Skinny Tongans Are Rare, but Pacific Nation Relies on Expatriates, Aid to Survive

Local wits say there is no such thing as a skinny Tongan and this is a sign that the economy is not doing too badly.

Looking around, it is hard to argue with the first part of the assertion.

Tongans, such as Australian-based rugby union star Willie Ofahengaue, are famed for their bulk.

Their king, Taufa’ahau Tupou IV, was listed in the Guinness Book of Records as the world’s heaviest monarch at over 440 pounds, and it appears that no one in Tonga starves and most are content with their lot.

But drive through the capital, Nuku’alofa, and there is little doubt you are in the Third World. The main street is dirty, dusty and potholed.

Tonga comprises 169 islands 1,000 miles northeast of New Zealand. Much of the Pacific nation epitomizes the Western dream of a tropical paradise, verdant islands dotted with coconut palms and surrounded by beautiful beaches, coral reefs and azure seas.

Despite this beauty and a tropical climate, it is often hard for Tongans to scratch out a decent living. Tonga has few resources and poor access to world markets.

It relies for income on a few primary product exports--squash, vanilla, copra and fish--as well as tourism.

Like other Third World countries dependent on primary products, Tonga is forced to be a price taker in markets it operates in.

Despite all this, Tonga’s accounts are in a state that would be the envy of many First World countries. Balance of payments is positive, the budget is close to balance, there is little internal or external debt and foreign reserves are reasonable.

Exports add up to only a quarter of the $60 million of imports. Tourism brings in about $7.5 million, aid about $15 million and remittances from Tongans living overseas about $30 million.

The income from expatriate Tongans, about 55,000 compared to the islands’ population of 95,000, has been rising steadily despite recession in the United States, New Zealand and Australia, where most live.

“The economy is fragile because it is dependent on aid and remittances,” said the Research Director of the National Reserve Bank of Tonga, Mark Sturton. “The driving force in the economy is remittances. As long as that is sustainable, then the economy is sustainable.”

Aid is also seen as a sustainable source of income.

Diplomats said that countries such as New Zealand and Australia were keen to keep pumping in aid to ensure that Tonga remains in their “sphere of influence,” while new donors such as Taiwan and Japan are trying to extend their influence.

Although the economic fundamentals are generally in good shape, there is some dissatisfaction among the general public.

At a recent, well-attended pro-democracy conference, participants tried to curb the near-absolute power of the king. As well as basic human rights, the main call from people at the conference was for greater accountability in government.

Critics of government say corruption is widespread in Tongan society, starting with gifts to nobles to ensure land rights through to allegations of graft in high places.

“There are good reasons for dissatisfaction. The government should be a lot more accountable and things could be managed better if they were more accountable,” said ‘O Afu’alo Matoto, lending and marketing manager at the Bank of Tonga.

But he added that an economy such as Tonga’s, small and distant from markets, would always be difficult to manage.

Bank of Tonga General Manager Raymond Ramke sees little hope for diversifying the economy.

“I don’t think manufacturing is ever going to be a winner for this country. I don’t think we are competitive enough with regions in Asia and countries like Fiji.”