Cairns Compact devised to do this







Pacific Islands Forum Leaders gathered for their annual summit in August last year in Cairns, Australia, amidst plummeting world economies, looming climate change threats and fears of dwindling natural resources. More so than ever before, sustained economic resilience in the Pacific had become an urgent priority.
The outlook was bleak. Despite some successes and continued high levels of development assistance over many years, the Pacific region remained off-track to achieve the Millennium Development Goals (MDGs) by 2015.
The region’s own development roadmap, the Pacific Plan, while showing steady progress, continued to encounter key challenges, particularly around limited human and financial capacities at the national levels.
The buzz words remained ‘good governance’, ‘sustainability’ and ‘economic growth’. Higher up in the scheme of things, lingered the overarching issue of aid effectiveness; something the world’s policy-makers have been resolutely seeking to achieve for several decades.
Leaders agreed there was an urgent need to establish a new development compact for the Pacific.
The Cairns Compact
The Cairns Compact was developed to bring about a new determination and invigorated commitment to lift the economic and development performance of the region. First and foremost, leaders sought more effective coordination of available development resources from Forum Islands Countries and all development partners, focused on achieving real progress against the MDGs. This became the main objective of the Cairns compact.
Under the compact, Leaders also called on International Financial Institutions to assist the region in responding to the global economic crisis, including through supporting better coordination mechanisms.
The compact further encapsulated key principles to focus implementation at the national level. These include striving for broad-based private-sector growth and improved governance and service delivery; greater investment in infrastructure to underpin greater economic development; strong country leadership, mutual accountability and responsibility between Forum Islands Countries and their development partners; the need to draw on international best-practice as expressed in the Paris Declaration on Aid Effectiveness, Pacific Principles of Aid Effectiveness and the Accra Agenda for Action; and revitalised commitment to achieve MDGs in the Pacific.
Leaders consequently tasked the Pacific Islands Forum Secretariat with producing a range of key deliverables on progress under the Cairns compact.
Secretary General of the Forum Secretariat, Tuiloma Neroni Slade, explains that one of the deliverables to Forum Leaders is a Development Effectiveness Tracking Report. This will focus on, among other things, a process of regular peer review of countries’ national development plans.
“It is firstly at the national level that we need to focus our attention to strive for tangible results,” says Tuiloma. “The aim of the peer review process is to promote international best practice in key local sectors, promote effective budget allocation processes and guide support from development partners.”
Nauru was one of the first Forum Islands Countries to volunteer for this exercise. Countries themselves choose which of their regional neighbours and development partners will undertake the peer review, drawing on their experiences and lessons learnt.
In this case, Cook Islands, Tonga and the United Nations Development Programme (UNDP) were requested to carry out the review in March this year.
Nauru’s Secretary for Finance, Tim Drown, who is responsible for national planning, said the peer review process further strengthened and reinforced commitment to improving Nauru’s planning framework. He urged the donor community to embrace the outcomes and recommendations of the exercise.
“Development assistance is a two-way street,” he stressed. “Countries like Nauru need donors to work collaboratively, and with Forum Islands Countries. I am sure the peer review process will illuminate as many issues for donors as it will for recipient countries.”
Several non-governmental organisations and private sector representatives in Nauru also expressed appreciation for the Cairns Compact peer review process.
“The exercise enabled us to get a clearer picture of processes that are available for engagement in the development of our country,” said Lochley Denuga, President of the Nauru Private Business Sector Organisation following a meeting with the peer review team.
Peta Gadabu, President of the Nauru National Council of Women, added: “This exercise has made us more aware of possible channels and processes available for accessing assistance for our community groups.”
The next country to undergo peer review was Kiribati, with similar reactions from stakeholders. A team consisting of representatives from Papua New Guinea and New Zealand’s International Aid and Development Agency, NZAID, carried out the exercise late April.
Reflecting their shared interest in getting good outcomes from the Cairns Compact, Forum Island Countries and key development partners have been closely engaged in consultation processes on implementing the compact.
The Asian Development Bank (ADB), a leading International Financial Institution with significant programmes in the Pacific, has been among the development partners involved in these processes. According to a recent publication, the ADB is keen to step up to the task of implementing the Cairns Compact, along with Forum Islands Countries and other development partners.
The ADB’s Approach to Assisting the Pacific (2010-2014) highlights the bank’s support for the compact, stressing that it is important that aid coordination mechanisms remain country-driven, pragmatic, and results-focused; and utilise established systems rather than duplicating existing systems, particularly in countries with limited capacity.
“Aid coordination is fundamentally about country ownership—it’s about having countries in charge,” says ADB Vice President, Lawrence Greenwood. “We are consciously and actively seeking to work more closely with countries themselves, and with development partners, to fit into national development plans.”
Keeping up the momentum
Secretary-General Tuiloma stresses that the good momentum generated and renewed commitment by stakeholders under the Cairns Compact must continue.
“As we prepare to report back to Leaders on progress under the compact when they gather for their summit in August, let us not lose sight of the basic reasons for our efforts. These are encapsulated in our Leaders’ Vision of a region of peace, harmony, security and economic prosperity, so that all of its people can lead free and worthwhile lives.”
Leaders will gather for the 41st Pacific Islands Forum and related meetings in Port Vila, Vanuatu, from 3rd to 6th August 2010.

• The article is compiled by the Pacific Islands Forum Secretariat.