Polynesia in Review: Issues and Events, 1 July 1996 to 30 June 1997 Reviews of American Sâmoa, and private-sector work or self-employ- Wallis and Futuna are not included in ment. But the head of Transition this issue. Services, Nga Pierre, said that many would not even attend interviews for jobs. Many private-sector jobs were advertised but not filled, because Cook Islands private-sector jobs involve regular The shrinking economy was the crucial attendance and effort, which govern- issue in 1996–97. The government’s ment jobs in most cases did not. Moti- budget policy statement accepted that vation was low, as people had become the economy shrank a further 4.1 per- accustomed to wide-ranging depen- cent during the year, following an 8 dence, including being paid without percent drop the previous year. The significant work. A few set up their present government, in power since own enterprises, but most were left ill 1989, outdid its predecessors in efforts equipped for initiative, responsibility, to make voters dependent on them and or self-reliance. Many people have to politicize more forms of power. It some land or family they can fall back achieved this largely by borrowing far on in emergency, and all have the right beyond the country’s capacity to repay, to live in New Zealand and Australia using the money to bring more people and earn much higher amounts (which onto the government payroll with little become a benchmark at home), to do, and giving cash grants and per- whether from work or welfare grants. quisites to politically useful actors— The staff of the Ministry of Agricul- including all the main churches. ture was cut from 280 to 70. Few had With insurmountable debt, and realized that the ministry itself was a bankruptcy only one payday away, the major constraint on agricultural pro- Asian Development Bank was called ductivity, and those who knew had a on and a “structural adjustment pack- vested interest in not telling. For age” devised. Cook Islands currency decades, successes in agriculture have was abolished because it became dis- resulted from individual initiatives; credited after the government “mined” almost every government scheme has the reserve fund on which it was failed. By the end of the year under based. New Zealand currency was review agricultural production was adopted in its place. already much improved. The public service staff was cut However, the political super- nearly sixty percent from a peak of structure remained untouched. As the 3,600 to 1,593—still relatively large publisher of the Cook Islands Press for a resident population of 18,000. observed on 26 January, “Ministers Those who lost their jobs were offered run the country into the ground, every- three months’ pay if they joined “Tran- one loses their jobs except them.” sition Services” and trained for Despite public calls for reductions to 192 political reviews • polynesia 193 the 9-person cabinet and 25-person helped themselves to overseas aid.” No parliament to run a community of one dares to take ministers to court, 18,000, their posts and privileges have for the network of power in a small been preserved. community is too pervasive. Not all is Levels of integrity have also been gloom. The much-respected Minister tarnished. The newspaper article spoke for Justice the Honourable Tiki of ministerial improprieties that are Matapo has often challenged his general knowledge such as “[Minister] colleagues and public servants over Tom Marsters . ordering tax-paid conflict of interest and misuse of workers to his private pig farm”—and power. to his taro plots. The same minister There is little confidence in today’s contracted the mowing of the interna- political leaders. A newspaper poll in tional airport to his campaign manager March revealed that an overwhelming and supplied him with a government 86 percent of respondents were not tractor to do it with. Minister for satisfied with the government. Nor did Marine Resources the Honourable they have faith in the opposition. Tepure Tapaitau granted a license for a Prime Minister Sir Geoffrey Henry pearl enterprise in which his family are received only 9 percent support (com- the major Cook Islands beneficiaries. pared to 17 percent last year). The Such conflicts of interest and misuse of highest approval rating was achieved power are common. Former Minister by the Honourable Tiki Matapo, but of Marine Resources and then Cook at only 15 percent. Leader of the Islands Commercial Consul in New Opposition the Honourable Norman Zealand Ben Toma was being sought George rated only 10 percent (and all by creditors and police for money he members of his party together only 19 owed to all three banks in the Cook percent). George’s 10 percent rating Islands (among other debts), and for seems not to have been changed by his his island’s church funds, which “dis- public “apology to the nation for my appeared” while in his care. Toma past business failures....I’ve hurt went into hiding in Australia, using a some people [but] I’ve learned from diplomatic passport. The New my mistakes.” Given the scale and Zealand government was so keen to nature of the “mistakes,” however, get the passport back that it refused to and the number of people hurt, the renew any Cook Islands diplomatic poll suggests that few were moved by passports until it was returned. The his request for forgiveness. Sixty public complains about widespread percent of those polled want a new incidents like these involving politi- field of politicians, suggesting that a cians and public servants, and the credible new party may get public Cook Islands Press editorial of 22 June support. 1997 observed that “Money, cement, In April a new Public Expenditure cars, boats, computers, video cameras Review Committee was established, and decks, and many millions in office but the minister of finance (who is also supplies and food have gone missing prime minister), selects the chairman over the years as those in power have and the cabinet selects the other mem- 194 the contemporary pacific • spring 1998 bers. Justice Minister Tiki Matapo’s Tahitian interests. A sale agreement recommendation for an independent was signed for the Rarotongan, with review committee was rejected. He the transfer to take place on 26 wanted a committee with a much November 1996. However, the gov- wider brief, including hearing com- ernment revealed that their arrange- plaints about corruption by members ments to shift the mortgage on it to of parliament and cabinet. The new other government assets by the govern- committee is concerned only with ment of Nauru (as security for the loan public servants. to build the Sir Geoffrey Henry Cul- The government decided to delegate tural Centre) had not been finalized as more financial and administrative promised. They therefore advanced responsibility to local governments on money to proceed with renovations, each island. The principle of devolu- to be repaid once they were able to tion is good if there is a local input, transfer the title. This has been but how it will work in practice delayed by five changes of president in remains to be seen, as the govern- Nauru. Public criticism of the govern- ment will give the Island Councils ment’s actions was strong. The Vai- the money, and they are highly maaga resort lies incomplete, empty, politicized. and without a definite buyer. The Since the government dissipated Rapae is in the process of being savings (including people’s money in sold. the Post Office Savings Bank, the The government liquor supplier superannuation fund, and the reserves (which had the monopoly on all liquor of public utilities) and minimized imports) had a history of corruption incentives for people to save, the coun- and mismanagement. One former try is excessively dependent on foreign manager is still in jail for fraud; some aid, investment, and initiatives to ask why he is the only one there. The create infrastructure, employment, and business was sold, and outstanding income. However, the present govern- debts of nz$400,000 written off. The ment’s eroded credibility and reputa- result of the broken monopoly was a tion for low quality management reduction in alcohol prices as multiple have reduced the volume of both aid outlets competed for the market. The and quality investment. Whereas competition has also led to suppliers overseas suppliers used to give sixty being much more generous in giving days’ credit, they now give many to sporting and other community Cook Islands businesses thirty days or events. less because of the country’s deteri- The radio and television service that orating image abroad in the past the government sold last year has three years. Many local firms have been losing money (although only a ceased giving credit and deal only in fraction of the losses when it was run cash. by the government), but hopes to After years of heavy losses, the become viable by adding cable tele- government decided last year to sell its vision. The government dental clinic four hotels. The Akitua was sold to and one outpatient clinic were priva- political reviews • polynesia 195 tized with some government was accepted, but there has been subsidy. public pressure to postpone the invita- The Rarotonga and Aitutaki air- tion for several years until the econ- ports and shipping ports, power, omy is in better shape. Hosting the water, and waste management services, Forum in the Sir Geoffrey Henry Cul- and the development bank, have been tural Centre will cost nz$500,000 advertised for sale, but the policy according to government estimates, remains contentious and no sales have and $1 million according to some been made.