Countries and Regions

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p. 8 of 18 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Natural Resources and Rural Development B. Infrastructure C. Governance Dimensions of Asian Development Bank Operations D. Gender Dimensions of Asian Development Bank Operations E. Private Sector Operations IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Tuvalu : III. Sector Strategies

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A. Natural Resources and Rural Development

1. Rural Development

18. Most of the investment for development is concentrated on the main island of Funafuti. This trend increases income disparities within the country and allows pockets of poverty in the outer islands. The social differences and the migration pressure to the capital can be reduced by improving the outer islands' subsistence and boosting their development.

19. The rural communities in Tuvalu do not require a few large scale capital investments/projects to support their development needs. Rather, they require a number of small facilities/investments which cut across their social and economic activities. The ADB's IDP loan aims at supporting the process of decentralization, to achieve a significant level of development finance for island communities, and to create an improved enabling environment for island development. The trust fund created with the IDP is designed as a low transaction cost, flexible, and demand-driven mechanism to channel resources to the islands for projects identified by the communities themselves according to a set of eligibility criteria. In this respect the Program belongs to the genre of Social Funds loans ¹ .

2. Fisheries

20. The country's hope for economic development depends also on its ability to exploit its ocean resources. In particular, Tuvaluans' interest and donors' support for the development of commercial fishing have been evident for many years, yet no viable commercial projects have emerged. Past attempts at commercial fishing development have failed in a public sector environment with insufficient experience and institutional capability. Despite these failures, Tuvalu has been able to comfortably provide for the needs of its people through traditional subsistence fishing activities.

21. The IDP is supporting the provision in all of eight principal islands of community fishing centers. The centers, supplied with refrigeration and storage facilities, will purchase fish from fishermen and sell the products in the island and overseas thus creating, for the first time, real fishing markets. The centers should become one of the major cash income activities in the outer islands.

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