Cook Islands

Politics:

• Background

  Cook Islands: Politics

  FROM THE ECONOMIST INTELLIGENCE UNIT

  The Cook Islands become self-governing in 1965

  New Zealand annexed the Cook Islands in 1901 from the British, and in 1965 the Cook Islands became self-governing in free association with New Zealand. In practical terms, it acts as a fully independent country. The main political parties are the Cook Islands Party (CIP), the Democratic Party (DP) and the Cook Islands First Party (CIFP), established by the current prime minister, Jim Marurai, after splitting from the DP in 2005. Mr Marurai heads a coalition government.

  In 2002 Robert Woonton became prime minister, leading a coalition government of three parties and some independents. Dr Woonton's DP then won 14 parliamentary seats out of a total of 24 seats to the CIP's nine in the general election in September 2004 (the remaining seat went to an independent). However, several appeals were lodged against the election result, one of which was upheld. As a result, Dr Woonton lost the office of prime minister and his parliamentary seat, which had reportedly been secured by a margin of just four votes.

  The prime minister switches allegiance to the DP

  Mr Marurai came to power at the head of a predominantly CIP-dominated coalition, but since mid-2005 he has made efforts to emasculate the CIP's position in the government, and realign himself with the DP instead. He dismissed his deputy prime minister, Geoffrey Henry, who was the leader of the CIP, and replaced him with the head of the DP, Terepai Maoate. Following this, Mr Marurai formally dissolved the relationship between his CIFP and the CIP, and joined the DP.

  Although stable in comparison with the governments of some Pacific Island states, Mr Marurai's administration has been destabilised by factionalism. In August 2009 the foreign minister, Wilkie Rasmussen, was dismissed for openly conspiring with opposition parties to depose Mr Marurai in a no-confidence vote. Mr Rasmussen, who was later expelled from the DP, was reportedly concerned by the direction of fiscal policy.

  The parliament is elected every five years

  The parliament has 24 members who are elected every five years by universal suffrage. The executive consists of the cabinet, comprising the prime minister and (usually) six other ministers chosen by him. The head of state is the British monarch, with a resident Queen's Representative, who is a Cook Islander appointed on the advice of the government. Cook Islanders are therefore British subjects, but they hold New Zealand passports. The constitution provides that the House of Ariki, which has no legislative powers, can be called upon to advise the parliament on matters relating to custom and land tenure. Local government includes the island councils, vake (district councils) and village committees on each of the inhabited islands.

  In an attempt to make parliament more representative, the DP and the CIP agreed in June 2009 to raise the proportion of women in the legislature to 30% by 2014. There are presently only three women in parliament.

  November 24, 2009

Economy:

• Background

  Cook Islands: Resources and infrastructure

  FROM THE ECONOMIST INTELLIGENCE UNIT

  Land-based resources are scarce

  The country consists of two groups of islands—13 inhabited and two uninhabited, extending over 2m sq km of ocean. The combined land is one-half the size of Singapore but spread over an area larger than India. The North Cook Islands are atolls whereas the South Cook Islands are volcanic and comparatively fertile. More than 1,400 km separate the furthermost islands from each other. An Exclusive Economic Zone covering 1.8m sq km of ocean surrounds the Cook Islands.

  The waters surrounding the Cook Islands are believed to contain substantial reserves of manganese, cobalt and other metals, lying as yet untouched on the seabed. It is estimated that the reserves of cobalt alone are enough to meet world demand for the next 500 years.

  Rarotonga has a good international airport and there are regular air services to neighbouring island countries, as well as to New Zealand and North America. Air New Zealand, New Zealand's national carrier, and an Australia-based “no frills” carrier, Virgin Blue, offer air services to the Cook Islands. In addition, a domestic carrier, Air Rarotonga, and Air Tahiti, which is based in French Polynesia, also service routes to the island nation. There are regular inter-island airline and shipping services to all 13 inhabited islands, and limited international shipping services. China has increased aid to the Cook Islands in recent years, and in early 2009 China's Export-Import Bank agreed to lend the Cook Islands US$25m on concessional terms to upgrade transport and water infrastructure. That sum is equivalent to about 12% of GDP at 2008 exchange rates.

  Infrastructure is generally poor and the government will need to invest heavily in new projects. This is especially true for water and sanitation infrastructure, which is becoming inadequate as tourist numbers increase. Infrastructure projects are primarily funded on a concessional basis by international donors.

  Emigration is a major problem for the government   

  There are now believed to be more than 60,000 Cook Islanders living in New Zealand and 20,000 in Australia. The principal reason why people leave is economic—although the local minimum wage is one of the highest in the Pacific island region, New Zealand and Australia offer twice the average rate of pay and have a healthier job market. The population on the 11 least-populated islands has fallen by over 40% since the mid-1990s, owing to emigration overseas and migration to Rarotonga for work opportunities.

  November 24, 2009

Country Briefing

FROM THE ECONOMIST INTELLIGENCE UNIT

Land area

237 sq km

Population

19,569 (2006 census figure)

Major islands

Rarotonga (65 sq km), Mangaia (51 sq km)

Capital

Avarua, on Rarotonga (population of Rarotonga 12,188 at 2001 census)

Climate

Tropical; warm and humid from December to March with the possibility of serious tropical storms; mild and equable in the south from April to November

Weather in Avarua

Mean annual temperature in the capital 23.9°C; average yearly rainfall 2,030 mm

Languages

English (official language) and Reo (a local Maori dialect)

Measures

Imperial and metric

Currency

New Zealand dollar (NZ$)=100 cents. There are also Cook Island coins for NZ$1 and 50, 20, 10, 5, 2 cents and 1 cent in silver, and for NZ$100 in gold. Average exchange rate in 2008: NZ$1.42:US$1. Exchange rate on November 12th 2009: NZ$1.37:US$1

Time

10 hours behind GMT

November 24, 2009