Pacific Private Sector Development Initiative
The Pacific Private Sector Development Initiative (PSDI) is a regional technical assistance facility cofinanced by the Asian Development Bank, the Government of Australia, and the New Zealand Government.
Launched by ADB in 2006, with cofinancing from Australia, PSDI is now entering its third phase with funding from ADB, Australia and New Zealand.
Operating out of ADB’s Pacific Liaison and Coordination Office in Sydney, PSDI works with ADB’s 14 Pacific Developing Member Countries (DMCs) to improve the enabling environment for business and support inclusive, private sector–led economic growth.
Analysis of the constraints to growth forms the basis of PSDI’s reform strategies in Pacific DMCs, leading to in-depth policy dialogue and advocacy with both government and the private sector. This results in targeted policies that remove constraints and improve the business climate being integrated into ADB’s Country Partnership Strategies. Periodic updates of analytical work assess progress and ensure that reform priorities remain on track.
PSDI focuses on five core areas:
- Reform of the financial sector to promote access to finance and financial services;
- Reform of business legislation and regulation, with technology as a key driver of change;
- Reform of State-owned Enterprises (SOEs) and promotion of public-private partnerships (PPPs);
- Advancement of the economic empowerment and status of women;
- Promotion of competition policy frameworks and consumer protection.
This approach has enabled PSDI to be efficient and innovative in tailoring assistance to the particular needs of each country.
PSDI is helping Pacific DMCs to improve business laws to encourage business formalization; leverage digital technology to reduce red tape and make it easier to do business; improve access to finance for businesses in the region; improve the efficiency of SOEs resulting in better public service delivery, more private sector opportunities, and better corporate governance; improve the framework for competition in the region; and promote the economic empowerment of women.
PSDI is assisting the following countries:
- Cook Islands
- Marshall Islands
- Micronesia, Federated States of
- Papua New Guinea
- Solomon Islands