Catalog

	Table of Contents
p. 26 of 29 BACK | NEXT Executive Summary I. Introduction II. Development Challenges III. Key Variables Influencing Development IV. External Assistance V. Review of ADB Assistance and Strategy VI. The New Pacific Strategy A. Broad Strategic Objectives of ADB B. Supporting Strategic Objectives C. Subregional Focus of the Strategy D. Regional Cooperation E. Operational Modalities F. Resource Requirements

A Pacific Strategy for the New Millennium : VI. The New Pacific Strategy

---

C. Subregional Focus of the Strategy

93. Differentiated Approaches. The varied resource endowments, capacities, opportunities, and developmental constraints of PDMCs will require the use of a variety of approaches. Conceptually, there are three main PDMC categories. The distinguishing features and priorities of the categories, and implications for the new strategy are summarized in Table 3.

94. Category 1: PNG, Solomon Islands, and Vanuatu. These countries have low population densities and relatively abundant natural resource endowments, but at the same time, relatively high poverty, poor social indicators, high population growth, and low labor mobility. The economies are characterized by weak public sector capacity, particularly to deliver essential social services. In line with ADB’s adoption of the poverty reduction objective, a major share of ADB resources and assistance will be directed to these countries where both poverty and population in the Pacific are concentrated.¹⁸ The thrust of ADB's assistance will be on expanding access in rural areas (and particularly by women) to pro-poor services, such as basic health and education, nonformal education, and microfinance. ADB assistance will include support for transport infrastructure (to improve access to disadvantaged regions) and for capacity building of local governments. ADB assistance will also seek to reduce high population growth rates.

95. Category 2: Cook Islands, Fiji Islands, FSM, Samoa, and Tonga. These countries generally have a higher skill base, good long-term growth prospects, moderate resource potential, strong tourism potential, high international labor mobility, generally good social development indicators, and low poverty. ADB will focus on physical infrastructure (including support for tourism-related infrastructure) and private sector development to promote economic growth. In terms of policy reform, particular emphasis will be given to removing bottlenecks or impediments to private sector investment and growth. In selected countries, outer island development based on the concept of a sustainable trust fund, and capacity building of local governments will be pursued.

96. Category 3: Kiribati, RMI, Nauru, and Tuvalu. These countries are severely disadvantaged by their smallness, isolation, and weak resource base. Their economies are characterized by high reliance on external assistance and trust funds, high population density, and high vulnerability to sea level rise. Although considered to have relatively low poverty, these countries have little, if any, potential for self-sustained economic growth. These countries comprise small, isolated, and vulnerable atoll economies. A special concern is the sustainability of financing of essential services. Accordingly, ADB will seek to establish and expand trust funds, in collaboration with its development partners, to finance public expenditures, particularly for projects and services in disadvantaged outer island communities. Given the limited scope for growth in these economies, two of which are classified by the United Nations as least developed (Kiribati and Tuvalu), ADB will explore opportunities for sustainable marine resource development, niche-market tourism support, and skills development for labor export.

Back B. Supporting Strategic Objectives	Next D. Regional Cooperation