Fragile and Conflict-Affected Situations (FCAS) and Small Island Developing States (SIDS)
Developing context-specific tailored support for FCAS and SIDS is a critical element in ADB’s approach to helping build resilience and secure lasting stability and development in the most vulnerable environments.
Samuel Tumiwa, Chief of ADB’s Fragile and Conflict-Affected Situations Thematic Group, discusses fragility and vulnerability challenges in FCAS and SIDS countries and how ADB is helping through financing and knowledge sharing.
Digital connectivity infrastructure in the Pacific has helped to considerably lower internet costs and broadened access for huge swathes of the population. The improved bandwidth has led to more efficient government services, and an expansion in the private sector. Education and health services have also benefitted from the expansion of broadband across the Pacific. Reliable internet means new businesses, particularly in technology and fintech, can grow. The result is a major boost to economic and social development in the Pacific.
ADB is well placed to match investors with appropriate projects in Pacific countries. ADB can offer "credit enhancements" products when lending to private sector investors to mitigate risk. An example is the Pacific Renewable Energy Program (PREP). Smaller island states and fragile countries often cannot guarantee power utility payments. This can discourage private investment in the sector.
The PREP offers credit for up to 21 months if the power utility is unable to pay invoices. This allows time to address issues while power delivery continues. The PREP encourages investors to develop renewable energy projects in Pacific countries without having to rely on government guarantees.
The Pacific Economic Monitor (PEM) contributes to economic growth and development by providing a platform for knowledge sharing. This includes macroeconomic outlooks and critical policy issues, along with responses and reforms. During severe shocks such as the 2008-2009 global financial crisis and the COVID-19 pandemic, the PEM supports policymakers to help them mitigate the socioeconomic impacts.
The PEM helps Pacific countries tackle long-term issues such as climate change, disaster risk management, social protection, employment creation, and connectivity. The result is DMCs with more focused long-term strategies for inclusive and sustainable growth.
ADB’s Multi-Hazard Disaster Risk Assessment (MHDRA) also helps contribute to positive regional development outcomes. Data sharing through the MHDRA helped Tonga assess damage and recover more quickly from the volcanic eruption in January 2022. Data from the MHDRA has helped ADB conduct project climate risk and vulnerability assessments.
Although ADB does not involve itself in politics of its DMCs, it does have a deep understanding of the political context in which it operates. This knowledge, the fruits of decades of engagement, helps ADB focuses its projects, resources, and strategies. This approach helps the bank tailor its development solutions to the specific contexts in which it operates.
Successful country or sub-regional strategies take into account specific political considerations along with the ethnic, social, economic, and environmental context. Including such considerations into programing, project design, and implementation leads to more successful ADB projects in FCAS and SIDS.
Many of the poorest and most vulnerable countries in the region have only limited capacity to manage shocks from economic and geo-political events, natural hazards, and climate change. Some also have to contend with geographic isolation and conflict. So they are not in a strong position to handle a global pandemic that even wealthy countries found hugely demanding.
Throughout the COVID-19 pandemic, ADB achieved an outsized per capita impact for every dollar lent to the countries that needed it the most. The Asian Development Fund 13 continues to be a major fund source for these countries. The bank’s Pacific Disaster Resilience Program and the COVID-19 Response for Affected Poor and Vulnerable Groups Project offered significant help to its small island DMCs. This was done by funding development activities, strengthening essential services, and rebuilding communities through rapid disbursement of financing.
ADB put its assistance to Afghanistan on hold in August 2021. ADB is withholding disbursements and activities in the country until the status of the de-facto government is clarified and/or ADB makes a decision on the relationship with the de-facto government. The cooling-off period ends if and/or when the bank decides on its relationship with the de-facto government, resumes existing operations, and initiates new operations.
Taking into account the intensity of the humanitarian crisis, ADB approved four grants totaling $405 million in January 2022 for the Sustaining Essential Services Delivery Project (Support for Afghan People). The grant covers food security enhancement, core public health services, and sustaining access to education.
The grants are funded from ADB’s Asian Development Fund 13 resources. The project is being implemented by four United Nations agencies. There has been no engagement with the Taliban regime in the approval and implementation of these grants.
Due to the acute humanitarian needs and the country’s ongoing international isolation, ADB should continue supporting Afghanistan in food security, education, health, community resilience, and livelihoods. ADB support for health and education is creating synergies with World Bank and other donor partner support.
ADB is helping Papua New Guinea (PNG) achieve universal health coverage through its Rural Primary Health Services Delivery Project. The project has established 34 rural health facilities, three urban health clinics and one district hospital. In addition to delivering the health infrastructure, the project has trained health workers across the country on essential and emergency obstetrics care.
The project will strengthen rural health systems and builds on the bank’s experience in strengthening health service delivery in rural areas of PNG. To date, over 7,200 births have been registered at health facilities delivered under the project, in addition to offering antenatal and postnatal health services to women.
Advisor, SDCC and Chief of Fragile and Conflict-Affected Situations
Principal Operations Coordination Specialist (Conflict-Affected Situations)
Principal Operations Coordination Specialist (Fragile Situations)
Senior Operations Coordination Specialist (Fragile Situations)
Operations Coordination Specialist (Conflict-Affected Situations)
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