One of the world's smallest, most isolated states, Tuvalu lies 1050 km (650 miles) north of Fiji in the Pacific. A chain of nine coral atolls, it has a land area of just 26 sq. km (10 sq. miles). As the Ellice Islands, it was linked to the Gilbert Islands (now Kiribati) as a British colony until independence in 1978. Politically and socially conservative, Tuvaluans live by subsistence farming and fishing.

Around 95% of Tuvaluans are ethnically Polynesian. Their ancestors came from Tonga and Samoa 2000 years ago. Nui atoll has Micronesian influences. There is an I-Kiribati community on Funafuti; many Tuvaluans who worked in Kiribati took local wives. Over 40% of the population now live on Funafuti, pushing its population density to almost 1600 per sq. km (4000 per sq. mile). Life is still communal, traditional, and hard. Droughts are common and fresh water is precious. Around two-thirds of people depend on subsistence farming, digging special pits out of the coral to grow most of the islands' limited range of crops. Fishing is also important, and Tuvaluans have a reputation as excellent sailors. About 2000 Tuvaluans work overseas, some in Nauru's phosphate mines, others as merchant seamen.

Strengths

Sustainable subsistence economy. EEZ: source of jobs and income. Income from trust fund. US$175 million a year from Internet deal for use of .tv suffix.

Weaknesses

World's smallest economy. Physical isolation. Few exports: copra, stamps, garments. Dependence on imports and aid. Poor-quality soil. Remittances from overseas workers set to fall, as Nauru phosphate mines run out.

The 13 MPs, elected every four years, are independents who work in loose political associations. The prime minister, an MP elected by Parliament, works with a cabinet of up to four other MPs. Day-to-day administration lies in the hands of an elected council on each of Tuvalu's islands. Politics was dominated from independence until 1998 by two men, Tomasi Puapua (now governor-general) and Bikenibeu Paeniu. Parliamentary defections are unchecked, and brought down the short-lived government of Prime Minister Faimalaga Luka in 2001.

Tuvalu's resource potential lies in the waters of its 8.3 million-sq. km (3.2 million-sq. mile) EEZ. Its rich fish stocks are being exploited mainly by foreign boats in return for licensing fees. The salination of soil is increasing, leaving less and less cultivable land. Solar energy is being developed to cut the use of gasoline for power generation. Fuel accounts for about 14% of import costs. The rights to Tuvalu's Internet suffix have been sold to a Canadian media company for up to US$175 million a year.

Concerted efforts since independence to improve health care facilities and programs have cut the incidence of communicable diseases. Serious cases of illness or injury are referred to better-equipped hospitals in Australia or New Zealand.

Each island has a primary school. A secondary school and a marine training school are based on Funafuti. Students who attend the University of the South Pacific in Fiji are state-funded.

Although living standards are very low, traditional social support systems mean that extreme poverty is rare. Most people rely on fishing and subsistence agriculture, supplemented by remittances from expatriate Tuvaluans.

The former Ellice Islands, together with the Gilbert Islands, were annexed by the UK in 1892.

• 1974 Ellice Islanders vote to separate from Gilbertese.
• 1978 Independence as Tuvalu.
• 1987 Tuvalu Trust Fund set up.
• 1996–1998 Bikenibeu Paeniu prime minister.
• 2000 Joins UN as 189th member. Admission as full member to Commonwealth.