1 N ow, more than ever, there is a widespread acknowledgement throughout the Pacific that sustainable economic growth requires a dynamic and entrepreneurial pri- vate sector. As a result, Pacific govern- ments are focusing to a much greaterextent than in the past on removing im- pedi ment s to priva te inves tmen t and en- trepreneurship. To respond to the substantial increase in requests for as- sistance in implementing private sectordevelopment (PSD) oriented reforms, andto increase its capacity to promote PSD in the Pacific, ADB established the Pa- cific Private Sector Development Initia- tive (PSDI), a regional technical assistance (TA) facility cofinanced by the Australian Agency for International Development (AusAID), with the main goal of promoting PSD to achieve sus- tained economic growth and reduce pov- erty in the region. PSDI commenced in November 2006 with an initial funding of $8.7 million, which was subsequently increased with addi- tional cofinancing from AusAID in 2008, 2009, and 2010 to a total of $9.8 million. The first phase of PSDI proved to be very suc- cessful, with requests for assistance andfunding that outstripped its resources. As a result, ADB and AusAID approved an additional $12 million in resources for a second phase of PSDI in late 2009 to support further PSD-oriented reform initia- tives in the Pacific region through 2013. PSDI addresses the binding con- straints to private sector-led economic growth in the Pacific as identified by PSDI funded private sector assessments andother analytical work on specific topics orthemes, both on a country and multi- country basis. The built-in flexibility of its program design, moreover, allows PSDI to quickly mobilize expertise as reform oppor- tunities arise, and to demobilize if political commitment wanes. This allocates re- sources where the demand is greatest andeffectively supports reform-orientedgovernments and champions. In addition, PSDI also maintains strong partnerships with key bilateral and multilateral partners to ensure that PSD-oriented reform inter- ventions are coordinated and harmonized. A Newsletter on Private Sector Development in the Pacific Issue No. 1November 2010 Pacific PSD QuarterlyPSDI continues to focus primarily on supporting increased access to finance through expanding the availability ofmicrofinance and mobile payments, andreforming the collateral framework forlending; business law reform; and state- owned enterprise reform and the imple- mentation of public–private partnerships. While much of the work under PSDI to date can be regarded as increasing the participation of women in economi c ac- tivity, gender issues are now becoming a particular focus as PSDI prepares its gen- der strategy. PSDI has also significantly expanded its monitoring and evaluation framework, extending the Managing forDevelopment Results Tool, which was used over the past 3 years, and combin- ing financial planning and control, project monitoring, and tracking within a compre- hensive evaluation system. In its continued effort to raise aware- ness of PSD-related reforms in the Pacific, PSDI has launched the Pacific PSD Quar- terly newsletter. This inaugural edition ofthe newsletter offers a variety of interest- ing tidbits on PSDI reform initiati ves andfeatures an analysis of how some key reforms in the area ofcommercial law can increase women’s participation in busi- ness activity throughout the Pacific region. The PSDI Team invites you all to join us in our journey toward an improved environ- ment for business activity in the Pacific. PSDI 1 0 1 : An Introduction to the Pacific Private Sector Development Initiative PSDI 1 0 1 : An Introduction to the Pacific Private Sector Development Initiative VP Greenwood (third from right) speaking at the Private SectorDialogue Workshop during the 2010 Forum Leaders Meeting in Port Vila, Vanuatu
