The poor performance of some countries in raising incomes, creating employment, and providing adequate basic services suggests that past policies and strategies have either been inadequate or have failed.  Failures can be broadly attributed to weak governance, a lack of private markets and poor institutional development. National policies and strategies have also lacked consistency, continuity, and broad participation and ownership in their formulation and implementation.

Most countries have publicly promoted the private sector as a source of investment, growth, and employment, but few have supported these policy statements with positive action. Difficult access to land and the inability to use it as collateral for loans, low levels of labour productivity, inefficient utilities, poor infrastructure, imperfect regulations, and consequent higher than necessary transaction costs have often been cited as primary constraints to expanding the private sectors of many Pacific countries.

Creating greater economic opportunities in rural areas and outer islands needs however to be seen in the context of declining rural populations and the declining attractiveness of agriculture as a career for youth. What, if anything, can be done to halt or reverse these trends? What can governments really do to improve rural agriculture opportunities? How much can greater regional cooperation help to promote growth in Pacific countries, and what are the next steps to be taken?

These institutional weaknesses and failures need to be addressed and rectified if further poverty and hardship are to be avoided. A new consultative, participatory, conceptual framework for setting and implementing development priorities and strategies is needed. 

     Such a framework should stress:

(i)    the importance of strong regulatory institutions at the civil, community, and
       highest levels of government to ensure effective, equitable markets and
       contracts; and
(ii)   the importance of participation and consultation to generate commitment and
       ownership.

Strong institutions and governance backed by committed leadership and sound management are the keys to development progress and to the alleviation of poverty and hardship.

The three pillars of ADB's poverty reduction strategy focus on addressing these issues:

• good governance,

• inclusive social development,

• and sustainable, pro-poor economic growth.

The priorities of the people as expressed in the participatory assessments of hardship fit squarely within these pillars. The pillars also validate existing national development strategies. What is required at national levels is a greater focus on priority areas and a real commitment to implementation.

As more data from household surveys and from census analyses become available through the work of SPC and the Poverty Programme, it should be possible to target those communities and regions that have the greatest hardships and disadvantages. Supporting the development of national strategies and programs that address the priorities of the people and core areas will be a core activity for the Regional Poverty Programme.

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 Useful links:

• The Pacific Regional Poverty Programme

• The Regional Poverty Assessment and Analysis Already Undertaken

1. The Priorities of the People

2. The National Strategies and a Framework for the Future

• Hardship and Poverty in the Pacific: A SUMMARY

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For further information, please contact:

• David Abbott, Poverty Specialist and Development Economist.

David has more than 25 years of experience working in the region and has been responsible for the preparation of eight of the country poverty assessments.

• A Social Development Analyst and Participatory Poverty Assessment Specialist will be appointed soon.