Crucially, the report has since been recognized as a model for institutional review and reform within the broader Tongan public sector, serving as a pilot initiative for other ministries seeking to align structure with strategic purpose.
— Tonga —
efficiency. leadership. transformation.
Reforming for Results: Restructuring Tonga’s Ministry of Labour, Commerce and Industries
“Effectiveness requires the concurrent presence of three elements—leadership, governance, and technical expertise.”
— Shaan Stevens, International Legal and Public Sector Advisor
Challenge
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.
Strategy
Mr. Stevens employed a consultative and Ministry-led approach, ensuring ownership from within and active participation across all levels. The strategy involved:
- Assessing the Ministry’s statutory and policy mandates.
- Reviewing workload distribution, functional overlap, and structural inefficiencies.
- Engaging stakeholders across government, the private sector, and civil society.
- Identifying core functional competencies and reallocating responsibilities accordingly.
Through a series of workshops, the Ministry and consultant collaboratively proposed a restructured five-division model:
- Customer and Corporate Services Division – to centralize public engagement and internal operations.
- Office of the Registrar – to unify licensing and registration functions.
- Inspectorate – to strengthen compliance, enforcement, and consumer protection.
- Trade & Development Division – to drive labour mobility and private sector growth.
- Policy Division – to provide robust, dedicated policy advice and coordination.
This structural redesign sought not only to improve internal workflow but also to enhance service delivery, reduce duplication, and better target limited resources toward priority national outcomes.
Transformation
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:
- Establishing dedicated divisions with focused mandates to improve internal efficiency and external service delivery.
- Implementing shared digital infrastructure to enhance transparency and responsiveness.
- Creating a Policy Division to relieve senior leadership from dual operational roles and ensure strategic policy development.
- Rationalizing staffing—elevating key positions while reducing redundancy to maintain budget neutrality.
The Public Service Commission (PSC) identified the MLCI restructuring as a benchmark for public administration reform, citing its consultative methodology, clear implementation roadmap, and emphasis on internal leadership and capacity-building.
Its successful blend of cost-neutral restructuring, digital modernization, and improved service delivery has informed subsequent reviews across multiple government agencies, contributing to a more accountable, efficient, and citizen-focused public service. Notably, the approach also offered a pragmatic template for how small public sectors with limited capacity can still drive meaningful institutional change by focusing on strategic alignment, simplification, and internal leadership.