Members of Parliament have very close ties to the island they represent. Often the northern islands in the country compete against the southern islands with the center holding the balance of power. Traditional chiefs also still play a significant role in influencing island affairs, particularly on the outer islands. A long-held distinction between chiefs and commoners is slowly disappearing, and chiefs are now more often selected on merit rather than by birth.

Beginning with the death of Prime Minister Ionatana in late-2000, Tuvaulu has had a number of prime ministers. This in part reflects the pressures affecting the small nation, including the transition from an exchange economy to a money economy, an inherited system of government with only limited regard to Tuvaluan traditions of decision making, and the lack of clear path to implement Tuvalu's vision for the future.

Saufatu Sopoanga, a former civil servant, became Prime Minister in August 2002. He was replaced by Maatia Toafa in October 2004 after a vote of no confidence in August 2004. Toafa is the ninth Prime Minister of Tuvalu and also holds the portfolio of Minister for Foreign Affairs and Labor.