Download EUROPEAN PARLIAMENT

EUROPEAN PARLIAMENT
Directorate-General for Research
BACKGROUND NOTE
on
SAMOA
and its relations with the European Union
09.07.2002
I. Introduction and basic data
Independent State of Samoa
Area: 2, 850 sq. kilometres
Population: 179,058 (July 2001 EST.)
Ethnic groups: Samoan 92.6%, Euronesians 7% (persons of European and Polynesian blood), Europeans
0.4%
Religions: Christian 99.7%
Languages: Samoan (Polynesian), English
Literacy Rate: 97%
Birth Rate: 15.59 births/ 1,000 population
Death Rate: 6.29 deaths/ 1,000 population
Infant Mortality: 31.75 deaths/ 1,000 live births
Government type: Constitutional monarchy under native chief
Independence: 1 January 1962 from New Zealand-administered UN trusteeship
Constitution: 1 January 1962
Capital: Apia
Head of state: Chief Tanumafili Il Malietoa
Head of government: Prime Minister Sailele Malielegaoi Tuila'epa
The Independent Sate of Samoa, more commonly termed simply Samoa, is a group of small islands in the
South Pacific, about half way between Hawaii and New Zealand. Known as Western Samoa until the
"Western" was dropped in 1997, Samoa has a population of almost 180,000, most of whom live in the
capital Apia on the island of Upolu. The terrain is mainly comprised of volcanic, rocky, rugged mountains
in the interior with a narrow area of plains along the coastal regions. The dry season runs from May to
October, and the rainy season from October to March. The major natural resources on the islands are their
hardwood forests, fish and hydropower, as well as agricultural products such as coconuts. The
infrastructure of Samoa is well developed. Apart from the country's national airline Polynesian Airlines
other carriers servicing the country include Air New Zealand, Air Pacific and Samoa Air with direct flights
or connections to USA, Australia, New Zealand, Hawaii and other Pacific Islands.
Samoa gained independence on 1 January 1962 and under its new constitution, instituted a government
with a Head of State, Prime Minister and Legislative Assembly. Legislative power is vested in the
Legislative Assembly or Fono. 49 Assembly members serve a term of five years. 47 of the members are
elected by universal suffrage and the remaining two by non-indigenous-Samoans. However the
constitution also requires that traditional title-holders (Matai) sit on the Assembly. The prime minister is
appointed by the head of state with the approval of the Legislative Assembly, and executive power resides
in a cabinet consisting of the prime minister and eight other ministers that he selects. Samoa is politically
stable, despite significant flaws in the political system characterised primarily by issues of corruption. In
the year 2000, Samoa's reputation was severely tarnished by a political scandal involving the trial of two
ministers for murder. These ministers were convicted of having murdered a ministerial colleague, and the
trial exposed rampant corruption in the Samoan political system. Nevertheless, compared to that of some
of its neighbours, Samoan politics remains relatively stable as a result of its ethnically homogenous
population.
Though Samoa is on the UN's list of Least Developed Countries, its economy has recently been growing at
considerable rates, particularly with the aid of the International Monetary Fund and other western
countries. Samoa is highly dependent on external forces for the success of its economy, but it also appears
2
to have strong resilience in the face of catastrophe. Samoa suffered through successive years of cyclones
in the early 1990s, as well as both an outbreak of taro leaf blight and a financial crisis of the national air
carrier in 1994, all of which threatened the country's economic stability. However, despite its misfortunes,
Samoa was able to regain its stability and exceeds most of its neighbours in terms of annual economic
growth (see Section III).
II. Historical Background
The islands that make up Samoa were a German protectorate from 1899 until the First World War when
New Zealand forces overthrew the German administration and occupied the islands. New Zealand
governed Samoa with a mandate from the League of Nations until 1946, when Samoa was made a UN
Trust Territory. Though New Zealand maintained some powers of administration over the islands,
measures of self-government were slowly introduced and finally, on 1 January 1962, the islands became
independent. Samoa was the first independent state of the Pacific islands.
Until 1976, the position of Prime Minister transferred between Fiame Mata'afa Mulinu'u and Tupua
Tamasese Lealofi, each serving two non-consecutive terms. Tupuola Taisi Efi took over the office in 1976,
but would lose it again in 1982 with the creation of the Human Rights Protection Party. The HHRP was
formed in 1979 out of the previously unorganised opposition to the dominant government. They went on
to win the parliamentary election in 1982, and appointed Va'ai Kolone as Prime Minister. He was removed
from office as a result of election malpractice and Tupuola Efi returned to the post, only to resign when the
Fono rejected his budgetary proposals. The HRPP leader Tofilau Eti Alesana replaced Tupuloa Efi, and in
the 1985 election the HRPP continued to increase its majority against the newly formed Christian
Democratic Party led by Tupuloa Efi. In December of 1985, Tofilau Eti resigned, and Va'ai Kolone
returned with the support of CDP/HRPP coalition Government in January 1986. This type of oscillation
between the two parties continues today, with the HRPP remaining the dominant party. Both the HRPP
and the CDP (now known as the Samoa National Development Party) have come under criticism being
charged with corruption and mismanagement. The political manoeuvring by parties to win seats in the
assembly has made it very difficult to legitimise the authority of either party.
In January 1994 the government introduced a value-added tax on goods and services which greatly
increased the price of food and fuel. This increase provoked a series of demonstration and protests as well
as demands for the resignation of the Prime Minister, Tofilau Eti. The government then agreed to amend
the most controversial parts of the tax, but meanwhile four members of the Fono who had opposed
financial reforms established a new party, the Samoa Liberal Party. Then, in May of 1994, the country's
economic stability was threatened by the financial collapse of the national air carrier, Polynesian Airlines.
The company's debts totalled over 45 million tala (about $15 million), and there were suspicions of public
financial mismanagement.
In March 1996, one of the two female members of the Fono, Matatumua Naimoaga, formed another new
party as a result of dissatisfaction with the Government's mismanagement of public assets, and overall
corruption. Despite much criticism over the elections of that year, the HRPP remained in power, and
Tofilau Eti was re-elected Prime Minister.
The government appeared to take on an increasingly autocratic style, intolerant of any dissension. The
government brought charges of injurious libel against the editor of the Samoa Observer for criticising the
Prime Minister of misallocating public funds.
Two traditional rulers originally held the office of Head of State, but upon the death of the first, in April
1963, Chief Malietoa Tanumafili II became the sole Head of State. He will continue in office for life, after
3
which the Legislative Assembly will elect the Head of State for a five-year term. Tanumafili is held in
very high respect by the people of Samoa, but is not involved in the running of the country.
Tuilaepa Sailele Malielegaoi, a member of the HRPP, who is also in charge of Foreign Affairs as well as
Police, Prisons and Customs, now holds the position of Prime Minister. He came to power in 1998,
following the resignation of Tofilau Eti Alesana. Tuilaepa has been greatly criticised for attempting to
concentrate too much power into the hands of the executive. In 2001 he was forced to hand over some of
his power to the new deputy Prime Minister Misa Telefoni, notably the control over financial matters,
though he has retained his position as Prime Minister.
III. Economic Stability
In 1998, the World Bank estimated Samoa's gross national product at US $ 181 m. and its per capita GNP
at US $ 1,070. In the early 1990s, Samoa underwent extreme economic decline due mainly to major
cyclones and an outbreak of taro leaf blight. However, since that time GDP has increased by an average
annual rate of 4.2% between 1995-1999. Though agriculture employs the majority of the population
(65%), the services sector accounts for most of the GDP (about 56.9%), mainly attributed to tourism. A
large percentage of the island's revenue is also provided by remittances from nationals working abroad and
by aid from Australia, New Zealand and the European Union. Samoa has incurred approximately $180
million in external debt and in 1999 recorded a trade deficit of $ 97.5 million. However, as a result of aid,
Samoa's small $200 million GDP recovered from the downturn in the early nineties and expanded to reach
an annual growth rate of 10% in 2001. Given the island's limited sources of revenue, Samoa is highly
dependent on external forces for its economic success. Following the terrorist attacks on the United States,
economists predicted a severe drop in revenue as a result of the decline in air travel, but the impact has
been less extreme than expected. Economic growth in 2002 is therefore forecasted to exceed 4%, which
though reasonable, is much less than anticipated for Samoa.
Samoa has been one of the most stable of the Pacific islands, and demonstrates much room for growth.
Though the tourism sector remains the most important driver of this growth, there has been a significant
expansion in public and private investment and consumption. The government has outlined goals for
improvement such as a stable macroeconomic framework based on an enhanced public service efficiency
and effectiveness, improved education standards, improved health standards, enhanced private sector
growth, invigorated agriculture and fisheries, sustainable tourism development and a revitalised village
economy.
Samoa is also attempting to join the WTO. The first working party on its accession bid was held in
Switzerland in March of this year. However, Samoa falls short of investment grade status and is not
expected to join the WTO in the near future. Samoa is a member of the Pacific Islands Forum, the Pacific
Community, the Asian Development Bank, and the UN Economic and Social Commission for Asia and the
Pacific.
IV. Relations with the European Union
The European Union is the largest donor to Forum Island Countries (Pacific Islands) with more than € 1
billion over the past 25 years under the Lome and Cotonou Agreements. Samoa is a signatory to both the
Lome Conventions and the Cotonou Agreement.
The Cotonou Agreement, signed in June of 2000 requires the negotiation of WTO compatible new trade
arrangements, to take effect from 2008. However, the ACP countries must decide what route to take either
4
through an "Economic Partnership Agreement" (EPA) or some other alternative trade arrangement. For
Samoa and the other Pacific ACP countries, especially for those designated as LDCs, an EPA would not
necessarily be the best option, as they do not have the capacity to protect themselves against the impact of
free trade. The Pacific Islands Forum Secretariat has submitted proposals to the ACP Secretariat seeking
funding under that allocated to the ACP by the EU to assist their countries with impact studies of new
trading arrangements, trade policy assessments, as well as regional and national workshops for capacity
building. A meeting of the Pacific ACP Trade Ministers was held in Fiji in January 2002 to discuss
possible alternatives to EPA.
On 17 June 2002, EU Foreign Ministers unanimously endorsed a mandate for the Commission to negotiate
EPAs with the ACP countries. EU Trade Commissioner Pascal Lamy will attend the ACP Ministerial
meeting in Fiji in July, where negotiation of EPAs will be high on the agenda. The stated key elements of
the negotiating strategy include enhanced market access to the EU, gradual and managed liberalisation of
ACP economies, regional integration, the encouragement of more beneficial investment, trade in services
and a very comprehensive approach to negotiation in consultation with non-state actors.
In 1997, the European Union signed a five-year regional co-operation programme, equivalent to € 35
million for the eight Pacific members of the ACP, including Samoa. The Pacific Regional Indicative
Programme (PRIP) was meant to focus on Human Resources Development and particularly on national
and regional efforts to improve basic standards of education and training. It was also meant to aid the
Pacific states in developing their capacity to deal with the challenges of resource and environment
management, trade and investment liberalisation and other global trends in information and the service
industry. In addition to this agreement, the Pacific States are to receive € 29 million from the EU for
regional development over the period 2001-2005. This is a continuation of PRIP, and is also meant to
provide support for the conservation of natural resources and development of economic infrastructure.
On a national level, Samoa has received grants of approximately € 84 million from the European Union
over the past 25 years through National Indicative Programme (NIPs), stabilisation of export earnings
(STABEX), cyclone emergency assistance and from the activities of the European Investment Bank (EIB).
Until 1990, the majority of foreign aid, including European Development Fund aid, focused on the energy
sector, principally to the development of hydropower schemes. However between 1990 and 1995 support
shifted to social and economic infrastructure and sustainable development. From 1990-2000 a major rural
water supply project dominated the NIP with funding of €18.7 million. Also a main objective of the NIP is
to construct and rehabilitate small-scale economic and social infrastructure, a project with funding of €2
million.
Along with the aid under the NIPs, Samoa has received over € 26 million in STABEX transfers. The
majority of this funding was used to rehabilitate the agricultural sector following the cyclones of 1990 and
1991 as well as the taro leaf blight disease in 1993.
Despite the obvious corruption in government and the potential for instability in the economy, Samoa
demonstrates the capacity and desire for growth if given the opportunity and funding. Economically,
perhaps Samoa has the capability to adjust to the implementation of EPAs, but there must be studies of the
impact on the social systems as well as the agricultural sector. Given the negative public feedback from
the implementation of Value Added Taxes, there also needs to be a consideration of the cultural reaction to
an open market and the implications for the government and its people.
5