Regions and Countries

	Table of Contents
p. 14 of 18 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 - Tonga

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V. Donor Activities and Aid Coordination

35. The aid programs in the Pacific remain largely donor-driven, are often uncoordinated, and place pressure on the absorptive capacities of PDMCs. This has led to a culture of aid-dependence for financing of the capital budget and associated downstream problems, particularly inadequate recurrent budgeting for operations and maintenance. The challenge for governments is to take over the driver’s seat by formulating public investment programs that are meaningfully integrated with annual budgets, and which provide effective guidance to external funding agencies on how each can fit into the national “game plan”. The challenge for donor agencies is to communicate effectively, sharing knowledge and plans, and thus turning the rhetoric of external agency coordination into reality. In this regard, ADB is further strengthening its ties with other donors – particularly with the UNDP, the World Bank, Australia, and New Zealand -- in the areas of overall aid coordination and cofinancing activities. In Tonga, ADB in conjunction with the Government will ensure coordination throughout the design and implementation stages of the EPSRP.

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