New Papua New Guinea Country Strategy and Program Supports Medium
Term Development Strategy
Updated: 6 April 2006
The government of Papua New Guinea (PNG) and the Asian Development
Bank (ADB) have agreed to prepare a new Country Strategy and Program
(CSP) for PNG for the period 2006 - 2010. The document is to be
approved in mid-2006. It will contain sector and thematic 'roadmaps'
and a three year operational program pipeline. Prior to these steps,
ADB will prepare and consult with the PNG Government and other stakeholders
on a CSP Initiating Paper, which will set the framework for the
CSP and guide the more detailed work in 2006.
The following principles will determine the elements of the CSP:
Timetable
| Activity |
Date |
| Poverty Analysis
|
November 2004 |
| Governance
and Institutional Assessment |
March 2006 |
| Draft CSP at Initiating Stage |
March 2006 |
| Economic Assessment |
April 2006 |
| Gender Assessment |
April 2006 |
| Draft CSP Estimated MRM |
May 2006 |
| Final CSP |
July 2006 |
Papua New Guinea Medium Term Development Strategy 2005 - 2010
The MTDS goal of improved living standards is to be promoted by
ensuring good governance; implementing an export-driven economic
growth strategy; and fostering rural development, poverty reduction
and human resource development. The goal and objectives will be
achieved through seven core sectoral expenditure priorities:
- Transport infrastructure rehabilitation and maintenance
- Promotion of Income-earning opportunities
- Basic education
- Development-oriented informal adult education
- Primary health care
- HIV/AIDS prevention
- Law and justice
The MTDS also outlines key supporting policies and enabling environment
measures focusing on political and policy stability; the rule of
law; the business environment; protection of the vulnerable and
disadvantaged; gender equality and protection of the natural environment.
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ADB Pacific Strategy 2005-2009 - Objectives and Key Result Areas
The vision of the strategy is a Pacific region free of poverty
and the goals are access of the poor to cash income opportunities
through efficient markets and improved social services for the poor.
| Strategic Objectives |
Key result areas |
| 1. Support a conducive environment
for the private sector |
- An effective institutional, legal and regulatory environment
- Improved financial services
- Improved state-owned enterprise ownership arrangements,
accountability and performance
- Improved provision, operation and maintenance of physical
infrastructure
- Effective institutional framework for developing skills
in response to labor market demands
|
| 2. Enhance the supply of and demand
for quality basic social services (health, education, clean
water and sanitation). |
- Social sector strategies that are relevant and responsive
to national objectives and client needs
- Effective public, private and development partner resource
allocations for basic social services
- Build capacity to manage and deliver quality basic social
services
|
| 3. Promote effective development
processes. |
- Increased community participation and ownership in development
programs
- Increased public demand for good governance and for effective
markets and services
- Strengthened government transparency and accountability
- Increased dialogue and cooperation among civil society
organizations, private sector groups and governments
- Improved availability and dissemination of quality data
and information on development issues
- Gender and environmental considerations mainstreamed into
development planning and programs
- Strengthened capacity of Pacific governments, civil society
and private sector groups to plan and manage for development
results
- Enhanced development partner coordination and harmonization
- Enhanced impact of regional cooperation
|
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Areas of ADB comparative advantage
ADB offers its developing member countries, including PNG, a range
of products and services:
- Access to loan finance for development purposes, at advantageous
interest rates. PNG is a 'blend' borrower from ADB, meaning it
accesses both highly concessional finance1 and market-based
funds, the latter taking advantage of ADB's AAA credit rating.
When providing finance, ADB also offers substantial support to
developing member countries in project design, administration
and monitoring.
- Grant financed advisory technical assistance, in support of
policy, institutional and capacity development.
- Economic, sector and thematic analyses, presented in reports
and related knowledge products. Recent reports on PNG include
a private sector assessment and analysis of PNG's health sector-wide
approach. An environmental assessment is due shortly. Many ADB
Pacific regional assessments are also highly relevant.
- Policy advice and dialogue with ADB staff who specialize in
a range of economic, governance and sector issues.
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Development Partners of Papua New Guinea
The international consensus on effective development cooperation
highlights the importance of coordinated and harmonized approaches
among development partners, in support of the partner country's
development priorities and programs. This is important in countries
with weak capacity, so as to minimize transaction costs for hard-pressed
governments, promote consistent policy advice and approaches, and
maximize the impact of development programs.
In PNG, development partners, in conjunction with Government, have
developed strong partnerships in some key sectors and thematic areas.
Examples include health, where donors have a formal cooperation
arrangement, and work on public financial management, where both
the Financial Management Improvement Program and Public Expenditure
Review and Rationalization project involve donors working jointly
in support of government objectives.
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Approach to managing for development results through the strategy
and program
The PNG CSP is developed and implemented on the basis of detailed
discussions with Government, using the government's own development
strategy (alignment) and in conjunction with other development partners
(harmonization). An effective approach to managing for development
results in a CSP should answer the following questions:
- Does the government have adequate capacity to formulate clear
strategic development objectives, to monitor and to track progress
in implementing these objectives, and to use the information for
decision making and improvement?
- How can results management systems and approaches be better
integrated into normal government operations?
- How will ADB contribute, in cooperation with other assistance
providers, to enhance Government's capacity?
- What arrangements will be made for monitoring and tracking the
development results indicated in the CSP's results framework?
________________________
- From the Asian Development Fund (ADF), which is 'softened'
by grant contributions from ADB's donors. In the most recent ADF
replenishment, ADF grant funds were allocated for low income and
post-conflict countries and for addressing HIV/AIDS. PNG plans
to agree an ADF grant for HIV/AIDS.
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