Government Restructuring: Tonga

In 2011, the Ministry of Labour, Commerce and Industries (MLCI) of the Kingdom of Tonga stood at a pivotal moment. Amid mounting economic pressures, a newly elected government committed to reform and service delivery tasked MLCI with a dual mandate: facilitate business recovery and enhance regulatory compliance. However, the Ministry’s organically developed structure had become a barrier to fulfilling this mission, characterized by uneven workloads, duplication of functions, and a lack of dedicated policy and customer service divisions. These structural issues were compounded by systemic challenges facing the Tongan public sector as a whole, particularly limited human capital and constrained financial resources, common in small island developing states. With a relatively small population and workforce, ministries often relied on overstretched staff performing multiple roles, making long-term planning, specialization, and capacity-building difficult. Addressing these constraints would require not just reorganization, but also strategic prioritization and smarter resource allocation. The World Bank engaged GG International to undertake a comprehensive review of the Ministry’s structure and functions, led by international legal and governance expert Shaan Stevens, supported by policy expert, Matte Birchler. The review aimed to align the Ministry’s configuration with Tonga’s National Strategic Planning Framework (NSPF) and support a private-sector-led economic recovery.

Mr. Stevens employed a consultative and Ministry-led approach, ensuring ownership from within and active participation across all levels. The strategy involved:

The final report delivered by GG International outlined a clear roadmap for institutional transformation, grounded in a cost-neutral, capacity-focused restructuring. Key recommendations included: