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Lesson
In small island economies, fiscal consolidation measures should take into account the size of the public sector. The role and magnitude of the public sector in a small, island economy and sporadic wage increases for civil servants put pressure on recurrent expenditure. These make it difficult to manage fiscal expenditure over time. A small economic base limits areas for alternative employment opportunities. This could imply that the share of the public sector in the economy would remain large in the longer term.

Project Number: 46385-001
Project Name: Strengthening Public Financial Management Program
Report Date:
Lesson
Short-duration programs should consider time lags for policy actions. A program of short timeframe should adequately reflect the time lags that usually occur in implementing policy actions. It would be difficult for a short-duration program, even with up-front delivery of vital reforms, to achieve indicators involving external debt-togross domestic product, revenue mobilization, sustainable fiscal outturn, and improvements in Public Expenditure and Financial Accountability ratings due to time lags of these actions.

Project Number: 46385-001
Project Name: Strengthening Public Financial Management Program
Report Date:
Lesson
Country ownership of reforms strengthen their success potentials.

Project Number: 48478-001
Project Name: Fiscal Sustainability Reform Program
Report Date:
Lesson
Development partner coordination fosters program success.

Project Number: 48478-001
Project Name: Fiscal Sustainability Reform Program
Report Date:
Lesson
Focusing on the most important measures boosts the likelihood of success of a reform agenda.

Project Number: 48478-001
Project Name: Fiscal Sustainability Reform Program
Report Date:
Lesson
Fitting reforms to the issues and contexts they are seeking to address is crucial to success.

Project Number: 48478-001
Project Name: Fiscal Sustainability Reform Program
Report Date:
Lesson
Ensure that outcome and output indicators are appropriate, and that the methodology to monitor them are identified during program design to better capture the success of the program.

Project Number: 45032-001
Project Name: Public Financial Management Reform Program
Report Date:
Lesson
Data requirements to provide evidence of achievement of performance targets need more attention and lack of M&E data has characterized this PCR

Project Number: 38160-032
Project Name: Integrated Urban Development Sector Project
Report Date:
Lesson
Adequate stakeholder coordination during project design could have prevented an overlap between the drainage rehabilitation and maintenance component of the grant and the Nuku’alofa CBD Reconstruction Project.

Project Number: 38160-032
Project Name: Integrated Urban Development Sector Project
Report Date:
Lesson
Donor coordination. Strong coordination amongst development partners, notably with the Government of Australia, was essential to the program's success. Australia provided in-line advisors to support the government to implement many of the program-related reforms (e.g., within the MOF and NUC) as well as TA that complemented the program. ADB's donor coordination role also meant ADB was requested by Nauru and its development partners to assist with the crucial task of establishing a new Nauru trust fund.

Project Number: 45032-001
Project Name: Public Financial Management Reform Program
Report Date:
Lesson
Technical foundations. The program benefitted from, and integrated, a range of TA from ADB and other development partners. This provided a strong foundation for the program's reform agenda, which meant policy actions were both well founded and viewed as appropriate by the government, despite the political and economic changes.

Project Number: 45032-001
Project Name: Public Financial Management Reform Program
Report Date:
Lesson
The potential for large shifts in the political and economic context can create significant challenges for implementation. The program was able to succeed despite encountering such challenges as it was strongly aligned with Nauru's own strategic policy agenda, in particular the National Sustainable Development Strategy.

Project Number: 45032-001
Project Name: Public Financial Management Reform Program
Report Date:
Lesson
Simplification. Institutional capacity within the government remains constrained. It is essential that ADB programs are as simple as possible in clarity of the policy agenda and ease of administration. Fewer policy actions with a tighter focus on the most important measures would assist and can help to avoid dilution of focus.

Project Number: 45032-001
Project Name: Public Financial Management Reform Program
Report Date:
Lesson
Under a sector modality, core subprojects should only be included at project appraisal if detailed feasibility studies have shown them to be implementable. Under this grant project, a core subproject (Sopu drainage channel) had to be dropped in the implementation phase when detailed design and feasibility studies revealed huge and unfeasible land acquisition needs.

Project Number: 38160-032
Project Name: Integrated Urban Development Sector Project
Report Date:
Lesson
One of the significant lessons from the project is the positive impact of early fielding of PIA (project implementation assistance) consultants. During project preparation, the capacity of the executing agency, MOW (Ministry of Works), was assessed as insufficient, particularly for detailed design, construction supervision, and overall project planning, monitoring, and reporting. The project design therefore provided for PIA consultants to assist and support MOW.

Project Number: 38160-032
Project Name: Integrated Urban Development Sector Project
Report Date: