Vanuatu gets new SOE policy – first step toward reform Published November 3, 2013 The Vanuatu Council of Ministers has approved a new policy for State Owned Enterprises. Like elsewhere in the developing world, SOEs place a heavy burden on Vanuatu’s economy. They absorb large amounts of scarce capital on which they provide comparatively low returns, divert government resources away from vital social investments in health and education, and drive-up the costs of doing business where they are the sole service providers – which, indeed, is all too often the case in small economies. Maki Simelum, Vanuatu’s Minister of Finance sais, “It is the first step in our broader SOE reform programme that will include the strengthening of governance and monitoring practices and the restructuring of individual SOEs.” The Asian Development Bank (ADB) supported drafting of the policy, which was prepared following extensive government consultations. Andrea Iffland, Regional Director of ADB’s Pacific Liaison and Coordination Office in Sydney said, “Implementation of the new SOE Policy and subsequent legislation will place Vanuatu’s SOEs on a fully commercial and transparent footing, and in so doing will enable them to make a positive contribution to inclusive economic growth.” The policy, an activity under the SOE Rationalization Program technical assistance (TA), was introduced as part of the Government of Vanuatu’s commitment to improving the management and performance of SOEs. The TA, which is also helping government with strengthening the legal, regulatory and governance framework for SOEs, is financed through a $500,000 grant from the Japan Fund for Poverty Reduction, funded by the Government of Japan. In addition to this TA, SOE reform in Vanuatu is being supported under ADB’s Private Sector Development Initiative, with co-financing from the governments of Australia and New Zealand. The initiative supports efforts by developing member countries in the Pacific to encourage private sector-led, sustainable economic growth. pacifictradeinvest/wp/?p=5487
Posted on: Tue, 16 Dec 2014 03:34:33 +0000
Recently Viewed Topics
© 2015