By Makereta Komai, PACNEWS Editor in Milan, Italy
The new phase of the Asian Development Bank’s strategy that guides and defines it engagement with the Pacific, known as the Pacific Approach, is up for consultation later this year.
The current Pacific Approach from 2021-2025 focused on ADB’s support for a resilient Pacific – preparing the 14 Pacific Developing Member States (PDMCs) to respond to regional challenges, deliver sustainable services and support inclusive growth.
ADB’s Vice President for East Asia and South East Asia and the Pacific, Scott Morris told PACNEWS in Milan that ‘important consultations will start later this year, starting with Pacific Developing Member clients and other stakeholders in the region.’
“There are key bilateral partners to the Pacific that will also lend a voice to the Pacific approach.”
Morris said this is happening at a time when ‘the ADB is increasing its overall engagement and commitment to the region.’
“As a result of a very good donor replenishment last year in the Asian Development Fund (ADF), we are increasing our overall resourcing for Pacific countries by more than a third in the years ahead. In some ways that’s remarkable in the current environment, when donor commitments have become increasingly strained, Morris told PACNEWS.
“So, we’re very pleased with that as a starting point, but you will see our allocations grow country by country across the region.”
The ADF is the bank’s largest source of grants for operations in its poorest and most vulnerable developing member countries and is replenished every four years. Last year the ADB agreed to a replenishment of USD$5 billion for ADF 14 that will support grant operations during 2025–2028.
The ADB senior executive also announced the bank was increasing its presence in the region – creating a new resident mission in Solomon Islands.
“Overall, I think we will now have 40 additional staff dedicated to the region this year, with additional commitments in previous years, said Morris.
Whatever the new form the new Pacific Approach will take, Morris assured that it will be ‘anchored in what we call a differentiated approach to the region.’
“Recognising the unique needs of these countries, we have to take a different approach ourselves. Particularly in our own financial model, in areas like private sector investment, we want to see more of our own resources and private sector resources flowing into these countries.
“But it has to be done in a way that’s tailored to the nature of these economies, much smaller in scale and significant risk tolerance on our part. So, we’re taking the steps needed to make that a reality for these countries, said Morris.
At the 58th Annual Governors Meeting of the ADB in Milan this week, Pacific Developing Member Countries indicated some of their expectations in the next phase of the Pacific Approach.
Speaking on behalf of 14 Pacific Developing Member Countries (PDMCs), McKinnie Pitakia Dentana, Alternate Governor for Solomon Islands, said the region can no longer continue with “business as usual” in the face of rising global uncertainty, including trade tensions, conflicts and geopolitical shifts.
“These are unsettling times globally,” Dentana said. “Regional integration and cooperation are needed now more than ever, with proper safeguards in place. Free movement of people and investments — including a visa-free Pacific — can bring real benefits to the region.”
The Pacific countries praised ADB’s efforts to support private sector growth and urged continued investment in local businesses, most of which are micro, small and medium enterprises (MSMEs). “These businesses are the backbone of our economies and give back to our communities in many ways,” Dentana added.
He also called for greater involvement of the ADB’s Private Sector Operations Department at both national and regional levels. The Pacific nations are seeking ADB’s support to unlock more opportunities for private sector participation in key areas such as health, education, information and communication technology, energy, water, transport, and climate resilience.
Another key concern raised was access to banking services. Pacific leaders requested ADB assistance to help local banks maintain correspondent banking relationships, which are essential for international trade and economic stability.
“We recognise and have heard the voices this week from the Pacific governors about a wide range of needs, but so much of it organised around the deep challenges in terms of climate resilience. So much of our work increasingly is organised around infrastructure that is resilient to climate change. And that cuts across a wide range of society and sectors, schools that are more tolerant to these climate shocks, said ADB’s Scott Morris.
He said its huge agenda that ADB and the Pacific Developing member clients will have to work through in the consultation.
“Obviously transport infrastructure, meeting energy needs in a way that is affordable, accessible, but is also resilient and sustainable. So, there are important investments in renewable energy in the region that we are engaged in, because these represent much better options than having to import costly diesel fuel for these countries.
“As I said, we are a better resource to meet the needs of the region in the coming years. So, it’s now a matter of deploying that money effectively and with a high level of quality, said Morris.
The 58th ADB Annual Meeting ends on Thursday.
