70_National strategy for sustainable development 2005-2015

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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
TE KAKEEGA II
National Strategy
for Sustainable Development
2005 - 2015
November 2005
Published by
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: erpd@tuvalu.tv
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
Foreword
T e Kakeega II is the end result of the largest national public discussion since
Tuvalu separated from Kiribati in 1975. Te Kakeega II was written after wide
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”.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
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
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
Map of Tuvalu
4
TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
Contents
Chapter 1
The Vision
6
Chapter 2
Millennium Development Goals
8
2.1 Special Issues and Concerns
9
Chapter 3
Challenges and Constraints
10
Chapter 4
Strategic Framework
12
4.1 The Strategies
12
4.2 Performance Monitoring
14
Chapter 5
Good Governance
15
5.1 Priorities and Strategies
16
5.2 Performance Monitoring
17
Chapter 6
The Economy: Growth and Stability
18
6.1 Priorities and Strategies
19
6.2 Performance Monitoring
19
Chapter 7
Social Development
20
7.1 Health
20
7.2 Youth
22
7.3 Housing
23
7.4 Gender
24
7.5 Sports and Recreation
25
7.6 Poverty and Hardship
26
7.7 Performance Monitoring
27
Chapter 8
Falekaupule and Outer Islands
28
8.1 Priorities and Strategies
29
8.2 Performance Monitoring
30
Chapter 9
Private Sector and Employment
31
9.1 Priorities and Strategies
32
9.1 Performance Monitoring
33
Chapter 10 Education and Human Resources
34
10.1 Priorities and Strategies
35
10.2 Performance Monitoring
36
Chapter 11 Natural Resources
37
11.1 Agriculture
37
11.2 Fisheries
39
11.3 Tourism
41
11.4 Environment
42
11.5 Performance Monitoring
43
Chapter 12 Infrastructure and Support Services
44
12.1 Priorities and Strategies
45
12.2 Performance Monitoring
46
Chapter 13 Implementation and Monitoring
46
13.1 Implementation
46
13.2 Performance Monitoring
47
Annex 1
Text of the Malefatuga Declaration
49
Annex 2
Millennium Development Goals
52
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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)
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
2. Millennium Development Goals
I n September 2000, at the UN Millennium Summit, the international community
agreed to eight Millennium Development Goals - MDGs - to be met by 2015 (see Box 2.1).
Behind the MDGs are 18 targets that span across hunger and poverty, disease and illiteracy,
environment, discrimination against women, human rights, governance and democracy.
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):
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
2.1
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
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.
BOX 2.1: Key MDG Issues, Concerns and Responses
l The unique development challenges of Tuvalu do not necessarily fit easily within the
MDGs.
l Some MDG indicators do not work (or work well) statistically in small populations
such as Tuvalu.
l There remains a pressing need for new overseas development assistance through
grants and direct funding sources from the international community to ensure MDG
sustainability, highlighted by Tuvalu’s special status as an LDC and Small Island
Developing State (SIDS).
l The need for a full and effective implementation of the Brussels Programme of Action
(POA) for LDCs and the Mauritius Strategy to help Tuvalu as an LDC and SIDS to
achieve the MDG targets over the long term.
l Capacity building, lack of infrastructure, and lack of financial resources are some of
the special vulnerabilities Tuvalu faces as an LDC and SIDS in trying to meet its
MDG targets.
l Environmental sustainability is crucial to meeting most if not all of the MDG targets,
which in particular will require additional funding and technical assistance to adapt to
the impacts of climate change and sea level rise
l Medium and long-term MDG trends could suddenly change due to climate events,
which in turn could rapidly trigger severe shortages of food, water and shelter and a
high vulnerability to disease - hallmarks of poverty.
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
3. Challenges and Constraints
I n 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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
BOX 3.1: Key Development Challenges and Constraints
l Limited natural resource base;
l Widely scattered and sparsely populated island geography;
l Small domestic market with little potential for economies of scale;
l Access to international markets is expensive;
l Increasingly competitive international markets for tourism and investment;
l Social and cultural system with limited understanding and experience of business
concepts and practices;
l Limited business opportunities in the domestic economy;
l Land and capital market development constrained by small size, social values and
traditions; and
l Poor absorptive capacity for major investment:
BOX 3.2: Structural Weaknesses
l Large and continuous trade imbalance;
l Large public sector with a low productivity rate and lack focus on customer service;
l Pervasive government ownership of enterprise activities, many of which require fiscal
concessions and (or) subsidies;
l Often weak fiscal situation;
l Small under-developed private sector which accounts for only one-quarter of GDP;
l High tax rates and import duties;
l Investment approval process that is non- transparent and burdensome for investors;
l Underdeveloped financial system typified by low domestic resource mobilisation;
l Growing labour force experiencing high levels of under-employment; and
l Land tenure system that makes it difficult to obtain land for commercial development.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
4.
4.1
Strategic Framework
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).
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
BOX 4.1: The Eight Strategic Areas
Economic Growth and Stability.
Sound economic management,
1. Good Governance.
fiscal discipline, the right policy
2. Macroeconomic Growth and Stability.
environment (fiscal, monetary,
3. Social Development: Health, Welfare, Youth,
regulatory), strong and well
Gender, Housing, and Poverty Alleviation.
managed institutions that offer a
4. Outer Island and Falekaupule Development.
high standard of governance, a cost-
5. Employment and Private Sector Development.
6. Human Resource Development.
7. Natural Resources: Agriculture, Fisheries,
Tourism, and Environmental Management.
effective, efficient and customer-
oriented public sector, are but a
few of the desired results to be
achieved.
8. Infrastructure and Support Services.
Social Development. Health and
BOX 4.2: Expected Results
1. More employment opportunities.
2. Higher economic growth.
3. Better health care.
4. Better education.
5. Better basic infrastructure.
6. Continued social stability.
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
4.2
Natural Resources: Agriculture, Fisheries, Tourism and Environment. The traditional
structure of Tuvalu society and its subsistence economy have been built on the
sustainable use of the nation’s limited, but nevertheless valuable natural resources, and
the conservation and careful exploitation of its fragile atoll ecosystems. These are now
under threat from changing attitudes in society and from a continuously growing
cash economy. With traditional subsistence production in decline, the challenge is to
reconcile these conflicting factors to create sustainable growth and greater stability.
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.
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 Both Pule Fenua and Ulu Aliki mean head chief or island chief.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
5. Good Governance
I 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.
BOX 5.1: Key Policy Objectives
1. Public Administration
l Reform public service on a par with available resources.
l Institute sound management principles and practices.
l Strengthen oversight of public administration.
l Improve transparency and accountability.
l Increase participation in budget and decision making process.
2. Fiscal Stability
l Restore fiscal management and discipline.
l Adopt a medium-term fiscal framework.
3. Public Enterprises
l Reduce subsidies through improved management, operations and business planning.
4. Falekaupule (traditional island assembly)
l Institutionalise good governance practices at the Falekaupule level through the Act.
l Institute reforms to improve availability of land for development and improve
urban planning and management.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
BOX 5.2: Public Sector Reform: Priorities and Strategies 2005-2015
l Realign the role and size of the public service.
l Each department prepare 2-3 year sector master plans.
l Identify departments that can be reorganised for commercialization.
l Contract out senior public service posts.
l Clarify the roles of Minister, Secretary, and heads of department to eliminate political
interference.
l Strengthen performance appraisal process.
l Review policy on public servants operating or owning private businesses.
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,
BOX 5.3: Fiscal Management: Priorities and Strategies 2005-2015
l Set strict compliance to fiscal target, guidelines, and with Public Finance Act and Financial
Instructions.
l Review Public Finance Act, Financial Instructions, Stores Regulations, and other related
legislation.
l Formulate medium-term fiscal policy framework (including a multi-year budget
framework) to guide budgetary performance and to attain balanced budgets.
l Establish a Macroeconomic Policy Committee to monitor economic performance and
recommend policy adjustments.
l Restructure tax and tariff regimes to comply with PICTA and PACER agreements.
l Improve consultations and public awareness in formulating the budget.
l Implement the Forum Economic Ministers’ Eight Principles of Accountability.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
5.2
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.
Performance Monitoring
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.
BOX 5.4: Public Administration: Priorities and Strategies 2005-2015
l Establish Office of the Ombudsman.
l Establish Leadership Code.
l Promote public awareness on the Constitution and relevant legislation, and make
changes, as appropriate, to create greater political stability.
l Strengthen the effectiveness of Parliamentary Committee System, including Public
Accounts Committee.
l Strengthen the Office of the Auditor General.
l Assess the suitability of formalising a monitoring role for the council of chiefs.
l Formalise a process for public participation in the formulation of policy, planning
and performance monitoring.
l Maintain a foreign policy promoting regional and international cooperation and
partnerships.
l Fair, impartial and independent media.
BOX 5.5: Public Enterprise Management: Priorities and Strategies 2005-2015
l Strengthen management and staff.
l Produce annual reports and audited accounts in accordance with the relevant
legislation, with both made available to the public.
l Clearly define, cost out, and better target government subsidies.
l Assess the viability of privatising selected public enterprises.
l Improve selection process of Boards of Directors of public enterprises and broaden
membership.
l Establish clear guidelines on the roles and responsibilities of Ministers, the Board, and
Management of public enterprises.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
6. 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
BOX 6.1: Macroeconomic Policy Objectives
l Sound macro-economic management.
l Fiscal discipline and balanced budget.
expenditure putting a drag
on growth. To remedy this
situation, structural reforms
in the public sector, including
l Clear budget expenditure priorities that offer high
efficiency improvements,
rates of return.
further cost cutting, and
l Structural change, innovation and economic reform.
focusing on those activities
l Increase private sector share of GDP.
that are core-functions and
l Minimise external debt.
l Lower subsidies to public enterprises.
which have high rates of
returns are key strategies in the
short to medium-term.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
6.1
6.2
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.
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.
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.
BOX 6.2: Economic Growth and Stability:
Priorities and Strategies 2005-2015
l National budget deficits not to exceed
sustainable levels of 2-3% of GDP.
l Budget epxenditure priorities: primary
education, primary health care; and
employment-oriented technical and
vocational education.
l Implement structural changes, promote
innovation, and initiate economic reforms.
l Increase private sector share of GDP by
50% by 2015.
l External debt not to exceed 60% of GDP.
l Subsidies to public enterprises not to
exceed 5% of GDP.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
7. Social Development
7.1 Health
I n 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
BOX 7.1: Key Policy Objectives
l Provide a higher standard of healthcare
nationwide.
l Promote health education and nutrition
awareness for healthy lifestyles.
l Improve quality of curative services at
PMH.
l Enhance delivery of health services,
especially primary health care.
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
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National Strategy for Sustainable Development: 2005 - 2015
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.
BOX 7.2: Health: Priorities and Strategies 2005-2015
1. Operation and Management of Health Services
l Procurement of adequate and timely supply of drugs and other essential items to
the hospital and clinics.
l Review the operation and cost-effectiveness of the overseas medical treatment
scheme.
l Assess the cost effectiveness of the overseas medical treatment scheme compared
to the reallocation of these resources to domestic capacity building.
l The cost-effective and efficient operation of the hospital to provide adequate
curative services.
l Maintenance of PMH and outer island clinics, the latter especially for maternal
and child health care.
l Provide adequate primary health care services to all islands, especially for those
most disadvantaged.
l Staffing of clinics and providing health services to key national institutions, e.g.,
TMTI and Motufoua.
l Improve coordination and cooperation between Ministry of Health, Falekaupule,
NGOs and civil society in the delivery of adequate health services to the public.
l Review salaries and conditions of doctors and nurses to improve staff motivation
and encourage more local qualified staff to remain in Tuvalu.
l Create a regulatory environment that enables private medical services to be offered
to the public, including treatment, pharmacy supplies and other health related
services.
2. Health Education
l Strengthen health education and awareness programmes to promote healthy
lifestyles and better nutrition, and to address the threats of HIV/AIDS and NCDs.
3. Equity of Access
l Provide healthcare services to the elderly, disabled or otherwise disadvantaged.
l Ensure that people throughout the country have equal access to basic health
care services.
4. Consumer Protection
l Introduce regulations to protect consumers from the sale of sub-standard, or date-
expired products.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
7.2
Youth
In Box 7.3 are the key
policy objectives for
youth from 2005 to
2015.
BOX 7.3: Key Policy
Objectives
l Formulate a National
Youth Policy.
l Improve the welfare
of and opportunities
available to young people.
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.
BOX 7.4: Youth: Priorities and Strategies 2005-2015
l Implement a National Youth Policy.
l Increase training opportunities.
l Create more job opportunities.
l Educate youth on the value of healthy lifestyles and the threat of HIV/AIDS.
l Educate youth on traditional knowledge/skills.
l Expand youth facilities on outer islands.
l Increase the availability of credit.
l Provide a greater role for youth in the Falekaupule decision-making process.
l Increase the role of NGOs and churches in addressing youth-related issues.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
7.3 Housing
In Box 7.5 are the key
housing policy objectives
from 2005 to 2015.
BOX 7.5: Key Policy
Objectives
l Improve housing
standards.
l Improve the provision
and availability of
housing.
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.
BOX 7.6: Housing: Priorities and Strategies 2005-2015
l Review, finalise and implement a national building code, taking into account issues
such as security, water, sanitation, traditional building standards, natural hazards,
and ability to pay.
l Ensure Kaupule bye-laws and national legislation on housing and land issues are
consistent.
l Assess the need to establish a housing authority.
l Review land leases under the home ownership scheme.
l Develop an urban management plan for Funafuti that offers land for residential
development.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
7.4 Gender
In Box 7.7 are the key gender policy objectives from 2005 to 2015.
Although Tuvalu is rated first among 15 Pacific Island
BOX 7.7: Key Policy Objectives
countries based on UNDP’s gender development
l Promote gender equity.
l Expand the role of women in
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.
BOX 7.8: Gender: Priorities and Strategies 2005-2015
l Integrate the role of women, and the issue of gender and development in
implementing Te Kakeega II strategies.
l Review laws governing the distribution of land and the custodial rights of women.
l Provide women with small business and entrepreneurial training, and access to
appropriate credit facilities.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
7.5 Sports and Recreation
In Box 7.9 are the key sports
and recreation policy objectives
from 2005 to 2015.
BOX 7.9: Key Policy Objectives
l Increase participation and
opportunities to participate
in sports, nationally and
internationally.
l Improve sports and athletic
facilities nationally.
l Improve national physical fitness
and health.
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.
BOX 7.10: Sports and Recreation: Priorities and Strategies 2005-2015
Preparation of a National Sports Policy, which will address:
l Membership in the International Olympic Committee and other international
sports associations;
l The adequacy of sports and recreation facilities in Tuvalu;
l Sports and recreation as part of a healthy lifestyle; and
l The role that sports can play in achieving the national vision.
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TE KAKEEGA II
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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.
BOX 7.11:
Social Development and Other
Te Kakeega II Policy Objectives
l Most of the key policy objectives for
social development directly or indirectly
address issues of poverty and hardship.
l Most of the key policy objectives
elsewhere in Te Kakeega II directly or
indirectly address issues of poverty and
hardship.
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
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
BOX 7.12: Poverty and Hardship: Priorities and Strategies 2005-2015
l Most Te Kakeega II social development priorities and strategies directly or indirectly
address the challenges of overcoming poverty and hardship.
l Most development priorities and strategies in other Te Kakeega II sectors directly or
indirectly address the challenges of overcoming poverty and hardship.
l Monitor the incidence of poverty and hardship through regular household surveys.
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
8. Falekaupule and Outer Islands
I n 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
more employment opportunities,
BOX 8.1: Key Policy Objectives:
Outer Island Development
reversing the decline in outer island
economic activity, and generally
making the outer islands more at-
l Halt outer island depopulation.
l Raise quality of basic service delivery to outer
islands.
l Promote Tuvalu culture to improve outer
island living.
l Create new development opportunities.
l Improve public sector services (power,
shipping and extension services).
l Promote business development.
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
l Increase access to maritime training and
who have no income (or not enough
employment.
income) and no access to land.
l Expand access to microcredit.
l Better management of urbanisation.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
BOX 8.2: Key Policy Objectives:
Outer Island Governance
In Box 8.2 are the key Falekaupule and
outer island governance policy objectives
from 2005 to 2015.
l Increase outer island autonomy.
The key issues and challenges confronting
l Implement Falekaupule Act and other
relevant legislation.
l Improve the standard of governance,
management and administration.
l Deliver additional financial resources
to support island autonomy (mainly
through the Falekaupule Trust Fund).
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.
BOX 8.3: Outer Island Development: Priorities and Strategies 2005-2015
l Provide better infrastructure (water storage, roads, jetties, causeways/bridges, seawalls,
airfields, power, and other infrastructure, including renewable energy technologies,
communications/internet, and sanitation.
l Strengthen the process for effective management of the urbanisation of Funafuti.
l Ensure that health facilities and schools are adequately supplied and equipped.
l Identify and encourage revenue-generating activities such as eco-tourism.
l Increase contracting out of government services.
l Increase business advisory services and establish micro-credit schemes.
l Increase sports and recreation facilities.
l Improve operational strategies of CFCs (and NAFICOT).
l Investigate viability of marketing centres similar to CFCs for other agricultural and
maricultural products.
In Box 8.4 are the priorities and strategies for improving goverance and participation
in outer island development.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
BOX 8.4: Outer Island Governance: Policies and Strategies 2005-2015
l Undertake public education awareness programmes and workshops on the
Falekaupule Act.
l Translate the Act into the languages of Tuvalu.
l Encourage wide participation in the island development process.
l Encourage the integration of traditional and modern governance institutions and
structures.
l Decentralise services where this is practical and cost effective.
l Provide technical and vocational training for management and business, and help to
integrate business and traditional culture and practices.
In Box 8.5 are the priorities and strategies for preserving, promoting and developing
traditional skills and knowledge.
BOX 8.5: Culture and Tradition: Priorities and Strategies 2005-2015
l Promote traditional knowledge and expressions of culture.
l Revive and promote traditional skills and knowledge.
l Document traditional skills and knowledge.
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.
30
TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
9. Private Sector and Employment
I n Box 9.1 are 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.
BOX 9.1: Key Policy Objectives
l Maintain macroeconomic stability and foster economic growth.
l Create a conducive investment environment.
l Reduce subsidies to public enterprises.
l Create a ‘level playing field’ for private sector investment.
l Fiscal policies and budget management that do not result in deficits that absorb too
much domestic credit.
l Provide adequate, efficient and cost-effective economic infrastructure-especially
power, water, transport and communications.
l Improve access to exports markets.
l Increase credit availability to potential investors, especially domestic investors.
l Maintain IMO “White List” status.
l Job creation and other areas of economic opportunity.
l Increase by 50% the private sector share of GDP and level of national employment.
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National Strategy for Sustainable Development: 2005 - 2015
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.
BOX 9.2: Employment and Private Sector: Priorities and Strategies 2005-2015
l Establish clear investment policy and regulatory environment, and institutional
frameworks.
l Ensure compliance with PICTA and PACER.
l Actively support foreign direct investment, as well as domestic investment in job
creating private enterprise.
l Set fiscal policies, including subsidies to public enterprises, so it does not crowd-out
the private sector.
l Strengthen financial intermediation and domestic capital investment.
l Tax and tariff reform, and reform.
l Expand private sector participation in the decision making process.
l Facilitate business and management training for local entrepreneurs.
l Facilitate better access to markets and information on markets for local businesses.
l Provide resources needed for TMTI to remain on the IMO “White List”.
l Investigate new offshore employment opportunities.
l Strengthen consumer protection by establishing a Consumer Council to monitor
product and service standards.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
9.2
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.
Performance Monitoring
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:
a. Land reform
b. Investment policy
c. Consumer protection
8. Employment and income data reported in census and household surveys.
9. Contribution of the private sector to GDP.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
10. Education and Human
Resources
I n 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:
To provide 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
34
TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
BOX 10.1: Key Policy Objectives
l Improve overall education standards.
l More highly-trained and motivated primary,
secondary, and post-secondary teachers.
l Adequately maintained schools with better more
appropriate facilities.
l Provide more classroom materials to improve the
teaching and learning environment.
l Install sound, consistent more appropriate
curriculums that better target the needs of students
and the economy.
l Expand and improve technical and vocational
training opportunities.
l Make math and science subjects, and technical and
vocational training a central part of school curricula.
l Expand services and facilities for special needs
students, including pre-schoolers and the disabled.
l Higher retention in-country of returned overseas
scholarship students.
l A comprehensive Human Resource Development
Policy and Institutional Framework.
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.
10.1
Priorities and Strategies
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
BOX 10.2: Education and Human Resources: Priorities and Strategies 2005-2015
Teaching and learning:
l increase teacher training and skill upgrading; and
l provide adequate classroom equipment and materials to support the curriculum,
including libraries and text books.
Environment for teaching and learning:
l upgrade and maintain school facilities (including dormitories, kitchens, staff houses,
etc.) to a standard conducive to teaching and learning in a healthy environment; and
l review career and salary structures of the education service to reflect the priority and
importance placed on education.
School curriculum:
l review and redevelop school curriculum’s to better meet the needs of students (and the
economy);
l expand vocational and technical education;
l expand and improve instruction in mathematics, computer, and science subjects;
l add courses in local customs, culture and traditions skills; and
l offer student counselling to guide career and personal development.
Education services for special need students:
l provide government support to worthy private schools; and
l provide special needs education for preschoolers, disabled and handicapped, with
NGO support.
Management of the education system:
l increase the number and improve the quality of school inspections;
l certify that inspection recommendations are complied with;
l Department of Education to regulate and manage pre-schools;
l establish junior secondary school system;
l consult with the private sector so labour market needs are better met;
l TMTI is on and stays on the IMO White List;
l amend bonding policy to retain a higher number graduates in-country;
l provide more information on the labour market; and
l formulate and implement a Human Resource Development Policy and Institutional
Framework.
10.2
Performance Monitoring
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.
36
TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
11. Natural Resources
11.1 Agriculture
I n Box 11.1 are the key agriculture policy objectives from 2005 to 2015.
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:
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
BOX 11.1: Key Policy Objectives
l Reverse the decline in subsistence
agricultural production.
l Increase the availability of land for
agricultural production.
l Increase production and consumption
of local produce.
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 Mitigate climate change-related
agricultural impacts.
l diminishing traditional knowledge of
farming pulaka and taro; and
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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
BOX 11.2: Agriculture: Priorities and
once again turn to local rather
Strategies 2005-2015
l Improve and expand agricultural extension
services.
l Create more opportunities to educate and train
agriculturalists.
l Expand availability of basic agricultural tools
and equipment.
l Assist private entrepreneurs to produce and
market local produce.
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.
l Assist with access to land and credit.
l Incorporate more agricultural subjects into
school curriculums.
38
TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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;
BOX 11.3: Key Policy Objectives
l Improve management of fisheries resources
- inshore and EEZ.
l Eliminate subsidies to CFCs through
efficiency gains, privatization, or closure.
l commercial operations and
management of NAFICOTs
long-line fishing venture; and
l better manage and increase fish
licensing revenue.
l NAFICOT is made commercially viable.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
BOX 11.4: Fisheries: Priorities and Strategies 2005-2015
l Review operations of CFCs to reduce subsidies through efficiency gains,
privatisation or closure.
l Develop and adhere to a fully costed business and management plan for the
operation of NAFICOT’s long-line venture so that no subsidy is required.
l Increase revenue from fish licensing.
l Formulate and implement a clear, coherent and integrated fisheries sector
development programme.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
11.3 Tourism
In Box 11.5 are the key tourism policy objectives from 2005 to 2015.
The key challenges and
BOX 11.5: Key Policy Objective
constraints confronting
l Increase the number of tourist arrivals.
l Support the development of an eco-tourism industry.
tourism are: high air fares,
poor air service, poor
hotel
accommodation
l Support and develop new private sector tourism-
and hospitality service,
related enterprises.
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.
BOX 11.6: Tourism: Priorities and
Strategies 2005-2015
l Implement long-standing
recommendations for tourism.
l Lease out or privatize management
of the Vaiaku Lagi Hotel.
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 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.
BOX 11.7: Key Policy Objectives
l Stop unregulated development and degradation of the environment - especially on
Funafuti.
l Increase the number of marine and terrestrial conservation areas.
l Minimise climate change impacts.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
BOX 11.8: Environment: Priorities and Strategies 2005-2015
l Develop and implement an urban and waste management plan for Funafuti.
l Establish national climate change adaptation and mitigation policies.
l Encourage international adoption of Multilateral Environmental Agreements,
including the Kyoto Protocol.
l Increase the number of conservation areas and ensure regulatory compliance.
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.
3. Levels of commercial or concessionary credit extended to private agriculture- and
fisheries-based businesses have increased.
4. The result of higher levels of commercial or concessionary credit.
5. Intensity of tourism promotion and the development of tourism infrastructure,
measured by tourist arrivals.
6. 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.
7. Tuvalu continues to be a major advocate on issues relating to climate change.
8. To the extent possible Tuvalu adopts national mitigation measures that offset the
impacts of climate change and sea level rise.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
12. Infrastructure and Support
Services
I n Box 12.1 are the key
infrastructure and support
service policy objectives from
2005 to 2015.
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.
BOX 12.1: Key Policy Objectives
l operations and management of
public infrastructure and public
utilities is generally weak.
l Provide commercial, quality, efficient, and
competitively priced infrastructure and
support services.
l Corporatise, and where possible privatise,
government functions.
l Minimise subsidies paid to public utilities.
l Provide more economic infra-structure and
support services.
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
12.1
Priorities and Strategies
In Box 12.2 are the priorities and strategies to provide competitively priced, cost-
effective and efficient infrastructure, utilities and support services.
BOX 12.2: Infrastructure and Support Services:
Priorities and Strategies 2005-2015
l Improve management, operation and maintenance of infrastructure and support
services.
l Provide additional infrastructure where it is economically viable.
l Lower or eliminate subsidies to public utilities.
l Seek out alternative providers of infrastructure and utilities within the private sector
to create competition.
l Improve quality, frequency and cost-effectiveness of transport services to the outer
islands.
l Improve international air service links.
l Improve ICT services and extend ICT service nationwide, especially to schools,
clinics and Kaupule.
l Expand collection and storage of water for housing, businesses and other structures
(especially in Funafuti).
l Promote water conservation through education and awareness programmes.
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
13. Implementation and Monitoring
13.1 Implementation
T he 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
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
Text of the
Malefatuga
Declaration
48
TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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,
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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 ).
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National Strategy for Sustainable Development: 2005 - 2015
Millenium
Development
Goals
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
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.
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National Strategy for Sustainable Development: 2005 - 2015
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.
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TE KAKEEGA II
National Strategy for Sustainable Development: 2005 - 2015
GOAL 8: Develop a Global Partnership for Development**
Target 16: In cooperation with developing countries, develop and implement strategies
for decent and productive work for youth.
Progress: No progress to date.
Target 17: In co-operation with pharmaceutical companies, provide access to affordable,
essential drugs in developing countries.
Progress: No progress to date.
Target 18: In co-operation with the private sector, make available the benefits of new
technologies, especially information and communications.
Progress:
Access to information communication services have expanded over the last
ten years. Internet access (in Funafuti only) was established in 1998, with
significant service upgrades in 2001 and 2004, which will continue on a
regular basis as the domestic network is upgraded. Wireless Internet access
was established in 2003, as was the government computer network. Mobile
telecommunications was also introduced in 2004.
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