Regions and Countries

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p. 5 of 5 BACK | NEXT I. Country Strategy II. Current Development Trends and Issues III. Implementation of the Country Strategy and Program IV. Portfolio Management Issues V. Country Performance and Assistance Levels

Country Strategy and Program Update 2007-2011: Republic of Marshall Islands

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V. Country Performance and Assistance Levels

A. Proposed Lending Level

33. The country-specific allocations were derived based on the results of the 2005 CPA (Appendix 6), after applying the performance-based allocation (PBA) formula.³⁹ The Asian Development Fund (ADF) allocation for RMI has been set at $2.96 million for 2007–2008. The tentative ADF assistance program for 2009 will be subject to the results of the 2007 CPA, and the outcome of the discussions on the next ADF replenishment.

B. Nonlending Program

34. Future TA will focus on increasing public sector productivity as the means to improve public service delivery, enhance the environment for private sector development, and upgrade governance. Given the lack of policy implementation, future assistance will have to be limited, focused, and tied to an assessment of results. Therefore, future TA is proposed in two areas. First, TA should support strengthening of public services delivery through personnel audits, subject to the progress of the pilot TA in 2006. Second, it should strengthen Economic Policy, Planning and Statistics Office (EPPSO) in support of improved policy formulation and implementation, subject to government support in 2008.

35. The CSPU results framework (Appendix 1) will guide future TA design and monitoring systems. Given the absence of a resident mission in RMI and the small size of the program, independent entities recruited under each TA will monitor and report on implementation. Quarterly progress reports will be presented to the Government and ADB. This has been an effective approach for monitoring and reporting on the progress of the TA on increasing the ownership and demand for improved education in RMI (footnote 7). As has been demonstrated, independent domestic monitoring can help build domestic capacities.

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39. The country performance assessment (CPA) narrative for 2005 was presented to, and discussed with, the Government during an August 2005 review mission. The CPA ratings were made public in April 2006.

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