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DETAILED SOCIAL ANALYSIS

A. Introduction 1. There are two aspects to the social analysis of the proposed upgrading of the Maritime Training Institute:

- the economic and social importance of TMTI to the general economy of Tuvalu, and the outer in particular, which provides a fundamental justification for the proposed loan project (the “do nothing” option would have very serious consequences for the whole of Tuvalu); and,

- the potential social impact (both disruptions and benefits) of the project itself (the construction activities that are required for upgrading the facilities at the Tuvalu Maritime Training Institute), on the staff and trainees resident on .

2. The economy of Tuvalu is very much dependent on seafarer remittances, most of those seafarers have been trained at TMTI, and the ability of TMTI to provide the required basic training and refresher courses in the future, at the standards set by IMO, is now critically dependent on the proposed upgrading project. The following details provide evidence of the social importance of TMTI and the Tuvaluan seafarers, to provide a context for the proposed loan and to inform the poverty impact analysis (Appendix 7). This is followed by a brief overview of the socioeconomic context of TMTI on Amatuku Island, to inform the IEE (Appendix 9 of the RRP).

3. There is now an abundance of data on the overall economic situation in Tuvalu, provided in the 1997 Economic Report for Tuvalu (ADB), the ADB Country Assistance Plan (for 2001- 2003), and the recent results of the Project Monitoring and Evaluation exercise (the ADB- supported Island Development Program). Relevant data from these reports have been reworked and interpreted to highlight the link between TMTI, the seafarer remittances, and the economies of the outer islands – the specific focus of this social analysis. The data on the overall economic situation in Tuvalu have not been repeated here; the most pertinent have been incorporated into the financial and economic analysis in Appendix 6.

B. Approach and Methodology 4. A reconnaissance of all the facilities on Amatuku Island was undertaken during the Inception Mission. Information on the number of residents on Amatuku Island was clarified and their housing status determined. The current structures and activities at TMTI were documented, to allow comparison with the proposed infrastructure upgrading. A visual survey of building practices and the social spectrum on (main island in ) was undertaken to inform the IEE for Amatuku Island.

5. Most of the effort was concentrated on determining the value and benefits of overseas seafarer employment. This involved a detailed analysis of the seafarer log kept at the Marine Department, the employment records kept at each of the three recruiting agencies, and the trainee register at TMTI (from 1979 to date), with segregation of data on an island basis. A group meeting was held with 42 seafarers who were in Funafuti on a refresher course, and interviews were held with various families who currently have seafarers overseas. Outer islanders were also consulted with regard to benefits (undertaken by the Shipping Operations Specialist during the Central Island Group cruise of the Nivaga II). Shipping consignments from 2 nine cruises to each of the outer islands were also examined to determine the nature of goods shipped by the Government and individual families. A meeting was held with staff at Princess Margaret Hospital to determine present concerns for HIV/AIDS and other sexually transmitted diseases in the seafarer community. Secondary data were collected and re-interpreted, including the detailed census in 1991, the 1997 Economic Report for Tuvalu, the ADB Country Assistance Plan for 2001-2003, and the results of the Participatory Monitoring and Evaluation Project within the ADB-funded Island Development Program. The environmental and social specialist worked closely with the Financial and Economic Specialist to integrate the social data into the poverty impact analysis.

C. Background: The Tuvalu Maritime Training Institute

6. Seafarer training was initiated in Tuvalu in 1979, with the opening of the Tuvalu Maritime School on Amatuku Island (with Australian and German support). The initial courses were concerned with safety training for Tuvaluan seafarers. With German expertise, a training program was developed for the school, meeting the German national certification standards and IMO and ILO recommendations for vocational training of seafarers. Graduates of TMS were permitted to work on German flag vessels as ratings in deck, engine and catering departments. From 1979 to 1993, TMS was headed by either a British or a German Captain Superintendent, with local staff and German training officers. German support to the school was terminated in 1994. From 1993 to 1996, the TMS was run solely by staff from Tuvalu. With pressure to conform to the IMO “White List” requirements, the original Captain Superintendent of TMS was again recruited and ran the school until 1999. During that period, the training syllabus and instructor’s guides were prepared to meet STCW 95 requirements. The facilities on Amatuku Island were improved and some new equipment was acquired. In 1999, the school was handed over to Captain Tito Tapungao (a Tuvaluan) as Captain Superintendent, and the Chief Engineer’s position was also filled. In July 2000, the school was corporatized and renamed the Tuvalu Maritime Training Institute. Tuvalu was included in the IMO White List in December 2000. Full details on the structure and courses at TMTI are included in Appendix 10 of the RRP.

7. TMTI sets a limit of 60 entrants per year, with three intakes of 20 (in January, May, and September). TMTI has provided pre-sea and seagoing programs in a total of 55 courses since 1979. It has also provided required refresher courses to about 400 Tuvaluan seafarers, as part of the initiative to have all Tuvaluan seafarers trained and licensed according to the STCW 95 standards by February 2002. Trainee recruits to TMTI are selected on the basis of English language skills, medical fitness, eyesight, aptitude, suitability, and the absence of a criminal record. Applicants are generally between 18 and 25 years of age. When the number of qualified applicants exceeds the available positions, the oldest applicants are accepted. Although there is a concern that the limited population in Tuvalu will always restrict the pool of available trainees, in fact some islands complain that only a few of their applicants are accepted to the school (for example, people say that only 5 of 30 applicants in recent years were accepted at TMTI). There is a growing concern that the basic education in Tuvalu is not preparing people for post-secondary education and work outside Tuvalu. Some identified deficiencies include lack of skills In English, mathematics, physics, and computers (all of which are extremely useful to seafarers, at some point).

8. Table 1 shows the distribution of enrolled TMTI trainees by home island. Note that not all of these trainees graduated. In the early years, there was a fairly high rate of dismissals and expulsions; up to 30% of the initial recruits in some cases. The average rate of non-completion is about 22%. Better screening of potential recruits in recent years seems to have increased the 3 graduation rate. The main reasons for expulsion and dismissal from TMTI and non-completion of the course (listed in the database) include: drunkeness; unsuitable (?) attributes; misbehavior; name intentionally changed (wrong person); underage; criminal trespass; stealing; criminal record; sleeping while on watch; disobeyed orders; nightcreeping (visiting female quarters); fighting; injured; left of own accord; deceased in accident; drifted away in a boat; heart condition; asthma; rheumatism; colorblind; liver failure. Independent accounts suggest that there is now better discipline amongst the TMTI trainees, and dismissal on the basis of inappropriate behavior is declining.

9. The average trainee intake over 22 years is 50 per year (the planned intake is 60 per year). The 55th course in August 2001 graduated 27 trainees. The oldest TMTI graduate is 45; the youngest is 18. All Tuvaluan seafarers over 45 years of age were trained outside Tuvalu (the current age span of registered Tuvaluan seafarers is 18-59). The school showed a strong intake of trainees in the initial years. From the mid- to late eighties, there was significant drop in enrolment. There was subsequently a large intake of trainees for courses 31-45 (mid-1990s) and then a drop again in the last 3-4 years, with an increase now occurring again. Most of the TMTI trainees have come from , Viatupu, Funafuti, and .

D. Tuvaluan Seafarers and Their Links to the Economy

10. Table 2 shows a comparison of the origin of Tuvaluan seafarers (their birthplace), the same for TMTI trainees, and the distribution of the resident population in Tuvalu. Note that about 30% of Tuvaluan seafarers were not born in Tuvalu. The table shows a clear bias in the seafarer community to Nanumea, with seafarers from this atoll comprising the largest single group of seafarers. The same trend is seen in the TMTI trainee recruits. Clearly, there are affinities or attributes in Nanumean men which account for their relatively large presence in the Tuvaluan seafarer community. Table 2 also indicates the relatively large emigration of people from Nanumea and Niutao to Funafuti. Seafarers from these outer islands may therefore be supporting families in both their home islands and Funafuti. Overall, 43% of the male population of Tuvalu is composed of seafarers.

11. Table 3 shows the rating classifications of Tuvaluan seafarers. The most common classification is able seaman or motorman (comprising 63% of Tuvaluan seafarer ratings). There are three crewing agencies registered in Tuvalu: Alpha Pacific Navigation Limited (a subsidiary of the Ahrenkiel Group), South Pacific Agency (a site office of the German SPMS Group); and, Pacific Overseas Employment Agency. All are affiliated with German ships. Seafarers have contracts ranging from 7-8 months to 13 months, depending on the type of vessel that they work on. Shore leave for single seafarers is 1.5 months; 3 months for married seafarers.

12. The attributes of Tuvaluan seafarers that have traditionally been of interest to the German shipping companies are the natural affinity of Tuvaluans for the sea, their comfort level in boats, their relative size and strength, English language capability, and, more recently, the relatively “compliant” negotiating position of the Tuvalu Overseas Seamen’s Union. Some of the negative aspects that have become apparent in recent times include problems with alcohol (alcohol-related suspensions and accident rates have increased in the last five years), some language comprehension problems with masters from Central European countries, and a perception of lack of leadership or decisiveness in some situations. The seafarers themselves acknowledge the language problems, complain about contracts that are too long, difficulties with family communication while overseas, and some lack of familiarity with the vessels that they are working on (not fully anticipated during their training). The seafarer families and the community 4 at large have identified some further issues: increase in domestic violence associated with absence from home and problems with alcohol; concern about the increased risk of sexually- transmitted diseases (especially HIV/AIDS, which is not yet screened in Tuvalu; there is a fairly high incidence of Hepatitis B in seafarer families, which is a concern); and a higher risk of accidents associated with larger motorbikes, which are a “hallmark” of some of the seafarers. The family units themselves appear to be relatively intact, despite the long absences of seafarers, because of extended family support, but there are some cases of family breakdowns and there is an increasing trend of single mothers in Funafuti (not yet evident in the outer islands), which may reflect an itinerant male population passing through on their way to the outer islands.

13. Despite the negative aspects of the seafarer lifestyle, there is universal agreement in Tuvalu that the socioeconomic and material benefits that accrue are worth the cost of the negative aspects, and there is often considerable family pressure for men to remain at sea. The seafarers themselves personally benefit from realising their “sense of adventure” in going to sea (travelling all over the world) and an elevated status in providing visible family support back in Tuvalu. Various reports suggest that up to 19 people may depend on the income of a single seafarer. Fifty to sixty percent of the population of Tuvalu has a direct dependence on seafarer remittances. These remittances are also tax-free in Tuvalu (unlike wages which are taxed at a high-end rate of 30%), which, in addition to the Government providing seafarer training free of charge, is a considerable benefit or subsidy to the profession. As Table 3 indicates, the current average monthly wage of a Tuvaluan seafarer is $A 1,486. As much as 90% of these wages might be remitted directly by the German shipping companies to accounts in Tuvalu. A small portion of these funds is directed to TOSU and the Provident Fund, with the balance available for disbursement. A conservative estimate of availability of seafarer remittances in Tuvalu is 75% of earnings.

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Table 1. Birthplace of Trainees Enrolled at TMTI: 1979 to 2001.1

Course Nuku- Funafuti Nuku- Nanu- Niutao Nanu- Other2 Total # laelae fetau maga mea

1-5 0 7 5 14 18 13 9 12 30 0 108 (starting in 1979)

6-10 0 4 9 12 8 15 10 12 22 0 92

11-15 0 2 10 6 10 8 12 17 24 8 97

16-20 0 4 9 6 12 8 9 6 17 3 74

21-25 0 3 5 10 8 12 11 7 13 2 71

26-30 0 12 9 7 10 11 15 12 19 0 95

31-35 0 18 10 14 16 12 15 11 16 17 129

36-40 0 13 27 11 22 12 10 16 28 4 143

41-45 0 9 20 13 9 16 10 19 19 5 120

46-50 0 0 6 5 18 4 6 4 17 16 76

51-54 0 5 22 6 8 5 4 6 10 18 84 (ending in 2001)

Total 0 77 132 104 139 116 111 122 215 73 1,089

Percent 0 7.1 12.1 9.6 12.8 10.7 10.2 11.2 19.7 6.7 100 of All Trainees

1 Average trainee intake per year over 22 years was 50. 22% of the trainees, on average, are expelled or drop out, before graduation from TMTI (based on data only for the first 25 courses). When extrapolated to the total intake over 22 years, possibly only 850 trainees have graduated from TMTI. There are 1,036 active members of TOSU – more than 18% of these were trained outside Tuvalu, most probably in Kiribati and Fiji.

2 Includes Tokelau, Kiribati, Fiji, Nauru, Ocean Island (Banaba), , Marshall Islands. 6

Table 2. Comparison of Composition of Tuvalu Population by Island, Birthplace of TMTI Enrolled Trainees, and Birthplace of Tuvaluan Seafarers Registered with Marine Department in September, 2001.

Location Percentage of Percentage of Percentage of TMTI Percentage of Resident Tuvalu 1991 Population Enrolled Trainees Registered Tuvaluan Population1 by Birthplace by Birthplace2 Seafarers by Birthplace3

Funafuti 35.7 11.8 12.1 10.9

Vaitupu 14.4 16.3 12.8 7.7

Nanumea 10.1 16.6 19.7 17.4

Niutao 10.0 16.3 11.2 7.4

Nukufetau 9.4 12.7 9.6 9.0

Nanumaga 8.1 11.6 10.2 6.7

Nui 7.4 8.7 10.7 7.2

Nukulaelae 4.0 5.2 7.1 3.7

Niulakita 0.8 0 0 0.3

Other4 - 0.8 6.7 29.8

1 Based on 1991 census. There has likely been some further emigration from some of the outer islands to Funafuti, but the 1991 census figures on population composition are more suitable for comparison to the percentage composition of birthplaces of trainees and seafarers, all of whom were born before 1984.

2 From the TMTI enrolment database (September, 2001).

3 Based on the “Redbook” manual-entry Neptune database at the Tuvalu Marine Department, September, 2001. Almost one-third of Tuvaluan seafarers were born outside Tuvalu, yet are registered as seafarers in Tuvalu. It is not clear how many of these individuals remit their wages to families in Tuvalu. Some may remit wages to families living outside Tuvalu.

4 Includes Fiji, Nauru, Kiribati, Ocean Island (Banaba). 7

Table 3. Distribution of Ranks/Ratings of Tuvaluan Seafarers Currently at Sea (September, 2001) and Their Wage Scales.1

Rank or Rating Monthly Wage in Percentage of US$ Active Seafarers in Classification

2nd Mate; 3rd Engineer 1,740 1.5

Bosun; Pumpman 1,033 9.5

Cook 986 2.0

Fitter 973 3.5

Able Seaman; Motorman; Qualified Steward: 900 25.1 over 4 years service

Able Seaman; Motorman; Qualified Steward: 3- 734 18.1 4 years service

Able Seaman; Motorman; Qualified Steward: 1- 706 20.1 2 years service

Ordinary Seaman; Wiper; Messman: 2 years 432 4.5 service

Ordinary Seaman; Wiper; Messman: 1 year 402 15.6 service Average Monthly Seafarer Wage $7622 (A$ 1,486) 1 Based on detailed records from two of the recruitment agencies in Funafuti; current as of September 27, 2001.

2 There were 470 Tuvaluan seafarers at sea at the end of September, 2001. Based on the data in the table above, the total monthly earnings at the time of the survey were US$ 358,140 or A$ 698,373. Assuming this level of seafarer activity for the next year, the annual total of Tuvaluan seafarer wages is currently US$ 4,297,680 or A$ 8,380,476. Assuming that 75% of these wages might be remitted to Tuvalu, the direct contribution to the economy of Tuvalu over the next year may be A$ 6,285,357.

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14. There have been considerable fluctuations in the total annual seafarer remittances in the last five years, as indicated in Table 4. Despite some dips in employment in the late 1990s, there is some evidence of an increasing trend. In early 2000, there was a high of 514 seafarers at sea (on 79 vessels). The current level is 470 (September, 2001). Some of these fluctuations reflect variable global demand for seafarers, as well as specific labor disputes and constraints in Germany. The main threats to stable or growing overseas employment for Tuvaluan seafarers include competition from other countries, especially if maritime training quality in Tuvalu were to decline, and increased incidence of seafarer alcohol abuse (and associated suspensions and dismissals).

15. Seafarer remittances received in Tuvalu in 2000 totalled A$ 4,716,652. Current indications are that this total will be higher in 2001 (at about A$ 6.3 million), reflecting the recent increase in seafarer wages, the decreased value of the Australian dollar against the American dollar, and a relatively high level of employment. Table 5 shows the prorated distribution of seafarer remittances over the next year on an island basis (reflecting the home islands of Tuvaluan seafarers). The largest amounts of seafarer remittance are earned by Nanumea and Funafuti-based men, but on a per capita basis, the greatest potential economic benefits of seafarer remittances will accrue to families based in Nanumea, , Nui, and Nukufetau. The potential per capita distribution of seafarer remittances to Nanumea over the next year is $1,573, more than five times the per capita benefit to families with Funafuti listed as their home island. These data are very strongly correlated to the survey data from the outer islands (IDP), which include information on income from remittances (Table 9). Clearly, the outer islands have a dependence on the seafarer remittances and a higher potential of economic benefit from them, compared to Funafuti.

Table 4. Annual Variations in Seafarer Remittances Received at the .

Year Amount (A$)

1997 1,958,000

1998 3,475,000

1999 1,679,000

2000 4,700,000

2001 3,700,000

2002 3,200,000

2003 3,400,000

Total 22,112,000

Source: Asian Development Bank Estimates

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Table 5. Potential Distribution of Seafarer Remittances to the Outer Islands and Funafuti Over the Next Year, Based on Current Earning Potential of Active Seafarers and a 75% Level or Remittance.1

Home Island/Atoll of Seafarer Potential Potential Per Capita Benefit of Families Remittances Over Remittances Over the Next the Next Year (A$)2 Year3

Nanumea 1,558,769 1,573 (991)

Funafuti 974,230 279 (3,489)

Nukufetau 804,526 880 (914)

Vaitupu 691,389 491 (1,408)

Niutao 659,962 675 (978)

Nui 641,106 882 (727)

Nanumaga 597,109 757 (789)

Nukulaelae 333,124 843 (395)

Niulakita 25,141 310 (81)

1 A 75% level of remittance assumes that some of the seafarer wages are spent overseas while on shore leave and that some of the 30% of Tuvaluan seafarers who were born outside Tuvalu remit wages to families still living outside Tuvalu.

2 It is assumed that the seafarers who were born in Tuvalu will remit most of their wages to their families still living in their birthplace. The total amount of the predicted remittances over the next year was therefore prorated to the birthplaces of the Tuvaluan-born seafarers. It is quite possible that some of the remittances are retained or spent in Funafuti, despite families living on the Outer Islands, but this could not be estimated. Even if the seafarer remittances are not physically sent to the outer islands, they are still theoretically available to the families of the individual outer islands, regardless of where they live.

3 A conservative cumulative growth rate of 10% (net difference between birth rate and mortality rate) over the last ten years (since the last census) has been assumed for all islands. It is possible that the actual number of residents on some islands and may be lower than the 1991 population, reflecting emigration to Funafuti, or the population may have experienced less than 10% growth. The estimated 2001 population is shown in brackets in column 3.

E. Tuvaluan Seafarers and Their Potential Contribution to the Outer Islands

16. Most Tuvaluan seafarers come from the outer islands (almost 60%, with only 10% from Funafuti; 30% of Tuvaluan seafarers were born outside Tuvalu). Table 6 shows the reliance of individual islands and atolls on remittances, most of which come from seafarers working overseas. Nanumea, Nukufetau, Nukulaelae, and Niutao, especially, have a very strong reliance on remittances for income. Income from wages, salaries, and business (combined) does not equal the income provided by remittances. Clearly, the level of government service (and related job opportunities) and the extent of business opportunities are both limited on these outer islands. 10

Table 6. Percentage Composition of Total Net Income.1 Type of Income Funafuti Nanumea Niutao Nanumaga Vaitupu Nui Nukufetau Nukulaelae Allowances – Meetings 41 1 0.5 - - 0.3 - 1 Wages and Salaries 32 23 29 51 44 50 38 17 Business 13 8 5 7 8.5 10 5 19 Overseas Remittances 6 56 35 21 15 23 46 42 Selling Fish 3 0.6 8 3 4 5 3 9 Other (not defined) 2 0.5 0.2 0.3 - 0.4 - 0.5 Rent 1 ------Selling Handicrafts 1 1 5 6 1 5 0.4 2 Other Agricultural Produce 0.1 - - - 0.1 - 0.2 - Funafuti Remittances 0.1 9 16 9 4 5 7 5 Other (land lease) - - - - 12 - - - Cutting and selling copra - 0.7 1 3 10 - 1 4 Money received from family on same island - - - - 0.3 - - - Sitting allowance, e.g. Kaupule - - - - 0.2 - - - Community donation for services rendered - - 0.3 - - - - - 1 Data consolidated from the Island Development Program survey conducted in 2000.

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17. Table 6 also indicates the very limited potential of remuneration from resource- based activities. Less than 15% of the income on any of the outer islands can be tied directly to resource-based activity, such as fishing, farming, or production of handicrafts. With such limited scope for business income, limited opportunities for wages and salaries, and an increasing demand for products that require cash (moving away from a subsistence economy), the seafarer remittances are relied on to provide the products and commodities that must be purchased abroad, and to fund increasingly expensive services, such as electricity and good quality education (usually outside Tuvalu). Table 7 lists what seafarers claim they spend their remittances on. There are three basic categories of allocation of remittances: food and other such consumables; support to social services (church and education)l and, what can be considered luxury goods (high technology, energy consumptive goods, compared to traditional materials and goods). With the exception of support to the church, most financial support provided by seafarers is directed at their specific families. Without tax revenue from seafarer remittances, the poorer groups in Tuvaluan society cannot be immediate beneficiaries of seafaring activity, even though the Government subsidizes the training of seafarers, which can be viewed as reinforcement of a preferential, or even elitist, benefit.

Table 7. Main Expenditures of Seafarers.1 What Wages are Spent on: Percentage of Seafarers in Survey (n = 42) Food and other such consumables 100 Church fund 80 Appliances 29 School fees outside Tuvalu 24 Motorbikes 24 Fishing gear 24 House renovations; new houses 14 Cars 7 Boat and motor 7 Water tank and pump 5

1 Informal survey at a refresher course in Funafuti in September 2001.

18. Table 8 shows the nature of goods that have been shipped to the outer islands in the year 2000. Most of the cargo on the Nivaga II is private consignment (many of these being seafarer family purchases) or goods for the Tuvalu Cooperative Society (TCS) stores. The data bear out the increased consumption of processed food, that must be imported, and the fairly high incidence of construction materials, much of this being used to build new houses in the outer islands, or add on to existing houses. 19. Cargo and passenger data for the years 1999 and 2000 were examined to determine if there were any disparities in volume of cargo shipped, or passenger movements which might reflect different levels of economic activity in the outer islands and therefore some effect of seafarer remittances. The reported data were aggregated by island group as follows: Northern Group - Nanumea, Niutao, Nanumaga; Central Group - Vaitupu, Nui, Nukufetau; and Southern Group - Nukulaelae, Niulakita. It was therefore not possible to isolate the economic activity indicators for each specific island or atoll. Cargo and passenger data are shown in Table 9. 12

Table 8. Cargo Shipped from Funafuti to the Outer Islands.1

Type of Cargo Examples of Specific Items

Food Rice, flour, sugar, milk powder, condensed milk, baking powder, yeast ,eggs, butter, cooking oil, salt, garlic, cassava, cocoa, noodles, tea, coffee, boxed cereal, tomato sauce, ketchup, mayonnaise, soy sauce, oxo, vegemite, peanut butter, jam, custard, biscuits, nuts, pancake mix, fresh vegetables, pears, apples, tinned fruit, tinned spaghetti, baked beans, pail dripping, canned beef, salted beef, tinned mackerel, lamb parts, turkey wings, frozen chicken, sausages, meatballs, pork lard, juice crystals, cordials, softdrinks, beer, gum, candy, chips, ice cream.

Construction Treated lumber, marine plywood, hardiplex, masonite, galvanized nails, cement, rebar, material and galvanized wire mats for concrete forms, concrete blocks, tie wire, bamboo rods, house fixtures corrugated steel roofing, ridge caps, gutters, louver glass, louver frames, PVC pipe, screening, electric wire, light fittings and tubes, tiles, paint, sinks, toilet repair parts, plastic water tanks, water pump, solar electricity gear.

Fuel Fuel drums, kerosene, diesel, petrol.

Transportation Local canoes, small aluminum boats, outboard motors, gas tanks, motorbikes, bicycles, Items bicycle parts, carts, trailer.

Appliances Washing machines, ovens, gas stoves, chest freezers, refrigerators, block ice crusher.

Furniture, Tables, plastic chairs, beds, mattresses, carpets, floor covering, cooking pots, utensils, household items, sponges, plastic containers, plastic cups, thermos, coolers, buckets, wooden chests, clothing lanterns, fans, batteries, video screen, computers, sewing machine, baby walkers, umbrellas, flip flops, T-shirts, shorts, school uniforms, bleach, detergent, soap, aluminum foil, toilet paper, mortein, ratkill, pharmaceuticals, yarn, cloth, paper, school supplies, tarpaulins, axes, glass cutters, shovels, wheel barrows.

Miscellaneous Cigars, cigarettes, bulk tobacco, perfume, suitcases, fishing rods, pigs, pig feed, pig fence, chicken feed, chicken cages, hydrometer, desalinator, compressor, gas cylinders, generator.

1 Cargo observed in the holding shed at Funafuti (September 2001) and also listed in the cargo manifests of nine voyages of Nivaga II to all the island groups in 2000.

20. The data for shipment of cargo and movement of passengers between Funafuti and the outer islands suggest that there is not much variation between the island groups. The Central Islands (Vaitupu, Nui, and Nukufetau) consistently show slightly higher volumes per capita of cargo and fuel shipments compared to the other island groups, but the overall range of cargo shipped per capita for all the islands is only 0.04 to 0.08 m3 per month. The least amount of cargo shipped from Funafuti (on a per capita basis) is to Nukulaelae and Nuilakita. The amount of fuel shipped shows a similar small range per capita: 0.004-0.007 tonnes per capita per month, with the highest volumes going to the Central Group. Both outgoing cargo and fuel shipments showed slight increases in 2000 compared to 1999. This may reflect, to some extent, the increased level of remittances in 2000, but this cannot be ascertained for sure. The highest level of inter-island travel per capita occurs between the Southern Group of islands (mostly Nukulaelae) and Funafuti. The least amount of travel per capita is evident in the Northern Group, probably reflecting the more remote location of these islands and atolls. Overall, approximately one in two people from the outer islands travel at least once per year between their home island and Funafuti. 13

Table 9. Indicators of Outer Island Economic Activity. a. Outgoing Cargo (from Funafuti)

Island Group1 1999 20002

Total cubic Average m3 per capita Total cubic Average m3 per meters (m3) of resident population meters (m3) capita of resident per month3 population per month

Northern 1,675 0.05 1,292 0.06

Central 2,293 0.06 1,977 0.08

Southern 239 0.04 202 0.05 1 Northern Group = Nanumea, Niutao, Nanumaga; Central Group = Vaitupu, Nui, Nukufetau Southern Group = Nukulaelae, Niulakita. 2 Cargo data only cover the first eight months of the year. 3 Based on the estimated population of each island/atoll in 2001. b. Outgoing Fuel (from Funafuti)

Island Group1 1999 20002

Total tonnes Average tonnes per Total tonnes Average tonnes per capita of resident capita of resident population per month3 population per month

Northern 131.3 0.004 99.3 0.005

Central 209.3 0.006 166.6 0.007

Southern 28.7 0.005 21.6 0.006 c. Outgoing Passengers (from Funafuti to the Outer Islands)

Island Group1 1999 20002

Total Average outgoing trip Total Average outgoing trip passengers per capita of resident passengers per capita of resident population per year3 population per year4

Northern 1,170 0.42 954 0.52

Central 2,211 0.73 1,523 0.75

Southern 838 1.76 263 0.83 1 Northern Group = Nanumea, Niutao, Nanumaga; Central Group = Vaitupu, Nui, Nukufetau Southern Group = Nukulaelae, Niulakita. 2 Cargo data only cover the first eight months of the year. 3 Based on the estimated population of each island/atoll in 2001. 4 Trip rate has been annualized, based on the first eight months of the year, to allow comparison with 1999.

14 d. Incoming Passengers (to Funafuti from the Outer Islands)

Island Group1 1999 20002

Total Average incoming trip Total Average incoming passengers per capita of resident passengers trip per capita of population per year3 resident population per year4

Northern 792 0.29 661 0.36

Central 1,677 0.55 854 0.42

Southern 582 1.22 191 0.60 1 Northern Group = Nanumea, Niutao, Nanumaga; Central Group = Vaitupu, Nui, Nukufetau Southern Group = Nukulaelae, Niulakita. 2 Cargo data only cover the first eight months of the year. 3 Based on the estimated population of each island/atoll in 2001. 4 Trip rate has been annualized, based on the first eight months of the year, to allow comparison with 1999. 21. According to the UNDP Pacific Development Report (1999), Tuvalu has the lowest per capita GDP ($US 1,157) and the lowest human development index among the Polynesian countries. Fifty percent of the population has less than $I cash income per day. Using this measure of poverty (which is not strictly correct, since most families in Tuvalu have land and access to fish), the level of poverty in the outer islands is three times higher than in Funafuti. The disparity in net cash income between Funafuti and the outer islands reflects the relatively high incidence of government jobs on Funafuti, whereas job and business opportunities on the outer islands are much more limited, as noted in Table 6. The more disadvantaged groups (the old, the very young, and women) are concentrated on the outer islands, reflecting emigration of younger workers to Funafuti and the overseas employment of almost half the men from the outer islands.

22. Land is at a premium throughout Tuvalu, with about 90% held by private landowners, so there is limited area for investment and expansion of services. In 1996, the population density on Funafuti was 1,756 people per square kilometer, reflecting the emigration from the outer islands and the further splitting of family land area in Funafuti and the increase in household size. Population density in the outer islands is about one- fifth to one-quarter what it is in Funafuti. One of the main concerns of the Government of Tuvalu is to increase the welfare and level of economic activity in the outer islands, and at the same time reduce the pressures on land and services in Funufuti

23. Several recent initiatives are addressing the disparities between Funafuti and the outer islands. In the first instance, the Trust Fund has been set up, owned by the eight island communities. The FTF is supported by the Island Development Program, which is funded by the ADB. In the second instance, electricity is now available on all the islands, provided by the Tuvalu Electricity Corporation, and backed up with solar power units and private generators. Community Fisheries Centers have been set up on three of the islands. In a recent survey (IDP, 2000), most outer islands noted an adequate level of water storage and supply (under most conditions), availability of flush and water seal toilets, and access to electricity. 15

24. Nevertheless, many areas for improvement have been noted by survey respondents. These are summarized in Table 10. The required improvements, as seen by outer islanders, fall into the categories of public services and infrastructure, environment, and private infrastructure. Health, education, and shipping deficiencies in the outer islands might best be handled by trust fund projects, or government funded initiatives, where these require government policy support and strategic interventions that have the most benefit per capita. The suggested improvements that might be funded by seafarers and their families are noted in bold in Table 10. These include:

- improvement in water supplies, which can be done at the individual level, or supported as a community initiative;

- improvement in housing, which can be considered a private investment;

- more investment in business, assuming that there is enough demand for certain commodities and services and that there is room for competition;

- improvements in agriculture (perhaps improved technology or plant and animal husbandry approaches, given the limited land), reducing the demand for imported, processed foods;

- improved environmental quality – this does not really require much investment of cash, but could be seed-funded as community-based initiatives;

- playgrounds, sports facilities, and markets: these could be funded or supported by seafarers, and operated as community or private sector initiatives.

25. Although seafarer remittances play an important role in supporting outer island communities, and will continue to do so, the benefits provided by remittances, which are heavily subsidized by government (with free basic training initially and no tax collected on subsequent income), are not equitably distributed throughout the outer islands. In order to pursue the policy of outer island improvements, the government needs to consider how to capture some of the revenue from seafaring and use it to address the needs of the marginalized members of Tuvaluan society. 16

Table 10. Required Island Improvements; Percentage of Respondents.1 Type of Improvement2 Funafuti Nanumea Niutao Nanumaga Vaitupu Nui Nukufetau Nukulaelae Improve water supplies 65 34 58 49 35 30 8 55 Roads – better/new roads needed 30.5 17 37 25 10 18 - - Health (better system, better hospital, more/better 30.5 60 28 46 71 44 55 33 medicine, more doctors, nurses) Housing (better quality of housing, every 21 - 25 77 16 50 25 36 house with a toilet, kitchen) Education (better system/infrastructure needed, 17 25 13 37 42.5 80 50 47 more qualified teachers, pre-school classrooms, better supplies) Business (more needed on the island, - - - 8 36 16 - - provide/improve market for local product, lower prices, more stores needed) Agriculture (sector needs improvement, - 14 53 - 21 - 18 63 improved pig farming e.g. better pens, improved chicken farming) Better inter-island shipping services - 8 - - 9 - - - Better distribution of funds to islands (population- - - - 12 - - 7 - based) Improve sea level protection; build a seawall - 14 - - - - - 33 Environment (keep public spaces and facilities - 14 ------tidy) More development projects - 14 ------More paid work/less voluntary work - 6 ------Improve reef passage – build jetty/wharf - - 7 - - 6 37 - Lagoon water quality – improve (e.g. for - - 5 - - - - - bathing) Playground/sports facilities needed - - - - - 8 - - Better facilities for processing/sorting products - - - - - 8 - - (e.g. copra) Build airfield ------18 - Provide/improve market for local produce (e.g. ------8 - fish and handicrafts) 1 Data consolidated from the Island Development Program survey conducted in 2000.

2 Improvements that seafarer remittances could fund directly as private investment are noted in bold. 17

F. The Social Context on Amatuku Island

26. The social context on Amatuku Island in Funafuti is quite straightforward, comprising 7 TMTI professional and support staff (25 individuals, when family members are included), and no more than forty trainees at any one time. The island is about one kilometer long by 200 meters wide (at the widest point). Conditions there are probably more favorable than most other locations throughout Tuvalu, with independent (although sometimes unreliable) power supply, telephone communication, daily access to the facilities on Fongafale, and a pleasant well-vegetated setting. Water is limited at times. The maximum population is 65 and maximum population density is about 430/km2, slightly higher than the population density in the more populated outer islands, but much less than Fongafale. Five TMTI staff members commute by boat from Fongafale.

27. The land occupied by TMTI is on long-term government lease from private landowners. There are no apparent issues related to the lease. The southern end of Amatuku Island (about 100 meters long) is still privately held and the motu immediately to the north is also in private hands.

28. Housing is provided to TMTI staff and the dormitory is used to house the trainees. Staff housing is located towards the northern end of the island, whereas the trainees are housed in the southern section of the property. There is quite good segregation of residential areas from training and service areas, and dense vegetation screens in most residential areas provide some privacy. People are not allowed to access Amatuku Island without the permission of the Captain Superintendent. However, the population of some of the staff residences fluctuates and it is not always clear who is living on the island. Housing is provided essentially free, with a nominal rent paid to TMTI.

29. Women are in the minority on Amatuku Island, given that this is a training facility for men. There are only a few women members of TMTI staff families.

30. It is very likely that the construction activities required for upgrading TMTI can be managed with minimal social impacts, especially if the construction can be phased in over a two-year period to reduce pressure on area and services. The proposed upgrading of the facilities on Amatuku Island will bring significant benefits in the way of improved provision of basic services, better training facilities, and more comfortable housing. The social impacts and benefits of the construction project itself are considered in detail in the IEE in Appendix 9 of the RRP.