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This report results from the implementation of ADB's governance policy in the Pacific region. It provides an overview of governance issues, strengths, and weaknesses in ADB's Pacific Developing Member Countries (PDMCs); and it aims to improve the understanding of the governance environment, both in individual countries and the region as a whole, and as the basis for a more focused policy dialogue with PDMC governments on areas where development partners, and ADB in particular, can help make development assistance more effective. ADB staff prepared the report. The term governance has various meanings, but in broad terms the concept describes the institutional environment in which citizens interact among themselves and with government agencies. Good governance is concerned directly with the development process, involving both the public and private sectors. Indeed, the Asian Development Bank (ADB) considers it as an essential element in achieving its overarching objective of poverty reduction in the region. All members of the aid community, from their own experience, recognize that in countries with effective governments, strong oversight institutions, an independent judiciary, and a vibrant civil society—i.e., countries with good governance—development assistance helps reduce poverty; without it, such assistance is mostly ineffective.

This report results from the implementation of ADB's governance policy in the Pacific region. It provides an overview of governance issues, strengths, and weaknesses in ADB's Pacific Developing Member Countries (PDMCs); and it aims to improve the understanding of the governance environment, both in individual countries and the region as a whole, and as the basis for a more focused policy dialogue with PDMC governments on areas where development partners, and ADB in particular, can help make development assistance more effective. ADB staff prepared the report. The term governance has various meanings, but in broad terms the concept describes the institutional environment in which citizens interact among themselves and with government agencies. Good governance is concerned directly with the development process, involving both the public and private sectors. Indeed, the Asian Development Bank (ADB) considers it as an essential element in achieving its overarching objective of poverty reduction in the region. All members of the aid community, from their own experience, recognize that in countries with effective governments, strong oversight institutions, an independent judiciary, and a vibrant civil society—i.e., countries with good governance—development assistance helps reduce poverty; without it, such assistance is mostly ineffective.

To be read in conjunction with the Asian Development Bank report Poverty: Is it an Issue in the Pacific? The intent of the papers is to foster broadly based consultation among the Asian Development Bank, governments, and civil society for the purpose of developing a supportive and appropriate approach to ensuring equitable growth and poverty reduction. The views expressed in this paper are those of the authors and do not necessarily reflect the views or policies of the Asian Development Bank or the governments of Pacific developing member countries.

It is well known that fish and fishing are tremendously important to the people of the Pacific Islands. Much of the nutrition, welfare, culture, recreation, government revenue, and employment in the region are based on its living marine resources. What is less appreciated is that, besides being the most important of the fisheries in the region, tuna fisheries produce about ten times the amount of fish produced by all the other fisheries of the region combined. Their value is over seven times that of all the other Pacific Islands fisheries combined.

It is well known that fish and fishing are tremendously important to the people of the Pacific Islands. Much of the nutrition, welfare, culture, recreation, government revenue, and employment in the region are based on its living marine resources. What is less appreciated is that, besides being the most important of the fisheries in the region, tuna fisheries produce about ten times the amount of fish produced by all the other fisheries of the region combined. Their value is over seven times that of all the other Pacific Islands fisheries combined.

Throughout Melanesia and many parts of the Pacific, systems of government continue to be reviewed and restructured. Decentralisation of state powers and responsibilities from the national to provincial and lower levels of government is a recurring theme. The major rationale is that it is both more democratic and more efficient to locate decision-making powers closer to the people. A good deal of thought and effort by government planners and constitutional engineers has gone into central - local relations, particularly into the division of powers and financial arrangements between the two levels. From one country to another the resulting models of decentralisation have varied considerably. In all of this effort however, surprisingly little attention has been paid to the nature and shape of local-level government. In the years since independence, it is clear that in many Pacific countries local-level institutions have decayed and the quality of their governance has deteriorated. Now - in light of the apparent inability of national governments to provide stability, consistent services and good governance - the demand for the reform and strengthening of government at the local level is increasing. In May 2003, the State, Society and Governance in Melanesia Project hosted the Local-level Governance in the Pacific Workshop at the Australian National University. This discussion paper comprises the papers presented by two key speakers, Dr Penelope Schoeffel and Professor Mark Turner. Taken together they provide insights into models, structures and processes of local governance and how these might be developed in countries where governmental systems are under review. ; AusAID

One of the most hotly debated issues of fisheries policy in the Pacific is whether or not public funds should be used to finance commercial tuna fishing ventures. Many commentators from within the region argue for public investment in the industry to stimulate domestication. In this paper we propose an alternative policy in which tuna fishing revenues are invested offshore through a trust fund, rather than re-invested in domestic commercial fishing activity. Trust fund earnings could then be used to stimulate and support private sector initiatives and alternative economic activities. We use the example of Kiribati, one of the poorer Pacific island countries, to illustrate how offshore investment through a trust fund has succeeded in generating substantial revenues, when most Kiribati government corporations, including a state-owned fishing enterprise, have performed poorly.

One of the most hotly debated issues of fisheries policy in the Pacific is whether or not public funds should be used to finance commercial tuna fishing ventures. Many commentators from within the region argue for public investment in the industry to stimulate domestication. In this paper we propose an alternative policy in which tuna fishing revenues are invested offshore through a trust fund, rather than re-invested in domestic commercial fishing activity. Trust fund earnings could then be used to stimulate and support private sector initiatives and alternative economic activities. We use the example of Kiribati, one of the poorer Pacific island countries, to illustrate how offshore investment through a trust fund has succeeded in generating substantial revenues, when most Kiribati government corporations, including a state-owned fishing enterprise, have performed poorly.