By Katalina Siasau
A new World Bank report "Tonga Poverty and Equity Assessment" was launched today, in Nuku’alofa. The report found that poverty in Tonga has declined between 2015 and 2021, and livelihoods improved.
This World Bank assessment uses findings from the 2021 Household Income and Expenditure Survey (HIES) and compares them with the 2015/16 to highlight poverty patterns and trends.
World Bank Economist and co-author of the report, Mr. Shohei Nakamura said the Tonga Poverty and Equity Assessment examines the extent, nature, and drivers of poverty and inequality in the country.
Poverty declined
The report found that overall poverty in Tonga declined, from 27.4% in 2015 to 20.6% in 2021.
This 7% drop is a significant achievement, said Mr. Nakamura.
In the meantime, living standards also improved.
The report says household ownership of key assets increases between 2015 and 2021, such as mobile phones (82 to 97 percent), washing machines (77 to 85 percent), and, most notably, cars (37 to 55 percent).
In terms of access to basic services, in 2021, nearly 90 percent and 94 percent of households had access to flush toilets and electricity respectively.
Remittances
The report found that remittances play a significant role in alleviating and reducing poverty.
Remittances increased between 2016 and 2021, with nearly 90 percent of households receiving, and almost 40 percent relying on them as the primary income source in 2021.
"Without remittances, the number of poor individuals would have been 50 percent higher," the report says.
However, going forward, "relying on, solely, remittances is a risky approach," said Mr. Nakamura.
"Our report highlights it is still important to diversify the economy and income to make people more resilient to natural disasters and economic shocks."
Enhancing human capital
The World Bank recommends investing in human capital, especially in education and also health.
"Investing in quality educational and vocational training can equip Tongans with the skills necessary for employment in sectors with the largest growth potential."
The World Bank is also undertaking a Country Growth and Jobs Report for Tonga, which is due for completion in June, next year.
Attending the launch event were representatives from development partners, and representatives from Government ministries.
