Tuvalu, one of the world's smallest independent nations, comprises nine low-lying coral atolls with a total surface area of 26 square kilometres dispersed over 1.3 million square kilometres of the central Pacific.
Most of Tuvalu's population is involved in subsistence fishing and agriculture. With gross national income per capita at USD3,500 per annum, Tuvalu’s distance from markets, small and dispersed population, and vulnerability to economic and environmental external shocks all limit its prospects for economic growth.
Tuvalu has limited options to generate revenue. Remittances from seafarers working on overseas vessels are a significant (if declining) source of income for many families. Government activity dominates the money economy. Fishing licences and marketing of Tuvalu's internet domain name '.tv' contribute to government revenue.
The private sector is small and offers limited employment opportunities. Tuvaluans rely primarily on the public sector as their principal source of employment. Limited education and work opportunities, modest natural resources, and climate change make it difficult for Tuvalu to develop.
Australia has a longstanding, co-operative relationship with Tuvalu based on shared development and security goals. Australia is the largest aid donor to Tuvalu; our aid comprises about 33% of total ODA to Tuvalu (excluding Taiwan). Australia is committed to strengthening Tuvalu’s economic and environmental resilience development through our aid program.
- Making horticulture, forestry and fisheries more competitive and secure