|Progress Toward Outcome
||The TA pursued improvements in economic management processes by capitalizing on the demand from Pacific DMCs for better economic management. Subproject 1 focused on a response to the global economic crisis. The subproject provided for ADB's contribution to a joint effort by development partners to help Pacific DMCs lessen the effects of the global crisis through improved economic monitoring, policy analysis, and dialogue. Assistance was to be provided to Pacific DMCs that demonstrated an appreciation of the need to take action to improve economic management. The main contribution of the TA was provided via the provision of highly experienced lead advisers to offer guidance and support to Pacific DMC decision makers and senior economic advisers. They applied key lessons learned from the Pacific and other regions toward successful economic reform. This support was provided through: (i) the preparation of policy briefs on specific topics requested by the authorities; (ii) contributions to published policy documents, such as budget statements and monetary policy statements; (iii) comments and suggestions on policy submissions prepared internally; (iv) the conduct of workshops and internal presentations to key staff members; (v) support for on-the-job learning opportunities, to transfer needed skills to enhance prospects of sustainability. In order to enhance the prospects of sustainability, Subproject 1 also focused support on central banks in close cooperation with other donors, including PFTAC. Where central banks are not present , the focus of support was on the economic areas of treasuries and ministries of finance. The TA contributed to structured and targeted regional dialogue of heads of treasuries and ministries of finance and central banks, principally through support for three regional events. A publication, the Pacific Economic Monitor, was produced jointly by ADB staff and the PEM TA. Economic monitoring undertaken by the PEM TA was drawn on by ADB staff in undertaking their country reporting for the Monitor. The PEM TA team have also authored/co-authored assessments released in the Monitor. The Monitor helped to underpin the analytical content of economic policy dialogue, and was widely disseminated to raise public awareness of key public policy issues. The TA also assisted in strengthening existing monitoring systems in central banks and ministries of finance. The TA has made good progress in incorporating higher-quality economic analysis and policy advice into decision-making in the COO, SOL, TIM and TON. Less progress has been made in the FIJ . Progress cannot be assessed of support to KIR, NAU, RMI and VAN, as support to these Pacific DMCs is in the early stages. In terms of supporting at least one coalition of change of key stakeholders, good progress has been made through support for the central banks in SOL, TON and VAN, with a view to assisting the integration of the central banks in a joint approach to fiscal and monetary management. Less progress has been achieved in COO, KIR, NAU and the RMI which lack a central banking institution as a potential basis for coalition of change. The TA made good progress in terms of facilitating internally generated public discussion of economic management proposals. This was achieved through public discussion of: monetary policy in TON (via the monetary policy statements of the Reserve Bank of Tonga); national planning in SOL; tax reform in TIM; and social welfare reform in the COO. In the COO, support was provided for a simplified public debt model that could be released publicly by the Ministry of Finance and Economic Management to assist dialogue on public debt. The TA also supported discussion of a wide-range of economic reforms in the FIJ, although this was not in the public domain. Media coverage (print, radio and television) of key economic management issues was enhanced, primarily through the establishment of the Pacific Economic Monitor.
|Description of Project Outputs
Expanded set of economic indicators, including lead indicators where feasible
Economic review assessments undertaken on topical economic issues
High-quality advice available for the open and transparent formulation of economic management
|Status of Implementation Progress (Outputs, Activities, and Issues)
Output 1. The TA helped the central banks of SOL, TON and VAN undertake internal enhancements to their monitoring systems. While these enhancements will assist monetary management, they did not lead to public reporting of an expanded set of indicators. The TA was responsible for the development and subsequent public reporting via ADB's Pacific Economic Monitor and Pacdatabase of an expanded set of economic indicators. The TA's work largely met the potential improvements in the use of out-of-country data. This alleviated the need for separate preparation and reporting of these expanded indicators by Pacific DMCs. The TA identified an unanticipated demand from Pacific DMCs for more sophisticated economic management tools than enhanced economic monitoring. In response, the TA expanded the scope of tools supported under this output. A Fiscal Management Model was prepared for the COO as tool for managing for fiscal stability. A second application of the model, to TON, has commenced. The PEM TA research team assisted ADB staff develop a test version of a generic macroeconomic forecasting framework (the PacModel). The team developed the capacity to undertake debt sustainability analysis according to the IMF/WB's framework for low income countries. Debt sustainability analyses were prepared under the supervision of ADB staff for the ministries of finance in COO and TIM.
Output 2. The TA has undertaken a wide range of economic assessments for economic agencies in the COO, FIJ, SOL, TON, TIM, TUV and VAN. Assessments have addressed key issues for economic management and generally have been provided on a timely basis. They have covered monetary, fiscal and debt policy and management, tax and industry policy, and support for the most vulnerable members of the community. Elements of TA assessments have been released publicly via monetary policy statements in TON and budget papers in the FIJ and public discussion papers in COO and TON. Region-wide assessments have been provided to regional conferences covering social safety nets and the actions needed to expand the region's economic base. The TA has also prepared additional country and regional-level assessments that have been released through the Pacific Economic Monitor. The Monitor is produced jointly by ADB staff and the PEM TA. Economic monitoring undertaken by the PEM TA was drawn on by ADB staff in undertaking their country reporting for the Monitor. Members of the PEM TA have also authored or co-authored assessments released in the Monitor. There has been active media (print, radio and television) coverage of the Pacific Economic Monitor.
Output 3. In the COO, the TA supported a 2010 public review of the welfare system initiated by the Government as a response to the (social and fiscal) impact of the global economic crisis. In SOL, the TA facilitated a Government-led workshop for senior policy makers and donor partners on the preparation of a replacement of the Medium Term Development Strategy 2008 2010.The framework was submitted for consideration by the new government to be appointed following mid-year general elections. At the request of the TIM MoF, the PEM TA supported a dialogue event on tax policy for members of Parliamentary committees. This event was followed by presentations on tax and investment policy to a Government Investment Conference. In June 2009, the ADB (through the PEM TA) and the PFTAC hosted a special regional meeting of economic agencies on the global economic crisis. In February 2010, the UN agencies, region agencies and the ADB (through the PEM TA) hosted a regional conference in Vanuatu on the human face' of the global economic crisis. Attended by close to 200 representatives of government, civil society, academia and development partners (http://vanuatu2010.un.org.fj/).
In October 2010, the TA Team Leader and a Lead Adviser provided a keynote presentation to the 2010 FEMM in Niue, titled Expanding the Economic Base'.