Tuvalu progresses Forum Compact peer review recommendations

The government of Tuvalu has made significant progress over the past 12 months in implementing recommendations of the Peer Review carried out in April 2011 under the Cairns Compact on Strengthening Development Cooperation (Forum Compact) Pacific Islands Forum Leaders endorsed the Forum Compact in 2009. “I commend the Government of Tuvalu for taking strong leadership in setting its national macro policy and institutional frameworks for improving the use of domestic and development partner resources after the government endorsed recommendations of the Tuvalu Peer Review Report in July last year,” said Tuiloma Neroni Slade, Secretary General of the Pacific Islands Forum Secretariat. As part of the Peer Review process a PIFS team were in Funafuti, Tuvalu from 19-26 April 2012 to discuss with the government of Tuvalu and its development partners progress in implementing the recommendations of the Tuvalu Peer Review Report 2011. The team focused particularly on achievements so far identifying further actions and assistance required by Tuvalu to implement its priority peer review recommendations. “Our discussions with the government of Tuvalu, development partners and other national stakeholders confirm that the government of Tuvalu has shown it’s commitment to improving how they make the best use of limited domestic and development partner resources by working towards improving its institutions, systems and processes of national planning, budgeting, aid and public financial management,” said Mr Slade Since the Peer Review in April 2011, Tuvalu with support of its peers and development partners had undertaken some significant key initiatives including: • Completion of a Public Expenditure and Financial Accountability Assessment (PEFA) in June 2011 with support of the Asian Development Bank (ADB); • Review, prioritisation of its national development plan – TKII Action Plan 2015 in October 2011; • Completion of Medium Term Expenditure Frameworks for its key spending sectors – Health, Education as well as completion of a National Strategic Plan for Infrastructure with support of AusAID and PRIF; • Convening of three high level policy dialogue meetings including a Tuvalu donor round table in March 2012 with its development partners. • Preparation of a Draft Development Cooperation Policy to better guide its engagement with its development partners in October 2011; • Preparation of a Tuvalu Policy Reform Matrix for Budget Support with the support of its development partners (AusAID, ADB, New Zealand and World Bank). • Undertaken a 13% reduction in its 2012 national budget to address its fiscal issues. • Strengthened its capacity to better manage its ODA through increased capacity in its aid management Unit. On the development partner’s side, Tuvalu’s key development partners – Australia, ADB, EU, New Zealand, World Bank have been working closely and collectively with Tuvalu for over six months to develop a Tuvalu Policy Reform Matrix. The policy matrix was primarily to support the release of budget support to address Tuvalu’s fiscal issues but also to strategically over the medium to longer term move development partner support to Tuvalu from discrete projects to programmatic and budget support. AusAID, ADB, NZ and World Bank fielded a joint mission from 19-26 April in Tuvalu to progress the Tuvalu Policy Reform Matrix. “There remain challenges facing the government of Tuvalu as it implements their Peer Review recommendations. The public dissemination of key government national planning and budget information, more systematic involvement of the private sector and NGO community in government’s budgeting processes, provision of timely and complete development partner ODA information and public sector capacity issues remain a concern. But with the leadership and significant progress shown by the government in Funafuti, we are confident that the government will continue to address the remaining challenges and that donor partners will response positively to proposals for further assistance to support government’s development coordination priorities including through the implementation of Tuvalu’s Peer Review recommendations,” said Forum Secretary General, Mr Slade. ENDS. For media enquiries contact Mr Johnson Honimae, the Forum Secretariat’s Media Officer on email: johnsonh@forumsec.org.fj