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Country Assistance Plans - Kiribati : III. Sector Strategies
D. Governance Dimensions of ADB Operations23. ADB will remain engaged in its dialogue for gradual structural changes towards a more efficient public sector and the opening up of the economy to the private sector. To date, ADB's approach to public sector reforms in Kiribati has focused primarily on targeted and well-focused structural changes at micro/sector level. There is a need to broaden public sector reforms to include for instance public enterprise reform, civil service reform, and to review trade and investment barriers to support and promote private sector growth. The TA on Public Service Reform (PSR) is assisting the Government in identifying the appropriate role for the government vis-à-vis other service providers and in identifying options for increasing the efficiency and effectiveness of its core service delivery. Subject to firm and broad based commitment to, and ownership of, such reform agenda, this may eventually lead to an ADB supported comprehensive reform program assistance. 24. Institutional reforms such as those being undertaken under FEM and SAPHE are expected to improve corporate governance of state owned enterprises, and the implementation of policies aimed at promoting private sector development. Extensive policy dialogue, focused on devolution/decentralization, increased regional development, and poverty reduction in the outer islands, will also be carried out during the preparation of a proposed OIDP. Finally, the second phase of the proposed TA on Community Development and Participation will foster the community participatory approach in Tarawa.
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