Supplemental DPO

closed

Closed

Tuvalu, comprised of nine Polynesian islands and atolls, is one of the smallest states in the world. The Gross Domestic Product (GDP) of Tuvalu was estimated at AUD 41.7 million in 2014. Tuvalu has a land area of only 26km square and its population is estimated at 11,000. Tuvalu is one of the smallest and newest members of the World Bank Group, having joined the World Bank only in 2010. Tuvalu is not currently a member of the International Finance Corporation. Since the global financial and economic crises, the Government of Tuvalu (GoT) has progressed on substantive reforms while gradually rebuilding its fiscal buffers. Tuvalu’s economy is highly vulnerable to challenges stemming from its very small size and geographic isolation, and relies heavily on grants and buffer assets to absorb shocks. Tuvalu’s buffer assets in the Consolidated Investment Fund (CIF) supported the GoT in weathering the recent global financial crisis (GFC). Over the past 3 years, the GoT has gradually rebuilt the CIF back to its sustainable level through a mixture of expenditure restraint, higher revenues and additional budget support from donors including two budget support operations from the World Bank. In parallel, the GoT has progressed on a number if reforms, including improving public financial management (PFM) and social service delivery. The GoT, with the support of the donor community, has taken a series of steps in response to the disaster, but will need additional financing for the recovery efforts. Subsequent support provided to the affected communities included construction materials, medicines, and tools to assist with the clean-up of storm debris. The GoT has endorsed the Recovery and Vulnerability Reduction Plan (taking into account the RDA outcomes), which estimates reconstruction costs at AUD 23.8 million in the short to medium term. The GoT has also re-oriented some of the 2015 development budget towards recovery and reconstruction, although this is only expected to meet a portion of recovery related financing needs. Despite the significant fiscal cost, the GoT has begun to contract vendors (working together with the Kaupules, traditional island councils) in order to avoid delaying reconstruction works and ensure continued access to services by those most in need. Development Partners (DPs) are also rallying behind the GoT in providing additional resources to aid the recovery efforts with pledged support to sectors including agriculture, social services and infrastructure.

FY17 - Education,FY17 - Health,FY17 - Public Administration

World Bank Group

Project

Raw Materials, Government, Education