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President Mori Signs Partnership for Development Agreement with Australia

Palikir, Pohnpei (FSM Information Services): August 13, 2010 - On August 4, 2010, while in Vanuatu, attending the 41^st Pacific Islands Forum Leaders Meeting in Vanuatu, President Mori signed a Partnership for Development Agreement with the Government of Australia.

The Agreement is a reflection of the Australian Government's commitments made in their Port Moresby Declaration. The Declaration, signed by the Australian Prime Minister in March 2008, established Australia's intentions for a new approach towards the Pacific region via Partnership for Development Agreements, to improve governance, increase investment in economic infrastructure, and achieve better outcomes in health and education with Pacific island nations. Other aspects of the Declaration include assisting Pacific island nations to achieve their Millennium Development Goals and meet the challenge of climate change mitigation.

The Agreement, executed by Mori, provides that the Government of Australia will support the FSM's pursuit of sustainable economic growth strategies; deliver a jointly determined program of technical, policy and financial support to assist FSM in implementing its development strategies; and facilitate donor coordination. The Agreement provides that, in return, the FSM Government will pursue its development through appropriate budgets, laws, policies, strategies and programs; will optimize the use of aid to achieve this development; and will continue to work towards its Millennium Development Goals.

The parties to the Agreement further agreed that they will initially focus on three key areas: financial stability and economic development, with an emphasis on tax reform; environmental management, with an emphasis on legislation and legal reform; and coordination of development assistance.