Regions and Countries

	Table of Contents
p. 12 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Infrastructure B. Social Infrastructure and Environment C. Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Development 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 - Federated States of Micronesia : III. Sector Strategies

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D. Governance Dimensions of ADB Operations

32. The Government has shown a notably increased awareness and commitment towards better governance. This has been supported by ADB-funded PSRP and complementary technical assistance. FSM's extensive and complex system of government can be further rationalized and prioritized through the strategic application of performance budgeting. The ADB program in FSM places emphasis on governance issues as they relate to the application of the law, the pursuit of a balanced regulatory environment, ensuring improved basic social services, corporate governance, and the rights and responsibilities of civil society. Formal public and private systems of accountability still require strengthening.

33. Under country operational strategy, most TAs for the period of 2001~2003 are concentrated on capacity building encompassing economic policy management, budget management, privatization and legal staff training. Particularly, a TA for strengthening state governments is programmed in 2001. A law and governance TA program phased over three years, will commence in 2000 to improve the legal capacity of the states and national government and legislatures, and ameliorate the regulatory environment for private sector development. Another TA program for privatization and corporate governance will contribute to more efficient public services and the withdrawal of government from commercial activities. ADB will also support the strengthening of the capacity of national audit and judiciary staff through its regional technical assistance (RETA).

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