Asian Development Bank - Transparency to the People: Using Stakeholder Participation to Support Public Sector Reform in Nauru and the Republic of the Marshall Islands

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Pacific Studies Series

Transparency to the People

USING STAKEHOLDER PARTICIPATION TO SUPPORT PUBLIC SECTOR REFORM IN NAURU AND THE REPUBLIC OF THE MARSHALL ISLANDS

Asian Development Bank

2010 Asian Development Bank

All rights reserved. Published in 2010.

Printed in the Philippines.

ISBN 978-92-9092-094-6

Publication Stock No. RPT102238

Cataloging-In-Publication Data.

Asian Development Bank.

Transparency to the people: using stakeholder participation to support public sector reform in Nauru and the Republic of the Marshall Islands.

Mandaluyong City, Philippines: Asian Development Bank, 2010.

1. Governance.2. Public sector reform.3. Participation.4. Nauru.5. Republic of the Marshall Islands.I. Asian Development Bank.

The views expressed in this document are those of the author and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent.

By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB.

All photos, with the exception of the lower left photo on page 26 taken by Dirk Spennemann, have been provided by Dr. Tim OMeara.

Note: In this publication, $ refers to US dollars, unless otherwise stated.

6 ADB Avenue, Mandaluyong City

1550 Metro Manila, Philippines

Tel +63 2 632 4444; Fax +63 2 636 2444

www.adb.org

For orders, contact

Department of External Relations

Fax +63 2 636 2648

Contents

Foreword

Abbreviations

THE QUESTION OF GOVERNANCE

Encouraging Reform of Governance

The Challenge of Good Governance in the Pacific

The Lever of Transparency and the Fulcrum of Personal Interest

Transparency as a Process Conditionality

NAURU: PILOT PROJECT FOR THE NATIONAL ECONOMIC FORUM CONSULTATION PROGRAM

Conditions on Nauru at the Time of the Project

Evolution of the Pilot Project

Implementation of the Pilot Project

Public Awareness and Consultation Meetings

Straw Polls and Household Opinion Survey

The National Economic Forum

Post-Project Developments

MARSHALL ISLANDS: PILOT PROJECTS FOR IMPROVED EDUCATION AND SOLID WASTE MANAGEMENT

Pilot Project for Increasing Ownership of and Effective Demand for Improved Education

The State of Education in 2005

The Pilot Project in Education

Project Outcome and Subsequent Developments

Pilot Project for Increasing Ownership of and Effective Demand for Improved Solid Waste Management

Solid Waste Management on Majuro in 2006

The Pilot Project in Solid Waste Management

Post-Project Developments and Assessment

THE TRANSPARENCY APPROACH ASSESSED

References

Foreword

The societies of the Republic of the Marshall Islands () and Nauru have long struggled to accelerate the slow pace of their economic and social development. Making wise development decisions is not easy in countries characterized by a scarcity of resources, isolation, and other geographic constraints, and the resulting dearth of development opportunities. The slow pace of creating effective, modern systems of government in these countries has also made decision making more difficult. Modern systems of public sector management that engage citizens and respond to their needs are not yet well established, allowing traditional systems of government to endure and opening the door to the pursuit of private, vested interests at public expense.

Despite comparatively large amounts of development assistance in the RMI and, in the case of Nauru, income from phosphate mining, the economies and societies of these countries have tended to driftif not declinewithout reform and appropriate, supportive development decisions. Markets have not developed, jobs have not been created, and standards of education, health, and other welfare have fallen. Crime has risen and inequality has emerged. The challenge is to overcome deeper constraints on governance, market creation, and service delivery.

In many instances, assistance to the governments of the RMI and Nauru has reiterated advice already provided, or supported refinancing and rebuilding. Aware of these disappointing outcomes, the Asian Development Bank () is determined to provide assistance to these countries that is more participatory and transparent, to achieve lasting solutions.

Recent ADB assistance to the RMI and Nauru is described in this report. The report aims to foster appreciation and understanding of the difficulties facing agencies such as ADB as they try to help Pacific island countries develop. The consultative and participatory approach described here appears to have benefited these small, close-knit, traditional societies. This experience may provide guidance to development efforts not only in the RMI and Nauru, but in other Pacific island countries. The work described here was managed by Steve Pollard, principal economist of ADBs Pacific Department, assisted by Dr. Tim OMeara acting as consultant to ADB and the Australian Agency for International Development.

Robert Wihtol
Director General
Pacific Department

Abbreviations

ADB	Asian Development Bank
AusAID	Australian Agency for International Development
CMI	College of the Marshall Islands
EIA	environmental impact assessment
EPPSO	Economic Policy, Planning, and Statistics Office (Republic of the Marshall Islands)
GDP	gross domestic product
MALGov	Majuro Atoll local government
MAWC	Majuro Atoll Waste Corporation
MOE	Ministry of Education (Republic of the Marshall Islands)
MOH	Ministry of Health (Republic of the Marshall Islands)
MPW	Ministry of Public Works (Republic of the Marshall Islands)
NEFCP	National Economic Forum Consultation Program
NGO	nongovernment organization
NPC	Nauru Phosphate Corporation
PSC	Public Service Commission (Republic of the Marshall Islands)
RMI	Republic of the Marshall Islands
TA	technical assistance
US	United States

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