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The Pacific and ADB: Partners in Progress
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Until recently, poverty was not regarded as a significant problem in the Pacific island nations. But two decades of weak economic performance, fairly rapid population growth, urban drift, and growing inequalities have changed this.
"We all recognize that these countries face the specific challenges of remoteness and smallness, as well as a heavy reliance on a large public sector," said Asian Development Bank (ADB) President Tadao Chino at the opening of Pacific Day on 7 May as part of the ADB’s Annual Meeting activities. His remarks highlighted poverty reduction and sustainable economic development in the Pacific islands as ADB's priorities.
ADB's new Pacific Strategy was introduced by Basudev Dahal, Director of ADB’s Office of Pacific Operations. Citing the cornerstones of the strategy -
Much has been said about the importance of NGOs in the development process. But NGOs continue to voice their frustrations that donors and governments exclude them in the decision-making process and service delivery. The need for change is recognized. So what has been done? And what still needs to be done to address the situation?
This seminar examined the role NGOs can play in the Pacific as advocates for the poor and the vulnerable, and as providers of social services to the people.
COOPERATION IN THE PACIFIC: ADB officials brainstorm with a Pacific NGO representative.
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Building effective partnerships between NGOs, governments, and the donor community brought together representatives of NGOs from Melanesia, Micronesia, and Polynesia, donor organizations, and Pacific island governments. The Canada Fund, Department for International Development of the United Kingdom, and New Zealand Ministry of Foreign Affairs supported the seminar. The representatives reviewed the progress made in government-NGO-donor cooperation, discussed impediments to stronger involvement of NGOs in the development process, and explored possible areas for future cooperation.
Alastair Wilkinson, the representative of the Pacific Islands Forum Secretariat, pointed out that the Forum and its member governments "recognize the significant development role NGOs play, that they contribute to open and transparent government, are fundamental to democratic development and have access to communities, issues, and concerns in a way that government does not."
Cooperation with NGOs in delivering development and welfare services in the Pacific was discussed. Presentations by Pacific NGO representatives outlined current modes of cooperation between NGOs, governments, and funding agencies in deli-vering services. NGOs identified three key issues of concern in delivering services:
In another session, the advocacy role of NGOs in the Pacific was the focus of presentations concentrating on the involvement of NGOs in policy development and programming of donor assistance. NGO representatives pointed out that they can play a key role in participatory impact monitoring—an area in which they would like to cooperate with donors and governments.
Rex Horoi, Executive Director of the Foundation for the Peoples of the Pacific and former Ambassador of the Solomon Islands to the United Nations, urged governments and funding agencies to listen to NGOs when determining development and aid priorities and to establish a "smart partnership" that will help reach the vulnerable and disadvantaged.
However, the key concern raised by NGO representatives was the issue of sustainable financing and the need to move away from time-bound and project-focused funding. Core funding and establishing a sustainable financing mechanism or trust fund for NGOs in the Pacific featured high in the discussion. Cedric Saldanha, senior manager of ADB's Strategy and Policy Department assured the Pacific NGOs that ADB is committed to strengthen the relationship through ongoing dialogue and consultations, and to support the capacity building of NGOs in the Pacific. This assurance was welcomed with applause.
A second seminar examined the constraints and solutions for small- and medium-sized enterprise (SME) development in the Pacific by adding a unique twist: a comparative perspective from the Caribbean islands through the eyes of two representatives sponsored by the Japan Program of the Inter-American Development Bank.
PACIFIC DAY OPENING: ADB President Tadao Chino addresses NGO and private sector representatives from the Pacific.
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Dr. Tewarie, Executive Director of the Institute of Business, University of the West Indies, acknowledged the differences between the Caribbean and the Pacific for developing the private sector, but also stressed the similarities. "Excessive administrative barriers, limited access to finance, inadequate SME support systems, and a low level of technical and managerial skills and productivity of SMEs are just a few of the challenges the private sector in the Pacific and the Caribbean have in common," said Dr. Tewarie.
Aivu Tauvasa, Commissioner of the South Pacific Trade Commission (SPTC), launched the Pacific Business Information Guide and the Directory of Business Support Services, a joint undertaking of SPTC and ADB.
The subjects of "red tape" or administrative barriers and the restricted access to finance for SMEs came up repeatedly during the seminar. Regulations intended to facilitate business activities too often turn out to be more burdensome for businesses than intended or anticipated, and little has been done to remove these excessive complexities. Commercial banks often restrict their lending activities to well-secured loans, and the few providers of equity finance start with amounts of US$200,000, which is too large for small enterprises, the majority of the private sector. Gerald Pemberton, Managing Director of Development Finance Limited, Trinidad and Tobago pointed out that "asset-based lending is not always suitable." Representatives from commercial banks in the Pacific cautioned that cash-flow and character lending—while the key in microfinance—need to be adjusted to SME realities before they could be a worthwhile option in SME finance. Participants discussed ways to overcome these obstacles.
Noting the constructive exchange of experiences and expertise between the two regions in private sector development, continued dialogue between the Pacific and Caribbean islands was welcomed by the participants. Mr. Saldanha encouraged this in his closing remarks by saying he is confident that the links with the Inter-American Development Bank, and in particular the Japan Program, will facilitate the continuation of this exchange.
PACIFIC DAY OPENING: ADB President Tadao Chino addresses NGO and private sector representatives from the Pacific.
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A special one-day session, convened at the East-West Center, was devoted exclusively to discussions between NGO participants from the Pacific and ADB staff members on ways to strengthen the relationship between ADB and its Pacific developing member countries (DMCs). The participants agreed to concrete steps of action.
Discussions and networking continued among NGO and private sector representatives from the Pacific and the Caribbean, Pacific DMC delegations, funding agencies, and ADB management until late into the "Pacific Night."
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