Tonga needs democracy, not aid

Mayhem has tragically overtaken the ‘happy isles’. Years of exploitation by the monarchy and nobility came to a head when the King’s majority appointees recessed parliament rather than agreeing to a transition to a constitutional monarchy. The hitherto civil pro-democracy movements descended into violence. The first shops torched were predictably Chinese, but this was neither racist nor political. As in other Pacific islands, Chinese shopkeepers have been the beneficiaries of corruption while most Tongans were condemned to economic stagnation.

The recent death of the long reigning monarch, King Tupou IV, was an opportunity for Tonga to move from being an absolute monarchy to a modern state. The King still appoints the Prime Minister, the Deputy Prime Minister and Judges in the Supreme Court and the Appeals Court. In a Cabinet of 14 members, 10 are lifetime appointments made by the King. Only nine of 32 members of Parliament are elected.

A strong democracy movement forced the old King to appoint one of the few elected Parliamentarians to be Prime Minister when inaction on reform provoked a public service strike in late 2005. But to appease the democracy movement public sector wages were raised by up to 80%, threatening macroeconomic stability. As a result Tonga, according to the Finance Minister was ‘teetering on the edge of economic crisis’ as well as being rent by anger against its autocratic rulers.

Tonga’s economic problems are long standing. Agricultural output has fallen below its 1980 level. Since 1991, GDP has fallen 1.1% per year, compared to a growth rate of 3.1% in Samoa during the same time. The reason for this difference is straightforward; Samoa has taken some steps to reform its economy and government, while Tonga has not. So as living standards in Samoa have steadily risen, they have declined in Tonga.

The potential of the Tongan economy has been wasted by a monarchy and ‘nobility’ who have become wealthy by retaining a feudal social structure.

The Royal family continues to dominate economic life, owning strategic monopolies and crowding out the private sector. The newly appointed King Tupou V controls Tonga’s electricity generation, its beer company, half its unexplored oil supply, one of its mobile phone companies, a cable TV company, and the rights to Tonga’s internet domain name, earning a multi-million dollar income annually. The new King’s enterprise instincts are so insatiable that in 2000, he tried to sell the genetic information of his subjects to an Australian biotech company. King Tupou V has made noises about divesting his business interests but taken no action. His subjects are not convinced

Tongans have responded by emigrating to the United States, New Zealand and Australia where some 80,000 live compared to 100,000 in Tonga. They are hard working, entrepreneurial immigrants responding to the troubles of their homeland with high remittances that keep their families from the dire poverty.

The economy cannot grow without changes to land tenure. Three quarters of land is owned by the ‘nobility’ and much of the rest lies idle. Until recently, women could not inherit land unless they had no brothers and could prove their celibacy. Squash exports to Japan have been the only agricultural success; a glimpse of what would be possible with private property rights and long term leases. Land policy and government regulation keep out foreign investment, which is needed to expand tourism- up to now an industry that has been ignored.

The riots in Nuku’alofa need never have happened. The democracy movement should have been receiving quiet encouragement from Australians for years. Australia now has an opportunity not to follow the disastrous Solomons restoration of dysfunctional government structures with Australian aid, but of helping Tonga to implement a constitutional monarchy and economic reforms. Hopefully Australian bure aucrats are up to the task. Tongans havemade it clear that they want a democratic, constitutional monarchy with the King assuming a ceremonial function as head of state. The ‘nobility’ can attend him in ceremonial robes.

The King’s and the nobility’s wealth must be divested and privatized. Land reform is urgent to make decent living standards possible for Tongan families. Deregulation must make way for investment in tourism. Tonga could become a Pacific island country known for its beaches, coconut trees and high living standards rather than another failed Pacific state.

Gaurav Sodhi is a Policy Analyst at The Centre for Independent Studies. This article is based on his report ‘Time For A Change In Tonga: From Monarchy To Modernity‘ is available online at https://www.cis.org.au/IssueAnalysis/ia77/ia77.pdf