Regions and Countries

	Table of Contents
p. 4 of 18 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Governance: Sound Development Management D. Implementation 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 - Tuvalu : I. Country Performance Assessment

---

C. Governance: Sound Development Management

9. The consultative process and consensus-principle in making major policy decisions are a strength of the Government in Tuvalu. The National Development Strategy was prepared through a series of inter-Ministerial reviews and discussion in two public fora held with Island Councils, NGOs, community members, and expatriate Tuvaluans. This process has been imitated in the Amatuku Retreat, which developed the current Public Sector Reform program, which remains a priority for the government. Main elements of the reform program are: (i) corporatization and privatization of government business; (ii) improve efficiency of public administration; and (iii) restructure the economy toward private sector-led growth.

10. The Government’s medium- to long-term Vision 2015 development strategy focuses on improved governance, greater and more effective expenditure on health and education, physical infrastructure development, and greater equality of income distribution between Funafuti and the outer islands. There is also an intention to facilitate private sector development of export-oriented activities, which has involved the establishment of a new legislative framework for foreign direct investment.

11. Progress is being made on health and education through the creation of new and additional public service positions, the offering of more overseas scholarships, and the upgrading of the Tuvalu Maritime School (TMS). Physical infrastructure development is also given high priority in the public sector investment program. However, progress on public sector reform has been slow, and there have been concerns over a lack of transparency and accountability in some government decision-making. These concerns lay behind a change of government in late April 1999.

12. Income disparities have led to an unsustainable flow of people from the subsistence economies of the outer islands to the public-sector dominated cash economy in the main island, Funafuti. This has retarded growth in the outer islands and worsened unemployment in Funafuti. The Parliament approved in November 1997 the Falekaupule Act for devolution to the island communities, after more than three years of consultations, workshops, and training involving island leaders and bureaucrats on issues associated with responsibility, accountability, and governance. The ADB's Island Development Program (IDP)¹ is supporting the decentralization process through policy dialogue, financial support, and capacity building of the local authorities.

Back B. Poverty Assessment	Next D. Implementation Assessment