Tuvalu
No. 51537. United States of America and Tuvalu
Exchange of notes constituting an Agreement between the Government of the United States of America and the Government of Tuvalu regarding the surrender of persons to the International Criminal Court. Suva 19 September 2002 and Funafuti 9 January 2003
No. 51036. United States of America and Tuvalu
Memorandum of Understanding between the U.S. Geological Survey of the Department of the Interior of the United States of America and the Meteorological Department of the Ministry for Works and Communications of the Tuvalu Government concerning scientific and technical cooperation in the earth sciences (with annexes). Reston 3 August 2001 and Funafuti 26 October 2001
Executive Summary
With an estimated population of just over 11000 and a total land area of 26 square kilometers Tuvalu faces a number of unique development challenges. Its economic potential is constrained by the lack of natural resources; a small domestic market and an underdeveloped private sector. Its geographic location and fragmentation across nine islands and atolls make for difficult and expensive access to major international markets and high inter-island transport costs. Tuvalu is highly dependent on imports the bulk of which consists of food fuel building materials medicine and medical equipment as well as most consumer products including motor vehicles appliances and clothing. Tuvalu has been characterized as a classic migration-remittances-aid-bureaucracy (MIRAB) economy predominated by government activities. With limited opportunities for private business the country relies on its public sector as the main driver of growth. Tuvalu is one of the least connected countries in the world with high-cost and limited Internet services. Poor connectivity constrains business and tourism opportunities as well as the ability to respond quickly to natural disasters.
Conclusion
Tuvalu faces relatively higher barriers for the growth of its digital economy relative to other Pacific Island countries (see eTReady of Solomon Islands Samoa and Vanuatu). Apart from geographical challenges of being remote and isolated from global markets the small population reduces the potential to develop a market-driven ICT infrastructure hindering the development of a mature e-commerce ecosystem via private sector investments. Moreover low levels of human capital and productive capacities high levels of economic vulnerability and lack of economies of scale act as additional barriers to business and e-business development. On the other hand the country can count on its popular domain name which generates revenues equivalent to around one-third of the country's exports.
Methodology
A four-step approach was used for the Rapid eTrade Readiness Assessment of Tuvalu to ensure a high level of participation and engagement of key stakeholders in the consultative process.
Preface
The eTrade for all Initiative launched at the fourteenth Ministerial Conference of UNCTAD in July 2016 is a practical example of how to harness the digital economy in support of the 2030 Agenda for Sustainable Development notably Sustainable Development Goals (SDGs) 5 8 9 and 17. The initiative seeks to raise awareness enhance synergies and increase the scale of existing and new efforts by the development community to strengthen the ability of developing countries to engage in and benefit from e-commerce by addressing seven relevant policy areas.
Acknowledgements
This Rapid eTrade Readiness Assessment for Tuvalu was prepared by Sven Callebaut UNCTAD Consultant in close collaboration with a team comprising Cécile Barayre Mohamad Fakhreddin Iris Macculi Htet Myat Min and Marian Pletosu under the overall guidance of Torbjörn Fredriksson.