Consider targeting support for reform initiatives in the FSM at individual states. Decentralized practices among the four states (Chuuk, Kosrae, Pohnpei, and Yap) make coordination and communication on policy issues a challenge. This challenge was compounded by the weak capacity of various implementing agencies and different views and levels of political commitment regarding the reform agenda. These resulted in varying degrees of performance. Through state-specific policy conditionality and project components, program design could have been adjusted for the uneven capacities, needs, and levels of political buy-in within the four states. While it can be argued that the uniform approach adopted by ADB was reasonable in light of resource constraints and efficiency concerns, it also needs to be considered that potential for synergies was limited and not sufficiently identified.
Federated States of Micronesia: Private Sector Development Program