Since 2007, Tonga has undertaken a number of wide ranging private sector-oriented reforms, which will assist in raising productivity and economic growth in the long-run. However, a combination of the impact of the global economic crisis and remaining constraints to private sector development has resulted in a significant erosion of business confidence.
The earlier Strategic Development Plans were appropriate for their time. The format, however, was too detailed and prescriptive to address the range of issues we face. A more strategic and flexible approach is required. This approach was started with the National Strategic Planning Framework (NSPF), approved by the previous administration in 2009/10. The Tonga Strategic Development Framework (TSDF) draws on the consultative process for the NSPF and the new debates that have taken place leading up to, and since, the recent elections.
State-owned enterprises (SOEs) place a significant and unsustainable strain on the economies of Fiji, Samoa, and Tonga. They absorb large amounts of scarce capital on which they provide very low returns. This study reveals the core levers of SOE reform and the rapid progress that can be made in implementing them where the political will to do so exists. While the study focuses on three countries that are heavily involved in SOE reform and have broadly similar SOE portfolios and legislative frameworks, the core lessons from their experience are applicable throughout the Pacific region.
The second Tonga Strategic Development Framework (TSDFII) builds on recent developments and the lessons learnt from TSDFI as well as increasing understanding of future uncertainties and risks. The language and structure builds on the ongoing reform process to build a more integrated planning and budgeting system. It sets out a high-level integrated vision of the direction that Tonga seeks to pursue over the next ten years. This is built on a deeper understanding of our Tongan Inheritance as well as a stronger results-based framework than TSDFI.
There is no PPP policy and law in place.
Past PPPs were implemented by the Ministry of Finance and relevant line ministries
A number of laws and regulations govern PPPs in different sectors.