Tuvalu
In 1974, ethnic differences within the British colony of the Gilbert and Ellice Islands caused the Polynesians of the Ellice Islands to vote for separation from the Micronesians of the Gilbert Islands. The following year, the Ellice Islands became the separate British colony of Tuvalu. Independence was granted in 1978. In 2000, Tuvalu negotiated a contract leasing its Internet domain name ".tv" for $50 million in royalties over the next dozen years.
There are no known threats to the few foreign visitors to Tuvalu.
Prime Minister Faimalaga Luka was elected prime minister in February 2001 after his predecessor, Ionatana Ionatana, collapsed and died in December 2001 while delivering a speech. There are no political parties on Tuvalu. The 12 members of the national parliament are directly elected every four years. Each inhabited island has its own council, which is responsible for local affairs. Traditional councils of chiefs operate in tandem with the official system and are the supreme authorities on matters of custom. Under the Falekapule Act (1997) increasing autonomy was given to the traditional councils to determine development priorities, with some funding authority devolved from the central government.
The Government of Tuvalu has embarked on measures to strengthen governance and to reform the public sector to ensure that the policy environment is conducive to greater national self-reliance. The government has adopted a long-term policy document, "Vision 2015", which calls, among other things, for greater independence for Tuvalu and less reliance on foreign aid. Tuvalu's limited resource base, the fragility of its environment, and concerns over population pose a restraint to any government in power.
Economic pressures in nearby Nauru, where a number of Tuvaluans are employed as guest workers in the phosphate mines, could also lead to loss of remittances and further population pressures. Indeed, a number of Tuvaluan families have already been forced to leave Nauru and return home.
Tuvalu has generally been prudent in its approach to economic and financial management. Fiscal policy objectives have been achieved through careful management of public expenditure, including commitments to downsize the public service. Private sector development has been encouraged although opportunities are very limited. The Tuvalu government has enunciated its commitment to reform through several action plans including the `Vision 2015' document intended to set out the Government's development priorities for the period 1998-2015.
