Unstable Government Hurts Economy

Wednesday: November 5, 2003

The Pacific Economic Bulletin says political instability in the micro-state of Tuvalu has hurt economic governance and damage the public service. The Canberra-based Bulletin has published a survey of the coral-island economy, describing Tuvalu as the world's smallest developing country - nine-and-a-half thousand people with a total land area of 26 square kilometres. The survey praises Tuvalu's remarkably good socioeconomic indicators and strong democratic tradition, but says over the past decade the tiny state has suffered prolonged political instability with frequent changes of government.

This has harmed economic governance because decisions were based on short term political expedience. The Pacific Economic Bulletin also describes what it calls a general malaise in Tuvalu's public service because of debilitating politics." – ABC/PINA Nius