1. RMI Economic Status and RMI National Strategic Plan
Novetel Hotel Nadi Fiji
October 2015

2. Today’s Focus
Provide an overview of the RMI Economic Status and RMI National Strategic Plan (NSP)

3. GDP Growth

4. ECONOMIC GROWTH
Economic growth from FY10-FY13 reflects growth in fisheries, education, construction, public administration
Negative economic growth in FY 14 (1.1%) after 4 years of positive economic growth averaging 3.3 percent.

5. SECTOR IMPACTS
Share of the public sector in the economy shows minimal change but private sector share has grown by 6%
During FY97-99 fisheries represented 5% of GDP and rose to an average of 15% of GDP over the last three years

6. GDP Fisheries
Economic Policy Planning & Statistics Office (EPPSO)

7. EMPLOYMENT PRIVATE/PUBLIC SECTOR
Economic Policy Planning & Statistics Office (EPPSO)

8. EXTERNAL DEBT
FY13 external debt stood at $97.6 million but in relation to GDP fell to 51% (from 72% in FY04)
Debt servicing was $6.3 million in FY13, of which $3.0 million was due for government debt to the ADB.

9. EXTERNAL DEBT There are two major debt servicing components:
government debt on concessional terms to the ADB, and
government guaranteed debt incurred by the SOE sector
Government audit not yet completed so information is available only through 2013

10. FISCAL POSITION
From FY10-13 the economy improved and tax revenues grew by 10% although below the rate of nominal GDP growth of 17%
Government expense grew by 18% over this period, with the wage bill and use of goods and services growing by 9% and 16%, respectively

11. FISCAL POSITION
The large increase in expense was the persistent growth in subsidies to SOEs
Plugging the increase was the rise in fishing royalties which rose from $2 million in FY10 to $7.9 million in FY13
The fiscal position remained in surplus but declining from $6.4 million in FY10 to $2.4 million in FY13
Again waiting for FY14 audit

12. FISCAL POSITION
Preliminary FY14 data show that consistent with the economic downturn tax revenue fell by 6%
The implication is the government achieved a significant surplus
Again waiting for FY14 audit

13. Government Revenue & Expenditures
Economic Policy Planning & Statistics Office (EPPSO)

14. GOVERNMENT PAYROLL
Economic Policy Planning & Statistics Office (EPPSO)

15. SOE REFORM
During FY99-01, the average level of subsidy and capital transfer was $4.5 million.
In FY13 this peaked at $13.0 million, and although falling to $7.4 million in FY14 (preliminary estimate)
Once merely an important financial issue, the RMI government’s level of subsidy to the SOEs has now reached a critical level, places a special burden on maintaining fiscal balance, and indicates the urgent need for reform

16. RMI National Strategic Plan

17. The NSP Vision Statement
IN OUR OWN HANDS IS OUR FUTURE 2

18. NSP SECTORS NSP is organized in 5 sectors
Each sector includes a list of relevant documents, relevant issues, and indicators “snapshot”
Each sector designed by strategic areas, with over-arching & ministerial (policy) objectives
The strategic areas and development objectives coordinate with plans and policies of government (national and local) NGOs and private sector 2

19. NSP TIMELINE The NSP is Forward Looking (2023)
The NSP is developed as a 3 year “rolling plan”. This coordinates with ongoing budgeting and planning in RMI government and SOEs
At the end of every 3 year period ( ), ( ) and ( ) a national “stock-take” will be completed to determine progress and make necessary adjustments and revisions for the next 3 years 2

20. NSP SECTORS & STRATEGIC AREAS
(1) Social Development
Health (1A)
Education (1B)
Gender (1C)
Children, Youth and Vulnerable Groups (1D)
Community Development (1E)
(2) Environment, Climate Change and Resiliency
Vulnerability Assessment and Disaster Risk Reduction (2A)
Disaster Management and Response (2B)
Conservation Resource Management (2C) 2

21. NSP SECTORS & STRATEGIC AREAS
(3) Infrastructure Development
Transportation (3A)
Energy (3B)
Water and Sanitation (3C)
Solid and Hazardous Waste Management (3D)
Information Communications Technology (3E)
(4) Sustainable Economic Development
Agriculture and Agriculture Production (4A)
Marine Resources (Fisheries, Fisheries Infrastructure, Deep Sea Mining) (4B)
Trade and Local Manufacturing (4C)
Tourism (4D)
Financial Services, Private Sector, Private Sector Investment and Employment (4E)
Government Investment (Trust Funds)(4F) 2

22. NSP SECTORS & STRATEGIC AREAS
(5) Good Governance
Public Administration (5A)
Public Financial Management and Reform (5B)
Law, Justice and Public Safety (5C)
Legal and Regulatory (5D)
SOE Management and Reform (5E)
Macroeconomic Planning (5F) 2

23. Implementation Matrix

24. EXAMPLE OF IMPLEMENATION MATRIX
NSP OVER-ARCHING OBJECTIVE: Enhance the School Improvement Process Through Provision of High Quality Education (MOE)
NSP MINISTERIAL OBJECTIVES
ISSUES TO ADDRESS
MEDIUM TERM STRATGIES
MEDIUM TERM OUTCOMES
MEDIUM TERM INDICATORS
FY15 BUDGET
RELEVANT PLANS
Improve grade 1 enrollment rate and gross enrollment rates overall
Reduce dropout rates at both Elementary and Secondary Levels
Too many students drop out of school. Some children are never enrolled in school.
Use 2011 RMI Census data to determine the base school-age population for grade 1 and compare with enrollment figures for SY
Implement a high-level National Awareness Campaign to combat the dropout problem.
Implement pilot programs, such as Food for Education (FFE), to determine what is effective in reducing the dropout problem.
Achieve a 100% gross enrollment rate for grade 1 students.
Reduce the grades 1-8 dropout rate from 32% in SY to 10% by 2020.
Reduce the grades 9-12 dropout rate from 51% to 25% in 2020.
Enrollment rates
Dropout rates
MOE Strategic Plan
Improve student performance (Language Skills in K-3, MISAT, ELA)
Student achievement, as measured by the MISAT series, is unacceptably low
Students perform particularly poorly on the ELA test, the problem already appears at grade 3.
Identify highly qualified teachers and assign them to grades 1-2 ELA classes.
Provide performance-based bonuses for grades 1-2 ELA teachers.
Develop other methods of reallocating funds and resources to grades 1 and 2.
Improve performance on the grade 3 English MISAT from 20% proficient in SY to 40% by 2020.
Improve performance on all other MISAT tests to at least 50% proficiency by 2020
MISAT Score
Language Testing 2

25. THANK YOU