Countries and Regions

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Country Strategy and Program Update 2003-2005: Tonga

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I. Country Strategy

1. The Government’s overall development goal, stated in its Strategic Development Plan Seven, 2001 – 2003,¹ (SDP7) is improving the quality and standard of living for all Tongans. The means to achieve this goal are through a stable macroeconomic environment, sustainable economic growth led by private sector development and supported by an efficient and well-structured public sector, maintenance of physical infrastructure, and protection of the environment. Achievement in the above areas will generate economic benefits that will be shared equitably and permit higher expenditure on health and education. The economic and fiscal objectives were reaffirmed in the Government’s comprehensive Economic and Public Sector Reform Program (EPSRP) approved by the Cabinet in early 2002.

2. The Pacific Strategy for the New Millennium² of the Asian Development Bank (ADB) focuses on the core objectives of (i) continuing support for economic growth, good governance, and public sector reform; (ii) promoting private sector development as the engine for growth; and (iii) supporting sustainable environmental management and equitable social development. The Pacific strategic objectives are consistent with the medium-term goals contained in ADB’s Medium-Term Strategic Framework and take account of the specific conditions and challenges facing ADB’s Pacific developing member countries (PDMCs). This regional strategy for the Pacific, together with the Government’s development objectives, is the guiding instrument for the country strategy for Tonga.

3. ADB’s strategy for Tonga supports the Government’s development goals. The focus of assistance in the period 2003–2005 will be (i) continuing assistance to the Government’s reform program to enhance the efficiency and effectiveness of the public sector; (ii) improving the regulatory environment to enable private sector growth; and (iii) improving the policy environment and physical facilities to provide better and timely market information, and to improve market access to smallholders and agricultural private businesses. The summary statement of strategy is in Appendix 1.

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