Federated States of Micronesia: Private Sector Development Program

Policy actions must be formulated in a manner that does not leave room for ambiguity or interpretation of supported policy principles. A large number of policy actions under PSDP were not sufficiently defined to ensure or help ascertain the achievement of meaningful results. Examples include conditionality related to balanced budgets, wage differentials, or the adoption of new laws which did not convey the underlying principles that ADB expected to be realized and contributed to differences in understanding between ADB and the various governments regarding the nature of expected reform actions.