Pacific Strategy Boosts Private Sector

On 20 March 2001, ADB launched its new strategy for its 12 Pacific developing member countries.

The strategy focuses on helping Pacific countries streamline their public sectors and boost private sector investment to create more jobs and raise incomes and quality of life.

This follows an earlier strategy in the 1990s which focused on macroeconomic stability and good governance, following severe fiscal crises.

Key Challenges

The new strategy responds to five key challenges:

• vulnerability due to remote locations and a narrow resource base, and susceptibility to natural disasters and global markets

• political instability and poor governance

• limited skilled human resources

• socio-cultural factors that affect politics and productivity

• inadequate physical, technological and financial sector infrastructure for sustainable growth

Strategic Objectives

ADB is adopting four strategic objectives:

• continuing support for economic, governance and public sector reform

• promoting private sector development

• encouraging a more active role for women in social, economic and political spheres

• supporting environmental management

Secondary Goals

In addition, ADB supports

• strengthening capacity for governance, economic management and public services

• improving physical and information technology infrastructure development

• strengthening financial sector management

• enhancing the role of civil society

Individual Needs

As well as its regional strategy, ADB is tailoring its assistance to meet the needs of individual countries.

• In the countries which are resource-rich but have poor growth and high population rates, such as Papua New Guinea, Solomon Islands and Vanuatu, the strategy will focus on governance, public sector reform and poverty reduction through social and infrastructure investments.

• In the more economically advanced countries with a higher skill base, moderate resource potential and relatively low poverty such as Cook Islands, Federated States of Micronesia, Fiji Islands, Samoa and Tonga, the strategy will promote private sector growth through policy reform and physical and financial sector strengthening.

• In the island atolls of Kiribati, Marshall Islands, Nauru and Tuvalu, which are severely disadvantaged by their smallness, isolation and weak resource base, the strategy is to establish and expand trust funds to support the sustainable financing of basic services. It is also to support niche markets for tourism and a sustainable use of marine resources.

Examples of ADB Projects in the pacific:

In Papua New Guinea, the Smallholder Support Services Pilot Project supports smallholder farmers in the provinces of Eastern Highlands and Morobe. It also shifts the role of government agriculture agencies from directly providing support services to managing service providers.

Also in Papua New Guinea, the Employment Oriented Skills Development Project improves income-earning opportunities for the unemployed and underemployed population in rural and urban areas, especially women and the youth. It delivers sustainable services through skills training to NGOs and private training providers.

In Samoa, the Small Business Development Project assists Samoan entrepreneurs, especially women and those in rural areas, to access credit as well as business-related training and advisory services. It also supports Government efforts to improve the policy and legislative business environment.

Also in Samoa, the Education Sector Project will increase the supply of professional and technical skills to meet the requirements of an increasingly broader-based and market-oriented economy.

Regional Cooperation

ADB's strategy also underscores the importance of regional cooperation to collectively reap the benefits of economies of scale. ADB is currently supporting regional cooperation in fisheries, air transport, financial sector restructuring (including addressing money laundering), public sector management and governance.

Cooperation with Donors

ADB is working closely with other donors, particularly Australia, Japan, United States, New Zealand, United Kingdom, the European Union, and other multilaterals.