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Japan, ADB to Help FSM Strengthen Public Sector Performance

MANILA, PHILIPPINES (24 March 2009) - The Asian Development Bank (ADB) will provide assistance to help strengthen public sector performance in the Federated States of Micronesia (FSM).

The Japan Special Fund, through ADB, will provide a US$750,000 grant to the initiative. The FSM Government will finance the remaining $50,000 equivalent to support counterpart staff, office accommodation, and local communications support.

FSM’s economy remains underdeveloped and heavily dependant on the public sector. The limited pool of highly educated professionals, FSM’s reliance on relatively high external aid flows, and the somewhat large public sector wages have contributed to inefficiencies in public sector service delivery. Public sector employment tends to be viewed by many as a social safety net for Micronesian families.

The ultimate aim of the ADB assistance is improved public service delivery in FSM at state level. For this to happen, a cultural change in the public service is required, and to help achieve this the ADB technical assistance will identify current and future members of government, the public sector, and civil society who are willing and able to act as agents for change. The grant will fund leadership and management skills training for these individuals.

“Close consultation and public participation will be central to successful delivery of the ADB assistance,” said ADB Country Specialist Anthony Gill. “The public sector reforms associated with this TA require flexible mechanisms to respond to the emerging needs of the people of FSM and demands collaboration by all participants.”

The ADB technical assistance will be implemented in three phases. The first will focus on improving accountability and transparency in government decision-making processes. The second component will include a state public sector senior management strengthening program, which will be directed at current and future change agents within the public service-with the potential to improve performance within the sector. The final phase will involve the dissemination of public information and awareness campaigns on public sector performance.

The Federated States of Micronesia (FSM) is a grouping of 607 small islands in the Western Pacific about 2,500 miles southwest of Hawaii, lying just above the Equator.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members - 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

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