Countries and Regions

	Table of Contents
p. 9 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Development IV. Regional Economic 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 - Samoa : III. Sector Strategies

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A. Agriculture

25. In the SES, the Government has listed four of its key strategic outcomes to be: enhanced private sector growth; invigorated agriculture and fisheries; sustainable tourism development; and a revitalized village economy. It is clear that each of these strategies relies on sound management of the nation’s environmental assets - its fisheries resources, agricultural land and natural beauty - and preservation of its strong culture. Agriculture plays an important role in the economy of Samoa with at least two-thirds of households reliant on a mixture of subsistence and cash income. Even those employed in the wages and salary sector often supplement their incomes with agricultural production. The agricultural sub-sector was also responsible for just under 30 percent of Samoa’s export revenue in 1999. However, agriculture and the economy are vulnerable to the potentially destabilizing impacts of external shocks, such as fluctuating commodity prices, exchange rate movements and changes in the economic policies of major trading partners. Furthermore, the nation is vulnerable to natural disasters, as evidenced by major cyclones in February 1990 (Cyclone Ofa) and December 1991 (Cyclone Val), which caused massive long?term damage to the production of important commodities, particularly tree crops such as copra and cocoa. The taro leaf blight outbreak of 1993 was also catastrophic, destroying taro production and exports. Production of taro, the most important food staple in Samoa, as well as a significant export commodity, has only just begun to recover.

26. The inherent uncertainty of agricultural production has a number of potential outcomes, including reduced export earnings, but it also serves to highlight the prudence of the government’s intention to “promote the development and diversification of cash crops” (Treasury Department 2000, p.4; emphasis added). Diversification is one strategy for combatting uncertainty in production and markets. ADB will assist in the preparation of a study of the agro-processing sector and financial assistance aimed to assist export growth and diversification, for meat, food crops, and horticultural produce.

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