The Asian Development Bank and the Pacific Islands

Among the ADB’s diverse membership is a group of 14 small island nations scattered across the Pacific Ocean. Their combined populations are 11.5 million, and all but Papua New Guinea are classified by the UN as Small Island Developing States (SIDS). Being small, remote, extremely dispersed, and with a narrow economic base that depends on imports financed from remittances and foreign aid, the Pacific Islands present unique development challenges. Some have exploited “niche markets” in natural resource industries such as tourism, fisheries, forestry, and mining but remain vulnerable to global market fluctuations. The dispersion of populations on islands and atolls far from each other increases the costs of communication and service delivery. Furthermore, the Pacific islands are highly exposed to the threats of environmental fragility and are vulnerable to natural disasters such as earthquakes, cyclones, droughts, and floods. This chapter presents an overview of the ADB-Pacific Islands development partnership, discussing past experience, highlighting the evolution of strategic and operational initiatives, and assessing future priorities.