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 <subject>Economically depressed areas</subject>
 <subject>Foreign economic assistance</subject>
 <subject>International economic relations</subject>
 <subject>Foreign governments</subject>
 <subject>International agreements</subject>
 <subject>Economic growth</subject>
 <subject>Compact of Free Association with</subject>
 <subject>Micronesia</subject>
 <subject>Marshall Islands</subject>
 <subject>Micronesia</subject>
 <subject>Australia</subject>
 <subject>Japan</subject>
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 <subject>European Union</subject>
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 <title>Foreign Assistance: Lessons Learned From Donors&apos; Experiences in the Pacific Region</title>
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<abstract>Australia, Japan, New Zealand, the United Kingdom, and the United
States have been the major providers of bilateral development	 
assistance to the Pacific Island nations since 1987. The Asian	 
Development Bank and the European Union have been the major	 
multilateral donors. The donors&apos; main development objectives,	 
according to the planning documents, have been to alleviate	 
poverty and to set the Pacific Island nations on the path to	 
economic self-sufficiency. To achieve these objectives, these	 
donors focus their assistance in key areas, such as education,	 
policy reform, and infrastructure. The United States could draw  
several lessons from the donors&apos; experiences for providing	 
assistance as well as the strategies and approaches the donors	 
have adopted. These lessons could be valuable insights for the	 
United States as it negotiates additional economic assistance to 
the Federal States of Micronesia and the Republic of the Marshall
Islands. On the basis of the donors&apos; experiences, GAO observed	 
that (1) assistance strategies may involve trade-offs in	 
expectations of aid effectiveness if other objectives for	 
providing assistance take priority over development objectives;  
(2) assistance strategies may involve trade-offs between	 
effectiveness and accountability, on the one hand, and		 
administrative costs, on the other hand; (3) effective assistance
depends on a good policy environment in the recipient country to 
create the conditions for sustainable development; (4) strategies
tailored to the individual needs of the recipient country might  
have greater chances of succeeding because they offer recipients 
opportunities for stronger ownership of the program; (5) flexible
strategies enable donors to adapt their assistance to changing	 
circumstances and provide incentives for development		 
achievements; (6) well-designed trust funds can provide 	 
sustainable sources of assistance to Pacific Island nations with 
limited growth options; and (7) sectorwide approaches, although  
generally untested in the Pacific, depend on recipient government
commitment and ability.</abstract>
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<subject>
 <topic>Economically depressed areas</topic>
 <topic>Foreign economic assistance</topic>
 <topic>International economic relations</topic>
 <topic>Foreign governments</topic>
 <topic>International agreements</topic>
 <topic>Economic growth</topic>
 <topic>Compact of Free Association with</topic>
 <topic>Micronesia</topic>
 <topic>Marshall Islands</topic>
 <topic>Micronesia</topic>
 <topic>Australia</topic>
 <topic>Japan</topic>
 <topic>New Zealand</topic>
 <topic>European Union</topic>
 <topic>United Kingdom</topic>
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