Niue

Total land area	259km² ^[1]
Exclusive economic zone (EEZ) area	390,000km² ^[1]

Resident population (2006 census)	1,679 ^[2]
2010 estimate	1,496 ^[2]
Average annual growth rate 2001-06	-1.9% ^[2]
Population density (2006)	6.4/km²
Women in parliament	1
Human Development Index - HDI score (estimate)	0.823^[4]

Niue has been self-governing in free association with New Zealand since 1974. The New Zealand Government, in consultation with Niue, retains some responsibility for external affairs, including defence. People from Niue are citizens of New Zealand. Niue has assumed greater responsibility for its own foreign affairs since 1994, and has begun to establish formal diplomatic relations with sovereign states. Niue is recognised as a 'non-member state' by the United Nations implying recognition of full treaty-making capacity. It is also a full member of the Pacific Islands Forum. Politics of Niue takes place in a framework of a parliamentary representative democracy, where the premier is the head of government. The Constitution vests executive authority in the Crown - Her Majesty Queen Elizabeth II, and specifies that in everyday practice this authority is exercised by the premier of Niue and a cabinet of three other ministers. The premier and ministers must be members of the Niue Legislative Assembly (Fono Ekepule), the nation's legislature. The assembly consists of 20 democratically elected members, 14 of whom are elected by the electors of each village constituency, six by all registered voters in all constituencies. The members of the legislative assembly elect a speaker who then calls for nominations for premier; the candidate with the most votes from the 20 members is elected to lead the government. The premier selects three other members to form a cabinet of ministers, the effective executive arm of government. The other two organs of government, following the Westminster model, are the legislative assembly and the judiciary. The judiciary is independent of the executive and the legislature. General elections take place every three years, most recently on 7 June 2008. Political parties do not play an important role in politics, and the current legislative assembly is made up of 6 non-partisan members (elected from a common roll) and 14 representatives of the villages. The Niue People's Party, reported to be the only formal political party, was disbanded in 2003.Niue is self-governing in free association with New Zealand since 19 October 1974. It has a 20 member unicameral legislature (Niue Legislative Assembly - Fono Ekepule) elected by the people every three years.

Head of State	Her Majesty Queen Elizabeth II (as Queen in Right of New Zealand). The queen is represented by His Excellency HE Rt Hon Sir Anand Satyanand, Governor General of New Zealand (since 23 August 2006). The 1974 Constitution vests executive authority in the Crown, but allows for this to be carried out in practice by the premier and cabinet on behalf of the queen.
Head of Government	Hon Toke Tufukia Talagi MP is the premier of Niue (since 18 June 2008). The premier is elected by the members of the legislative assembly.
Executive	Cabinet consists of the premier and three other members of the legislative assembly appointed as ministers by the premier. The cabinet ministers are responsible for the affairs of the 13 government departments and other state corporations and agencies. The 13 departments are: - Department of Administrative Service - Department of Agriculture, Forestry & Fisheries - Department of Community Affairs - Department of Education - Department of Environment & Biodiversity - Department of Health - Department of Justice, Lands & Survey - Department of Meteorology & Climate Change - Department of Police - Department of Premier - Department of Public Works - Department of Treasury - Department of Taoga Niue
Civil Service	Oversight of the 13 public service portfolios are distributed amongst the four cabinet ministers. Each minister is responsible for a number of departments, and also oversee state corporations and agencies. Department and agency heads through various line managers are responsible and accountable for daily affairs of their department. As of June 2006 there were 392 civil servants, excluding those working for state owned corporations. The total number of government employees (inclusive of public service, corporations, external and internal contracts and members of the legislative assembly) was 462 as of the end of June 2006 - in other words, approximately 27 per cent of the population were on the government payroll. The Constitution charges the Public Service Commission (PSC) to be the sole employing authority of Niue’s public servants. The PSC is responsible for providing general oversight and control of the public service recruitment, organisation and management. The secretary of government is the permanent head of the public service and the chief administrative officer of government. Departmental heads are accountable to the secretary of government through their respective ministers.
Local Government	Local governments are established under the provisions of the Village Council Act, 1967. Niue has 14 villages. Each village has a village council that elects its chairman. The village council serves a three year term. The villages also serve as electoral districts so that each village is also represented in the Niue Legislative Assembly. The capital, Alofi, consists of the villages of Alofi North (pop. 147) and Alofi South (pop. 434). It is located at the centre of Alofi Bay on the west coast of the island, close to the only break in the coral reef that surrounds the island. Following the cyclone in January 2004, many government buildings were relocated to less exposed site inland.
Judiciary	The chief justice of the High Court are appointed by the governor general, acting on the advice of the cabinet tendered by the premier. The other judges of the High Court are appointed by the governor general, acting on the advice of cabinet tendered by the chief justice and the justice minister.
International Organisations	ACP, AOSIS, FAO, IFAD, OPCW, PIF, SPARTECA, SPC, UNESCO, UPU, WHO, WMO.

The Niue National Strategic Plan (2009-2013): Niue ke Monuina - A Prosperous Niue (NNSP) sets the overarching vision and strategic framework for the country. According to the plan, Niue's journey towards prosperity commenced in 2003, under the National Integrated Strategic Plan 2003 - 2008. Achievements against the previous strategy were mixed, with financial and other resources diverted following the devastation caused by cyclone Heta in January 2004. The strategic objectives have since been adapted and strengthened for the current national plan period, under six pillars that cover: financial stability with a view to balanced yearly budgets; improved governance; economic development; social development; environmental management; and preservation of language and cultural heritage (Taoga Niue). Niue faces some real challenges which affect its overall fiscal and budget credibility efforts. These challenges are its small size and population, and distance from major trading markets. Niue has limited economic and natural resources to facilitate growth for economic activities and is also vulnerable to natural disasters. Because of its remoteness, Niue has some of the highest prices for fuel compared to other Pacific island countries. The country has been operating both trade and operational budget deficits for many years. These are offset by recurrent funding from New Zealand, which was valued at NZD$6.9 million in 2007. This was mostly used to subsidise the public service payrolls. A number of fiscal and taxation reforms were recently introduced to increase internal revenue. A consumption tax was introduced and changes were also made to income tax and some import duties. These tax reforms were only fully implemented in February 2009. Independent assessment of Niue’s performance in public financial management (PFM) is relatively limited. There has been no ADB or PEFA assessments undertaken. However, from the budget information that is available, the PFM systems appear to be functioning to a limited extent. There is comprehensiveness in budget documentation and reporting, and this is clearly reflected in the 2006- 2007 and 2008-2009 budget reports. Departments seem to comply with their budget ceilings and reporting requirements. The departments’ sector plans clearly reflect the national priorities outlined in the NNSP. The treasury role to ensure financial compliance with the budget and financial management is effective as far as the budget preparation and reporting are concerned. However, the overall challenge for public financial management is how it can function far more effectively to maintain budget credibility. Public financial management is guided by the NNSP, Revenue Treasury Rules 1960, treasury instructions and Public Revenues Act 1969. Financial priorities reflect key social and economic projects envisaged in the NNSP. Fiscal policies are targeted towards implementation of key pillar pertaining to financial stability. For example, the introduction of the Consumption Tax Act in 2009 levied a 12.5 per cent tax on goods and service, and the benefits are slowly materialising. Income tax has been lowered and import taxes have been reduced except for those on tobacco an alcohol. Secondary income tax was also lowered from 35 per cent to 10 per cent, a move aimed at stimulating labour productivity. The new financial management information system 'Greentree' should gradually improve financial management and reporting. Work on this was preceded by a review of the chart of accounts and together these reforms mark a significant step in terms of improving PFM systems. Two thirds of the government budget is funded by tax and other non-tax revenues with the remaining third being funded by donor contributions, mainly from New Zealand. The Niue International Trust Fund (NITF) also plays an important role in terms of fiscal stability. The NITF was established in 2006 with assistance from New Zealand and Australia. Revenue is expected to be generated after 2014.

Vision

Niue ke Monuia - A Prosperous Niue. The objective is to build a sustainable future that meets our economic and social needs while preserving environmental integrity, social stability, and the Niue culture.

National Development Pillars ^[5]

To realise the vision, the following goals are pursued:

Financial Stability	Ensure that sufficient financial resources are secured, and responsible fiscal management is prudent, sustainable and supports healthy development strategies.
Governance	Ensure that good governance reflects the principles of transparency and accountability and is practised at all levels.
Economic Development	Maximise benefits from Niue's resources in a sustainable manner focusing on private sector development, targeting tourism, agriculture and fisheries supported by safe, reliable, affordable, healthy infrastructure.
Social	Enjoy a harmonious and healthy lifestyle in a thriving, educated and safe community that has access to a wide range of quality social services and healthy development opportunities.
Environment	Sustainable use and management of Niue's natural resources and envrionment for present and future generations.
Taoga Niue	Promote, preserve and strengthen Niuean cultural heritage, language, values and identity.

GNI per person 2007 (Atlas method)	N/A ^[3]
GDP current (2006)	NZ$20.54m ^[2]
GDP per capita (2006)	NZ$12,158 ^[2]

Labour market‚ Formal sector (2000)

Number of employees	663 ^[2]
% of workforce	41% ^[2]
% Female	42% ^[2]
% Public sector	60% ^[2]
% Private sector	40% ^[2]

The Niue economy faces many binding constraints, including its small size, geographic remoteness and limited resources. Labour productivity is made difficult by the shortage of skilled personnel, and the tendency for high outward migration to New Zealand. The government’s long term policy is for economic development and financial stability is to encourage national self-reliance. In the short-medium term the government aims to maximise available funds to invest in high priority areas. One of the strategies is to target development of eco- tourism and the expansion of export products such as vanilla and noni. In 2006, non-market (government) earnings made up the majority of the GDP. The private sector contributes 20 per cent of total GDP. Niue imports four times more than it exports. Niue’s five major import items include food and mineral products, vehicles, home appliances and steel building items. Imports of building materials and machinery increased following the 2004 cyclone. Commercial activities and employment growth is limited. The small export industry is limited to fishing and agriculture (inclusive of taro, coconut, noni, juice, vanilla and honey). Niue also earns revenues from fishing in its exclusive economic zone.

Niue was first settled by Polynesian sailors from Tonga around 900 AD. Further settlers arrived from Samoa around 1440 AD. Prior to the 18th century chiefs and family heads exercised authority. The power structure in Niue was based on performance of activities rather than birth. From the early 1700s onwards, a succession of putu-iki (kings) ruled the island. Christian missionaries from the London Missionary Society converted most of the population in the mid 1800s. Puni-mata Tui-toga, who reigned from 1875 to 1887, was the first Christian king of Niue. In 1887, King Fataaiki requested British protectorate status, although this was initially turned down. In 1900, in response to renewed requests, the island became a British protectorate, and the following year it was annexed to New Zealand. In Niue land is owned by line of descent (mangafaoa). Traditionally, land as a precious resource, was acquired by waging war. While Christianity put an end to wars, the land conflicts increased. A formal land registration system was put in place in 1969. Problems relating to the fragmentation of land titles and multiple ownership remain a source of conflict. High levels of outward migration to New Zealand result in absentee owners of land.

The majority of media in Niue is government owned and operated.

Telephone	Telephone services is provided by Telecom Niue, the sole provider.
Internet	1,100 users as of June 2010 ^[6].
Newspapers	Niue Star, Niue News (online news service) and Niue Economic Review are published weekly.
Television	Television Niue is government owned and operated by the Niue Broadcasting Corporation.
Radio	Radio Sunshine is government owned and operated by the Niue Broadcasting Corporation.

Niue is entirely responsible for its internal affairs. There is a police department headed by a chief of police. Section 6 of the Constitution provides for external defence of Niue to be the responsibility of New Zealand. By convention this responsibility would only be exercised at the request of the Niue Government. Surveillance flights of Niue's EEZ are carried out by the Royal New Zealand Air Force. Members of the Niue police department have served in the Participating Police Force of the Solomon Islands under the Regional Assistance Mission to the Solomon Islands (RAMSI). There is no regular military force in Niue. Defence is the responsibility of New Zealand. There is a domestic police service, headed by the chief of police.

New Zealand is the largest bilateral donor to Niue. Other donors include Australia, China, France and various multilateral organisations. The total bilateral New Zealand Official Development Assistance to Niue for 2010/11 is NZD$18.72 million. The main focus of the programme is economic sustainability, principally through development of the tourism sector. Australia provides technical support to Niue in health (sanitation), energy and finance. In 2006 the governments of New Zealand, Australia and Niue established the Niue International Trust Fund. New Zealand is the main contributor to the fund, which now contains approximately NZD$41 million. The purpose of the fund is to lessen Niue's dependence on external assistance to meet the demands of its core budget. It is not expected that revenue from the fund will be drawn down until 2014. Until then contributions will be made from time to time by New Zealand, Australia and other parties to continue building the fund's resources.