Regions and Countries

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p. 8 of 14 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 - Republic of the Fiji Islands

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III. Sector Strategies

A. Agriculture and Agro-Industry

25. The ADB has offered to assist the restructuring of the sugar industry in support of the Sugar Industry’s Strategic Plan.¹⁹ This intervention would aim to improve industry-wide resource allocation, efficiency, and sustainability so that it may continue to contribute to the economy. A Sector Development Program which would address both structural adjustment needs and their social and other costs as well as provide investment for modernizing and upgrading infrastructure, plant, and equipment may be appropriate. While, the government has prioritized assistance to improving the efficiencies of the sugar industry, it has not yet confirmed the ADB's involvement in the sector. This potential assistance will be reviewed during the 2000 CPM.

B. Infrastructure

26. The new government has called for increased capital investment in upgrading infrastructure. The ADB will continue assistance in infrastructure development. Although the ongoing land transport and utilities (improved water and sewerage) program will continue under the current country program, future urban infrastructure investments will be planned under the framework of the urban sector strategy which is to be prepared under ADB TA in 1999 (see below). Future rural infrastructure investments may also be planned under the framework of the proposed loan in support of sugar restructuring and possible assistance to targeted tourism development.

C. Social Infrastructure

1. Urban Development

27. As mentioned in paragraph 11 above, urban development issues and constraints are becoming increasingly apparent in Fiji Islands and are receiving priority Government attention. A project for improving the Water Supply and Sewerage system in the densely populated Suva-Nausori area is under preparation with the loan programmed for 2000. The ADB will also assist Fiji Islands to formulate an appropriate policy and institutional framework and overall strategy for the modern management of the country’s expanding urban sector. The strategy will address poverty alleviation, improved provision of economic infrastructure and social services, private sector and community participation, availability of land, and appropriate environmental controls. Accordingly, a TA for the preparation of an urban sector strategy study in 1999,²⁰ will be implemented over the next year. A sector-based loan, to be developed after completion of the study, is in the 2002 lending program. This compilation of ADB interventions will assist the government in addressing its priority policy objectives in support of affordable housing, assured public services, improving local government, and alleviating urban poverty.

2. Environment

28. An advisory TA proposed for 2001 will help Fiji Islands to further strengthen environmental management and training. Environment issues will also be significantly addressed within the framework of the ADB’s proposed urban development program.

D. Governance Dimensions of Asian Development Bank Operations

29. In late 1999, the ADB has provided assistance for an independent review of the new Public Finance Management Act. Follow capacity building assistance related to the gradual implementation of the Act is expected to average in 2000. The ADB will provide assistance to improve public sector and public sector financial management with technical assistance to strengthen public asset and debt management. Detailed work programs, including milestones and performance indicators which will provide for the record of performance in support of future lending levels, will also be established.

E. Gender Dimensions of Asian Development Bank Operations

30. The ADB's country program includes assistance in 1999 to the Department of Women and Culture for implementing the Women’s Plan of Action. In 1999, the ADB has already provided assistance (under an earlier regional TA²¹) to the Fiji Islands Women’s Rights Movement to study and recommend improved legislation in support of the rights of lower paid female workers. These activities will lead to greater support for women’s interests and rights in both public and private sectors.

F. Private Sector Operations

31. The ADB’s overall lending and TA program is formulated in support of the Government’s stated intent to give priority attention to further stimulate increased investment. The ADB is supporting a greater role for the private sector in Fiji Islands’ economy through a range of TAs. These relate to improved public sector governance and financial management, the commercialization of public enterprises, greater private sector engagement in both the sugar industry and future urban management and development, and further development of the capital market. One new initiative which is to be more fully discussed with Government is the proposed targeting of public infrastructure investment in support of private sector tourism investments. Loans planned in the areas of infrastructure and transport will also help private-sector investment. The Fiji Islands private sector has benefited from the ADB’s contribution to regional activities in the form of the Kula Fund, the South Pacific Project Facility, and the Foreign Investment Advisory Service.

G. Capacity Building

32. Other selected donors, most noticeably AusAID and New Zealand are heavily engaged in assisting in capacity building for the public sector and in education. The ADB’s program of capacity building will complement ongoing efforts. It will focus on: (i) institutional strengthening in support of the government’s policy “think tank and in the area of strategic planning;” (ii) further strengthening the policy and process of enhancing public enterprise efficiencies; and (iii) strengthening the policy framework and process of strategic urban management. Policy formulation, improved fiscal management, reduced public debt, prioritization of public services and activities, increased competition and adjustment to declining trade preferences, the restructuring of the economy, and more economic allocation of resources, are the target areas.

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