Regions and Countries

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Country Strategy and Program Update 2004-2006: Tuvalu

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I. Country Strategy

1. Tuvalu's overall development goal is to achieve the highest possible living standards within the constraint of its limited natural resources. The National Development Strategy¹ (NDS) for 1995–1998 still serves as the Government’s basic strategy document, pending the formulation of a new strategy for 2004–2007, the National Sustainable Development Strategy (NSDS). The new Government plans to hold a National Summit in July 2003 to develop the NSDS.

2. There are five priority programs in the current NDS—(i) public sector reforms; (ii) improvement of economic infrastructure; (iii) Education for Life aimed at raising standards of education and training; (iv) encouragement of export-oriented business investment (while encouraging overseas employment); and (v) upgrading of human settlements. Of these five, the new Government reiterated the first four areas in the State of the Nation Address in February 2003. Emphasis on greater self-reliance for the outer islands and reduction of poverty were also included as government priorities.

3. The Asian Development Bank (ADB) strategy for Tuvalu was formulated in accordance with A Pacific Strategy for the New Millennium.² It supports, and is consistent with, the principal objectives of the NDS and the Government’s development priorities to promote higher living standards and greater equality of income of Tuvaluans. Tuvalu is a very small country with a high degree of vulnerability to external economic and environmental events, a weak resource base, and limited internal economic opportunities. ADB's overall strategy for Tuvalu is to (i) foster good governance and improve economic and financial management in the public sector through building capacity for public financial management and enhancing transparency and accountability within ministries and state-owned enterprises (SOEs); and (ii) promote human and social development through skills development and improving essential services, particularly for education, health, water supply and waste management. A summary statement of the country strategy is in Appendix 1.

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