Reply to Operation Tonga Reconstruction [1]
Monday, April 30, 2007 - 06:15. Updated on Sunday, November 2, 2014 - 19:11.
Editor,
With regards to the recent letter from Senolita Swan UK.
This is the type of response Tonga desperately needs, not pointing fingers at any one. Recovery comes with positive ideas and thinking.
I am sure His Majesty is looking and watching for His people to step up and show him they are ready, willing and able to rebuild their own country. With the amount of education His Majesty has gained over the years in preparation for this time in Tonga's life, I believe He is watching with eagerness for the right people to step up and show good leadership.
The Kingdom of Tonga should be looked at as a very large corporation. A strong Corporation is always lead by a Chief Executive Officer (His Majesty) who must delegate duties to everyone. I work for one of the largest Corporations in the USA. "The Home Depot".
While the CEO makes to calls, he is only successful by the input of everyone from managers down to the customers. The key to their success is Number One (the customer)
Without the customers you do not have a business. The success of the company is on the CEO (His Majesty) their must be just one final voice to make the company successful. so you can not leave the CEO out of the plan. The company will fail for sure. Even large companies have problems making decisions and the CEO has to step in and make the final call so things can go forward.
The Home Depot has over 3500 stores with 350,00 employees, (Tonga's population I believe is about 120,000 with how many villages?.) Store managers have to follow the directions passed down from the CEO. Every store has to be set up in the exact same way. Every manager has his or her own ideas about how they should run their store but if left alone to make key decisions you would have 3500 different looking stores. So Tonga must have His Majesty overseeing the operation or you will never be successful to the outside world. Who are watching to see how Tonga sets itself up. Thus the investors.
So if we look at Tonga as a large company. The key to making the company work and be successful is the Tongans (Customers) must come first than everything will fall into place.
About the questions of Tongans Investing. It could be set up just like a publicly traded company. Tonga would issues stocks and bonds.
In able for Tonga to be successful they need to let a third natural party handle the sale and collection of funds.
Several of the top 10 world banks will handle government issued bonds which would be insured and guaranteed by several banks and reinsurance companies.
The bonds would be placed in an escrow account and used as colateral for the Tonga Reserve Bank to back the Pa'anga. The interest generated with the bonds could be drawn out by the Tonga Reserve Bank and used for the reconstruction of Tonga etc.
By sending funds direct to Tonga puts the investor at risk. The Reserve can not insure themselves they have to use a third party that is trust worthy for the investor. The top ten banks are very trust worthy for investors.
If this would be set up the investor need only contact the bank and deposit their funds and receive their bank note. You do not want to get the Government of Tonga involved directly by using your embassies. You need to establish trust for the investor.
You will be very surprise how much interest is generated on a daily bases with several million dollars. It soon turns into billions.
Many countries build their economy on this type of program.
Your economy will only survive if the pa'anga is strong. It would not be wise for the Reserve Bank to collect and handle the funds. Investors need to know their investment is secure.
The principle is never put at risk so the investor is guaranteed their investment plus any interest they would accumulate.
The better Tonga performs the more the investors invest.
Corporations that do well pay dividends quarterly to their investors. (Called interest or dividends)
The investors receive quarterly statements as to how their investments are being used.
So the key for Tonga to have a strong economy is to show the investors they can be trusted to make the right investment of their funds. When their is trust in a company investors jump on their stock. With no trust they pull their money out overnight.
If the Pa'anga is strong investors will come to Tonga and invest in the economy.
I think the situations you are know facing are a blessing and not a curse. Ideas like the ones that have been forth coming were not even mentioned before November. This has definitely been an eye opener for everyone.
I want to encourage Tongans to pull together and show the world your great abilities to rebuild and grow.
Ofa 'Atu
Cliff