News Release | 16 November 2022
APIA, SAMOA (14 November 2022) — The Asian Development Bank (ADB) has approved a $7.5 million policy-based grant to help the Samoan economy rebound from the COVID-19 pandemic through Subprogram 1 of the ADB-supported Strengthening Macroeconomic Resilience Program.
“This first phase of the program will help the Government of Samoa transition from crisis response to inclusive fiscal and private sector recovery,” said ADB Public Sector Economist and Program Team Leader James Webb. “The program comprises two subprograms that will improve fiscal management and sustainability, promote inclusive private sector recovery, and strengthen finance sector development and inclusion.”
Fiscal management improvements will help guide reform priorities and development partner support. This includes the publication of the Public Expenditure and Financial Accountability Assessment of Climate Responsive Public Financial Management for Samoa. The world’s first assessment of this kind will serve as a valuable template for the integration of climate change into public financial management in other nations affected by climate change.
Activities to improve private sector recovery under the program include promoting measures to accelerate growth such as improving working conditions to help workers to return to jobs.
Development of the finance sector will be critical to economic recovery and long-term development, as well as supporting the continued flow of remittances. For example, establishing a central credit bureau will offer a range of benefits for consumers and key stakeholders. Removing barriers to financial access and inclusion will be key.
The grant is financed by the Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries.
The ADB-supported program builds on previous ADB policy-based operations and public sector management work in Samoa, while supporting the goal of strengthening governance and institutional capacity. The program was developed in coordination with the World Bank and the Governments of Australia and New Zealand and in consultation with the International Monetary Fund.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.