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Countries and Regions Country Partnership Strategies Document
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Country Strategy and Program Update 2002-2004: Cook Islands : I. Development Situation
C. Implications for the Country Strategy and Program (CSP)14. ADB's operational strategy in the Cook Islands focuses on building sustainable capacities of sound economic and public sector management, promoting of economic growth, and supporting private sector development. It is directed to the three broad areas of policy reform, improvement of urban infrastructure, and outer islands development. 15. The need for capacity building within Government services is becoming increasingly apparent as the Government consolidates its reform program. Government services have been significantly downsized, and restructuring continues. Government departments and services are more accountable for their actions and must achieve specific objectives. At the same time, pressure on Government budgets is increasing. However, lack of experience in performance-based management practices is leading to inappropriate management of financial, personnel, and other resources. ADB's strategy focuses, first, on building within the Government services the capacity to apply appropriate business planning mechanisms and management information systems, and second on assisting frontline services to better identify the needs of the public, and to respond to those needs in a timely and cost-effective manner. 16. The significant growth in tourist arrivals is resulting in increased generation of waste, which in turn increases demands on the already overloaded waste management system in the principal island of Rarotonga. The second largest island, Aitutaki, is also benefiting from increased tourist arrivals, but has no formal waste management facilities. The natural environment of the islands is one of the major attractions for tourists but lack of sustainable waste management facilities and systems is causing environmental stress. ADB's strategy is to provide assistance for developing new waste management facilities. The private sector will manage the facilities and an appropriate system of user charges will be implemented, to ensure system sustainability. Capacity building in operation and maintenance (O & M) will be provided. Capacity building in environmental regulation and monitoring will be provided later, to assist the Government in developing environmental policies and environmental conservation measures. 17. Signs of absolute poverty in the Cook Islands are few, due partly to the informal support network that exists within extended families in Polynesian society. However, there are marked income and social disparities between Rarotonga, which is the principal island, and some outer islands that have not benefited from the growth in tourism or from development of the black pearl industry. There is a notable paucity of basic services in several outer islands. The Government is addressing the issue of outer islands development with assistance from the United Nations Development Programme (UNDP), New Zealand Official Development Assistance (NZODA), and from ADB. ADB will provide assistance to establish an outer islands trust fund. The trust fund will be self-sustaining, and its yield will contribute to the development and maintenance of facilities in the outer islands. 18. ADB is to support capacity building in outer islands councils, focusing on O & M of infrastructure in outer islands, in support of the Government policy of empowering islands councils. ADB's assistance will be carefully tailored to complement UNDP's and NZODA's ongoing assistance for outer islands development.
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