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Asia’s robust economic growth in the past decades has lifted millions out of poverty. From an estimated 1.4 billion people living in extreme poverty in 1990 the number had gone down to about 903.4 million by 2005.1 Still, rapid economic growth and pervasive poverty have continuously degraded the region’s natural resources. The quality of the environment has deteriorated, and climate change has had an impact, threatening the productivity and integrity of natural systems as well as people’s health, safety, and livelihoods.

A strong state reinforces investment yield, whether this results from public or private sector investment. Th e development needs of a weak state must diff er from those of a strong state. Th e fragile states of the Pacifi c are not the dynamic societies of Asia.1 Th ese may sound like obvious statements but the special needs of Pacifi c fragile states have not been apparent in earlier approaches to development in the Pacifi c region. Current Asian Development Bank (ADB) regional and country strategies and programs diff er from those of earlier years. Emphasis on maintaining project loan portfolios has been lessened and replaced by an emphasis on strengthening state operations, including testing and strengthening the demand for reform, and engaging civil society in development decisions. Th e shift is toward greater participation in development with the aim of building demand for good governance and reform to support performance-oriented delivery of public and private goods and services.