Foreign Assistance: Lessons Learned From Donors' Experiences in the Pacific Region Page: 52 of 60
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Appendix VI: Comments From the Republic of
the Marshall Islands
Director Yager Letter
culy 19, 2001
S1. More explicit recognition that one size does not fit all with economic
The Asian Development Bank has begun to recognize the inherent differences
among Pacific islands states and how these differences can potentially impact
development programs and projects. The paper discusses the one size fits all
approach of the Compact of Ftce Association with Palau, RM and FSM. The
U.S. is stressing the new sectorial approach and should recognize the different
environments and resoutres that will impact development in the RMI and the
FSM under the re-negotiated Compact. A document or aid package that stresses
the same sectors in the RMI and FSM will be missing out on the important points
learned from the ADB. Different factor endowments will dictate different
approaches toward development. These factor endowments will also have impact
on the eventual success or failure of economic development programs and
projects. In terms of development and the potential for development there are
important differences that must be recognized by the United States when
considering the different development paths in the RMI and FSM. There must be
some understanding as to how these differences will impact the sectorial approach
being developed by the United States for the Compact.
For example, since RMI has little in terms of natural resources on land, the
development of the Marshall Islands Intergenerational Trust Fund should have
more weight assigned towards its future development, than say agriculture. This
natural resource situation may not be so lopsided in the FSM. However, when the
topic of the environment is brought up, what is beirtg considered? In the RMI
issues of marine resources and their management should be a major focal point in
the discussion, Again, the assignments of weights, or relative value, should be
explored; to what extent are programs delivered for natural resource development
and protection and marine resource development and protection? Every
development topic or sector needs to be evaluated in this manner.
2. In theory and practice, what are the strengths and weaknesses of the sector
based aid delivery approach?
There is discussion on the sector-based approach and how it could strike a balance
between flexibility and accountability. But there is little evidence provided. The
report mentions that this sector-based approach is being applied on a pilot basis
only in Papua New Guinea in the health sector. The report mentions there has
been substantial literature produced over the last two decades as well as
Director Yager Lc er
GAO-01-808 Pacific Development Assistance Strategies
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United States. General Accounting Office. Foreign Assistance: Lessons Learned From Donors' Experiences in the Pacific Region, report, August 17, 2001; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc293232/m1/52/: accessed December 16, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.