Population of 100,000 spread over 170 coral islands in the South Pacific.
POLITICS: King of Tonga, King Taufa'ahau Tupou IV, age 84 of whom weighed an unbelievable 462 pounds in 1976. The Royal family follows a format of a constitutional monarchy as the constitution is 127 years old. King Tupou IV has absolute power, he appoints all Cabinet ministers. Of the 30-member parliament, only nine are elected by the public with the rest appointed by the King. The future may see more power sharing with the people as Tonga becomes more globally integrated with the world's economy. Democracy is very limited in Tonga as the King refuses to give up power. The Royal family controls 99 percent of the island's resources. It has been alleged that the Royal family have enriched themselves with preferred deals with the government at the expense of the people where the majority live in poverty as subsistence farmers.
ECONOMY: key components of the economy include agriculture in areas like coconuts, bananas, taro, cassava, vanilla beans to name a few, tourism provides for the majority of hard currency earnings along with foreign aid/remittances. Annual government revenues are approximately $50 million USD. Year 1997 inflation came in at 2 percent. GDP/Capita is at $2,200 USD as total GDP for the islands are at $225 million USD using PPP. GDP growth rate was at 5 percent for year 2000.
The economy made millions of USD in the late 1980's selling Tongan passports to Hong Kong residents concerned about the change in political leadership in Hong Kong to mainland communist control. A classic soap opera story has unfolded whereby the King of Tonga committed the nation's Tongan Trust Fund of $26.5 million USD to a former Bank of America employee in late 1999. The majority of funds were invested in high risk ventures including a dot com enterprise FilmAxis.com which is now bankrupt, an energy start up that is fighting for survival and a life insurance policy purchaser which is now out of business. The King and his associates are victims of an alleged American fraudster whereby legal action by the King is now pending in attempt to recover some of the funds. Of the intial investment, only $2.2 million USD is now accounted for.
POSITIVE: peaceful country. CONCERN: high rate of obesity & diabetes
REGIONAL: New Zealand, Australia, Japan
These markets provide for most of Tonga's exports of which the nominal small trade flows impact the pa'anga exchange value as it is a tiny market, thinly traded currency.
CURRENCY: ISO symbol, 'TOP'. Pa'anga is pegged to a basket of currencies. At time of review on September 16, 2002, the pa'anga had a value of 1.816 TOP to 1 USD. Surprisingly, the currency has had a history of relative stability. January 2001 at 1.9885 TOP to 1 USD, January 2000 at 1.78, 1999 at 1.599, 1998 at 1.49, 1997 at 1.26, 1996 at 1.23, 1995 at 1.27, 1994 at 1.32, 1993 at 1.38.
UPDATED: September 16, 2002
