Demographics
Tonga’s estimated population for 2007 was 109 000, giving a population density of 145.3 per square kilometre, with 68% residing on the largest main island of Tongatapu. About 24% of the population live in urban settings. The population is young, with 36.2% in the 0-14 year-old age group. The fertility rate remains high, although it has been falling slowly, decreasing from 4.1 in 1986 to 3.4 in 2005. The population growth rate is around 0.3%, a low figure taking into consideration a crude birth rate of about 25 per 1000 and the fact that child mortality rates are the lowest in the Pacific. The explanation is found in the high net emigration rate, which averaged 19.8% between 1986 and 1996. It is estimated that as many as 100 000 Tongans live overseas, most of them in Australia, New Zealand and the United States of America. The Tongan community in New Zealand alone accounts some 50 000 people.
Political situation
Tonga is a constitutional monarchy with almost absolute power given to the head of state, King Siaosi Tupou V, who succeeded his father in 2006. The King’s Cabinet consists of the Prime Minister, the ministers of the Crown and the governors of Vava’au and Ha’apai, all directly appointed by the King. The unicameral Parliament consists of the cabinet members,
the Speaker of the House (appointed by the King), nine nobles elected by the peers from among Tonga’s 33 hereditary title holders, and nine democratically elected peoples’ representatives.
The political situation remains stable and peaceful overall despite growing discontent with the undemocratic system of rule; the, in some aspects, feudal structure of society; and the mounting pressure for constitutional reform. The introduction of civil service salary reforms in July 2005 sparked a six-week general strike, ending with a settlement on 3 September 2005 that gave civil servants pay increases of 60%-80%. The strike quickly developed into widespread demands for political reform. A Constitutional Review Committee, headed by Prince Tu’i pelehake and financially supported by the Commonwealth Secretariat, was set up in response to the protests and is expected to deliver its recommendation for political reform by mid-2006.
Tonga has been a member of the United Nations since 1999. The churches are influential in Tonga and religion, traditional customs and hierarchy play important roles in policy development and the government decision-making process.
Socioeconomic situation
Agriculture forms the backbone of the economy, and the export of pumpkins for the Japanese market plays a particularly important role as a foreign exchange earner. The second biggest industry, fishing, is in recession due to decreasing catches over several years. Tourism is slowly increasing in importance, although the prospects of Tonga developing a mass-tourism industry are limited. Remittances from relatives living abroad play an increasingly important role in the economy. The total value of private remittances was estimated at TOP 200 million (US$ 105 million) in 2004, roughly 55% of gross domestic product (GDP), which was estimated at TOP 361 million (US$ 189.6 million). The Government is heavily dependent on development support for capital investments.
Economic development has been sluggish in recent years and real growth in GDP fell from 2.3% in 1998-1999 and 5.4% in 1999-2000 to only 1.4% in 2003-2004. The figure was 2.5% in 2004-2005, giving an average GDP growth per year for 1998-2005 of 2.9% per year. The Government has liberalized the economy in recent years and has abolished government monopolies and allowed competition in several areas, including telecommunications, power supply and civil aviation.
Tonga joined the World Trade Organization in December 2005 in an agreement that will see Tonga reduce its import tariffs for most goods to 15% and open its domestic markets, including health care provision and education, to foreign investors. A 15% consumption tax was introduced on goods and services in April 2005 and compensates for the loss of income from import duties. The tax base is small, with only about 4000 people having a taxable income, and income tax is low (10%) and non-progressive, resulting in a revenue from income taxation of less than TOP 2 million (US$ 1.05 million) per year. Property taxation is negligible and land ownership is concentrated among the royal family, churches and nobles. The labour force participation rate in 2003 (Labour Force Survey 2003) was 64% (75% for men and 53% for women).
The literacy rate is very high (98.8%) and most children complete compulsory primary school classes. Education absorbed 14% of the national budget in 2004. While most primary schools teach in Tongan, secondary education is mainly conducted in English. The education rate is similar for both genders, with some advantages for girls at the secondary level. Despite equal opportunities in education, the number of women in leading positions remains limited. An important step was taken in 2005 when the first female Member of Parliament was elected. Tonga has ratified the Convention of the Rights of the Child (CRC), but has failed to fulfil the reporting requirements. It has yet to sign the Convention on the Elimination of all forms of Discrimination Against Women (CEDAW). Women continue to be discriminated against in legislation, including land ownership rights, child support rights and inheritance laws.
The standard of living has improved dramatically over the last 50 years and there is now little absolute poverty. The country is placed 55th in the United Nations Development Programme’s Human Development Index ranking (HDI), the highest ranking of any Pacific island state, reflecting the comparatively high gross domestic product (GDP) per capita of US$ 1780 (2003-2004 estimate), high life expectancy and near-universal literacy. Disposable income per capita, at approximately US$ 2308, is considerably higher than GDP per capita as a result of remittances from Tongans working abroad. The value of those remittances is also increasing much faster than the domestic economy and official development assistance, and the strong performance in the HDI is partly explained by the high disposable income. However, many families are dependent for food security on what they can produce on their farmland, and limited access to such land is an increasing problem. An estimated 4% of the population live on less than US$ 1.00 per day and about 6.7% of households live below the food poverty line. The Government uses the term ‘hardship’ to describe economically disadvantaged groups in Tonga and hardship is defined as “having difficulties in meeting basic needs, such as education and transport”. When translated into monetary terms, hardship is the equivalent of living on less than TOP 28.17 (US$ 14.79) per week (indexed value), and an estimated 23% of the population falls into that category. People who live on the outer islands, where access to education and health care is poor, transport costs are high and income opportunities few, have higher rates of hardship.
Vulnerabilities and hazards
No available information.