Cook Islands

Total land area	240km² ^[1]
Exclusive economic zone (EEZ) area	1,800,000km² ^[1]

Resident population (2009)	13,300 ^[2]
Total population (2009)	22,500 ^[2]
Annual population growth rate (2009)	1.7% ^[2]
Population density (2006)	82/km²
Women in parliament	0 out of 24 members
Human Development Index score	0.837 ^[4]

The Cook Islands is a parliamentary democracy, with Queen Elizabeth II the Head of State, represented by the Governor-General HE Sir Fredrick Goodwin. Cook Islands is a self-governing state in free association with New Zealand, an arrangement dating from August 1965. Under the terms of the free association, Cook Islanders hold New Zealand citizenship (there is no Cook Islands citizenship) and enjoy the right of free access to New Zealand. New Zealand retains some responsibility for external affairs, in consultation with the Cook Islands although in recent times the Cook Islands has adopted an increasingly independent foreign policy and has diplomatic relations in its own name with twenty-one countries and international organisations. Elections were last held on 17 November 2010 resulting in a two-thirds majority for the Cook Islands Party. Following the election, CIP leader Henry Puna was sworn in as Prime Minister. The politics of the Cook Islands, a self-governing state in free association with New Zealand, takes place in a framework of a parliamentary representative democracy within a constitutional monarchy. The Constitution of the Cook Islands took effect on 4 August 1965, when it became a self- governing state in free association with New Zealand. The Cook Islands has a 24 seat unicameral parliament directly elected by universal suffrage from single-seat constituencies for a fixed four year term. The next general election is scheduled to be held in 2014. There is also a House of Ariki (Are Ariki), which is a ceremonial 'upper house' that provides advice to the parliament on land use and customary issues (it does not have a constitutional mandate to make decisions or effect legislation). The members of the House of Ariki are appointed by the Queen's Representative and represent the chiefs and nobility (ariki) of the different islands.

Head of State	Her Majesty Queen Elizabeth II (since 4 August 1965) represented by His Excellency Sir Frederick Goodwin (since 9 February 2001—reappointed for another three-year term as Queen's Representative in February 2010).
Head of Government	Prime Minister Henry Puna (since 17 November 2010).
Executive	The prime minister appoints a cabinet consisting of not fewer than 6 and not more than 8 other ministers. There are currently 29 ministerial portfolios.
Civil Service	At the time of the 2001 population census (latest accessible data) the public service employed about 25 per cent of the total labour market, which was equivalent to approximately 1,450 people working for the government. Before the Economic Reform Program of the late 1990s, the government employed about 60% of the Cook Islands paid workforce. In the outer islands, the proportion was about 75%. A decade later and there are mixed feelings about the reforms and the capacity and performance of the civil service. Ministries that have good leaders (CEOs) show positive service delivery outputs. However, several ministries have demonstrated disappointing performance levels and concern is growing among Cook Islanders that old public sector habits and practices are creeping back in. The Public Service Commission Act 1996, formalised civil service performance requirements and includes a management contract between the head of ministry and his/her minister. This contract guides ministry operations, and provides checks and balances for the Public Service Commission, the Ministry of Finance, and the Audit Office. However, as the Cabinet is responsible for the appointment of ministerial heads some continue to be appointed on political affiliation rather than merit. Post-reform reports indicate the public service restructuring resulted in higher morale and increased job satisfaction in many government agencies together with greater public demand for the public service to perform at higher levels. Sustaining these gains will require further political reform to temper the level of political interference with senior appointments and the management of the civil service.
Local Government	The Cook Islands comprises of 15 islands ands atolls spread over an exclusive economic zone of nearly 2 million square kilometres. The islands are divided geographically and administrative into the northern and southern groups. The islands of the southern group, including Rarotonga, the capital island, are mostly volcanic. The islands of the northern group are mostly atolls. The financial and logistical problems of adequately serving the scattered and isolated outer islands with a low population have resulted in significant disparities in the levels of development between Rarotonga and many of the outer islands. As a result, Rarotonga maintains the bulk of the economically active population. The Outer Islands Local Government Act 1987 established councils in an attempt to foster social and economic development outside of the capital. In reality, the disparity in the levels of development between Rarotonga and the outer islands continues to fuel migration to the capital and overseas. There are island councils on all of the inhabited outer islands except Nassau, which is governed by Pukapuka (but has an island council to advise the Pukapuka Island Council). Each council is headed by a mayor. Three Vaka Councils of Rarotonga were established in 1997 and abolished in February 2008.
Judiciary	The Cook Islands’ legal system is based on New Zealand law and English common law. The Chief Justice is the head of the Cook Islands judiciary and presides over the High Court and serves as a member of the Court of Appeal. The Chief Justice is appointed by the Queen's Representative on the advice of the cabinet. Standard practice sees the Chief Justice previously serving as a justice of the High Court of New Zealand, Court of Appeal of New Zealand, or Supreme Court of New Zealand, or have practiced as a barrister in New Zealand or a country with an equivalent legal system. The Chief Justice also acts in place of the Queen's Representative if that position is vacant or the appointee is absent or unable to perform their duties.
International Organisations	ACP, ADB, AOSIS, FAO, ICAO, ICCT, ICRM, IFAD, IFRCS, IMSO, IOC, ITUC, OPCW, PIF, Sparteca, SPC, UNESCO, UPU, WHO, WMO.

The national social and economic priorities of the Cook Islands Government are laid out in Te Kaveinga Nui - The National Sustainable Development Plan (2007-2010). The plan has eight strategic goals that cover: governance, law and order, macroeconomic stability, education, health services, infrastructure, agriculture, outer island development, maritime resources and tourism. The Cook Islands has one of the highest per capita incomes in the Pacific, but the economy continues to face pressure from the high levels of government debt and its narrow economic base underpinned by tourism and marine resources. As such, the economy is particularly vulnerable to external shocks. After registering high economic growth rates in the late 1990s and early 2000s - at times in the double digits - growth has been low (2005-07) or contracted (2008-09). Despite the relatively high education levels, human capacity constraints are compounded by the high outward migration rates to New Zealand. A significant public sector reform program was undertaken in the late 1990s with mixed results. The fiscal, economic and social challenges facing the country have put reforms back onto the agenda.

In the 1990s a series of sweeping economic reforms (known as the Economic Reform Program or ERP) resulted in the Ministry of Finance and Economic Management Act and the Public Expenditure Review Committee Act. These two acts laid the framework for fiscal discipline, increased accountability, and performance assessments of senior public servants. They led to tax reforms, the sale of state assets and strengthened economic and debt management. The reforms were credited with reversing the poor state of the economy in the late 1980s and early 1990s. The 2010-11 budget was delivered in the context of a tightening fiscal and challenging economic environment. Government operating revenue is estimated to increase by 1.7% to NZD 108.8 million in 2010-11, and operating expenditure is appropriated to reduce by 1.5% to NZD 101-2 million, compared to 2009-10 level. 2010-11 capital expenditure is budgeted at NZD 4.4 million, a large percentage of which will be spent on upgrading key infrastructure such as water, sanitation and roads.

VISION

“To enjoy the highest quality of life consistent with the aspirations of our people, and in harmony with our culture and environment.”

STRATEGIC GOALS ^[5]

Strategic Goal 1	Equal opportunities for education, health, and other social services towards maintaining an inclusive, vibrant, resilient and productive society in harmony with our culture.
Strategic Goal 2	A society built on law and order and good governance at all levels.
Strategic Goal 3	Innovative and well-managed private sector-led economy.
Strategic Goal 4	Sustainable use and management of our environment and natural resources.
Strategic Goal 5	A strong basic infrastructure base to support national development.
Strategic Goal 6	A safe, secure and resilient community.
Strategic Goal 7	A foreign affairs policy that meets the needs and aspirations of the Cook Islands people.
Strategic Goal 8	Strengthened National Coordination and Institutional Support Systems for Development Planning, Evaluation and Monitoring.

GNI per person 2007 (Atlas method)	US$9,990 ^[3]
GDP current (2008 estimate)	NZ$289,000,000 ^[2]
GDP per capita (2008 estimate)	NZ$13,648 ^[2]

Labour market– Formal sector (2001 census)

Number of employees	5,928 ^[2]
% of workforce	69% ^[2]
% Female	43%
% Public sector	25%

The Cook Islands has one of the highest per capita incomes in the Pacific, the economy continues to face pressure from high levels of government debt despite recent efforts to reduce it. In June 2010, the finance minister announced that the government would not accept a NZD 37.5 million Chinese loan, removing it from the 2009-10 supplementary budget. Gross domestic product (GDP) in 2010-11 is estimated at NZD 324 million. Total gross government debt for the same period is estimated at NZD 114 million or 35.5% of GDP, up from 20% in 2006. In general, fiscal sustainability remains fragile. Threats to Cook Islands economic growth include: environmental damage compounded by climate change, infrastructure constraints, a weak policy environment, limited planning and human resource capacity and an emerging labour shortage. The economy is particularly vulnerable to extreme weather events such as cyclones and in February 2010, the island of Aitutaki was badly damaged by Cyclone Pat, causing major damage to housing and infrastructure. Tourism continues to be the mainstay of the Cook Islands economy, followed by marine resources. The narrow economic base makes the Cook Islands vulnerable to external shocks. However, the tourist industry buffered the Cook Islands from the full effects of the global financial crisis. Tourist numbers have steadily increased since 2005. The number of Australian visitors to the Cook Islands has increased significantly in recent years, particularly since a trial of direct flights from Sydney to Rarotonga began in 2010. Many Cook Islanders migrate to New Zealand and Australia in search of greater economic opportunities. Population decline presents significant development challenges for the Cook Islands. As New Zealand citizens, Cook Islanders have free access to New Zealand. It is estimated that there are at least three times as many Cook Islanders living overseas as in Cook Islands. In March 2010, the total Cook Islands population was estimated at 22,000 with a total resident population of 12,000. Despite the large numbers of Cook Islanders living overseas, remittances do not form a large part of the Cook Islands economy, as they do in Tonga and Samoa. In 2008-09 consumer price inflation was a problem for Cook Islanders, particularly those least well-off. Food prices rose 10.8% during 2009, disproportionately hitting lower income groups.

The Constitution established the House of Ariki as an advisory body composed of traditional chiefs. Its constitutional mandate is to "consider such matters relative to the welfare of the people of the Cook Islands as may be submitted to it by [Parliament] for its consideration, and it shall express its opinion and make recommendations thereon to [Parliament]. As such it performs a largely ceremonial role with no legislative authority. The Cook Islands have no regular military forces, with defence remaining the responsibility of New Zealand under the terms of the 1965 Constitution. The Cook Islands has a small domestic police force responsible for maintaining law and order. In recent years, members of the police force have supported peacekeeping operations in the Solomon Islands as part of the Regional Assistance Mission to the Solomon Islands (RAMSI). In January 2010 the government announced plans to restructure and modernise the police force.

The media in the Cook Islands is privately owned and operated.

Telephone	Mobile (cell) phone services have only been available since the end of 2003 and are provided by Telecom Cook Islands (TCI) using GSM technology.
Internet	6000 users as at June 2010 ^[6].
Newspapers	Daily Cook Islands Independent and The Cook Islands Herald (weekly)
Television	Cook Islands Television (CITV)
Radio	Radio Cook Islands (AM), Radio Cook Islands (FM) and Radio Ikurangi (FM)

The Cook Islands have no regular military forces, with defence remaining the responsibility of New Zealand under the terms of the 1965 Constitution. In practice, however, this responsibility would only be acted upon at the request of the Cook Islands' Government. There is a Mutual Assistance Programme (MAP) administered by the New Zealand Defence Force, which supports the Pacific Patrol Boat operations, dive training, small arms use and their security, search and rescue and the provision of a physical training instructor and a technical adviser to the Australian funded Pacific Patrol Boat project. The Cook Islands has a small domestic police force responsible for maintaining law and order. In recent years, members of the police force have supported peacekeeping operations in the Solomon Islands as part of the Regional Assistance Mission to the Solomon Islands (RAMSI). In January 2010 the government announced plans to restructure and modernise the police force.

A total of NZD 39.5 million in international aid has been allocated to the Cook Islands for 2010-11. This is a 30% increase over 2009-10 levels. Almost 40% of total 2010-11 development assistance is targeted at infrastructure development. The Joint NZ-Australia Cook Islands aid program plans to spend NZD 17 million in 2011-12, plus a rollover of NZ$6.6 million from last year. Australia and New Zealand assistance targets economic growth, infrastructure, service delivery and governance. The Cook Islands is eligible for funding under Australia's regional development assistance programs. The New Zealand and Australian Joint Country Strategy is likely to be replaced by a Joint Commitment for Development (similar to Australia's Partnerships for Development) in the next six months.