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International Monetary Fund. Asia and Pacific Dept
Tuvalu is one of the smallest and most isolated countries in the world. With a population of some 11,000 people living on 26 square kilometers, Tuvalu is more than 3,000 kilometers away from its nearest major external market (New Zealand). The country faces tremendous challenges stemming from its remoteness, lack of scale economies, weak institutional capacity, and, above all, climate change and rising sea levels, which threaten the country’s very existence. (Appendix III)
International Monetary Fund. Secretary's Department

. Therefore, our development achievements so far must be considered a qualified success story, and we have to continue to strive hard to bring progress and prosperity to our people. The Thai experiences, although unique in many senses, contain several lessons that I would like to share with our colleagues from other developing countries, as well as with our friends from the more developed world. To start with, we must take a measured and realistic look at Thailand’s experience, as perhaps an example of both the positive and negative aspects of the development strategy as

François Bourguignon and Mark Sundberg

countries, represents a major shift from past aid practices and appears to be slowly having an impact. Indeed, in 2006, indicators of donor alignment were collected and monitored for the first time. The second feature bases the level and modalities of aid on what can be inferred from the development achievements recipient countries are expected to attain. These include the strength of their governance and policies and some intermediate indicators of future results. It is already clear that aid selectivity based on this type of performance indicator is on the rise. The

International Monetary Fund. Asia and Pacific Dept

Strategy for Sustainable Development for 2005 to 2015, Te Kakeega II, was set focusing on the eight strategic areas including good governance, macroeconomic growth and stability and social development. The second phase of Policy Reform Matrix has been complete and the third phase is scheduled to start in the second half of this year, integrated with the government’s 2013 reform roadmap. Tuvalu’s development achievement has been acknowledged in the areas of strengthened budgetary management and improved school attendance. The authorities will put renewed focus on

Andrew Steer and ERNST LUTZ

development achievements at similar income levels (see, e.g., “The Progress of Nations,” UNICEF, September 1993). Data on key indicators—such as infant mortality, literacy, school enrollment, and access to medical facilities—are available for almost all countries, but the reliability of these data varies greatly, with indices often calculated indirectly from highly partial data and sometimes from extrapolation of earlier estimates. Significant resources are being devoted to strengthening field measurement and to standardizing definitions, but much remains to be done

International Monetary Fund

levels between December 2009 and October 2010. The main studies conducted are i) A diagnostic study on the socioeconomic situation of Burkina Faso: “Progress and Development Achievements of Burkina Faso, 2000–2009” from December 2009 to April 2010; ii) An independent evaluation of the implementation of PRSP and regional poverty reduction strategy papers (RPRSP) from February to May 2010; iii) A study on the determinants of accelerated growth and sustainable development in Burkina Faso from July to December 2010. On the basis of the reports on the first