Tuvalu Diagnostic Trade Integration Study 2010 Report Text Copyright © Integrated Framework Partnership 2010. All rights reserved. Design Copyright © Blue Planet Media + Communications Vanuatu 2011. All rights reserved. USP Library Cataloguing-in-Publication Data Tuvalu diagnostic trade integration study, 2010 report / [Daniel Gay, editor].—Suva, Fiji : UNDP Multi Country Office, 2011. 146 p. : ill. ; 24 cm. ISBN 978–982–304–036–3 1. Tuvalu—Commerce 2. Tuvalu—Economic conditions 3. Economic development—Tuvalu 4. Tuvalu—Economic policy I. Gay, Daniel II. UNDP Multi Country Office (Fiji). HF4032.35.Z5 T88 2011 380.099682 Edited, designed and produced by Blue Planet Media + Communications Vanuatu. Email: [email protected] Table of contents Table of contents..........................................................................................................................................1 Preface...............................................................................................................................................................4 Foreword..........................................................................................................................................................5 Acronyms........................................................................................................................................................7 Executive summary....................................................................................................................................9 Recommendations................................................................................................................................... 12 DTIS Action Matrix................................................................................................................................ 21 SECTION I. CROSS-CUTTING ISSUES Chapter 1—Macroeconomic environment 1.1 Introduction......................................................................................................................... 24 1.2 Background........................................................................................................................... 24 1.3 Composition of the economy...................................................................................... 25 1.4 Economic growth and inflation ................................................................................ 26 1.5 Comparative economic performance..................................................................... 26 1.6 Balance of payments......................................................................................................... 27 1.7 Performance of goods trade......................................................................................... 27 1.8 Macroeconomic policy................................................................................................... 31 1.9 Donor activity...................................................................................................................... 35 1.10 Conclusions........................................................................................................................... 36 Chapter 2—Business and investment 2.1 Introduction......................................................................................................................... 38 2.2 Context.................................................................................................................................... 38 2.3 Investment policy regime.............................................................................................. 41 2.4 Banking and finance—access to credit................................................................... 42 2.5 Institutional framework for enterprise support............................................... 43 2.6 Feasibility of donor funding for small-scale manufacture......................... 44 2.7 Training and human resource development....................................................... 45 2.8 Legislation for enterprise support............................................................................ 46 2.9 Other enterprise support/development issues.................................................. 47 2.10 Conclusions........................................................................................................................... 49 Tuvalu Diagnostic Trade Integration Study Report 2010 1 Table of contents Chapter 3—Trade policy and trade facilitation 3.1 Introduction......................................................................................................................... 51 3.2 Institutions and policy.................................................................................................... 51 3.3 Trade mainstreaming...................................................................................................... 55 3.4 Legislation.............................................................................................................................. 56 3.5 Labour mobility.................................................................................................................. 57 3.6 Trade agreements and negotiations......................................................................... 60 3.7 Customs, quarantine and SPS..................................................................................... 66 3.8 Ports, stevedoring and storage................................................................................... 67 3.9 Transport and infrastructure...................................................................................... 67 3.10 Regional approaches to trade facilitation............................................................. 68 3.11 Conclusions........................................................................................................................... 70 Chapter 4—Human development and environment 4.1 Introduction......................................................................................................................... 72 4.2 Human development situation................................................................................... 72 4.3 Income, poverty and inequality................................................................................. 74 4.4 Poverty, human development and trade............................................................... 79 4.5 Health....................................................................................................................................... 80 4.6 Education............................................................................................................................... 82 4.7 Environment......................................................................................................................... 83 4.8 Energy security.................................................................................................................... 86 4.9 Waste management and recycling............................................................................ 88 4.10 Water supply......................................................................................................................... 88 4.11 Conclusions........................................................................................................................... 89 SECTION II. SECTORAL STUDIES Chapter 5—Tourism 5.1 Introduction......................................................................................................................... 90 5.2 Tourism characteristics and positioning.............................................................. 90 5.3 Tourism strategy and policy........................................................................................ 98 5.4 Enhancing yield and sustainability........................................................................100 5.5 Conclusions .......................................................................................................................111 Chapter 6—Fisheries 6.1 Introduction.......................................................................................................................112 6.2 Background.........................................................................................................................112 6.3 Revenue from tuna industry and licensing.......................................................115 6.4 Institutional arrangements: Tuna development and management......120 6.5 Inshore fisheries................................................................................................................122 6.6 Conclusions.........................................................................................................................126 Chapter 7—Agriculture 7.1 Introduction.......................................................................................................................128 7.2 Background.........................................................................................................................128 7.3 Institutional and policy framework......................................................................130 7.4 Donor support...................................................................................................................132 7.5 Future directions..............................................................................................................132 7.6 Conclusions.........................................................................................................................134