FUTURE OF SAMOA

Press, Volume XCVI, Issue 28371, 2 September 1957, Page 7

FUTURE OF SAMOA

Development Review

(Rec. 11.30 p.m.) APIA, August 31. Western Samoa'has focused so much attention on self-gov-ernment and attainment of that goal that insufficient thought has been given to the economic future of the country. . This view is expressed in a report of an expert New Zealand financial survey team, comprising Messrs lan Lythgoe (New Zealand Treasury), Desmond Stace (Reserve Bank), and Gordon M. S. Webster (Bank of New Zealand). They recently concluded a comprehensive survey of the fiscal and banking problems of Western Samoa. As many other under-developed countries Western Samoa depended on two or three main exports, the world prices for which fluctuated widely and were beyond local control, the report said. « “This rather unstable dependence restrains development and threatens indeed the continuity of government services. Revenue from all form of taxation increased fairly steadily until 1955 reflecting the high prices received for. Samoa’s exports. Since then, in spite of a less buoyant revenue (from lower export prices) expenditure has continued to increase. “It is unfortunate that this uncertainty on revenue occurred when Samoa is so much in need of a comprehensive development programme. The budgetary problem, although at present attracting much attention, is in our opinion only a symptom of an unstable economic situation. An increase in export receipts or the more severe pruning of Government expenditure -might relieve the budget difficulties.” the report says. “However, sound public finance in years ahead must be linked with effective economic development. If Western Samoa is to progress, the standards already achieved in education and health must be matched with a similar degree of achievement in agricultural and industrial development,” the report says. The team points to Samoa’s population increase from the present 98000 to an estimated 200,000 in 1980 if the present trend continues. “The consequent burden of financing social services will limit Government funds for develop-, ment. Particular p° ints made by the team are: *(1) The leaders pf Samoa must , decide where the territory is leading and what they are aiming to achieve, t (2) “There is a need to modify the traditional system of tenure of Samoan land to improve productivity and to give the industrious occupier greater security of tenure.” (3) The report calls for increased agricultural education. As an immediate aid to increased agricultural productivity she team makes the all unoccupied land be leased or sold to the Trust Estates Corporation. In calling for the diversification of industry and the provision of future employment opportunities the team says that an obvious example of an industry to benefit Western Samoa is tourism. (4) A realistic educational policy is advocated.by the team which calls for the co-ordination of the education programme with the territory’s economic objectives. “A country with the limited financial resources* of Western Samoa cannot afford to spend lavishly on formal school education without regard to the cost and the social effects.” says the report. (5) Suggesting the need for the Government to increase its revenue, the team mentions increases in existing taxes, especially import duties, and the introduction of poll tax. 16) Western Samoa should ‘ live within its income/* and should encourage districts to assume a share of the responsibility of the costs of Government services in their respective areas, with care to develop the interdistrict competitive spirit already evident in building hospitals, schools and churches, the report says. (7) Although, extensive development of secondary industries in Samoa may not happen for many years, the team urges the establishment of an “economic and political environment which Would welcome and facilitate such developments and replace the present feeling of frustration.”