Thursday 19 July 2018

Why the Cook Islands fears rich-country status

How not to blow your own trumpet

MOST political leaders play up their country’s economic performance. Those on the Cook Islands, a collection of 15 islets spread over 2m square kilometres in the South Pacific, are doing the opposite.

At issue is whether the country of 17,000 people has become wealthy enough to warrant a reassignment by the OECD, a club of mostly rich countries, from upper middle-income to high-income status. The rub is that “graduation” would make it more difficult for the country to claim it qualifies for aid. This amounted to NZ$33m ($22m) in 2016, or just under 8% of the islands’ GDP. However, New Zealand, the biggest donor country to date, has said it will continue to give an unspecified amount of financial assistance if the Cook Islands graduates. 

Henry Puna, the prime minister, has acknowledged that achieving high-income status would be a source of national pride. It would be a first for a Pacific-island...Continue reading

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