Tonga and ADB
In the Spotlight
Investments in basic services must be complemented by policy and regulatory reforms as well as capacity development to support a shift towards more commercially viable utilities in the Pacific, says the latest issue of the ADB Pacific Economic Monitor.
ADB is scaling up its assistance in the Pacific, with our active portfolio growing from $500 million in 2004 to $2.6 billion at the end of 2017.
ADB has provided $6 million to the Government of Tonga to help fund priority early recovery activities following the onslaught of Tropical Cyclone Gita, which tore through Tongatapu, Tonga on 12 February. ADB is also providing an additional $1 million, in the form of a grant.
This country brief summarizes how the partnership of ADB and the Tonga government has helped to reduce poverty and is aiding in the country's recovery from the global economic crisis.
The economy of Tonga is highly dependent on subsistence agriculture, extremely vulnerable to natural hazards, and heavily reliant on external income (donor aid and remittances). Its medium-term development depends on the continued implementation of structural reforms to improve productivity, remove bottlenecks to growth, and strengthen macroeconomic resilience.
ADB and other development partners are working closely with the government to implement a multiyear joint policy reform matrix , which will ensure that Tonga’s development priorities are addressed and policy reforms are realized. The medium-term policy goals for the government include maintaining macroeconomic stability—particularly in light of high public debt—and improving economic management. Policy reforms also seek to achieve sustained economic growth led by the private sector, while maintaining the country’s health and education standards.
Projects in Tonga
- Outer Island Renewable Energy Project-Additional Financing
- Enhancing ADB’s Support for Social Protection to Achieve the Sustainable Development Goals
- Cyclone Gita Recovery Project
- Pacific Information and Communication Technology Investment Planning and Capacity Development Facility (Phase 2) - Feasibility Assessment for e-Government Rollout in the Pacific Developing Member Countries (Subproject 1)
- Pacific Disaster Resilience Program