Public sector management / Decentralization

The proposed assistance is part of an ongoing effort by donors to support improved financial management and budgeting of the Federated States of Micronesia (FSM). Assistance is being provided by the United States through the Department of Interior, the Pacific Financial Technical Assistance Centre (PFTAC) and the ADB.

The proposed TA follows on from TA4961-FSM Strengthening Economic Management and Planning and is included in the Country Operations Business Plan 2007-09. It is also consistent with the Pacific Regional Strategy, Strategic Objective 3, Good Governance, Key Results Area (v), Strengthened capacity of PDMC governments to plan and manage for development results.

Moreover, the proposed TA responds to previous requests by the government of FSM to continue ADB's support to improved financial management. FSM has received earlier support through the ADB in areas of financial management, economic management, statistics, policy and planning. However, FSM is a weakly performing country (WPC) and PARD believes it will be some time before financial management, budgeting and planning become truly sustainable at the State and National government levels. Support by other donors needs to be supplemented with continued ongoing implementation assistance, and the development of complementary budgeting systems that reflect the skills and sophistication of the government and its economy.

The 3 selected departments' operational and budget plans delivered on time.

Increased public perception of Gov't accountability and responsiveness.

(i) A good governance and policy advisory program for implementation by the state legislatures.

(ii) Greater adherence to public sector regulations though more accountable management practices.

(iii) Greater public awareness of and accountability for public sector performance.

(i) Good governance and policy advisory program for implementation by the state legislature.

(ii) Implementation of a state public sector senior management strengthening program.

(iii) Implementation of a public information and awareness program.

The Chuuk Women's Council study benefitted from 125 consultation rounds, gathering feedback from more than 6500 community members.

ADB's support to the Development Partners Forum, including the inputs from Dr Dante Canlas, was provided on the request of the FSM authorities. The Development Framework went through extensive rounds of consultation, including at the Forum itself.

Consultant inputs.

(i) A total of 11 consultants have been mobilized since the TA commenced, and three consultants (Economic advisors, Public administration/Institutional development expert, and Compensation Expert are currently engaged.)

(ii) Re-extended to 30 September 2014 to continue working on the discussion paper on development strategy and preparation of a training program for government officials based on the government's request to be conducted in May or June 2014.

(iii) Economic adviser works for designing and implementing staff capacity development program.

(iv) Public administration/Institutional development expert and Compensation expert work to help the authorities prepare a medium-term public administration reform plan, organization review plan, and compensation reform options (staff grading and pay structure).