Cook Islands Commended For Reform-Driven Economic Recovery

Cook Islands Government

16 July 2001

This story was reproduced by kind permission of the Cook Islands Government at: http://www.cook-islands.gov.ck

The Prime Minister of the Cook Islands, Honourable Dr. Terepai Maoate, presented a review of the country's impressive economic recovery and updated the country's development partners on the comprehensive implementation of economic reforms that have enabled the Cook Islands to respond successfully to the dire financial and economic crisis that faced the nation in 1995-1996.

The meeting was hosted by the Cook Islands Government and co-chaired by the Asian Development Bank's Director of Pacific Operation, Mr. Basudev Dahal. Participants at the meeting included representatives from Australia, the People's Republic of China, Japan, New Zealand, and the United States.

Also represented were the Asian Development Bank, Economic and Social Commission for Asia and the Pacific, European Commission, Food and Agriculture Organisation, Pacific Financial Technical Assistance Centre, Pacific Islands Development Program, Pacific Islands Forum Secretariat, South Pacific Regional Environment Programme, United Nations Development Programme, and the World Health Organisation. Representatives of the Cook Islands private sector and non-government organisations also participated.

The Prime Minister's statement clearly outlined the Government's continued commitment to a process of economic reform and further strengthening of the private sector. The Government also indicated that there were some areas where the reform process may have gone too far. This applied in particular to the downsizing of government where shortages of qualified staff are apparent and require corrective action.

The development partners offered technical assistance and training support to assist the Government in these areas. Specific mention was made that the success of the Cook Island reforms - in restoring macroeconomic stability and returning the country to its long-term growth path - would be encouraging to other Pacific developing nations.

A private sector representative from the Cook Islands confirmed that the economic reform process, which includes significant public-private dialogue, has had positive long-term benefits for the economy. The government was encouraged to complete the devolution of appropriate authority and responsibilities to outer island local governments. The Government expressed its intentions to complete the process in tandem with institutional strengthening that will be required to ensure accountability and effective management of resources. The government was also encouraged in its announced efforts to strengthen health, education and human resource development.

The donors focussed considerable attention on outer islands development and pledged targeted support to the Government's initiatives to redress disparities of services, infrastructure and economic opportunities within the Cook Islands. The Asian Development Bank announced its intention to support an Outer Islands Trust Fund, while the European Commission indicated that their new assistance programme may be directed toward outer islands development in general and in particular may include a direct contribution into the proposed Outer Islands Trust Fund.

Development partners assured the Prime Minister of continued support for economic and sustainable development.
There was also support for the Government's announced policy initiative to seek membership in the International Monetary Fund for the express purpose of gaining access to the professional economic monitoring and advice that the Fund provides to member countries. Similarly, the Cook Islands will seek membership in the World Bank to gain access to regionally based technical resources.

The need for continued coordination of development partner policies and programs was re-emphasized. The development partners and the Cook Islands agreed that the Consultative Group process, of which this meeting was the third since 1996, has proven valuable as a means to mobilize and coordinate effectively the development partners' assistance to the Cook Islands and it should continue on a periodic basis.

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