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p. 13 of 29 BACK | NEXT Executive Summary I. Introduction II. Development Challenges III. Key Variables Influencing Development A. Vulnerability B. Political Stability and Good Governance C. Capacity and Skills D. Sociocultural Context E. Population Growth Rates F. Physical, Technological, and Financial Infrastructure IV. External Assistance V. Review of ADB Assistance and Strategy VI. The New Pacific Strategy

A Pacific Strategy for the New Millennium : III. Key Variables Influencing Development

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D. Sociocultural Context

32. Many Pacific cultures are substantially tribal based, adhering to a value system that elevates tribal and family allegiances above all else. While this value system has served the Pacific people well over time, it also influences these countries' economies in particular ways as they modernize and adopt global trends. The tribal system influences the stability of governments (particularly when governments are formed not on the basis of policy mandates but on tribal allegiances), the openness of governments to external investments, the ability of external investors to access land for commercial operations, the capacity of indigenous entrepreneurs to initiate and manage successful businesses while coping with extended family demands, and the ability of staff to reliably give time to employment rather than family matters.

33. Access to land, so critical to private investment, is substantially influenced by local custom. Most land remains under complex traditional ownership structures that do not provide formal ownership but provide access to land for family and community members. This prevents the use of land as collateral for credit. However, with rural populations growing there is not enough available land for subsistence living. Rural people need to move into the cash economy and to bring customary lands into the cash economy. In addition to constraining land structures, cultural and religious obligations in the PDMCs affect the viability of businesses or the ability to handle cash economy-type transactions.

34. The influence of cultural traditions must be considered seriously when designing development strategies. It is not suggested here that there should be a concerted effort to change these sociocultural traditions. Many traditions are extremely valuable even from an economic point of view, particularly to protect natural resources and provide social security safety nets. Their influence in addressing the major development challenges are real and significant. This needs to be recognized in the development of strategic approaches to enhance development in the Pacific.

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