Cover Story
Cooks Booming
A people with much to be proud of. But where are the people?
By The bad days of 1996, when their country lay deep in economic collapse, are fading from the minds of most Cook Islanders. Five years after the implementation of an economic restructuring package pressed on it by aid donors the Cook Islands image is quite glowing.
Last year's record tourism figures of more than 70,000 visitors plus soaring earnings from exports of cultured black pearls are revitalising the once sickly and heavily aid-dependent country of 15 small islands.
- ADVERTISEMENT -
Barring some international political or economic catastrophes, there¹s no reason why tourism and pearls should not grow. There¹s scope for high value agricultural production for export, fishing and some other industries. But the Cook Islands are not out of the woods yet.
The country's small but economically important tax haven business shares with other Pacific Islands tax havens like Vanuatu and Niue the prospect of being crunched by big powers intent on manufacturing excuses for closing them down.
 |
|
|
Since 1996, the public service has been slashed from a grossly overstaffed 3600 to 1200. But the Asian Development Bank, which took the lead in pushing from drastic economic reforms, says that this is still too high for a population of about 16,000 people. It says the government still needs to act on tariff reform, privatisation, the reform of labour and transport laws, and on improving the management of the fragile environment of small islands, including the biggest, Raro-tonga, the seat of government and most business, if growth is to be sustainable.
Another difficulty is labour. Since 1996 reforms that have slashed the public service and badly affected many businesses have cut the population. Migration to New Zealand has led to a drop from over 22,000 people to under 16,000. The drain is continuing, according to latest figures from the statistics department, with a continuing net loss although the tourism and pearl booms are enticing some Cook Islanders back.
The country now has a shortage of skilled and qualified people. Labour shortfalls are already impacting on the growth of tourism.
Otherwise, Cook Islanders have much to be proud of. Compared with most other Pacific Islanders they live far longer, have a high literacy rate, no one lacks access to health services and most people enjoy a safe, reliable water supply.
 |
|
|
The Asian Development Bank says the Cook Islands have "reasonable" growth prospects - thanks to a modest range of natural resources and a well-educated population Last year, the government ended with a comfortable budget surplus. But the Asian Development Bank says, Cook Islands still needs to be tough with itself in whittling down a heavy foreign debt burden incurred by some bad investments.
A big annual trade deficit is covered by tourism and pearl earnings. In mid 2000, the country became one of the developing countries eligible for aid from the European Union and improved access to Europe¹s trade markets.
Gross Domestic Product growth for this year and 2002 is forecast at three percent. That figure could jump if there is investment in new hotels, which, the Cook Islands tourism office says, is needed badly.
