The Pacific Approach of the Asian Development Bank (ADB) places good governance at the heart of the development agenda and identifies public sector management as an important driver of change. This study, prepared as a background for the Pacific Approach, reviews recent literature and analysis on the state's role in the development of Pacific developing member countries, and suggests priorities for future support by ADB and its development partners of improved state performance and capacity of these Pacific states.
The publication tells the story of the use of stakeholder participation to support public sector reform in Nauru and the Republic of the Marshall Islands (RMI). The report provides important lessons for donor agencies, for Nauru and the RMI, and for other Pacific island nations that mainly live off aid and other rents. The lessons concern what has gone wrong with governance and why, and what can be done to improve governance under existing conditions.