Regional: Supporting Public Sector Management Reforms

Public sector management / Economic affairs management - Public administration - Public expenditure and fiscal management - Reforms of state owned enterprises

The TA is aligned with the Asian Development Bank (ADB) Strategy 2030 operational priority of strengthening governance and institutional capacity, accelerating progress in gender equality, and fostering regional cooperation and integration._ADB's Strategy 2030 also emphasizes a differentiated approach for small island developing states, given their unique structural constraints and vulnerabilities. Common areas for support in these countries are public procurement, tax administration, and state-owned enterprise (SOE) management. However, the approach to delivering support depends on the government's appetite for change, absorptive capacity, accessibility to technology, and platforms for communication. Under its Strategy 2030, ADB supports institutional strengthening in small island developing states to help enhance public service delivery, improve the business environment, and promote private sector-led growth. The TA also reflects the Pacific Approach, 2016-2020 strategic priority of managing risks through PSM operations that support country efforts to manage financial and economic risks._The TA is listed in the Regional Operations Business Plan, 2020-2022.

The TA is aligned with the following impact: delivery of public goods and services enhanced. The TA will have the following outcome: efficiency and effectiveness of public resource use improved.

Delivery of public goods and services enhanced.

Efficiency and effectiveness of public resource use improved

Quality PSM assessments supported

Capacity of the governments central oversight and planning agencies strengthened

PSM reforms prioritized and implemented.

Sep 2022 Update:

Overall, good progress made with technical assistance supporting diagnostic and reforms in the Cook Islands, Kiribati, Niue, Tonga and soon in Fiji, Samoa and Tuvalu. Specific progress against outputs are as follows:

(1)Tailored advice and assessment - in Tonga, the TA delivered an economic and social impact assessment on the Tongan economy. The assessment informed Tonga's efforts to deliver its socio-economic measures to manage the impact of the COVID-19 pandemic on individuals and the community, and to assess and monitor the impact of the stimulus package. This specific contribution supported the formation of ADB's 2021 policy-based grant operation for Tonga.

(2)Capacity of government central oversight and planning agencies supported. For instance, in Kiribati since the TA began in October 2020, over 100 government counterparts benefited from targeted training on fiscal planning, the budget framework and the role of Treasury, financial forecasting, budget execution, cash management, commitment controls, change management, and the State-Owned Enterprise monitoring and tracking tool.

(3)PSM reforms prioritized and implemented for example, in the Cook Islands, the strategic planning and organizational work with the Ministry of Finance and Economic Management led to the development and finalization of the Ministry's first Strategic Plan 2022-2026 which contains a prioritized list of economic reforms for the Cook Islands. The list will inform discussions and partnerships between the government and its development partners to implement critical reforms for improved fiscal management and service delivery.