Tuvalu Island generates $5 million a year while taking no action to save its sinking island.
A succinct overview of Tuvalu
Tuvalu, a nation of numerous little islands and nettles, has a small population and a limited landmass, but it has outstanding individuals who can share tales about this path.
Tuvalu, which refers to the eight main islands that make up the country, meaning “Eight still together,” gained independence from the United Kingdom in 1978.
The ninth island was not included when Tuvalu was given its current name since it is a small and unimportant island. It is the second-smallest country in terms of population, with only roughly 10,000 people living there, and the fourth-smallest country overall.
On the islands, daily life is fundamental and frequently challenging. The gathering of rain is crucial because there are no streams or rivers. When viewed from the air, Tuvalu appears to be a tropical paradise: a narrow sliver of sand dotted with coconut palms and surrounded by shallow, emerald waters.
But up close, the land’s vulnerability becomes apparent. Golden sand overflows over the concrete next to the runway while the straggly green grass clings for dear life.
Tuvalu is going down.
The sea dominates the flat horizon and closes in on you from all sides. The country is being impacted by climate change. The local catchphrase for the effects of climate change on this small island archipelago on the frontlines of global warming is “Tuvalu is sinking.”
According to the administration, two of Tuvalu’s nine islands are already on the verge of vanishing due to coastline erosion and sea level rise. Only three meters separate the majority of the islets from the water.
Tuvalu depends on precipitation since the rising ocean has poisoned the underground groundwater supplies, and droughts are alarmingly common there.
Tuvalu’s level of wealth
The lowest GDP in the world is found in Tuvalu. Since it is difficult and expensive to go to the country alone, unlike other Pacific countries, the government does not rely heavily on tourism.
The government generates revenue by selling offshore trawler fishing licenses and exporting dried coconut flesh. The nation has a sizable exclusive economic zone that gives them the right to exclusive resource use.
But the government primarily earns money by “doing nothing.” Tuvalu’s two-letter. The TV domain suffix may hold the key to the nation’s economic destiny. The equivalent of striking oil in the modern era is this random arrangement of characters on the internet.
The domain name is a natural resource for Tuvalu. The nation primarily benefits from the domain extension “.tv.” Let’s explore the origins of this website name.
Therefore, a group known as the International Organization for Standardization (ISO) compiles a list of international standards for various items.
Tuvalu thus acquired the top-level domain “.tv.” Tuvalu leased TV for $50 million in royalties paid over 12 years to Canadian businessman and investor Jason Chapnik. The contract between Tuvalu and VeriSign will end in 2021.
It was stated that more than $1.4 billion in TV domain transactions occurred during the previous five years. The discrepancy is apparent when you contrast that sum with the $50 million Tuvalu first leased from TV.
The ways Tuvalu generates revenue and finances its infrastructure
Tuvalu has the chance to make money off them. The TV domain name provides some direct access for its citizens, who are presently cut off.
Through Verisign, Tuvalu makes around 1/12th of its annual gross national income (GNI) by renting out its domain to industry titans like Amazon-owned streaming service Twitch.
Today, the income from this domain accounts for up to 10% of the nation’s GDP. It enables the government to finance necessary improvements to living on this little island nation.
Schools, the construction of schools, and the nation’s educational system all fall under the infrastructure category. The country’s eight kilometers off-road were paved with money from the original contract.
This top-level domain now brings in about $5 million annually for Tuvalu. Tuvalu can now afford the six-figure membership price because of this domain leasing, which has also helped the nation’s economy grow.