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Lesson
The incentive framework should have played a larger role in moving the economic agenda forward.

Project Number: 39658-013
Project Name: Economic Recovery Program
Report Date:
Lesson
All Pacific developing member countries, including Samoa, experience great difficulty implementing long-term structural adjustment policies. While demand-side, short-term price stabilization policies may be more readily implemented, longer-term changes to land tenure and state-owned enterprises and efforts to liberalize trade and investment regimes confront a very difficult political economy environment in the Pacific islands. Governments are comfortable with short-term price reforms that pose less of a challenge to the political economy.

Project Number: 43191-013, 43191-023
Project Name: Economic Recovery Support Program - Subprograms 1 and 2
Report Date:
Lesson
The program's DMF was overambitious (para. 8) and, based on ADB guidelines for DMF preparation could have been correctly recast to make the outcome the intended impact and output 1 the intended outcome. The outcome and impact statements and indicators and targets in a DMF need to be realistic and take into account the country context. [Main text, para. 38]

Project Number: 43321-013, 43321-023
Project Name: Public Sector Program - Subprograms 1 and 2: Program Completion Report
Report Date:
Lesson
The intended program outcome of achieving fiscal sustainability was overambitious, given the historically slow pace of reforms in the Republic of Marshall Islands and in other countries facing fragile situations. Moving forward with the reforms needed to fully deliver the program outputs required approval of three key pieces of enabling legislation, but the program design did not take into account the likelihood of a lengthy parliamentary approval process and underestimated the political opposition such reforms might encounter.

Project Number: 43321-013, 43321-023
Project Name: Public Sector Program - Subprograms 1 and 2: Program Completion Report
Report Date:
Lesson
Policy dialogue required on-the-ground support from ADB. Establishment of the ADB development coordination office in November 2011 played a key role in forging policy dialogue, although this was undertaken issue-by-issue (expenditure management, taxation, and state-owned enterprise reform) rather than through a holistic approach. Other development partners also provided substantial support for public sector reform in the Republic of Marshall Islands, but the coordinated dialogue with government that has been used successfully in programs elsewhere in the Pacific was missing.

Project Number: 43321-013, 43321-023
Project Name: Public Sector Program - Subprograms 1 and 2: Program Completion Report
Report Date:
Lesson
All Pacific developing member countries, including the Republic of Marshall Islands (RMI), have great difficulty implementing policies to support long-term adjustments. The program included several line expenditure conditions under output 2 that the government struggled to implement and monitor (para. 16). In the end, the government decided to make across-the-board expenditure cuts rather than the targeted cuts proposed under the program. The condition targets were related to budget estimates rather than budget outturns.

Project Number: 43321-013, 43321-023
Project Name: Public Sector Program - Subprograms 1 and 2: Program Completion Report
Report Date: