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Transparency to the People USING STAKEHOLDER PARTICIPATION to SUPPORT PUBLIC SECTOR REFORM in NAURU and the REPUBLIC of the MARSHALL ISLANDS Pacifi C Studies Series

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Transparency to the People USING STAKEHOLDER PARTICIPATION to SUPPORT PUBLIC SECTOR REFORM in NAURU and the REPUBLIC of the MARSHALL ISLANDS Pacifi C Studies Series Pacifi c Studies Series Transparency to the People USING STAKEHOLDER PARTICIPATION TO SUPPORT PUBLIC SECTOR REFORM IN NAURU AND THE REPUBLIC OF THE MARSHALL ISLANDS Pacifi c Studies Series Transparency to the People USING STAKEHOLDER PARTICIPATION TO SUPPORT PUBLIC SECTOR REFORM IN NAURU AND THE REPUBLIC OF THE MARSHALL ISLANDS i © 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. Th e views expressed in this document are those of the author and do not necessarily refl ect 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 noncom- mercial use with proper acknowledgment of ADB. Users are restricted from reselling, redis- tributing, 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 O’Meara. 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 [email protected] ii Contents Foreword iv Abbreviations v THE QUESTION OF GOVERNANCE 1 Encouraging Reform of Governance 1 Th e Challenge of Good Governance in the Pacifi c 2 Th e Lever of Transparency and the Fulcrum of Personal Interest 3 Transparency as a ”Process Conditionality” 4 NAURU: PILOT PROJECT FOR THE NATIONAL ECONOMIC FORUM CONSULTATION PROGRAM 5 Conditions on Nauru at the Time of the Project 5 Evolution of the Pilot Project 7 Implementation of the Pilot Project 9 Public Awareness and Consultation Meetings 9 Straw Polls and Household Opinion Survey 12 Th e National Economic Forum 12 Post-Project Developments 14 MARSHALL ISLANDS: PILOT PROJECTS FOR IMPROVED EDUCATION AND SOLID WASTE MANAGEMENT 15 Pilot Project for Increasing Ownership of and Eff ective Demand for Improved Education 15 Th e State of Education in 2005 15 Th e Pilot Project in Education 19 Project Outcome and Subsequent Developments 24 Pilot Project for Increasing Ownership of and Eff ective Demand for Improved Solid Waste Management 25 Solid Waste Management on Majuro in 2006 25 Th e Pilot Project in Solid Waste Management 29 Post-Project Developments and Assessment 36 THE TRANSPARENCY APPROACH ASSESSED 38 References 39 iii Foreword Th e societies of the Republic of the Marshall Islands (RMI) 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. Th e slow pace of creating eff ective, modern systems of government in these countries has also made decision making more diffi cult. 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 drift—if not decline—without 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. Th e 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 refi nancing and rebuilding. Aware of these disappointing outcomes, the Asian Development Bank (ADB) 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. Th e report aims to foster appreciation and understanding of the diffi culties facing agencies such as ADB as they try to help Pacifi c island countries develop. Th e consultative and participatory approach described here appears to have benefi ted these small, close-knit, traditional societies. Th is experience may provide guidance to development eff orts not only in the RMI and Nauru, but in other Pacifi c island countries. Th e work described here was managed by Steve Pollard, principal economist of ADB’s Pacifi c Department, assisted by Dr. Tim O’Meara acting as consultant to ADB and the Australian Agency for International Development. Robert Wihtol Director General Pacifi c Department iv 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 Offi ce (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 v o vi 150 00'E 170o 00'W N O R T H P A C I F I C O C E A N THE PACIFIC ISLANDS International Dateline HAWAII, USA 20 o 00'N 20 o 00'N Taongi N MARSHALL ISLANDS Philippine Enewetak Bikini Rongerik Sea Ulithi Utirik 0 500 1000 Namonuito Ailinginae Rongelap Fais Gaferut Ailuk Yap Ujelang Wotho Faraulep Pikelot Fayu Likiep Wotje Sorol Minto Reef Ujae Kilometers Ngemelis Pulap Hall Kwajalein Erikol Maloelap Ngulu Woleai Senyavin Melekeok Lamotrek Oruluk Namu Ifalik Chuuk Palikir Arno Satawal Ailinglaplap Majuro Sonsoral Islands Eauripik Losap Pohnpei Mokil Pingelap Jaluit Mili Elato Pulo Anna Mortlock Ngatik Kili Kosrae Knox Teraina Merir FEDERATED STATES OF MICRONESIA Ebon REPUBLIC OF Butaritari Tabuaeran Tobi Helen Reef PALAU Nukuoro Marakei Abaiang South Tarawa Kiritimati Kapingamarangi NAURU Tarawa o Abemama o 0 Kuria 0 Manus Makwa Nonouti Beru Winslow New Hanover Tabiteuea Nikunau Kanton Ederbury Rawaki New Ireland Onotoa Arorae Mckean Birnie Nukumanu Tamana Nikumaroro Manra K I R I B A T I Malden New Britain Buka I N D O N E S I A Ontong Java Nanumea Orona PAPUA Niutao Carondelet NEW GUINEA Bougainville Choiseul Nanumaga Starbuck Santa Isabel Nui Vaitupu TOKELAU SOLOMON ISLANDS Nukufetau Fogafale Atafu Penhryn Marquesas Islands Trobiand Nukunono Malaita TUVALU Funafuti Millenium Dili Port Moresby Woodlark Fakaofo Rakahanga New Georgia Vostok Honiara Nukulaelae TIMOR-LESTE San Cristobal Niulakita Pukapuka Manihiki Guadalcanal Santa Cruz Islands Swains Flint Anuta AMERICAN Nassau Rennell Tikopia Fataka WALLIS AND SAMOA Rotuma FUTUNAWallis SAMOA FRENCH POLYNESIA Torres Vetaounde Savai'i Suwarrow Uvea Manua VANUATU Vandua Lava Futuna Apia Alofi Upolu Tutuila Maewo Rose Society C o r a l S e a Espiritu Santo Vanua Levu COOK ISLANDS Tuamotu Archipelago Islands Pentecost Yasawa Niuafo'ou Tafahi Taveuni Malekoula Ambryn Niuatoputapu Palmerston Efate Port Vila Suva Lau Viti Levu Aitutaki Manuae Aniwa Vava'u Tahiti Mitiaro Futuna Kadavu TONGA Takutea o NIUE o 20 00'S Aneytioum Lifuka 20 00'S Map Showing Pacific IslandCountries Map ShowingPacific REPUBLIC Avarua Atiu Mauke OF THE Nuku'alofa NEW Ceva-i-Ra 'Eua Rarotonga FIJI ISLANDS 'Ata Tongatapu CALEDONIA Mangaia International Dateline A U S T R A L I A Tubual Islands Rapa Norfolk Island S O U T H P A C I F I C O C E A N National Capital Reef/Atoll Canberra International Boundary Boundaries are not necessarily authoritative. NEW ZEALAND Wellington 150 o 00'E 170o 00'W Th e Question of Governance Encouraging Reform of Governance Th e Asian Development Bank (ADB) and most other aid agencies hold that good governance is one of the pillars of development, a primary mechanism of social development and pro- poor, sustainable economic growth. Th ese agencies cannot, of course, act directly in the politi- cal arena in recipient countries to improve governance. Th ey can provide only assistance that host governments request and approve. Change and reform of governance is diffi cult for any country, encountering legitimate opposition as well as unscrupulous government offi cials who have stronger personal and political interest in maintaining rather than reforming governance practices. To encourage host governments to adopt policy and institutional reforms aimed at improving governance, aid agencies often provide technical assistance (TA) and loan projects with host-country receipt of some project benefi ts conditional upon adoption of specifi c pol- icy and institutional reforms—so-called “conditionalities.” Although policy and institutional conditionalities have been a common feature of aid programs for some time, they are not always eff ective. Policy and institutional conditionalities aimed at reform of governance may be ineff ective for a number of reasons.
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