Reforms in the Pacific: An Assessment of the Asian Development Bank's Assistance for Reform Programs in the Pacific

Abstract

During the period 1995-1998, the strategic focus of the Asian Development Bank’s operations in Pacific Developing Member Countries (PDMCs) shifted from sector and project lending to support for macroeconomic stabilization and structural adjustment, and public sector and governance reform. This was in response to specific economic conditions in various PDMCs and related responses by their governments, as described below. It was also consistent with the Bank’s revised Strategy for the Pacific (ADB 1996), which was adopted in October 1995. This strategy notes that it is important that the Bank first assist PDMCs to get their economic policy and governance environments right, thus ensuring that follow- up sector and project investments achieve due returns. Hence, during 1995-1998, program lending in support of economic, public sector, and governance reforms assumed a significant proportion of the Bank’s lending in the Pacific.