Indigenous wealth and development: micro‐credit schemes in Tonga

Abstract

‘Women in Development’ aid–funded credit schemes in the Kingdom of Tonga were designated as ‘failures’ by the funders because the recipient groups of textile producers, who were meant to be engaging in commercial handicraft production as development, were instead making and seemingly ‘retaining’ textile koloa (indigenous wealth). It is my contention that rather than making low–valued, low–priced textiles for tourist consumption the women made koloa textiles for the Tongan ceremonial economy where a greater range of ideological, spiritual and material gains including cash were available to them. Even though the default rate on the loans was low, and the women were engaged in a Tongan notion of development known as fakalakalaka, the funders and the critics of the schemes were either unable to or would not recognise development taking place, so driven by macroeconomic indices were their criteria and assessment. This paper looks at the implications of this disjuncture and the funders’ lack of understanding (and/or rejection) of indigenous global economic systems and hybrid notions of development inherent in the women textile producers’ actions. It explores a contemporary reality where indigenous wealth is thriving in the global economy, contributes to the literature on hybrid economic systems and challenges macroeconomically driven development policy in the Pacific.