined.

The overall monitoring of the implementation of the national strategies will be overseen by a National Task Force which will include the island Pule Fenua and Ulu Aliki.5 This Task Force will meet every two years to review progress. Interim monitoring will be overseen by the Development Coordinating Committee, which will prepare annual progress reports to be tabled at the budget session of parliament.

Progress will be monitored by individual performance indicators discussed at the end of each chapter, as well as through periodic national and independent reporting on the Millennium Development Goals.

     5.    Good Governance

n  Box  5.1  are  the key policy objectives for   better            governance from                            2005        to            2015.

The policy  objectives focus on the challenges of creating an attractive policy environment in which the national strategies and the Vision   can   be  attained;

restoring confidence in the political process and public administration; improving the financial situation through fiscal discipline; public sector reforms so the public service can operate more efficiently and cost-effectively within the budget constraints that now exist; improving local governance; and restructuring public enterprises to make them both more commercially viable and to minimize or eliminate subsidies presently required to keep them operational. Getting the policy and regulatory environment right will enable the economy to create opportunities, generate economic growth and greater prosperity.

5    Both Pule Fenua and Ulu Aliki mean head chief or island chief.

5.1                        Priorities and Strategies

In Box 5.2 are the priorities and strategies to increase the efficiency and effectiveness of the public sector, which will require extensive public sector reform, including   the requirement of each ministry to prepare 2-3 year master plans so their work programmes are more specific. Ministries will be required to identify and focus      on their core functions to make government more responsive to the needs of the public and become more efficient by delivering services more cost-effectively. An immediate objective of restructuring is right sizing the public service. This will reduce government expenditure and facilitate development of the private sector by transferring from government those functions that can be provided more efficiently by the private sector.

which call on governments to improve levels of transparency, accountability and good governance.)

In Box 5.4 are the priorities and strategies to improve public administration and management.

In Box 5.5 are the priorities and strategies for improving the performance of public enterprises.

5.2                        PerformanceMonitoring

Strategies to improve governance will be measured against the implementation of the

specific actions detailed in each of the strategies, such as timely completion, auditing and tabling in parliament of government and public enterprise accounts for public scrutiny.

The establishment of an Ombudsman and Leadership Code, drafting sector actions plans, adopting medium-term fiscal policy and a multi-year budget framework will also measure and monitor performance.

In Box 5.3 are the priorities and strategies to improve fiscal and financial management. Ministries need to make sure that each of their budget lines are consistent with their core functions, that performance standards and measures are well defined, and that data can be collected and assessed for monitoring purposes. (The government has endorsed the Eight Principles of Accountability adopted by the Pacific Islands Forum,

1. The Economy:

Growth and Stability

In Box 6.1 are the key economic policy objectives from 2005 to 2015.

The current rate of economic growth can be characterised as too slow, unstable, with  little  employment-generating  activity  occurring,  with  lower      remittances

and levels public capital expenditure putting a  drag  on growth. To remedy this situation, structural reforms in the public sector, including efficiency improvements, further cost cutting, and focusing on those activities that are core-functions and which have high rates of returns are key strategies in the short to medium-term.

Across-the-board cuts, however, which are inefficient, will not form part of the macroeconomic strategy. Such cuts affect both essential services and priority areas of expenditure. Funding allocations will be set based on clear priorities, which offer high rates of return nationally. Less essential services or lower expenditure priorities will be cutback, with savings held in reserve or spent on areas of higher priority.

Since national budgetary expenditure is a driving force behind economic growth,     a reduction in revenues and consequently expenditure will adversely impact the domestic economy. With little to drive the non-government economy the prospect  is for low rates of growth in the short to medium term unless major public sector investments, as occurred in recent years, can be sustained and the private sector can increase its share of GDP.

The medium term strategy, a highly prioritised PSIP, and a multi-year budget framework, will be used to allocate resources better to sectors identified in the national priorities and strategies.

6.1                        Priorities and Strategies

In Box 6.2 are the priori- ties and strategies for in- creasing economic stability, adhering to greater fiscal discipline, and expanding economic growth.

6.2                        Performance

Monitoring

Macroeconomic perform- ance will be monitored through regular updating and assessment of the main economic indicators and annual reviews of the na- tional budget.

1. Social Development

7.1                        Health

In Box 7.1 are the key policy objectives for the health sector from 2005 to 2015. Key challenges and issues confronting the health sector  are: stemming the rising incidence of non-communicable ‘lifestyle’ diseases; lowering the incidence of various cardio-vascular diseases, which are the main recorded causes of death; decreasing the incidence of sexually transmitted infections; containing the spread

of HIV/AIDS, improving water and sanitation, especially in Funafuti; striking the right balance between primary/preventative and curative health care; rising health care costs, including the cost of overseas referrals, which might be money better spent expanding health care services in Funafuti; expanding education programmes on good nutrition and healthy lifestyles; expanding    and    upgrading   medical services in the outer islands; maintaining the decline in infant and maternal mortality rates and rising life expectancy; keeping under control the low incidence of infectious and communicable diseases are largely.

In Box 7.2 are the health priorities and strategies for the operation and management of health services, health education, equity of access to health services, and consumer protection.

7.2                        Youth

In Box 7.3 are the key policy objectives for youth from 2005 to 2015.

7.3                        Housing

In Box 7.5 are the key housing policy objectives from 2005 to 2015.

Unemployment in the 15- 24 age group is a growing problem with few new jobs      being      created.

Young  people  have been identified as among those who are most disadvantaged. Practical strategies are geared toward expanding opportunities for the growing numbers of young Tuvaluans. Wider provision of basic education and training in essential skills, and behavioral changes in relation to health, employment and rural economic activity, are required.

In Box 7.4 are the priorities and strategies for improving the welfare of and opportunities available to young people.

Two separate but key challenges      confront the   housing    market  in Tuvalu. First is the generally   poor  standard

of accommodation provided to public servants working in the outer islands, most notably for teachers and nurses working away from their home islands. Poor accommodation can have an adverse affect on general staff performance.

Second, in Funafuti the problem not only affects public servants, but also all those who have moved to Funafuti but who have no, or only limited access to land.

In Box 7.6 are the housing priorities and strategies to improve housing standards and expand the housing market.

In Box 7.7 are the key gender policy objectives from 2005 to 2015.

Although Tuvalu is rated first among 15 Pacific Island countries based on UNDP’s gender development ratio, a rough measure of gender equality, more work remains to be done, especially in the outer islands where gender equality is less robust than    it is in Funafuti. For women the key issues and challenges are the burden of traditional chores; lack of proper market places to sell their products; the need to improve representation of women in community decision-making; revision of laws governing the distribution of land; and unfair custodial rights.

In Box 7.8 are the gender priorities and strategies for better integrating the role of women in development and creating more economic opportunity for women.

7.5                        Sports and Recreation

In Box 7.9 are the key sports and recreation policy objectives from 2005 to 2015. 

The key challenges and issues confronting sports are: creating a clear direction for national sports development; lack of financing and administrative support; getting sports to have a greater impact on development nationally; substantial yet under- developed athletic talent; sports development in almost all  aspects  lags  behind other Pacific Island Countries, from facilities and equipment, to physical education programs, coaching and training, to hosting national competitions, or participating in international competitions.

In Box 7.10 are the priorities and strategies for developing sports, improving fitness and health.

7.6                        Poverty and Hardship

Box 7.11 briefly summarizes poverty and hardship as they relate to the key social development and other Te Kakeega II policy objectives between 2005 and 2015.

There is a perception that poverty in Tuvalu does not exist, as if traditional exchange shields individuals from absolute poverty. To a degree this is true. Traditional culture-based social safety nets mean that there is little obvious poverty in the narrow sense. But those who live in the outer islands, or in large families (both in Funafuti and the outer islands), the disabled, the less educated, and those without access to land (where they reside), are often at a disadvantage and suffer from what can be described   as  a  ‘poverty  of  opportunity’.  This   is compounded by Tuvalu’s  remoteness - and outer island remoteness from Funafuti- which constrains economic development and potentially new avenues of social and economic opportunity.

The traditional social structure is coming under strain as external influences change social attitudes, education broadens horizons, and aspirations are raised. Outer island migration to Funafuti (and overseas) is depopulating the outer islands and increasing the dependency ratios amongst those remaining. This means that there are fewer working age people in relation to the very old and very young. Increasing hardship and poverty of opportunity is being experienced on Funafuti where population pressure is high, and in the outer islands where employment opportunities and cash incomes are scarce.

The key issues surrounding poverty and hardship are emerging challenges for many families. Some of the causes are poor housing and sanitation; poor health; poor education; lack of safe drinking water; lack of employment, too few income earning opportunities; lack of access to land for subsistence farming (mainly a Funafuti issue); and growing monetisation of the economy, which requires family access to cash income. Those without access to wage or remittance income are likely to experience increasing hardship.

Box 7.12 briefly encapsulates the priorities and strategies embodied throughout Te Kakeega II in the context of overcoming poverty and hardship.

7.7                        Performance Monitoring

Performance and development across the social sector will be monitored by periodic evaluations of progress made toward the Millennium Developments Goals, which will key off social indicators and reports compiled by both Tuvalu and independent sources.

1. Falekaupule and Outer Islands
   
   In Box 8.1 are the key outer island development policy objectives from 2005 to 2015.        The key issues and challenges centre on greater development, creating

In Box 8.2 are the key Falekaupule and outer island governance policy objectives from 2005 to 2015.

The key issues and challenges confronting outer island governance are: 1) the Falekaupule Act has not yet  had  a  material  impact  on  development;  2)   the Falekaupule Act has not produced a greater understanding and awareness of the Falekaupule process and how it can benefit outer island communities; and 3) the Falekaupule Trust Fund has not as yet made a  significant  contribution  to  outer island development, although the basic principles behind the Fund remain sound and its underperformance is largely outside the control of the Falekaupule.

8.1                        Priorities and Strategies

NGO’s and community groups, especially church-based groups, will play key roles in implementing the strategies for outer island development, and be widely engaged in outer island development efforts. In Box 8.3 are the priorities and strategies for outer island social and economic development.

more employment opportunities, reversing the decline in outer island economic activity, and generally making the outer islands more at- tractive places for young people to live by improving the standard of basic services available. In Funafuti the key issues and challenges are somewhat different, which involve a rising population, spreading urbani- sation, deteriorating environment, pressure on water resources, growing unemployment and increasing hard- ship experienced by many families who have no income (or not enough income) and no access to land.

In Box 8.4 are the priorities and strategies for improving goverance and participation in outer island development.

8.2                        Performance Monitoring

Such indicators as population trends, changes in dependency ratios, subsistence agricultural and fisheries production, employment patterns, household income, and fish sales through CFCs, among others, will measure the performance of outer island development. A regular (five-yearly) household income and expenditure survey will be used to monitor the indicators.

9.                          Private Sector and Employment

In Box9.1are the key employment and private sector policy objectives from 2005 to 2015. 

Increased prosperity for the people of Tuvalu is  a  core  component of the Vision. The creation of economic opportunity and new private sector employment are thus central challenges to be overcome. To achieve this the strategies follow growth-oriented, private sector- friendly policies.

The key issues and challenges confronting commercial private sector development are:

l  small local market;

l  geographic and economic remoteness from major markets;

l  unsecure property rights and inability to access land for development;

l  lack of private enterprise tradition;

l  generally poor service delivery by the public sector; and

l dominance by the public sector of many areas of enterprise, which are often un- commercial and subsidized.

9.1                        Priorities and Strategies

In Box 9.2 are the key priorities and strategies for increasing employment and private sector development. The strategies required to achieve the policy objectives are wide ranging. Many address institutional issues rather than physical infrastructure, which is also required.

A key strategy is the creation of a suitable investment policy and regulatory environment in which investors, be they domestic or foreign, have access to land, and sufficient confidence in the system that they are willing to invest and create employment and wealth in the domestic economy, with credit providers able to accept land as collateral for loans.

Increasing exports is another key strategy. Access to export markets mean not only places in which to sell products exported from Tuvalu, (e.g., fish), but also sources from which demand for Tuvalu’s tourism industry might derive customers. Tuvalu’s main export presently is seafarers, their export earnings received in the form of remittances. This is an increasingly competitive market in both cost and quality, with many nations now vying to get their seamen on foreign vessels. Tuvalu seafarers must remain competitive on both counts. Government will assist the industry to negotiate best-rate travel and visa costs, make sure that TMTI has and maintains its “White List” status, and is able to develop the facilities it needs to meet the demands of the industry.

Overall, successful implementation of the strategies will require a better relationship between the public and private sector. This means more participation by the private sector in the decision-making process, and a stronger Chamber of Commerce. Many potential entrepreneurs lack the necessary business and management skills to make their ideas commercially successful. More training in these areas will be provided through appropriate means, either by NGOs or private training institutions.

Offshore employment and migration, either from the outer islands to Funafuti, or from Tuvalu  to overseas (historically to Nauru and Ocean Island) has long been    an important employment safety valve. In recent years there has been increasing opportunity for migration to Niue and New Zealand. A future strategy will be to improve these migration these schemes and explore other alternatives for offshore employment.

In Box 9.2 are the priorities and strategies for private sector investment, foreign direct investment, tax and tariff reform, market access, domestic job creation, offshore employment, and consumer protection.

9.2                        PerformanceMonitoring

Below are nine indicators to measure performance against the policy objectives, priorities and strategies:

1. Annual number of active employee accounts at TNPF.
2. Annual level of credit to private sector borrowers at NBT and DBT.
3. Annual number of seafarers employed on overseas ships.
4. Number of members of the Tuvalu Chamber of Commerce.
5. Number of participatory consultations held each year between government and the Chamber of Commerce.
6. Level of subsidy to each public enterprise in the annual budget.
7. Progress on legislative changes needed to create a better investment climate:
   1. Land reform
   2. Investment policy
   3. Consumer protection
   4. Employment and income data reported in census and household surveys.
   5. Contribution of the private sector to GDP.

10.               

Education and Human 

10.1                 Priorities and Strategies

services, and Kaupule resource constraints  are  cited  as  but  a few of key issues and challenges facing the sector,  all of which have led to lower education standards and school performance. The key policy objectives address each of these issues, attempt to strengthen the overall management of the sector, improve the delivery of education services and that of future education instruction which better meets the needs  of the general public, provides the economy with young people appropriately educated and skilled to take  advantage of the economic opportunities that are available, which the national strategies expect to deliver, and that restores public confidence in the national education system.

               Resources                   

In Box 10.1 are the key education and human resource policy objectives from 2005 to 2015.

The 2002 National Education Forum, NSSD, and subsequently the ESMP, adopted this overall objective for education:

Toprovide a system of quality education which endows...people with the knowledge, skills and attributes necessary to achieve a higher degree of self-reliance in a rapidly changing world, and one that is consistent with [Tuvalu’s] spiritual values.

The key issues and challenges in the education sector were extensively reviewed during the National Education Forum (which made 97 recommendations to improve education) and the NSSD, out of which grew the recently adopted Education Sector Master Plan (ESMP). The quality and quantity of education services, inadequate and poorly maintained physical infrastructure, often  poor  teaching  standards,  lack of teaching materials, inappropriate curriculums, weak delivery of education

Developing the education system is a long-term process. Changes to curriculums and teacher training can take many years to have any real (i.e., measurable) impact. But there are many short to medium term strategies that can yield significant benefits that improve education. Better managed, maintained, equipped and resourced schools can very quickly lead to higher teacher and pupil motivation, and consequently in the quality of education.

The Education Sector Master Plan focuses on the quality of, relevance of, and access to education. The ESMP is a comprehensive list of activities to improve education instruction and management. In Box 10.2 are the core components of the ESMP  that contain the priorities and strategies that address the key education and human resource policy objectives.

10.2                

PerformanceMonitoring

Key human resource indicators (e.g., budgetary funding for teacher salaries, supply of classroom equipment, teaching materials) will monitor ‘input’ performance, and results indicators (e.g., test results, school inspections, teacher performance, TMTI’s IMO White List status) will monitor ‘output’ performance.

Key performance indicators for education are: primary and secondary school enrollment rates, attendance rates, pass-marks, number of students sitting for and passing the Fiji Junior Certificate, annual TMTI intake, TMTI entry standards, number of TMTI graduates who readily find employment, and number of TMTI graduates able to pursue advanced maritime training.

     11.  Natural Resources

11.1       Agriculture

Below are the key issues, concerns and challenges expressed in the countrywide consultations held in the lead up to the NSSD, and at the NSSD:n Box 11.1 are the key agriculture policy objectives from 2005 to 2015.

l   poor agricultural extension services in the outer islands;

l  often poor cooperation between Falekaupule and agricultural extension staff;

l lack of proper facilities to keep and market poultry and livestock which has resulted in an increasing reliance on imported products;

l lack of suitable land for gardening, especially on Funafuti, limiting the possibilities for cash crop production, or growing fruit and vegetables for household consumption;

l diminishing traditional knowledge of farming pulaka and taro; and 

l deteriorating growing conditions in many pulaka pits through environmental changes including salination.

The development of agriculture in Tuvalu must confront many fundamental issues and challenges. Among them poor soils and growing conditions, small land areas, few comparative advantages, declining outer island populations, increasing urbanisation, declining interest in traditional agriculture practices, distance to export markets, and poor local market access for those who do wish to produce cash crops. Nonetheless, there is still considerable scope for increasing production for local consumption    and reversing recent production declines. Key challenges will be to revitalise and

expand agriculture extension services, encourage people to once again turn to local rather than imported foods for better nutrition health, and improve transport and marketing of local produce.

In Box 11.2 are the priorities and strategies in the agricultural sector to increase production, improve agricultural services, and expand access to land.

11.2       Fisheries

In Box 11.3 are the key fisheries policy objectives from 2005 to 2015.

Fish stocks in the Tuvalu’s EEZ, lagoons and inshore waters are its most valuable natural resource, sustainable indefinitely if well managed. The key issues and challenges are:

l  improve resource management and marketing of local fish catches;

l reduce subsidies to Commercial Fishing Centres (which currently generate negative economic benefits overall);

l move CFCs toward a more commercial footing (as their name implies), leased to private operators, or transferred to the Kaupule;

l commercial operations and management of NAFICOTs long-line fishing venture; and

l better manage and increase fish licensing revenue

In Box 11.4 are the priorities and strategies for fisheries from 2005 to2015. National efforts will focus on better resource management; shifting commercial development to the private sector; and not allowing government enterprises to undercut local commercial fishermen. Implementing the strategies will depend on close cooperation in transport, private sector development, education and training, island Kaupule, and with development partners.

11.3       Tourism

In Box 11.5 are the key tourism policy objectives from 2005 to 2015.

The key challenges and constraints confronting tourism are: high air fares, poor  air   service,   poor hotel accommodation and hospitality service, undeveloped eco-tourism potential, poor urban environmental management, under-manned and poorly situated tourism office, and lack of visitor information. Some of these issues could be overcome by remodeling and expanding the Vaiaku Lagi Hotel, locating a tourist information office adjacent to the airport terminal, developing reef eco-tourism, and improving hospitality operations and management.

While Tuvalu does not possess any special tourist attractions not present elsewhere in the region, except that its small, isolated and parts of the country remain pristine. The Funafuti lagoon is the natural attraction that must form the basis for modest growth in the tourism industry. In Box 11.6 are the priorities and strategies for tourism from 2005 to 2015.

11.4       Environment

In Box 11.7 are the key environment policy objectives from 2005 to 2015.

Tuvalu is ranked one of the most environmentally vulnerable states in the region, largely because of its low relief and small land area. The key risks confronting the environment in are:

l  sea level rise as a result of climate change;

l  rising population density in Funafuti;

l  decline in traditional resource management;

l  unsustainable use of natural resources; and

l  poor waste management and pollution control.

Waste management is one of the most pressing problems and has direct implications for human and ecosystem health, especially in Funafuti. If collected and disposed of properly, this will lead to less potential pollution of lagoon waters and less accumulation of waste that is a latent source of disease and other public health issues.

Environmental management must confront two key challenges: 1) the numerous issues arising from the growing urbanisation of Funafuti, and 2) the national impacts associated with climate change and sea level rise, specifically salt-water inundation of pulaka pits, coastal erosion and flooding, which are blamed either wholly or partly on global warming. In Box 11.8 are the priorities and strategies for the environment from 2005 to 2015.

11.5       Performance Monitoring

Below are the indicators to monitor and measure performance in the four key areas in the natural resource sector (agriculture, fisheries, tourism, environment):

1. Agriculture and fisheries’ real share of GDP (has it risen, remained flat, or continued to shrink?).

2. Government subsidies to CFCs and NAFICOT have declined or been eliminated.

1. Levels of commercial or concessionary credit extended to private agriculture- and fisheries-based businesses have increased.
2. The result of higher levels of commercial or concessionary credit.
3. Intensity of tourism promotion and the development of tourism infrastructure, measured by tourist arrivals.
4. Environmental management has improved in general, and the progress made in urban planning, land reform, and waste management in Funafuti specifically, and to a relevant but lesser extent in the outer islands.
5. Tuvalu continues to be a major advocate on issues relating to climate change.
6. To the extent possible Tuvalu adopts national mitigation measures that offset the impacts of climate change and sea level rise.

1. Infrastructure and Support

12.1                 Priorities and Strategies

              Services                            

In Box 12.2 are the priorities and strategies to provide competitively priced, cost- effective and efficient infrastructure, utilities and support services.

Reliable and competitively priced economic infrastructure and utilities are essential for sus- tainable development. Without them it will be impossible to at- tract investment, create employ- ment, generate new wealth and opportunities. Issues relating to poor transport and communi- cations, high costs, inefficient utilities, delivery of economic services, and poor maintenance of infrastructure were cited as priority concerns at the NSSD.

The key issues and challenges facing Tuvalu to provide public infrastructure, public utilities and support services are both physical and structural. For example:

l the islands are small, lightly populated (apart from Funafuti), and distant from each other.

l the cost of providing communications, power, and transport infrastructure in such circumstances is high and the economies of scale small.

l operations and management of public infrastructure and public utilities is generally weak.

l public infrastructure (e.g., shipping),utilities(e.g.,power),and support services are unprofitable and heavily subsidised.

Additional and more cost effective and efficient infrastructure, utilities and support services will support the strategies, while providing satisfactory standards of service nationwide.

12.2                

Performance Monitoring

Performance monitoring will use indicators such as profitability of public utilities and (or) lower subsidies in shipping and public utilities, the rate of increase in power consumption and telecommunications traffic, both domestic and international, and Internet access nationally.

1. Implementation and Monitoring

13.1                 Implementation

The Te Kakeega II sets out the long term Vision from 2005 to 2015. The ten-year Vision will, barring major catastrophes, remain unchanged. The Vision, strategic directions (summarised in Chapter 4: Strategic Framework), key sector policy objectives, and the summary priorities and strategies comprise the National Strategy for Sustainable Development (see Chapters 5-12). Each of the strategic directions have a shorter horizon than the Vision (e.g., 2 to 3 years). The sector priorities and strategies set out under the eight strategic directions summarise

the key areas of development identified by the NSSD.

Sector Master Plans. Each department will prepare sector master plans that should directly key off the priorities and strategies contained in Te Kakeega II, detailing specific initiatives which are linked to the national budget, its multi-year framework, and the PSIP (which specifies available domestic capital and aid funding).

Departmental Corporate Plans. Each department will prepare a short-term three- year corporate plan, which includes a clear ‘Mission Statement’ that describes what the department stands for and a detailed description of how its roles, responsibilities and contributions link directly to the sector master plans, Te Kakeega II and the Vision.

Public Sector Investment Programme. The PSIP is a schedule of current and proposed future allocations of domestic capital and aid funding that is costed out and ranked by investment priority, which is consistent with the national capacity  to finance, implement and manage. This PSIP forms the core of project planning, programming and aid coordination, and is linked with annual national budgets and the multi-year budget frameworks. Its purpose is to:

l provide a clear and broad overview of national development priorities and projects for donor consultations, which are linked with the national development strategy;

l  provide a clear overview of current and planned public sector investments;

l set a realistic schedule of public sector investments over a three-year horizon, consistent with the multi-year national budget framework; and

l determine the resources needed to implement the PSIP annually and over a multi-year time frame.

Projects included in the PSIP will be selected using an appraisal process, within the available funding (domestic and external), and as determined by the sector priorities and strategies in Te Kakeega II and the sector master plans.

National Budget. Annual national budgets and their multi-year budget frameworks

will be linked with the sector priorities and strategies set out in Te Kakeega II, which in turn link with each of the key policy objectives for each sector to attain the long term Vision. Sector budget priorities and funding allocations within the framework of the national strategies will be agreed between the Ministry of Finance, who sets macroeconomic policy, and ministries and departments who set their own funding priorities.

13.2                 Performance Monitoring

Any progress made toward the NSSD Vision (and the MDGs) must be measurable. A guide to specific performance indicators is listed at the end of each chapter addressing the eight strategies. Each indicator is a measure to monitor performance, and are based on regularly collected data or other information, including periodic MDG reporting and analysis, as the MDGs relate to the eight strategies.

DCC and National Task Force. Implementation of Te Kakeega II, the national development strategies contained therein, and sector master plans (to be developed) will be coordinated and monitored by 1) the Development Coordinating Committee (DCC), and later 2) by a National Task Force (to be established) comprising island leaders (Pule Fenua and Ulu Aliki), government officials, and representatives from civil society, which will be convened every two years to review the progress that has been made to date.

In mid-2006 the National Task Force will begin review of the national development strategies. Each sector (represented by the relevant ministry or department) will submit progress reports to the Task Force, backed by key performance indicators. These will be tabled, along with Task Force findings and recommendations, at the parliamentary session for the 2007 budget. The 2006 review will provide the basis to determine the need for a new series of consultations that that would lead to a second national summit to be held in mid-2007, during which the revised priorities and strategies for 2008 to 2010 would be determined.

Annual Government Progress Report. Each year at the budget session of parliament, government will table a progress summary that highlights national and sectoral strategies that have been implemented in the preceding calendar year (based on the performance indicators in Te Kakeega II) and how they link to Te Kakeega II and attaining the Vision.

1.  National Summit on Sustainable Development

Funafuti, Tuvalu, 28 June - 9 July 2004

Malefatuga Declaration

We, the representatives at the Tuvalu National Summit for Sustainable Development; comprising of all island Head Chiefs and Presidents of Island Councils, Cabinet Ministers and Members of Parliament, representatives of the civil society and private sector, government ministries and departments, development partners and Tuvalu expatriates;

Recognizing the importance of sustainable development - development without compromising the ability of future generations to meet their needs - and endorsing the Vision of “By 2015, guided by strong spiritual values enshrined in its motto - ‘Tuvalu mo te Atua’ - we will have achieved a healthy, educated, peaceful and prosperous Tuvalu”;

Believing that the development of our National Sustainable Development Strategy will significantly contribute to the attainment of a vibrant, secure and prosperous Tuvalu;

Deeply concerned with the critical challenges facing the people of Tuvalu as caused by the lack of resources and opportunities, isolation and vulnerability, and compounded by the effects of climate change and sea level rise;

Guided by the eight themes and strategic actions identified during the Summit including good governance; strengthening macroeconomic stability; improving the provision of social services; improving outer islands development and Falekaupule; creating employment opportunities and enhancing private sector development; improving capacity and human resource development; developing Tuvalu’s natural resources; and, improving the provision of support services; and mainstreaming of women in development;

Reaffirming as well our commitment to achieving sustainable development in line with the United Nations Millennium Development Goals and international sustainable development agenda;

Hereby commit, regardless of political change, to the full implementation of the strategic priorities and key actions (as appended) and as adopted through the following resolutions,

l  Adopting and promoting good governance;

l  Ensuring macroeconomic stability and economic growth;

l  Improving the quality of life for every Tuvaluan;

l  Ensuring the equitable development of all Islands;

l Providing an enabling environment for employment and private sector development;

l Strengthening capacity through the development of human resources and quality education;

l Ensuring sustainable management and conservation of Tuvalu’s natural resources and protection of the environment; and,

l Providing adequate infrastructure and support services to  underpin  development.

Commit also to ensuring the effective monitoring of the implementation and assessing its impact.

Seek to work more closely at all levels with the international community to promote cooperation and partnerships towards the achievement of the Vision, goals and objectives identified in the National Sustainable Development Strategy (Te Kakeega II), whilst acknowledging the invaluable support of our traditional development partners.

Express our sincere appreciation to the Government of Tuvalu for the organization  of the Summit and our development partners including Australia, New Zealand,  the Republic of China, the Republic of Ireland, the Governments of Italy and the United Kingdom for their financial support, and the United Nations Development Programme, United Nations Economic and Social Commission for Asia and the Pacific, the Asian Development Bank, the Council of Regional Organisations of the Pacific, and Tuvaluan expatriates for their technical support.

Declare our endorsement of the Malefatuga Declaration through our signatures below.*

* On 9 July 2004 the Malefatuga Declaration was signed by the Rt. Hon Bikenibeu Paeniu, Minister of Finance, Economic Planning and Industries (NSSD Co-Chair, MP, Nukulaelae); Hon Kamuta Latasi (NSSD Co-Chair, MP, Funafuti); Mr. Iliala Lima (Nanumea Island Chief); Mr. Talivai Sovola (Nanumaga Island Chief); Mr. Iosefa Lagafaoa (Niutao Island Chief); Mr. Falani Mekuli (Nui Island Chief); Mr. Londoni Panapa (Vaitupu Island Chief); Mr. Valoaga Fonotapu (Nukufetau Island Chief); Mr. Siaosi Finiki (Funafuti Island Chief); and Mr. Aifou Tafia (Nukulaelae Island Chief).

Millennium Development Goals:

Targets 1-18 and Progress To Date

GOAL 1:   Eradicate Extreme Poverty and Hunger

Target 1:    Halve between 1990 and 2015, the proportion of people living in poverty.

Progress:   To be determined.

Target 2: Halve, between 1990 and 2015, the proportion of people who suffer from hunger.

Progress: There is no information on this target, but available evidence suggests that malnutrition is not widespread. But there is some risk to ‘food security’ in the outer islands as populations decline.

GOAL 2:   Achieve Universal Primary Education

Target 3: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling.

Progress: Tuvalu is consistently in the upper end in regional comparisons of literacy, with 95% of its population literate. Tuvalu has achieved the MDG target in net enrolment in primary education, achieved the MDG target of equality of opportunity at primary and secondary levels for boys and girls, and balance has all but been achieved at tertiary level too. Progress remains to be made in educating and training the population in technical and vocational skills.

GOAL 3:   Promote Gender Equality and Empower Women

Target 4: Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education no later than 2015.

Progress: The ratio of girls to boys in primary, secondary and tertiary education is about equal. Tuvalu has met and will continue to meet the MDG target. The share of women in wage employment in non-agricultural sector jobs is growing and now stands at 44% of the labour market (2002), with some qualifications. Apart from one ministerial seat held by a woman in the late’80s and early ‘90s, no women have been elected to parliament, though several have stood for election.

GOAL 4:   Reduce Child Mortality

Target 5:    Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate.

Progress: The under-five mortality rate dropped from 59 in 1991 to 32 in 2003, and  the infant mortality rate decreased from 41 to 21, indicating Tuvalu is on its way to achieving the MDG target. Immunisation coverage for one-year olds is almost 100%, hitting the MDG target.

GOAL 5:    Improve Maternal Health

Target 6: Reduce by three-quarters, between 1990 and 2015, the maternal mortality  rate.

Progress: Tuvalu has achieved the lowest possible level of maternal mortality and nearly 100% of births are attended by health personnel, reaching the MDG target.

GOAL 6:   Combat HIV/AIDS, Malaria and Other Diseases

Target 7:    Have halted by 2015 and begun to reverse the spread of HIV/AIDS.

Progress: Based on current health practices, public awareness and action, Tuvalu should be able to achieve the MDG target combating the spread HIV/AIDS.

Target 8: Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases.

Progress: Malaria does not exist in Tuvalu. The rate of new tuberculosis cases is decreasing, and 92% of new cases are successfully treated, but the rate of new infections is still high, and much progress remains before the MGD target is reached. Coverage for Rubella vaccinations is 95-100%, to be reached in 2005.

GOAL 7:   Ensure Environmental Sustainability

Target 9: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources.

Progress:* Although almost half of Tuvalu is covered by forest, an assessment of the forest area will provide an indication of the relative importance of forests, and if  the natural forest coverage is being maintained or declining over time. The area of ‘official’ protected reserves is very small; but this excludes community managed conservation areas or marine reserves. A comprehensive ‘stock take’ of community reserves is required to accurately measure this target.

Target 10: Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic sanitation.

Progress: Tuvalu is well on track to achieve the target for access to safe drinking water. Tuvalu is well on track to achieve the target for access to sanitation, although progress has been slower in the outer islands than on Funafuti.

Target 11: By 2020, have achieved a significant improvement in the lives of at least 100 million slum dwellers.

Progress: Although the concept of ‘slum’ does not apply, in Funafuti temporary squatter- type housing is increasing, and the continuing urbanisation of Funafuti raises many serious issues for government in respect of urban planning and management, land and waste management, and overall urban health.

* The definition of ‘forest’ used by the UN is not particularly suitable for Tuvalu since the number of forest types and land uses that are of significant importance (such as mangroves, coconuts and agroforestry) are not included.