Regions and Countries

	Table of Contents
p. 7 of 19 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Cook Islands

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II. Country Operational Strategy

A. The COS

18. ADB's Operational Strategy in the Cook Islands is to continue to support the ongoing reform process, as it moves into a phase of consolidation, through timely and focused provision of technical assistance on matters where local expertise is not sufficient or available. ADB assistance will also aim to provide enabling environments for private sector growth in sectors with strong potential. Loans and technical assistance grants will strengthen local capacities to sustain essential infrastructure and services. A key objective, in the medium term, will be to establish effective regulatory and management frameworks in key sectors that may be shifted to private control or management. In the medium term, poverty will be addressed through initiatives to improve services to outer island communities; in parallel, local government capacities will be enhanced through training and advisory technical assistance.

B. Progress in COS Implementation

19. Major reforms have been undertaken with ADB's assistance, during the implementation of Loan No. 1466-COO: Economic Restructuring Program, which was approved in 1996 and completed in 1998. Reforms have included substantial downsizing of the Government, reduction of Government expenditures, strengthening of Government's policy functions, and improvement of financial and economic management. Improvement in banking services will be achieved through the merging of the Cook Islands Development Bank and the Cook Islands Savings Bank.

20. ADB is ready to provide technical assistance in support of the implementation of the key goals of the Economic Restructuring Program: ensuring financial discipline through maintenance of balanced budgets; promoting accountability and transparency through proper reporting and auditing on economic and financial performance; adhering to its debt payment obligations, particularly those agreed during the 1998 Manila Debt Restructuring Meetings; and promoting private sector development.

C. Poverty Partnership Agreement

21. Assistance will be provided to support a poverty assessment. This is expected to lead to the formulation of a poverty reduction strategy by the Government. A poverty partnership agreement will be proposed to the Government once a poverty alleviation strategy has been developed.

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