Tuvalu

The purpose of this Country Strategy Paper (CSP) is to provide a framework for EC co-operation with Tuvalu under the Cotonou Agreement. The framework is based on global objectives of EC-ACP co-operation, Tuvalu’s own development policy, an analysis of the political and economic situation in the country, and an assessment of the past co-operation programmes of the EC and other donors. It concludes with the proposed EC response strategy of the 10th EDF and an Indicative Programme.

Tuvalu is a small island state in the Central Pacific Ocean. It has a total landmass of 26 sq km spread over nine atolls and reef islands and a population of 10,000. GDP per capita is € 1,200. Politically, the country is and has been generally stable with overall prudent economic and financial management. Tuvalu has a narrow economic base limited to small-scale agriculture and artisanal fisheries. Its revenue base is heavily dependent on the sale of fishing licences and revenue from overseas investments such as the Tuvalu Trust Fund, and other similarly variable sources of overseas income. In broad terms, the main development goals of the country are:

• public sector reform (better governance that leads to economic growth, improved social services, and a fairer distribution of long-term investment returns);
• private sector development (with a focus on export-oriented business development);
• development of economic infrastructure (both on Funafuti and the outer islands);
• improved primary and secondary and vocational education and training; and
• improvement of human settlements and raising the standard of living in the outer islands.

Under the 10th EDF the focal sector shall be water and sanitation including a significant waste management component and possibly renewable energy. It is agreed that Non State Actors shall be included in a significant and meaningful way in the implementation of the focal sector programme.

The EC indicative allocation for Tuvalu is € 5 million. 88% is earmarked for the focal sector of water and sanitation. A further 12% is earmarked for a Technical Cooperation Facility which includes funds for governance-related activities.

Envelope B (for certain unforeseen needs) amounts to € 0.4 million.