Editing Tonga (section)

== Economy ==
{{Main|Economy of Tonga}}
[[File:Coin tonga.JPG|thumb|A Tongan one-cent (''seniti taha'') coin]]
[[File:Nuku Island Vava'u.jpg|thumb|Nuku Island, [[Vavaʻu]]]]
Tonga's economy is characterised by a large nonmonetary sector and a heavy dependence on [[remittances]] from the half of the country's population who live abroad (chiefly in Australia, New Zealand, and the United States). The royal family and the nobles dominate and largely own the monetary sector of the economy – particularly the telecommunications and satellite services. Tonga was named the sixth-most corrupt country in the world by ''Forbes'' magazine in 2008.<ref>{{Cite news|url=https://www.forbes.com/2008/06/25/somalia-myanmar-corruption-bizcountries08-biz-cx_af_lm_0626bizcountries_corruptcountries_slide_7.html?thisSpeed=undefined|title=In Pictures: The World's Most Corrupt Countries|access-date=10 August 2010|work=Forbes Magazine|date=25 June 2008|archive-url=https://web.archive.org/web/20101202055913/http://www.forbes.com/2008/06/25/somalia-myanmar-corruption-bizcountries08-biz-cx_af_lm_0626bizcountries_corruptcountries_slide_7.html?thisSpeed=undefined|archive-date=2 December 2010|url-status=live}}</ref>

Tonga was ranked the 165th-safest investment destination in the world in the March 2011 ''[[Euromoney]]'' Country Risk rankings.<ref>{{Cite web|title=Euromoney Country Risk|url=http://www.euromoneycountryrisk.com/|publisher=Euromoney Institutional Investor PLC|access-date=15 August 2011|archive-url=https://web.archive.org/web/20110730183356/http://www.euromoneycountryrisk.com/|archive-date=30 July 2011|url-status=usurped}}</ref>

The manufacturing sector consists of [[cottage industry|handicrafts]] and a few other very small-scale industries, which contribute only about 5% of GDP.<ref>{{cite web |url=https://data.worldbank.org/indicator/NV.IND.MANF.ZS?locations=TO |title=Manufacturing, value added (% of GDP) – Tonga |publisher=World Bank |access-date=14 March 2023 |archive-date=14 March 2023 |archive-url=https://web.archive.org/web/20230314010139/https://data.worldbank.org/indicator/NV.IND.MANF.ZS?locations=TO |url-status=live }}</ref> Commercial business activities also are inconspicuous, and to a large extent, are dominated by the same large trading companies found throughout the South Pacific. In September 1974, the country's first commercial trading bank, the Bank of Tonga, opened.

Tonga's development plans emphasise a growing [[private sector]], upgrading agricultural productivity, revitalising the squash and vanilla-bean industries, developing tourism, and improving communications and transport. Substantial progress has been made, but much work remains to be done. A small, growing construction sector is developing in response to the inflow of aid money and remittances from Tongans abroad. In recognition of such a crucial contribution, the government has created a new department in the Prime Minister's Office with the purpose of catering for the needs of Tongans living abroad. In 2007, the Tongan Parliament amended citizenship laws to allow Tongans to hold dual citizenship.<ref name="b1" />

{{anchor|Tourism}}
The tourist industry is relatively undeveloped. The government recognises that tourism can play a major role in economic development, and efforts are being made to increase this source of revenue. Cruise ships often stop in Vavaʻu, with a reputation for its [[whale watching]], game fishing, surfing, beaches, and is increasingly becoming a major player in the South Pacific tourism market.<ref>[https://2009-2017.state.gov/r/pa/ei/bgn/16092.htm#econ Background Note: Tonga] {{Webarchive|url=https://web.archive.org/web/20190525202757/https://2009-2017.state.gov/r/pa/ei/bgn/16092.htm#econ |date=25 May 2019 }}, ''US Department of State'', 31 October 2011.</ref>

[[Postage stamps and postal history of Tonga|Tonga's postage stamps]], featuring colourful and often unusual designs (including heart-shaped and banana-shaped stamps), are popular with [[Philately|philatelists]].<ref>{{Cite book | url=https://books.google.com/books?id=CjIg5FgUUW8C&pg=PA157 | title=Landfalls of Paradise: Cruising Guide to the Pacific Islands | author1=Hinz, Earl R. | author2=Howard, Jim | name-list-style=amp | publisher=University of Hawaii Press | page=157 | year=2006 | isbn=978-0-8248-3037-3 | access-date=24 August 2020 | archive-date=15 August 2021 | archive-url=https://web.archive.org/web/20210815153100/https://books.google.com/books?id=CjIg5FgUUW8C&pg=PA157 | url-status=live }}</ref>

In 2005, the country became eligible to become a member of the [[World Trade Organization]]. After an initial voluntary delay, Tonga became a full member of the WTO on 27 July 2007.

The Tonga Chamber of Commerce and Industry, incorporated in 1996, endeavours to represent the interests of its members, private sector businesses, and to promote economic growth in the Kingdom.

Tonga is home to some 106,000 people. More than double that number live overseas, mainly in the US, New Zealand, and Australia. Remittances from the overseas population have been declining since the onset of the 2008 global economic crisis. The tourism industry is improving, but remains modest at under 90,000 tourists per year.<ref>{{cite web|url=http://www.thejakartaglobe.com/lifeandtimes/paradise-lost-tonga-mired-in-poverty/512266|archive-url=https://archive.today/20130204051244/http://www.thejakartaglobe.com/lifeandtimes/paradise-lost-tonga-mired-in-poverty/512266|url-status=dead|archive-date=4 February 2013|work=Jakarta Globe|title=Paradise Lost, Tonga Mired in Poverty|date=18 April 2012}}</ref>

=== Agriculture ===
In Tonga, agriculture and forestry (together with fisheries) provide the majority of employment, foreign exchange earnings, and food.<ref name="Halavatau">{{Citation|author1=Halavatau, S. M.  |author2=Halavatau, N. V.  |name-list-style=amp |year=2001 |title=Food Security Strategies for the Kingdom of Tonga |series=Working Paper number 57 |publisher=United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA) |url=http://ageconsearch.umn.edu/bitstream/32700/1/wp010057.pdf |archive-url=https://web.archive.org/web/20150910175806/http://ageconsearch.umn.edu/bitstream/32700/1/wp010057.pdf |archive-date=10 September 2015 |url-status=live}}</ref><ref name="Kunzel">{{Citation|author=Kunzel, W. |year=1989 |title=Agroforestry in Tonga: A Traditional Source for Development of Sustainable Farming Systems |series=Occasional Paper 12 |location=[[Armidale, New South Wales]]|publisher=South Pacific Smallholder Project, [[University of New England (Australia)|University of New England]] }}</ref> Rural Tongans rely on both [[plantation]] and [[subsistence agriculture]]. Plants grown for both market [[cash crop]]s and home use include bananas, [[coconut]]s, [[coffee bean]]s, [[vanilla bean]]s, and [[root crops]] such as [[cassava]], [[sweet potato]], and [[taro]]. {{As of |2001}}, two-thirds of agricultural land was in root crops.<ref name="Halavatau" />

The processing of coconuts into [[copra]] and [[desiccation|desiccated]] (dried) coconut was once the only significant industry, and only commercial export. Deteriorating prices on the world market and lack of replanting brought this once vibrant industry, as in most island nations of the South Pacific, to a complete standstill.

Swine and poultry are the major types of livestock. Horses are kept for draft purposes, primarily by farmers working their'' ʻapi ʻuta'' (a plot of bushland); though the [[horse meat#Tonga|meat]] is also coveted.<ref>{{cite journal |last=Daly |first=Martin |title='How Valuable a Horse Would Be Here': The Introduction of the Horse to Tonga |journal=The Journal of Pacific History |date=Sep 2003 |volume=38 |issue=2 |pages=269–274 |url=https://www.jstor.org/stable/25169643 |issn=0022-3344}}</ref> More cattle are being raised, and beef imports are declining.<ref name="b1">{{Cite book|editor=Ellicott, Karen |title=Countries of the world and their leaders yearbook 2007|url=https://archive.org/details/countriesworldth00muec |url-access=limited |year=2006|publisher=Thomson Gale|location=Farmington Hills, MI|isbn=978-0-7876-8103-6|page=[https://archive.org/details/countriesworldth00muec/page/n1876 1873]}}</ref>

The traditional feudal land ownership system meant that farmers had no incentive to invest in planting long-term tree crops on land they did not own. In the late 20th century, kava and vanilla from larger plantations became the main agricultural exports, together with squash.<ref name="Halavatau" /> The export of squash to Japan, beginning in 1987, once brought relief to Tonga's struggling economy, but local farmers became increasingly wary of the Japanese market due to price fluctuations, and the huge financial risks involved.<ref name="b1" /><ref>Rejects from squash production exceeded 30%. {{Citation|author1=Halavatau, S. M.  |author2=Hausia, S. F.  |name-list-style=amp |year=2000 |title=Small Farmer Participation in Export Production: Kingdom of Tonga Case Studies |location=Apia, Samoa |publisher= FAO Regional Workshop on Small Farmer Participation in Export Production in the Pacific Islands }}</ref>

=== Energy ===
Energy in Tonga mostly comes from imported diesel.<ref>{{Cite web|url=https://www.greenclimate.fund/projects/fp090|title=FP090 Tonga Renewable Energy Project under the Pacific Islands Renewable Energy Investment Program|date=20 October 2018|website=Green Climate Fund|language=en|archive-url=https://web.archive.org/web/20190830010334/https://www.greenclimate.fund/projects/fp090|archive-date=30 August 2019|url-status=live|access-date=2019-08-30}}</ref> Energy consumption in Tonga is projected to reach around 66 gigawatt hours by 2020.<ref name=":0">{{Cite web|url=https://pcreee.org/article/tonga-track-reach-renewable-energy-target|title=Tonga on track to reach renewable energy target|date=February 15, 2019|website=PCREEE|archive-url=https://web.archive.org/web/20190830010341/https://pcreee.org/article/tonga-track-reach-renewable-energy-target|archive-date=30 August 2019|url-status=live|access-date=2019-08-30}}</ref> The country aimed to reach 50% of renewable energy by 2020.<ref name=":0" /> In 2019, Tonga announced the construction of a 6-megawatt solar farm on Tongatapu.<ref name=":1">{{Cite web|url=https://www.adb.org/news/south-pacifics-biggest-solar-plant-help-tonga-meet-renewable-energy-target|title=South Pacific's Biggest Solar Plant to Help Tonga Meet Renewable Energy Target|date=2019-03-21|website=Asian Development Bank|language=en|archive-url=https://web.archive.org/web/20190830010343/https://www.adb.org/news/south-pacifics-biggest-solar-plant-help-tonga-meet-renewable-energy-target|archive-date=30 August 2019|url-status=live|access-date=2019-08-30}}</ref> The plant will be the second-largest solar plant in the Pacific upon completion.<ref name=":1" />

In view of the decreasing reliability of [[fossil-fuel electricity]] generation, its increasing costs, and negative environmental side effects, [[renewable energy]] solutions have attracted the government's attention. Together with [[IRENA]], Tonga has planned a renewable energy based strategy to power the main and outer islands. The strategy focuses on solar home systems that turn individual households into small power plants. It calls for the involvement of local operators, finance institutions, and technicians to provide sustainable business models and strategies to ensure the effective operation, management, and maintenance once the systems are installed.<ref>{{Cite web |url=http://www.irena.org |title=International Renewable Energy Agency |publisher=IRENA |date=26 January 2009 |access-date=27 June 2010 |archive-url=https://web.archive.org/web/20100621042458/http://irena.org/ |archive-date=21 June 2010 |url-status=live }}</ref>

The Pacific Centre for Renewable Energy and Energy Efficiency was established in Tonga in 2016 to advise the private sector on related policy matters, provide capacity development and promote business investment.<ref name="Scott-Kemmis et al. 2021">{{cite book |author1=Scott-Kemmis |author2=Intarakumnerd |author3=Rasiah |author4=Amaradasa |editor1-last=Schneegans |editor1-first=S. |editor2-last=Straza |editor2-first=T. |editor3-last=Lewis |editor3-first=J. |title=Southeast Asia and Oceania. In UNESCO Science Report: the Race Against Time for Smarter Development. |year=2021 |publisher=UNESCO |location=Paris |isbn=978-92-3-100450-6 |pages=674–715 |url=https://unesdoc.unesco.org/ark:/48223/pf0000377433 |access-date=8 September 2021 |archive-date=16 September 2021 |archive-url=https://web.archive.org/web/20210916163313/https://unesdoc.unesco.org/ark:/48223/pf0000377433 |url-status=live }}</ref> The centre facilitates a financial mechanism offering competitive grants for start-ups to spur the adoption of renewable energy by the business sector. The centre is part of the Global Network of Regional Sustainable Energy Centres and SIDS DOCK framework designed to attract international investment in the renewable energy sector.

With the assistance of IRENA, Tonga has developed the 2010–2020 Tonga Energy Road Map, which aims for a 50% reduction of diesel importation. This was to be accomplished through a range of appropriate renewable technologies, including wind and solar, as well as innovative efficiencies.<ref>{{Cite web |url=http://www.tonga-energy.to/?p=1197 |archive-url=https://web.archive.org/web/20110514035721/http://www.tonga-energy.to/?p=1197 |url-status=dead |archive-date=14 May 2011 |title=Tonga Energy Press Release: IRENA signing, a milestone for Tonga's renewable energy plans |publisher=Tonga-energy.to |date=24 June 2010 |access-date=1 June 2012 }}</ref> As of 2018, Tonga was generating 10% of its electricity from renewable sources.<ref name="SPREP SOEC 2021">{{cite book |title=State of Environment and Conservation in the Pacific Islands: 2020 Regional Report. |date=29 April 2021 |publisher=Secretariat of the Pacific Regional Environment Programme |location=Apia |isbn=978-982-04-0906-4 |url=https://soec.sprep.org/ |access-date=8 September 2021 |archive-date=11 June 2021 |archive-url=https://web.archive.org/web/20210611220121/https://soec.sprep.org/ |url-status=live }}</ref>