Regions and Countries

	Table of Contents
p. 15 of 20 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 - Federated States of Micronesia

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IV. Economic Regional Cooperation

37. The Forum Secretariat indicated its willingness to cooperate with ADB in social sector policy development in health, education and the social impacts of economic reform. A close interaction with the Forum in the sector would also facilitate the proposed Basic Social Services program. Kula Fund, SPPF and FIAS will contribute to the Government's private sector development initiative. Pacific Financial Technical Assistance Centre (PFTAC) will continue to provide short-term advisory and training inputs for strengthening the government capacities in the areas of statistics, tax, banking, and public expenditures management. This will complement the ongoing EMPAT II TA and the proposed statistics TA.

38. An ongoing RETA (RETA No. 5830) for long-term regional training program for members of the South Pacific Association of Supreme Audit Institutions will contribute to strengthening FSM's audit capacity. Another proposed regional TA will conduct the review of the financial sector in FSM, with focus on government-owned development financial institutions and commercial banks. The RETA for Judicial Training cofinanced with UNDP is also expected to contribute to enhancing FSM's capacity in the sector. Finally, the ongoing RETA for the Development of an International Fisheries Agreement in the Conservation and Management of Tuna (RETA No. 5813) is particularly relevant to FSM which possesses major offshore, deep sea marine resources (a major source of foreign exchange), as well as near shore fisheries which are probably the most important natural resource to local communities.

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