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Lesson
Public sector reforms in Tuvalu require persistent dialogue and longer-term in-country technical assistance (TA) support.

Project Number: 50377-001
Project Name: Improved Fiscal and Infrastructure Management Program
Report Date:
Lesson
Translating public sector reforms into actual development outcomes is always challenging in a capacity-constrained public sector such as that of Tuvalu.

Project Number: 50377-001
Project Name: Improved Fiscal and Infrastructure Management Program
Report Date:
Lesson
TA enhances the sustainability of the reform process.

Project Number: 47318-001
Project Name: Strengthened Fiscal Sustainability Program
Report Date:
Lesson
Grants are particularly useful in providing immediate fiscal relief to small and fragile economies.

Project Number: 47318-001
Project Name: Strengthened Fiscal Sustainability Program
Report Date:
Lesson
Setting policy reforms as conditions for fund releases provides a useful incentive for advance reform actions.

Project Number: 47318-001
Project Name: Strengthened Fiscal Sustainability Program
Report Date:
Lesson
Ownership and continuity. Government leadership was strong in formulating the policy reform matrix, in coordinating policy dialogue, in mobilizing external budget support, and in formulating the program. Program reforms were championed by the Finance Minister, the permanent secretaries for Cabinet and Ministry of Finance and Economic Development, and the Australian-funded budget advisor. Their support was crucial to ensure that reforms were complete before the date that ADB's Board of Directors was to approve the grant.

Project Number: 45395-001
Project Name: Strengthened Public Financial Management Program
Report Date:
Lesson
Public enterprise reforms. In small economies like Tuvalu, there will be constraints on efforts to sell state assets and encourage new private investment as economies and markets are simply too small to attract sufficient private interest. Pragmatic and flexible approaches, likely involving some measure of experimentation, need to be adopted in order to ensure that services are not disrupted, that losses are curtailed, and that performance improvements are realized.

Project Number: 45395-001
Project Name: Strengthened Public Financial Management Program
Report Date:
Lesson
Complementary TA support. Capacity-building technical assistance support should be closely linked to policy reform matrix implementation. Capacity constraints hamper the government's ability to follow through on agreed reforms. Even though the program reform agenda was carefully prioritized and focused, the government had other policy reform matrix reforms and routine government administrative matters to attend to.

Project Number: 45395-001
Project Name: Strengthened Public Financial Management Program
Report Date:
Lesson
Medium-term policy engagement. While a single-tranche modality was selected for ADB's operation, this was embedded in a programmatic, multiyear, policy reform effort with ongoing reforms contained in the policy reform matrix supported by several partners. The reforms selected were few in number but large in potential impact. They were clearly defined, widely owned, and had time-bound milestones that triggered financial and technical support, either by ADB or by other partners supporting the government-led reform effort.

Project Number: 45395-001
Project Name: Strengthened Public Financial Management Program
Report Date:
Lesson
A single, government-led, policy matrix can enhance coordination and collaboration amongst development partners. The policy reform matrix has evolved into a highly consultative process around which development partners coordinate their budget support and technical assistance for reform. This process has helped the partners speak with one voice to the government and has created a situation in which line ministries actively compete to have reforms listed in the policy reform matrix.

Project Number: 45395-001
Project Name: Strengthened Public Financial Management Program
Report Date:
Lesson
Consultants may need to spend more time in country (depending on the technicality of the conditions) to deal with issues as they arise and support the timely delivery of outputs and outcomes. [Main text, para. 30]

Project Number: 41180-022
Project Name: Improved Financial Management Program
Report Date:
Lesson
Conditions need to be achievable and realistic so that they can be implemented in a timely manner. The requirement to have a legal framework in place for the supervision and monitoring of banking activities, compatible with the Basel Principles of Banking and Supervision, proved challenging and potentially too ambitious for such an administration as small as Tuvalu yet this is an important element if there is to be private sector involvement in banking in Tuvalu. The country has limited technical capacity to implement such a legal framework and continuing assistance will be required.

Project Number: 41180-022
Project Name: Improved Financial Management Program
Report Date:
Lesson
Policy conditions for the release of tranches should be appropriate and achievable by the government and executing agency. In the case of Tuvalu, the requirement that Parliament adopt the regulatory framework for banking supervision as a condition for tranche release was out of the direct control of the government, and therefore constitutes a high risk to program success. [Main text, para. 30]

Project Number: 41180-022
Project Name: Improved Financial Management Program
Report Date:
Lesson
The scope of the program needs to be kept as simple as possible to reflect the country's capacity. [Main text, para. 30]

Project Number: 41180-022
Project Name: Improved Financial Management Program
Report Date: