Regions and Countries

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p. 10 of 18 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Natural Resources and Rural Development B. Infrastructure C. Governance Dimensions of Asian Development Bank Operations D. Gender Dimensions of Asian Development Bank Operations E. Private Sector Operations 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 : III. Sector Strategies

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C.Governance Dimensions of Asian Development Bank Operations

27. In 1995, under an TA, the Government introduced a new national development strategy for l995-l998, which replaced the previous development plan. The strategy includes financing selected major capital development projects from its own resources and borrowing soft external loans. A reform of the budget system is under way and the 1998, 1999 and 2000 budget estimates have been prepared under specifically programmed outputs for each Ministry, following the strategic objectives, integrating the recurrent and capital budgets and with increased devolution of expenditure control to line Ministries. Under an ADB TA, the Government is also strengthening capacity for improved economic research, policy formulation, economic management and economic statistics.

28. Most of the policy recommendations made under ADB TAs have been discussed publicly in seminars and workshops arranged by the Government. The ongoing public sector reform program has made more accountable and is commercializing or privatizing Government enterprises. The IDP supports the public sector reform program through the policy conditionalities of contracting out of public works (plumbing, water, mechanics, and carpentry), and the corporatization of the TMS and the inter-island transport service. The corporatization of TMS is expected in June 2000 and the corporatization of the inter-island transport service in November 2000.

29. Finally, income is not evenly distributed among the islands. The population of Funafuti has an average income approximately four times that of the population in the seven outer islands. The IDP loan is supporting the devolution of greater autonomy and more resources to the outer islands and rural communities where poverty is more concentrated. The devolution addresses the issue of responsibility and accountability by making the island councils responsible to the local Falekaupule instead of central government.

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