Private enterprise strategy options for the South Pacific region : final report

The countries are widely scattered throughout the South Pacific, have low population densities, and are too small to support diversified economic activities. Nonetheless, the region does possess the necessary resources and comparative advantages for sustained, long-term development. This report examines the specific opportunities and constraints faced by the private sector of each country in the region (the Cook Islands, Fiji, Kiribati, Papua New Guinea, the Solomon Islands, Tonga, Vanuatu, and Western Samoa). The report also explores alternative options for stimulating private enterprise and proposes an A.I.D. strategy framework. The regional program would seek three functional objectives: greater utilization of comparative advantages through private enterprise development, increased foreign exchange earnings, and higher levels of productive employment. These goals would be achieved through assistance in micro-enterprise management training, trade and investment, and policy dialogue. According to the report, private enterprise represents the only viable means of growth in this region. Without effective private sector development, living standards would stagnate or, more likely, decline.