About the CBI

February 2006
Background Note: Samoa

Flag of Samoa is red with a blue rectangle in the upper hoist-side quadrant
bearing five white five-pointed stars representing the Southern Cross
constellation.

PROFILE

OFFICIAL NAME:
Independent State of Samoa

Geography
Area: 2,934 sq. km. (1,133 sq. mi.) in two main islands plus seven smaller
ones.
Cities: Capital (pop. 34,000)--Apia.
Terrain: Mountainous with narrow coastal plain.
Climate: Tropical.

People
Nationality: Noun and adjective--Samoan.
Population (July 2004 est.): 177,714. Age structure--28.3% under 15; 6.3%
over 65.
Growth rate: -0.25% (mainly due to emigration).
Ethnic groups: Samoan 92.6%, Euronesian (mixed European and Polynesian) 7%,
European 0.4%.
Religion: Christian 99.7%.
Languages: Samoan, English.
Education: Literacy--99.7%.
Health: Life expectancy--male 67.64 yrs.; female 73.33 yrs. Infant mortality
rate--29.72/1,000.
Work force: Agriculture--64%; services--30%.

Government
Type: Mix of parliamentary democracy and constitutional monarchy.
Independence (from New Zealand-administered UN trusteeship): January 1, 1962.
Constitution: January 1, 1962.
Branches: Executive--head of state (incumbent serves for life; successors
will be elected), prime minister (head of government), cabinet.
Legislative--unicameral parliament (Fono). Judicial--Supreme Court and
supporting hierarchy.
Major political parties: Human Rights Protection Party (HRPP), Samoa
Democratic United Party (SDUP), and Samoa Party (SP).

Economy
GDP: $284.3. million.
GDP per capita (nominal): $1,600.
GDP composition by sector: Services 59%, industry 28%, agriculture 14%.
Industry: Types--tourism, coconuts, small scale manufacturing, fishing.
Trade: Exports--$15.9 million: coconut products, fish, (processing of
automotive components). Export markets--New Zealand, Australia, U.S.
(includes American Samoa). Imports--$30.3 million: food and beverages,
industrial supplies. Import sources--New Zealand, Australia, U.S. ($4.73
million), Fiji.
External debt: $151.5 million (90% is owed to multilateral lenders).
Currency: tala (or Samoan dollar).

GEOGRAPHY AND PEOPLE
Samoa consists of the two large islands of Upolu and Savai'i and seven small
islets located about halfway between Hawaii and New Zealand in the Polynesian
region of the South Pacific. The main island of Upolu is home to nearly
three-quarters of Samoa's population and its capital city of Apia. The
climate is tropical, with a rainy season from November to April.

The Fa'a Samoa, or traditional Samoan way, remains a strong force in Samoan
life and politics. Despite centuries of European influence, Samoa maintains
its historical customs, social systems, and language, which is believed to be
the oldest form of Polynesian speech still in existence. Only the Maoris of
New Zealand outnumber the Samoans among Polynesian groups.

HISTORY
Migrants from Southeast Asia arrived in the Samoan islands more than 2,000
years ago and from there settled the rest of Polynesia further to the east.
Contact with Europeans began in the early 1700s but did not intensify until
the arrival of English missionaries and traders in the 1830s. At the turn of
the 20th century, the Samoan islands were split into two sections. The
eastern islands became territories of the United States in 1904 and today are
known as American Samoa. The western islands became known as Western Samoa
(now just Samoa), passing from German control to New Zealand in 1914. New
Zealand administered Western Samoa under the auspices of the League of
Nations and then as a UN trusteeship until independence in 1962. Western
Samoa was the first Pacific Island country to gain its independence.

In July 1997 the Constitution was amended to change the country's name from
Western Samoa to Samoa. Samoa had been known simply as Samoa in the United
Nations since joining the organization in 1976. The neighboring U.S.
territory of American Samoa protested the move, feeling that the change
diminished its own Samoan identity. American Samoans still use the terms
Western Samoa and Western Samoans.

GOVERNMENT
The 1960 Constitution, which formally came into force with independence, is
based on the British pattern of parliamentary democracy, modified to take
account of Samoan customs. Samoa's two high chiefs at the time of
independence were given lifetime appointments to jointly hold the office of
head of state. Malietoa Tanumafili II has held this post alone since the
death of his colleague in 1963. His eventual successor will be selected by
the legislature for a 5-year term.

The unicameral legislature (Fono) contains 49 members serving 5-year terms.
Forty-seven are elected from territorial districts by ethnic Samoans
districts; the other two are chosen by non-Samoans on separate electoral
rolls. Universal suffrage was extended in 1990, but only chiefs (matai) may
stand for election to the Samoan seats. There are more than 25,000 matais in
the country, about 5% of whom are women. The prime minister is chosen by a
majority in the Fono and is appointed by the chief of state to form a
government. The prime minister's choices for the 12 cabinet positions are
appointed by the chief of state, subject to the continuing confidence of the
Fono.

The judicial system is based on English common law and local customs. The
Supreme Court is the court of highest jurisdiction. Its chief justice is
appointed by the chief of state upon the recommendation of the prime
minister.

Principal Government Officials
Head of State--His Highness MALIETOA Tanumafili II
Head of Government--Prime Minister TUILA'EPA Sailele Malielegoai
Ambassador to the United States--Ali'ioaga Feturi ELISAIA

Samoa maintains its diplomatic representation in the United States at 800 2nd
Avenue, Suite 400D, New York, NY 10017; tel: 212-599-6196.

POLITICAL CONDITIONS
Since 1982 the majority party in the Fono has been the Human Rights
Protection Party (HRPP). HRPP leader Tofilau Eti Alesana served as prime
minister for nearly all of the period between 1982 and 1998, when he resigned
due to health reasons. Tofilau Eti was replaced by his deputy, Tuila'epa
Sailele Malielegaoi.

Parliamentary elections were held in March 2001. The Human Rights Protection
Party, led by Tuila'epa Sailele Malielegaoi, won 30 of the 49 seats in the
current Fono. The Samoa National Development Party, led by Le Mamea Ropati,
is the main opposition. A new political party, Samoa Party, was launched
recently.

ECONOMY
The Samoan economy is dependent on agricultural exports, tourism, and capital
flows from abroad. The effects of three natural disasters in the early 1990s
were overcome by the middle of the decade, but economic growth cooled again
with the regional economic downturn. Long-run development depends upon
upgrading the tourist infrastructure, attracting foreign investment, and
further diversification of the economy.

Two major cyclones hit Samoa at the beginning of the 1990s. Cyclone Ofa left
an estimated 10,000 islanders homeless in February 1990; Cyclone Val caused
13 deaths and hundreds of millions of dollars in damage in December 1991. As
a result, GDP declined by nearly 50% from 1989 to 1991. These experiences and
Samoa's position as a low-lying island state punctuate its concern about
global climate change.

Further economic problems occurred in 1994 with an outbreak of taro leaf
blight and the near collapse of the national airline Polynesian Airlines.
Taro, a root crop, traditionally was Samoa's largest export, generating more
than half of all export revenue in 1993. But a fungal blight decimated the
plants, and in each year since 1994 taro exports have accounted for less than
1% of export revenue. Polynesian Airlines reached a financial crisis in 1994,
which disrupted the tourist industry and eventually required a government
bailout.

The government responded to these shocks with a major program of road
building and post-cyclone infrastructure repair. Economic reforms were
stepped up, including the liberalization of exchange controls. GDP growth
rebounded to over 6% in both 1995 and 1996 before slowing again at the end of
the decade.

The service sector accounts for more than half of GDP and employs
approximately 30% of the labor force. Tourism is the largest-single activity,
more than doubling in visitor numbers and revenue over the last decade. More
than 85,000 visitors came to Samoa in 1999, contributing over $12 million to
the local economy. One-third came from American Samoa, 28% from New Zealand,
and 11% from the United States. Arrivals increased in 2000, as visitors to
the South Pacific avoided the political strife in Fiji by traveling to Samoa
instead.

The primary sector (agriculture, forestry, and fishing) employs nearly
two-thirds of the labor force and produces 17% of GDP. Important products
include coconuts and fish.

Industry accounts for over one-quarter of GDP while employing less than 6% of
the work force. The largest industrial venture is Yazaki Samoa, a
Japanese-owned company processing automotive components for export to
Australia under a concessional market-access arrangement. The Yazaki plant
employs more than 2,000 workers and makes up over 20% of the manufacturing
sector's total output. Net receipts amount to between $1.5 million and $3.03
million annually, although shipments from Yazaki are counted as services
(export processing) and therefore do not officially appear as merchandise
exports.

New Zealand is Samoa's principal trading partner, typically providing between
35% and 40% of imports and purchasing 45%-50% of exports. Australia, American
Samoa, the U.S., and Fiji also are important trading partners. Samoa's
principal exports are coconut products and fish. Its main imports are food
and beverages, industrial supplies, and fuels.

The collapse of taro exports in 1994 has had the unintended effect of
modestly diversifying Samoa's export products and markets. Prior to the taro
leaf blight, Samoa's exports consisted of taro ($1.1 million), coconut cream
($540,000), and "other" ($350,000). Ninety percent of exports went to the
Pacific region, and only 1% went to Europe. Forced to look for alternatives
to taro, Samoa's exporters have dramatically increased the production of
copra, coconut oil, and fish. These three products, which combined to produce
export revenue of less than $100,000 in 1993, now account for over $3.8
million. There also has been a relative shift from Pacific markets to
European ones, which now receive nearly 15% of Samoa's exports. Samoa's
exports are still concentrated in coconut products ($2.36 million worth of
copra, copra meal, coconut oil, and coconut cream) and fish ($1.51 million)
but are at least somewhat more diverse than before.

Samoa annually receives important financial assistance from abroad. The more
than 100,000 Samoans who live overseas provide two sources of revenue. Their
direct remittances have amounted to $12.1 million per year recently, and they
account for more than half of all tourist visits. In addition to the
expatriate community, Samoa also receives roughly $7.57 million annually in
official development assistance from sources led by China, Japan, Australia,
and New Zealand. These three sources of revenue--tourism, private transfers,
and official transfers--allow Samoa to cover its persistently large trade
deficit.

FOREIGN RELATIONS
The Samoan Government is generally conservative and pro-Western, with a
strong interest in regional political and economic issues. At independence in
1962, Samoa signed a Treaty of Friendship with New Zealand. This treaty
confirms the special relationship between the two countries and provides a
framework for their interaction. Under the terms of the treaty, Samoa can
request that New Zealand act as a channel of communication to governments and
international organizations outside the immediate area of the Pacific
islands. Samoa also can request defense assistance, which New Zealand is
required to consider (Samoa does not maintain a formal military). Overall
Samoa has strong links with New Zealand, where many Samoans now live and many
others were educated.

The Samoan Government was an outspoken critic of the French decision to
resume nuclear weapons testing in the South Pacific in 1995. An indefinite
ban was placed on visits to Samoa by French warships and aircraft.
Large-scale street demonstrations were held in Apia. The French tests
concluded in early 1996.

Samoa participated in a first round of negotiations with its Pacific Island
neighbors for a regional trade agreement in August 2000.

Principal U.S. Officials
Ambassador (accredited to both New Zealand and Samoa; resident in Wellington)
--William P. McCormick
Charge d'Affaires--Timothy W. Harley

The U.S. Embassy is located on the 5th Floor of the Accident Compensation
Board (ACB) Building, Beach Road, Apia. Its mailing address is P.O. Box 3430,
Apia. Phone: [685] 21631. Email: usembassy@samoa.net.