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Th e Vanuatu Economic Report 2009 outlines the state of economy and social development in the country and presents a road map for addressing key development challenges. It identifies the principal binding development constraints and opportunities in public sector performance, private sector and social development, and governance.

This Climate Change Implementation Plan (CCIP) for the Pacific Regional Department (PARD) of the Asian Development Bank (ADB) describes the areas of focus for PARD's operations and identifies key gaps between country and ADB actions, as well as opportunities for scaling up ADB's assistance related to mitigation, adaptation and associated cross-cutting needs. This gap analysis points to recommended interventions in regional and country programs for additional technical assistance (TA) and financial assistance, including access to new climate funds and adoption of new financing mechanisms. These include multi-donor Climate Investment Funds (Clean Technology Fund and Strategic Climate Fund), ADB's Future Carbon Fund, and possibly a new Sustainable Fuel Credits mechanism to promote reduced petroleum consumption. The CCIP will evolve through periodic updates in order to effectively guide ongoing and future programs and TA and project design. Going forward, specific climate change interventions will continue to be incorporated into the Country Partnership Strategy (CPS) and Country Operations Business Plan (COBP) for each Pacific Developing Member Country (PDMC) and into the Regional Operations Business Plan (ROBP) for the Pacific region as a whole. TA and investment projects will be designed, taking into consideration regional and country variations in governance, institutional capacity, and geographic and local environmental conditions.

The South Pacific Regional Environment Programme (SPREP) was originally established as a result of a decision taken at the Conference on the Human Environment in the South Pacific held in Rarotonga in 1982. It was established as a separate entity within the South Pacific Commission (SPC - now the Secretariat of the Pacific Community) based in Noumea, New Caledonia; and formed part of the UNEP Regional Seas Programme.

The Pacific Strategy for the New Millennium1 of the Asian Development Bank (ADB) focuses on the core objectives of (i) continuing support for economic growth, good governance, and public sector reform; (ii) promoting private sector development as the engine for growth; and (iii) supporting sustainable environmental management and equitable social development. A new regional strategy is being prepared for ADB operations in the Pacific, which will focus on the priority needs of the poor, as defined by an extensive program of qualitative and quantitative poverty assessment, based on listening to the voices of those in hardship or poverty. The new strategy will focus on improving access to basic services and creating employment opportunities. As the Government is beginning preparation of its Strategic Development Plan 8 (SDP8) for 2005-2007, it is timely to review ADB’s strategy and program for Tonga.

The evolution and expansion of the human species over the past few hundred thousand years, an infinitesimal fraction of planetary time, now sees us as the dominant life form on Earth. We are dominant because of our intelligence and adaptability, and our need to constantly strive for newer and better ways of doing things. But there are now six billion of us, predicted to increase to 8-10 billion by 2050, and our domination of the planet is paralleled by the massive impact that we have had on the Earth's ecosystems. A recent mapping of the human footprint on the planet has concluded that more than 80% of the Earth's land surface is directly influenced by humans. We consume 40% of the Earth's net primary productivity, 35% of oceanic shelf productivity and 60% of freshwater runoff. As a result, remaining natural landscapes are rapidly being modified and the Earth's biological diversity continues to decline at an alarming rate. The Millennium Ecosystem Assessment (MEA) has found that in the last several decades 20% of the world’s coral reefs were lost and 20% degraded, while 35% of mangrove area has been lost. The MEA also concluded that humans have likely increased the species extinction rate by as much as 1,000 times over background rates typical throughout Earth's history.

The purpose of the Asian Development Bank (ADB) Pacific Strategy 2005-2009 is to provide a framework for ADB operations in its 14 Pacific developing member countries (PDMCs)1 and for ADB support to regional cooperation in the Pacific. This third ADB Pacific Strategy will allow ADB's Pacific Department (PARD) to better focus its activities, deepen its experience and expertise in key result areas (KRAs), and align resources to strategy objectives, in order to maximize the impact of ADB support to the development efforts of the PDMCs.

ADB's strategy for Tonga supports the Government's development goals. The focus of assistance in 2005-2006 will be (i) continuing assistance to the Government's reform program to enhance sound economic and public sector management; (ii) addressing the emerging deterioration in some social indicators through targeted interventions that promote inclusive social development; and (iii) improving the enabling environment for private sector development. The key projects for the period under consideration will be (i) assistance to develop a new strategic development plan for Tonga, linked to a multi-year fiscal framework and an annual resource allocation process; (ii) continued support for public enterprise reforms, especially the privatization of selected public enterprises; (iii) addressing youth unemployment and associated social problems; (iv) improving basic infrastructure for drainage and sanitation in selected areas in the capital, Nuku'alofa; and (v) agriculture sector development through an enhanced policy environment and development of small and medium agriculture-based enterprises.

In 2004, the Government of Tonga reaffirmed its commitment to achieving the development objective of improving living standards, set out in the Strategic Development Plan 7 (SDP7) for 2001-2003. Throughout that period, the Government focused on implementation of the Economic and Public Sector Reform Program (EPSRP), which aims at maintaining a stable macroeconomic environment and achieving sustainable economic growth, led by private sector development and supported by an efficient and effective public sector. Through SDP7, the Government plans to achieve social and economic objectives of individual fulfillment, gender equity, political stability, and a stable economic and financial environment.

The Pacific Strategy for the New Millennium1 of the Asian Development Bank (ADB) focuses on the core objectives of (i) continuing support for economic growth, good governance, and public sector reform; (ii) promoting private sector development as the engine for growth; and (iii) supporting sustainable environmental management and equitable social development. A new regional strategy is being prepared for ADB operations in the Pacific, which will focus on the priority needs of the poor, as defined by an extensive program of qualitative and quantitative poverty assessment, based on listening to the voices of those in hardship or poverty. The new strategy will focus on improving access to basic services and creating employment opportunities. As the Government is beginning preparation of its Strategic Development Plan 8 (SDP8) for 2005-2007, it is timely to review ADB’s strategy and program for Tonga.