Editing Economy of Tuvalu (section)

==Falekaupule Trust Fund==
In 1999 the [[Asian Development Bank]] (ADB) and the government of Tuvalu set up the [[Tuvalu Trust Fund#Falekaupule Trust Fund (FTF)|Falekaupule Trust Fund]], which is intended to improve services on the outer islands.<ref name="PIR">{{ cite journal|last=Taafaki |first=Tauaasa |title=Polynesia in Review: Issues and Events, 1 July 2005 to 30 June 2006, Tuvalu |url=http://scholarspace.manoa.hawaii.edu/bitstream/10125/13986/1/v19n1-207-290-politicalrev.pdf |year=2007 |volume=19 |issue=1 |journal=The Contemporary Pacific |pages=276–286 |doi=10.1353/cp.2007.0036 |archive-url=https://web.archive.org/web/20160303172349/http://archives.pireport.org/archive/2007/march/tcp-tv.htm |archive-date=2016-03-03 }}</ref> The island councils – composed of traditional leaders – are responsible for managing their own finances from a budget allocated from the Tuvaluan government from the Falekaupule Trust Fund.<ref name="ADB 1999"/> Under the Falekaupule Act, ''Falekaupule'' means “traditional assembly in each island...composed in accordance with the Aganu of each island”. ''Aganu'' means traditional custom and culture.<ref name=TKII/> The initial capital of Falekaupule Trust Fund was A$12 million. The market value of the FTF has increased:

:“As at 30 June 2007, the FTF's market value stood at $25.3 million. After eight years of operation, the FTF has made three distributions totalling to $4.7 million. A Reserve Account was established in 2005 having the exact same purpose as the CIF, which is to smooth out the stream of revenue from the main investment. At 30 June 2007, the FTF's Reserve Account was $1.4 million.”<ref name="TTF2007"/>

The [[Great Recession]] affected the FTF, which is required to maintain its value in real terms before a distribution can be made. As of 30 September 2010, the maintained value was $27.3 million; the result of capital growth and contributions from development partners. This is some $3.5 million higher than the market value of $23.8 million. The gap of 15% between the market value and the maintained value must be recouped before another distribution can be made.<ref name="FTMN">{{cite web |author1=Andrew McIntyre |author2=Brian Bell |author3=Solofa Uota |work=Government of Tuvalu |title="Fakafoou – To Make New": Tuvalu Infrastructure Strategy and Investment Plan |date=February 2012 |url=http://www.pacificdisaster.net/pdnadmin/data/original/TUV_2012_Infrastructure_Plan.pdf |access-date=13 October 2013 |archive-url=https://web.archive.org/web/20160304202126/http://www.pacificdisaster.net/pdnadmin/data/original/TUV_2012_Infrastructure_Plan.pdf |archive-date=4 March 2016 |url-status=dead }}</ref> Since the commencement of FTF, there have been four years in which distributions were made. The FTF has distributed $6.4 million with some $5.3 million allocated to island development (the balance of $1.1 million is held in reserve by the communities). This equates to an average of $55,000 spent per island per year.<ref name="FTMN"/>