All posts tagged “GNI

Overseas Aid
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Journal Article Review of Bertram, G. (2018) Why Does the Cook Islands Still Need Overseas Aid?

You get exactly whats on the tin for Bertram’s (2018) article, Why does the Cook Islands Still Need Overseas Aid? He asks, in a context where the private sector revolving around tourism is booming(at least prior to COVID-19), why would the Cook Islands require large amounts of Overseas Development Aid (ODA)? In 2018, the Cook Islands received close to 80 million dollars worth of grant aid. Bertram (2018) attributes the need for overseas aid on austerity measures that were enforced onto the Cook Islands in the structural readjustment period of the 1990s. Specifically, the Cook Islands were forced into a policy by the New Zealand government and the Asian Development Bank in 1998 whereby tax revenue should not exceed 25% of Gross Domestic Product (GDP). This has left the Cook Islands with a very small revenue pool to draw upon to service its expenses which consistently stand at 40% of GDP. Overseas aid is currently relied upon to service this gap in national revenue and expenses which limits what the Cook Island’s can do fiscally, as well as limits their general national autonomy. In this review we explore some thoughts which Bertram’s (2018) article has inspired.