“ Malo e fkkaukau Sione Mokofisi – I hear you loud and clear however, I still believe what I experienced 45 years ago, the old way of subsistence farming. That is what I learned, and I still feel it’s appropriate even today. If the remittance is divided equally among the citizens, then by all mean forget agriculture and fishes. Who want to smell fishy? I forewarn Tonga, you will lose your dignity and individuality. Do not fall for a quick buck by remittance. Just like God said, man will eat their bread by the sweat of their brow or something like that.
With regard to the GDP, just because a certain sector holds the higher percentage section of the GDP means, it should be the backbone of the economy. In the report itself, it stipulates three contributors to the economy growth. They named it primary, secondary and tertiary. And rightfully so, I concur with their conclusion that farming is the primary driver [agriculture, forestry, fisheries] to the growth of the economy. I view the economy as what you make and sell, not what I receive without working for it to spend. I believe, this is why the equation of the GDP does not include remittance in it. But if Tonga use it as part of their GDP formula, I’ll just go along with it.
About remittance, it’s just a fancy word for welfare programs. But just like any welfare programs it has good and bad. We all know how the welfare programs affecting lives in the democratic stronghold cities throughout USA. Tonga cannot escape the same fate. The PM once referred to the faikava people as lazy folks. He never mentioned the remittance folks but I am sure he was thinking of them too. Naturally, the remittance folks gravitate to watching the MMT game instead of walking to the bush to exercise.
The Tonga office of statistic concluded 80% of the remittance are spend on consumables. So, their choices are rice or manioke. Manioke will win every time. The question is, is it domestic manioke or frozen ones from Fiji. Tonga, ‘alu o to ha maioke. But but but where is the other 20%?, maybe TC Gita blew it away, I said. Just like every other money in Tonga. Their data also added, the total 18K households of Tonga, 3K DOES NOT received remittance. What would these people do? Love thy neighbor and share your remittance or your middle finger? Your only choice is to go fishing after you stop at your plantation to kaitunui manioke. If your catch is good then trade the excess for remittance. 15K household were surveyed, by ToS, of their agricultural activities. 65% of them deeply engage with the plantation. The further away are you from Nuku’alofa, the higher the participation rate, with exception of Eua & Niua tie at 90%. I extrapolate from these numbers, 10K households receive remittance and still go to the bush. I concluded, remittance is not enough to do the job. So, the question is, why do they go to the bush? Or do they go there to hook up with the neighbor’s 3 legged-cow wife or the husband or the cow in case of the newly 6M park? I forgot, only the PATO are allows there. The rest go hiki hoosi.
The remittance has already compromised the economy. Its’ influx increases the money supply and comes with it, its’ own problem. Zero percent interest rate is one of the first manifestation of it. The May 2019 revision of the National Reserve Bank monetary policy tell us that. The same policy call for 80% statutory reserve deposit ratio. Why not 90%?, because 20% of the remittance is tug under the fkmolu. If it enters into any investment vehicles, they would become real contribution to be counted toward the real GDP formula. Third, cap the inflation at 5%. Well, the 2019 Budget Statement said we are at 5.5%.
The farmers on the other hand are interested in the zero percent interest. Their 15% contribution to the GDP is a gauging tool. The correct question to ask, could it be higher or lower? The answer is absolutely, yes, higher is better. The conditions are ripening for agricultural explosion due to 0% interest and devaluing of the pa’anga. Unemployment including subsistence is at 33%. Technology like palau are avail more than before. Unfortunately, the government has no clue about economic to lead the farmers. Perhaps they are too busy he kapa ngako. When they have the heart attack, Vaiola can’t treat them but those associated with funeral will get a buck.
Anyone want to hang out with me to talk about the country, I am here ;https://www.facebook.com/groups/627664284371306/ ”