Reform prioritization and sequencing could lead to more durable results. A steady, step-by-step pace of reforms may be more suitable in the Tongan context, given prevailing capacity constraints. The process of implementing reforms takes time, especially for reforms that require specialized skills, such as those in PFM and those that are structural in nature; these types of reforms take time to implement and cannot be completed by a single quick-disbursing stand-alone program. The program’s sequence of policy actions in the reform areas of PFM, PSEs, and business environment could have prioritized the binding constraints, such as the legal and regulatory issues, before getting into the operational aspects of the reform issues. However, this was not the case for the policy actions on social protection, which targeted vulnerable groups without an established system for identification, delivery, and monitoring. Also, ADB’s coverage of areas for policy reforms under the program could have focused on key needs and constraints. A gradual approach that considers more realistic timelines and proper sequencing could allow more flexibility in prioritizing and refining key policy actions in successive stages of the reform process. This could help strengthen the enabling environment for reforms, foster learning, and build capacity for policymaking and implementation.
Economic Support Program