The impact of the 2009 tsunami on tourism and on the Samoan economy is likely to be substantial. The effectiveness of monetary transmission in Samoa has improved over time; however, it is still below international standards. The adverse impact of the crisis on the functioning of the banking system may be alleviated by an improvement in the financial infrastructure. State-owned enterprises (SOE) continue to play an important role in Samoa, and the key to successful SOE reform in Samoa will be placing them on a fully commercial footing.
productivity growth, skills shortages, high tax wedge, heavy regulatory system, and extensive presence of state-owned enterprises (SOEs).
Policies : Policies should focus on fiscal and structural reforms to rebuild fiscal buffers and increase productivity. Policy priorities are:
Safeguard the fiscal consolidation achieved in 2018 by maintaining a balanced structural budget and avoiding a pro-cyclical fiscal expansion in 2019.
Continue structural fiscal reforms in the areas of pensions, health and long-term care, public wage policy, and tax rebalancing.
seeking a buyer for MSK and Petrohemija,
The authorities are stepping up efforts to change EPS’s legal status into a joint-stock company, and to improve its corporate governance. At the same time, they are assessing the electricity tariffs with a view to secure full cost recovery, while limiting the impact on vulnerable segments of the population. With the support of EBRD, the authorities are preparing an SOEpolicy document, which will help organize the state enterprise ownership function and provide guidance for strengthening SOE governance.
improving the regulatory regime). The establishment of a one-stop shop facility is also viewed as important.
11. The authorities also recognize the importance of land reform aimed at improving the capacity to use land for collateral and investment. The government’s recent initiative to facilitate the leasing of unused communal land for productive uses is an important progress in this regard.
12. The government has made significant progress in public enterprise reform in the context of its SOEpolicy framework. These include the divestment of the government’s minority
exposing the government to significant risk and direct costs. It is estimated that the government’s continued ownership of the PTBs, in aggregate over 10 years, has cost the Samoan taxpayer over tala 451 million, which exceeds the current level of equity in those PTBs (see AsDB, Samoa—Country Partnership Strategy, 2008).
2. The Public Bodies (Performance and Accountability) Act 2001 and the subsequent State-Owned Enterprise (SOE) Policy, established the principles for putting SOEs on a commercial footing, and divesting nonstrategic SOEs . This policy and SOE law
efficiency . The SOEs are economically significant with total assets of $116 million as of end-FY2008 (about 76 percent of GDP), but their financial performance has been lackluster. Many SOEs have social service obligations, which are often not clearly defined, further complicating resource planning and leading to weak management and underinvestment. In areas where SOEs provide purely commercial services, their operations should be divested or contracted out (for example, government ownership in Majuro Resorts, Inc. and AMI). The authorities are preparing a new SOEpolicy
International Monetary Fund. Asia and Pacific Dept
business credit, AsDB has provided technical assistance for new secured transaction legislation. The government has launched a secured transaction registry, making it possible for banks to provide loans with greater security, and at reduced risk.
AsDB has also supported improvements to governance in Palau’s state-owned enterprises (SOEs), facilitate business growth by improving business registration systems, and develop an SOEpolicy that will eventually include relevant legislative measures.
AsDB support for sustainable health care financing was extended in 2013
Annex I. Roles and Responsibilities of the SOE Department at the Ministry of Finance 1
The key roles of the State-Owned Enterprises department are to develop and implement Government SOEpolicy, strategy and regulations for divestment of approved SOEs, and control financial affairs of SOEs and develop proper procedures for effective and efficient financial management of all Public Enterprises.
The core objectives of the SOE Department are to practice good governance and effective financial and operational oversight over SOEs and to restructure
International Monetary Fund. Asia and Pacific Dept
flooding; construct new saltwater wells to increase the yield of saltwater to the island’s desalination plant; and establish a community radio station to help disburse information on, and increase awareness of, safe water use.
Through regional technical assistance projects, AsDB has helped the RMI improve governance within SOEs and develop SOEpolicy and legislation, which was passed by the country’s parliament in September 2015. AsDB has helped the government develop a financial management model and, through the AsDB national development coordination officer, provided
The economy of the Republic of the Marshall Islands has experienced a strong recovery with a 5.2 percent growth in 2010 following strong improvement in the fisheries sector and a moderate recovery in exports. The financial sector remained focused on consumer lending and contributed little to overall economic growth. Although the financial sector remained profitable, much of the rapid growth in credit has been in consumer loans. The authorities are monitoring high levels of household debt and intend to begin work on strengthening the regulatory framework.