Answer to Question #213248 in Management for Manshika Kumar

Question

Discuss 3 changes/elements of the reforms from the case study on Cook Islands and explain how they are 

linked to NPM

Answer 1

The Cook Islands are in the South Pacific, to the north of New Zealand and to the east of Fiji. The country is exceedingly small and inaccessible, consisting of 15 islands and atolls with a total land area of about 236 km2 amidst a total ocean area of 1,800,000 km2. The largest of these islands, Rarotonga, is home to the country's international airport and around 70% of the country's 12,500 residents. This seclusion restricts access to international markets, and the islands have recently attracted attention, owing to the United States' growing interest in the South Pacific.

Rarotonga, the Cook Islands' only international airport, receives 149 flights each month from New Zealand, as well as 13 flights each month from Tahiti, Australia, and Los Angeles. Because of the significance of tourism to the economy and the islands' physical isolation, aviation is a vital part of the country's passenger transportation system. Air New Zealand, to which the Cook Islands government contributed NZ$2,982,000.00 in 20095, is the domestic carrier, which operates Airbus A320s in its Cook Island service. Air New Zealand has 16 of these planes in its fleet, with another 10 on the way. The Cook Islands also get cargo by air, albeit only in tiny numbers. Around 1200 tonnes of cargo came by air in 2011. The national economy is dominated on tourism, and visitors significantly increase the local population throughout the year. Since 2007, the number of visitors has climbed from 97,316 to 112,643 in 2011. Tourism, in turn, fuels other important national businesses such as retail and wholesale trade (20% of 2010 GDP), transportation (18% of GDP), restaurants and hotels (16%), construction (5%), and electricity generation (5%). The tourism business employs 50% of the people of Aitutaki, the second largest island. Approximately 60% of visits come from New Zealand, 18% from Australia, and 12% from the European Union. For the fiscal year 2010-11, donor donations totaled $39.5 million. With a contribution of $23 million in 2010-11, New Zealand Aid is the largest major source of aid monies. Aid from the EU, the UN, and others was also helpful. The Asian Development Bank, the Export-Import Bank of China, the Caisse Francaise de Development, and the New Zealand Government Superannuation Fund all provide concessional loans to the Cook Islands. In the years 2008 and 2009, there was a NZ$1.3 million aid surplus.