Economy of Tuvalu - Natural Resources

Natural Resources

Subsistence farming of copra and fishing remain the primary economic activities, particularly off the capital island of Funafuti. There is no apparent large income disparity among the residents, although virtually the only jobs in the islands that pay a steady wage or salary are with the government, which make up about two thirds of those in formal employment. About 15% of adult males work as seamen on foreign flagged merchant ships. Population growth on the outer islands, the limits as to available land and the lack of employment opportunities, results in a flow of people from the outer islands to the capital in Funafuti with further pressure to migrate to Australia or New Zealand. There is high youth unemployment and few new jobs being created. Given the absence of natural resources (apart from tuna in the territorial waters), and the constrains imposed on the Tuvaluan economy by its remoteness and lack of economies of scale, practical policies are needed for improvements to the livelihoods of the growing numbers of young Tuvaluans who aspire to a more affluent lifestyle than older generations.

Tuvalu comprises four reef islands and five true atolls that result in a contiguous zone: 24 nmi (44 km) exclusive economic zone: 200 nmi (370 km) territorial sea: 12 nmi (22 km) Its nearest neighbours are Kiribati, Nauru, Samoa and Fiji. The population of 10,472 makes Tuvalu the third-least populous sovereign state in the world; as compared to its immediate neighbours, it has a larger population than Nauru, but is smaller than Kiribati which has a permanent population of just over 100,000 (2011). In terms of physical land size, at just 26 square kilometres (10 sq mi) Tuvalu is the fourth smallest country in the world; as compared to its immediate neighbours, Tuvalu is larger than Nauru, which is 21 km2 (8.1 sq mi), and smaller than Kiribati, which comprises groups of atolls dispersed over 3.5 million square kilometres, (1,351,000 square miles) of the Pacific Ocean.

Tuvalu is considered a safe country of unspoiled natural beauty and friendly people. However, due to its remoteness, the cost of travelling to the island and limited air traffic to the country, limited numbers of tourists visit each year. The majority of visitors to Tuvalu are government officials, aid workers, NGO officials or consultants.