Cities, Seas, and StormsManaging Change in Pacific Island

Economies

Volume IIManaging Pacific Towns

November 30, 2000

PAPUA NEW GUINEA AND PACIFIC ISLANDS COUNTRY UNIT • THE WORLD BANK

Copyright © 2000The International Bank for ReconstructionAnd Development/ THE WORLD BANK1818 H Street, N.W.Washington, D.C. 20433, U.S.A.

All rights reservedManufactured in the United States of AmericaFirst printing November 30, 2000

World Bank Country Study Reports are among the many reports originally prepared for internal useas part of the continuing analysis by the Bank of the economic and related conditions of itsdeveloping member countries and of its dialogues with the governments. Some of the reports arepublished in this series with the least possible delay of the use of the governments and the academic,business and financial, and development communities. The typescript of this paper therefore hasnot been prepared in accordance with the procedures appropriate to formal printed texts, and theWorld Bank accepts no responsibility for errors. Some sources cited in this paper may be informaldocuments that are not readily available.

The World Bank does not guarantee the accuracy of the data included in this publication andaccepts no responsibility whatsoever for any consequence of their use. The boundaries, colors,denominations, and other information shown on any map in this volume do not imply on the part ofthe World Bank Group any judgment on the legal status of any territory or the endorsement oracceptance of such boundaries.

The material in this publication is copyrighted. Requests for permission to reproduce portions ofthis document and requests for copies or accompanying reports should be sent to:

Mr. David ColbertPapua New Guinea and Pacific IslandsCountry Management UnitEast Asia and Pacific RegionThe World Bank1818 H Street, NWWashington, D.C., U.S.A. 20433Fax: (1) 202-522-3393E-Mail: Dcolbert1@worldbank.org

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DRAFT NOT FOR CITATION OR CIRCULATION

Cities, Seas and StormsManaging Change in Pacific Island Economies

Volume IIManaging Pacific Towns

November 30, 2000

PAPUA NEW GUINEA AND PACIFIC ISLAND COUNTRY UNITTHE WORLD BANK

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Table of Contents

Page No.Acknowledgements……………………………………………………………………………………….....vAcronyms and Abbreviations……………………………………………………………………………...vii

Executive Summary……………………………………………………………………………………….ix

Chapter 1. Effects of Population Growth and Urbanization in the Pacific Islands……………….……………………………..…………………………….. 1

A. Population Growth and Migration……………………………...…………..1B. Benefits of Urbanization ……..…………….………………………………3C. Issues Relating to the Growth of Towns……..……………………………..3

Chapter 2. Issues and Opportunities………………………………………….…………....17

A. Improving Urban Governance and Management……………………....….17B. Moving Toward Community-Based Planning………………………...…..19C. Addressing Environmental Issues……………………………………...….22D. Improving Disaster Management ……………………………………...….23E. The Cost of Doing Nothing……………………………………………..…24

Chapter 3. An Agenda for Managing Change and Adaptation…………....……………...27

A. The Need for Urban Policy………………………………………………..27B. Establishing a Policy for Urban Management and Planning ……………..27C. Expanding Livelihood, Improving Productivity ………………………….28

D. Developing an Inclusive Approach to Urban Planning, Management, Service Delivery, and Quality Control ……………………………………29

E. Strengthening Urban-Rural Links ………………………………………...30 F. Adopting an Effective Housing Sector Strategy.………………………….31 G. Improving Disaster Mitigation ……………………………………………31

H. Developing Appropriate Adaptation Measures for Improving UrbanServices and Environmental Health ………………………………………32

I. Pooling Regional and International Knowledge ………………………….33

References

Map

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Acknowledgments

Volume II of this report was prepared by Stuart Whitehead with contributions from John Kirke(urban infrastructure and utilities) and John Bowers (urban planning and disaster management). Theauthors are also grateful to: Heinrich Unger, Alcira Kreimer, Hilarian Codippily, John Connell, AnthonyHughes, Catherine Farvacque, Mary Judd, Margaret Chung, Ryad Mistry, Mike Burrell, Sarah Nupa,Craig Gallagher, Leonie Smiley, Phillip Kabua, Jorelik Tibon, Tamile M. Ishoda, Alfred Capelle, AlvinJaklick, Geoff McConnell, Paul Jones, Stan Vandersyp, Jeffry Stubbs, Tokia Greig, Iosefa Maiava,Sawenaca Siwatibau, Robert Watson, Charles Kenny and Taratai Abeta for their comments and advice.Barbara Karni and Cecilia Belita assisted in editing the report.

This report is part of a four-volume regional economic report managed by a World Bank teamcomposed of Laurence Dunn, Stuart Whitehead, Sofia Bettencourt, Bruce Harris, Vivek Suri, JohnVirdin, Cecilia Belita, David Freestone, and Cynthia Dharmajaya.

This report was funded by the World Bank Country Management Unit of PNG and Pacific Islandsand the Australian Trust Fund for the Pacific.

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Acronyms and Abbreviations

ADB Asian Development Bank

AUSAID Australian Agency for International Development

CROP Council of Regional Organizations in the Pacific

GDP Gross domestic product

HA Housing Authority

PROUD Pacific Region Observatory on Urban Development

UNDP United Nations Development Programme

UNELCO Power and Water Utility for Port Vila and Luganville, Vanuatu

US United States of America

US$ United States Dollar

VT Vatu

Vice President: Jemal-ud-din Kassum, EAPVPCountry Director: Klaus Rohland, EACNF

Sector Director: Keshav Varma, EASUR Task Team Leader: Laurence Dunn, EACNF

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Executive Summary

This volume is the second of a four-volumereport entitled "Cities, Seas and Storms:Managing Change in the Pacific IslandEconomies" produced by the World Bank as theYear 2000 Regional Economic Report for thePacific Islands. In addition to this specializedvolume, Volume I summarizes the main findingsof the report, and provides a cross-thematicperspective of the importance of managementand adaptation in the Pacific. Volume IIIexamines how Pacific Island countries couldbest address the challenge of managing the useof the ocean in face of current trends. VolumeIV discusses adaptation to climate change.

This volume reviews the forces behindurbanization and examines the challengesurbanization presents; discusses urbangovernance and planning, land management, anddisaster management and mitigation; andpresents an agenda for adaptation and change.

Effects of Population Growth andUrbanization in the Pacific Islands

The Pacific Islands have experienced majordemographic shifts for several decades. Highpopulation growth has led to migration fromsmaller outer islands to larger islands and fromrural areas to towns. As a result, more than 35percent of the people of the Pacific now live andseek their livelihood in towns and, within 20years, more than half of Pacific countries will bepredominantly urban. Key forces shaping thefuture of Pacific towns include populationgrowth and migration, the role of the urbaneconomy, and provision of urban services andhousing.

Issues and Opportunities

Contrary to popular belief, urbanization hassignificantly improved the economic prospectsand quality of life for a large and increasingproportion of the people of the Pacific. As inother parts of the developing world, urbanizationhas been an inevitable response to deteriorating

or stagnating conditions in rural areas and outerislands, few if any of which can offer theemployment opportunities and access to the casheconomy provided by the urban environment.

In reality, urbanization has facilitated nationalsocial and economic development. Most newjobs are found in towns, and the urban economygenerates upwards of 60 percent of the GrossDomestic Product (GDP) in many, if not most,Pacific Island countries. The urban economy isnow the major contributor to economic growth,diversification, and competitiveness in theregion. This is largely based on the significantlyhigher productivity in urban private sectorindustry and services, as compared to the ruraleconomy. Provision of basic services such ashealth and education would also have beenconsiderably more difficult and costly if theyhad to be provided to a population scattered inremote islands. Without the growth of towns,the economic performance of many PacificIsland countries would have been far moremodest than it has been to date.

However, these positive impacts remainunrecognized by many policy makers, whocontinue to view towns with concern, if notalarm. Difficulties in providing and maintainingpublic infrastructure and services, proliferationof informal settlements, worseningenvironmental conditions and increasing socialproblems associated with unemployment,underemployment, and the breakdown oftraditional social structures are often cited asmajor concerns. Consequently, policies haveoften been reduced to trying to developstrategies to encourage those living in urbanareas to return to the rural areas from whichmany came.

These concerns are not unfounded. Incomeinequalities are growing, and poverty andvulnerability are evident in an increasingunderclass of landless urban poor. Withoutattention, these emerging problems will grow,affecting the quality of life, discouraging much

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needed private investment, and placing keyeconomic sectors (such as tourism) at risk.Urbanization trends are also having a profoundeffect on customary traditions, relationships, anddecision-making processes as subsistencelifestyles in rural areas have become lessappealing to young town dwellers, andtraditional leadership structures become lessable to respond to demands by the urbanpopulation for higher standards of living.

In general, the potential economic benefits oftowns are being jeopardized by a lack of visionof the social and physical environment desiredby town dwellers in the Pacific, an absence ofappropriate policies, and poor urbanmanagement and service delivery.

An Agenda for Change andAdaptation

Dealing with the worsening problems caused byurbanization and realizing its potential toincrease standards of living calls for a policyand institutional response that goes beyonduncertain resettlement schemes. Indeed, in lightof the importance of the urban economy and thegrowing population of urban dwellers, the timehas come for urban management strategies tofeature prominently in national economic andsocial development strategies and outcomes,and for accountabilities to be defined.

These strategies should address the currentstructural problems in urban planning, with aview to build a broad-based vision of how toachieve a more equitable distribution ofopportunities for all Pacific Islanders, whilesafeguarding the environment. Shaping thisvision requires a participatory process in whichlocal level traditional institutions, civil societyand the churches, the private sector andgovernment are involved at all levels. This canserve as a vehicle to improve governance asthese stakeholders seek to achieve a consensuson policies and practical measures that enhancethe urban-rural linkages, and harness thepotential of towns to absorb population growthmore productively.

National urban summits would be an idealvehicle towards achieving this sort of consensuson urban policies, and strategies by widening

the debate to include a broader cross-section ofstakeholders including marginalized groups suchas the landless, the urban poor, women, andothers. A regional center – which could beknown as the Pacific Regional Observatory onUrban Development (PROUD)–could serveboth as a regional knowledge bank and a forumfor dialogue on urban and regional development.The seeds for such an initiative already exist inthe region, through the recently formed expertgroup on urbanization of the Council ofRegional Organizations in the Pacific(CROP).

Improving governance in urban areas shouldproceed on one key assumption: Higher levelinstitutions should embody, to the extentpossible, the basic norms and values of thepeople they are intended to serve, rather thanimposing on them a new set of norms andvalues. This implies a shift in the role of higherlevel institutions from actually making decisionsand devising plans to providing assistance to therepresentatives of the people so they can moreeffectively meet the needs expressed by urbancommunities. The result of such a process willbe decisions that have a higher level ofownership among the participants and a strongerlikelihood to be implemented.

The challenge in urban areas will be to findmeans to include all affected residents in thedecision-making process. Explicit attentionneeds to be paid to the needs and priorities ofpoor and marginal stakeholders or they couldact as disintegrative social forces in the urbanenvironment. This is a daunting task, but it isnot beyond the capacity of Pacific Islandsocieties. The tradition of negotiation andconsensus building is strong throughout theregion and in most cases sufficiently flexible toincorporate different interests.

Adaptability has long been a characteristicstrength of Pacific people. It therefore lieslargely within the power of Pacific Islandsocieties, acting alone and through regionalcooperation, to harness and enhance the positiveimpact of urbanization and the contribution itcan make to improving the competitiveness ofPacific Island economies and the quality of lifeof their people.

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Chapter 1Effects of Population Growth andUrbanization in the Pacific Islands

More than 35 percent of the people of the Pacificislands live and work in towns, and the rate ofurban population growth throughout most of theregion is high (figure 1). Overall, eight of thetwenty-two Pacific countries are nowpredominantly urban; by 2020 more than halfthe population in a majority of these countrieswill live in towns.

Urbanization has significantly improved theeconomic prospects and quality of life for alarge and increasing proportion of the people ofthe Pacific. However, as this section shows, ithas also caused many problems.

A. Population Growth andMigrationDeclines in fertility and population growth ratesin the Pacific have lagged behind trends in otherdeveloping countries. In Pacific countries, mostof which lack policy and public support foreffective family planning and emigration outlets,rates of population growth remain among thehighest in the world. The effect that highpopulation growth rates have had in slowingeconomic growth appears to be not wellunderstood by policymakers.

Throughout the Pacific, high population growthhas led to migration from smaller outer islandsto larger islands and from rural areas to towns,especially national capitals (box 1). Key driversof these trends include push factors, such asdeclining agricultural commodity prices andlivelihood opportunities and insufficient ruralland to confer social standing, as well as pullfactors, such as the prospect of cashemployment, perhaps with the government, theavailability of public services in town and theintrinsic excitement of urban areas

Figure 1. Urban and Rural PopulationGrowth

Even in rural areas many people aspire to urban,non-manual labor employment. Strong kinshiptraditions have enabled rural migrants to fulfillthese aspirations by moving to towns.

Plantation agriculture, which has weakenedtraditional leadership structures in rural areas,has also increased migration. In Port Vila, forexample, migration has been greatest fromsmaller islands heavily involved in theplantation economy (Ivarature 2000).

Figure 2. Migration in Vanuatu

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Box 1. Vanuatu

Neither Port Vila nor Luganville, the second-largest city, had more than 2,000 people in 1955. However, Vanuatu'sConstitution provides for free population movement throughout the country and the urban population grew at over 7 percentper year during the 1960s and early 1970s when legislation was enacted establishing Vanuatu as a tax haven. Port Vila becamea boomtown and tourism took off. Urban growth slowed somewhat in the 1980s and again in the 1999 to 4.7% such that thetotal population classified as urban (in Port Vila and Luganville) now stands at about 41,500 - 21 percent of the total nationalpopulation.

However, for Port Vila, this excludes a number of densely populated, informal settlements not classified as urban even thoughthey are adjacent to the town boundary and fall within the direct area of influence of its economy. If these areas, which havegrown more rapidly than the town proper are included, Greater Port Vila alone now has about 40,600 people compared toabout 26,270 (also including "semi-urban” areas) in 1989 - a significantly higher growth rate of 5.9% during this period.Similarly, the population of Luganville also grew quickly to around 15,000 (if suburban areas are included) - about 5.0%annually since 1989, Thus, over 55,000 people - almost 30 percent of the total population - already live and seek theirlivelihood in or around the two major towns. Indeed, the economic influence of these urban areas may be substantially larger.Shefa Province where Port Vila is located and Sanma Province (including Luganville) now account for 48 percent of the totalpopulation.

Migration from smaller islands has been a key driver of this rapid urban growth, particularly from the Shepherds and PaamaIslands as well as the Banks/Torres Islands that lack sufficient land to confer social standing and/or to provide a sustainablelivelihood. It now appears that migration from them has generally become permanent. Migration from other areas, includingTanna, has traditionally been circular with seasonal employment on plantations, for example. However, there are indicationsfrom the 1999 census that migrants from these areas are returning to home villages less frequently and for shorter periods.Thus, migration from these areas is also becoming more permanent.

Not surprisingly, the high overall population growth in Vanuatu has resulted in a very youthful age structure with 44 percentunder age 15, and 17 percent under age 5 in 1999. The youthful age structure is likely to be even more pronounced in the urbanpopulation, of which a high proportion were born in town and have virtually lost their links with home villages in outer islands.

Even with success in achieving more balanced regional economic growth, such as through the Regional EconomicDevelopment Initiative proposed by Taefa Province, population growth in the towns will continue. Greater Port Vila (includingsuburban areas) will grow to possibly 75,000 and Luganville to as many as 25,000 inhabitants within 10 years. At that time,fully 38% of the total national population could be living and seeking livelihood in or near Port Vila or Luganville. Even thepopulation of the "core" urban areas of Port Vila and Luganville could double in 15 years to around 80,000.

Urban migration is not a new phenomenon in thePacific: the most dramatic migration from outerislands to towns took place in the 1950s, 1960s,

access to markets and services. Both theproportion and growth rate of the urbanpopulation are increasing. By 2006, the urban

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and 1970s. Today, migration is a less significantfactor than natural population growth in manyPacific towns. However, the young age structureand high fertility rates of many Pacific townsvirtually ensure that towns will continue to growrapidly, even where urban conditions and thequality of life are deteriorating.

In Fiji—which has perhaps the most developedtowns in the Pacific islands—almost 39 percentof the population lives and works in towns andtwo-thirds of the population lives within 8kilometers of a town or service center (WorldBank 1995). Most rural populations thus have

population is expected to grow to 400,000, two-thirds of which will be in the Greater Suvaregion. Within 20 years, Fiji is likely to betransformed from a predominantly rural to apredominantly urban society.

Outward emigration has been dramatic in thelast decade in the Marshall Islands, wherepopulation growth exceeded the capacity of thenatural resource base and has led to increasingunemployment in urban areas. Most emigrantsare relatively young—economically activefamilies seeking better employment andeducational opportunities. Their vital

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contribution to economic and socialdevelopment at home may be lost.1

B. Benefits of UrbanizationUrbanization in the Pacific has been aninevitable response to deteriorating, or at beststagnating, conditions in rural areas and outerislands, few if any of which can offer theemployment opportunities provided by the urbaneconomy. Most new jobs have been generated intowns, and the urban economy is the majorcontributor to economic diversification,competitiveness, and growth in the region.Urban centers’ substantial contribution to GDPlargely reflects the significantly higherproductivity of urban private sector industry andservices relative to rural activities. Without thegrowth of towns, economic performance inmany Pacific countries would have been evenmore modest than it has been.

In the Solomon Islands, Fiji, and Vanuatu, theurban economy is estimated to have contributedat least 60 percent of GDP in recent years. Forexample, because of Honiara's preeminentposition as the center of services, paidemployment and industry, economicperformance in the capital has a significanteffect on national economic growth in theSolomon Islands. Currently, the capital accountsfor more than 50 percent of formal employmentand a significantly higher proportion of allwages paid. Honiara is both the gateway and animportant destination for tourism to dive sites,which also makes a small contribution to theeconomy.

Urbanization has also facilitated socialdevelopment in the region: provision of basicservices, including health and education, to awidely dispersed population in remote islandswould have been considerably more difficult andcostly than to the populations concentrated intowns.

1 The effect of migration need not be negative. Thegrowing Samoan diaspora in New Zealand, Australia, andthe United States has not turned Samoa into a depressedbackwater. Quite the reverse: Samoa has become moreopen to global trends while maintaining its unique culturaltraditions.

In the transition from colonial governmentcenters to modern towns, capitals in manyPacific countries have become diversified,playing an important role in many activities,including tourism. Indeed, the 500 tourist hotelbeds in Port Vila represent most of Vanuatu’stourist accommodation. In Samoa mostsecondary and tertiary sector activities(including manufacturing, distribution,restaurants and hotels, and government services)are located in Apia, the center of the smalltourist industry. These activities make asubstantial contribution to foreign exchangeearnings.

C. Issues Relating to theGrowth of TownsDespite the many benefits of urbanization, manypolicymakers in the region continue to viewtowns with concern, if not alarm. They cite theprofound effect on customary traditions andrelationships as well as the difficulty ofproviding and maintaining public infrastructureand services, the proliferation of informalsettlements, worsening environmentalconditions, and increasing social problemsassociated with unemployment andunderemployment.

Poverty in the Pacific is rarely as visible or asextreme as in some of the harshest parts of theworld, though countries such as the SolomonIslands and Vanuatu rank on a par with Guinea,Burundi, Senegal and Bangladesh. Moreover,Pacific societies are not as egalitarian assometimes portrayed and gaps in income, accessto services, well being and opportunities arewidening (World Bank 2000). Thus, a broaderconcept of poverty which emphasizes poverty ofopportunity that reflects lack of education,health, lack of economic assets, social exclusionand political marginalization is a betterdescription of poverty for many people in thePacific. Poverty of opportunity is evident inmany ways including rapid emigration fromsome countries, high but disguisedunemployment, and emergence of a culture ofyouth crime and high youth suicide rates.

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The UNDP 1997 Fiji Poverty Report found thatpoverty was an undercurrent in both of urbanand rural areas and in all ethnic communities.One in four households cannot afford a basicstandard of living and these households ofteninclude people who have little formal educationor skills and have difficulty getting paidemployment. The 1998 Samoa householdincome expenditure survey found that one inthree households could not properly meet theirbasic needs. The 1996 survey of Tarawa foundmany aspects of poverty that are common in thePacific. Many households live in badlyovercrowded conditions with poor basicservices, are increasingly dependent on cashincomes, most of which is spent on food, butinclude few adults with paid jobs.

Unemployment and social problems areincreasing in many towns, environmentalconditions and health are deteriorating,inequality in access to income is growing, andevidence of poverty, vulnerability, andhopelessness is increasingly visible among theunderclass of landless urban poor (box 2). Crimein many towns is increasing and, in somecountries, militant groups are finding readyrecruits. Moreover, a number of Pacific societiescontinue to struggle with very high suicide rates,especially amongst young urban dwellers.Unless attention is paid, these emergingproblems will grow, reducing the quality of lifeand placing key economic sectors, such astourism, at risk.

Urban Unemployment

Pacific island countries have not enjoyed thedramatic private sector–led economic growth ofPacific Rim countries. Indeed, economicindicators in many countries have beenstagnant—or even negative—for some time. Fiji,Kiribati, the Solomon Islands, and Vanuatu allexperienced negative per capita income growthin the 1980s and early 1990s, despite high levelsof foreign resource inflows, including aid.

Formal sector job growth in the urban economyhas fallen well short of the level needed toproductively absorb the rapidly increasingpopulation in towns—it accounts for only about

20 percent of the labor force in most Pacificcountries. The growth of the economically activepopulation has for some time exceeded the

Box 2. Hopelessness among the UrbanUnderclass: "Killing Time" as a Way of Life

in Port Vila, Vanuatu

The results of a 1998 survey highlight the low expectationsof young people living in the poor settlement ofBlacksands, in Greater Port Vila, Vanuatu—attitudes thatmay be typical of poor young people throughout the city.

The settlement located on customary land, lacks water andsanitation services. Overcrowding is common, with smallrented rooms often accommodating families of 5–11people. The rent for a single room shared with one or moreother families can amount to as much as 50 percent offamily incomes, leaving insufficient to meet the costs offood, clothing, education and health care.

Perhaps the most striking result of the survey is the lack ofaspirations expressed by young people. Many commentedthat political instability over the past few years had affectedthe economic performance of the country and theirprospects of finding work and that the formal educationsystem had failed to equip them for the job market. Theirlack of links to their village communities and lack ofunderstanding of traditional customs compound thedisillusionment of many. Many were resigned to a future ofmostly “killing time.” As one young person said, “Myfuture is my problem.”

growth of those in formal wage employment—by a ratio of nearly 8:1 in the Solomon Islandsand 6:1 in Fiji. Vanuatu’s urban economycurrently generates fewer than 500 new formalsector jobs for the 3,000 or so additional towndwellers each year (Ministry of Finance andEconomic Management 1998/99).2 Many townsin the Pacific are already experiencing risinglevels of unemployment, particularly amongurban youth—in excess of 10 percent in mostcountries and 20 percent in the Federated Statesof Micronesia and the Marshall Islands. InSamoa, unemployment amongst young people isreportedly three times higher than for olderworkers (the Government of Samoa 1996). Inthe Marshall Islands, young people are two tothree times as likely to be unemployed as older 2 This outcome is not unexpected. Estimates in the early1990s indicated that between1991 and 2011, theeconomically active populations were likely to increase 43percent in Fiji, 95 percent in Vanuatu, and 102 percent inthe Solomon Islands (Cole 1993).

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persons, with unemployment for urban youthbeing as high 50 percent (UNDP and MarshallIslands government 1997). Many children,particularly those who drop out of school areemployed in the informal sector that is also amain source of employment for women, whooften lack the education skills to join the formalsector.

Prospects for private sector job growth in manyPacific countries has been hurt by the traditionaldominance of the government in formal sectoremployment. Government spending has been thelargest contributor to cash employment and GDPin many countries in the region. In Kiribati, forexample, the government sector accounted for67 percent of cash employment and 89 percentof GDP in 1995. Clearly, incomes in Kiribatihave been influenced more by the level of publicsector employment than by productivity and theworkings of a competitive labor market, andthey have reached levels that have inhibited anysignificant expansion of the employment base.Kiribati is not unique in this regard.

However, conventional economic and laborstatistics in the Pacific mask the significant scaleand critical importance of the informal sector asa source of livelihood, both in urban and ruralareas. Households depend on multiple sources ofincome, including some cash employment on aregular or occasional basis, some subsistenceproduction, some traditional exchange, and somesmall-scale trading or other business.

For example, in Vanuatu in 1989, 61 percent ofthe labor force was in the informal sectorcompared to 21 percent in the formal sector.Similarly in the Solomon Islands in 1986, 73percent of the labor force was in the informalsector compared to 17 percent informal sector.Even in Fiji, 34 percent of the workforce was ininformal employment compared to 20 percent inthe formal sector in 1986 (Chung, SustainingLivelihoods, Promoting Informal Sector growthin Pacific Island Countries (UNDP 1997).

Urban informal enterprise is diverse, largelyhome-based and mostly involves women, manyof whom do not have the education or skills tojoin the formal sector and face job

discrimination because of their gender, as wellas children who drop out of school. Surveys ofstall holders in Fiji, Kiribati, Tonga, SolomonIslands and Vanuatu found that most informalbusinesses are also run by women, mostly agedover 30 (Ward and Arias 1993; Brown andConnell 1993; Fiji association of womengraduates 1994; Ahlberg 1997). In the SolomonIslands, almost one half of all women in cashemployment are self-employed and one-third ofthese self-employed women are the sole incomeearners in their households (Solomon IslandsMinistry of Health and ILO 1991). This despitethe fact that most have had very little formaleducation, almost one quarter could not write inany language and almost one-third could not doany calculations.

The manufacturing sector remains smallthroughout the Pacific and with civil servicecutbacks featured in many reform agendas,formal wage employment will be substantiallyreduced. The time has thus come for policy-makers in Pacific countries, particularly thosethat have resisted urbanization, to put in placepolicy environments that will harness theemployment-generating potential of the privatesector, including the informal sector, which hasabsorbed much of the surplus rural labor inmany other countries (including some in thePacific Rim). In Fiji, vegetable gardens areincreasingly providing cash income andlivelihood and potential exists for higher valueactivities such as floriculture.

Recent experience in the trade that has grown insecondhand clothes in Tonga and Samoaindicates that the urban informal sector can be adynamic source of new employment. This tradeoperates through the diaspora of familynetworks that span several countries, and hasdiversified and stimulated new business activityin a range of other goods.

Despite the problem of finding work in towns,however, even those with only a tenuous footingas urban residents are unlikely to return to rurallife and almost certain unemployment. Town lifewill continue to be attractive as long as peoplehave some chance of finding a job. Withincomes of indigenous urban households

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reportedly as much as 8.5 times those in therural areas (UNICEF and Vanuatu Government1991), the risk of even a prolonged period ofunemployment is considered acceptable.

Social Problems

The village community has traditionally beenthe coalescing social unit in Pacific countries,providing a social safety net, a forum forresolving family and kinship issues andsustaining social cohesion in towns as well justas in rural areas. Many migrant familiescontinue to reinforce rural ties rather thanestablish new social ties in the wider urbancommunity. Migrants from the same islandsprefer to live and work together; the social andeconomic bonds they forge are the basis formuch social support in towns. New migrants tothe city are generally housed and fed by kinfolk,at least initially, reinforcing the dependencyrelationship of new migrants (Connell and Lea1993).

Demands for higher standards of living in urbanareas have made it difficult for traditionalleadership structures to respond in waysperceived as adequate by town dwellers. A largeand increasing proportion of the urban younghave never visited their traditional villagecommunities and do have not strong links withthem. Thus traditional safety nets developed byPacific island societies over hundreds of yearsare becoming increasingly strained asexpectations are modified by development andmany communities grapple with the transitionfrom subsistence to cash-based livelihoods ingrowth-oriented economies. As a result, thenumber of people living below the poverty linein urban areas is increasing.3 Where naturalresources in towns are subjected to excessiveexploitation and environmental pollution (as inSouth Tarawa), the level of subsistencelivelihood is reduced, increasing dependency onthe cash economy and affecting the nutrition,health, and quality of life of these communities.

3 A quarter of all households in Fiji was estimated to bebelow the poverty line in the mid-1990s, with a majorityliving in urban areas (Government of Fiji/UNDP 1996).

The proliferation of overcrowded squatter andinformal settlements and increasingunemployment in many towns are resulting in anumber of social problems, including povertyand the breakdown of the extended family,increased crime and vandalism. In Samoa, thenumber of reported crimes rose 23 percentbetween 1996 and 1998. Most of these are likelyto have been committed by urban youth, whohave difficulty finding jobs.

Social disruption caused by the division offamilies between urban and rural areas and theloss of traditional safety nets have alsocontributed to a rise in domestic violence,divorce, and single-parent households. Lack ofsecurity; inadequate provision of basic urbaninfrastructure, utilities, and social services aswell as unemployment and underemploymenthave caused tensions among migrant groups,landowners, and urban authorities.

Studies in Vanuatu indicate that growingnumbers of children born to unmarried parentsare in danger of becoming landless (Ivarature2000). Not surprisingly, the problem has fuelledcalls by politicians for resettlement schemes,many of which are poorly conceived.

Health ProblemsThe most prominent public health problems inPacific countries, especially among the poor,remain those of (largely preventable) infectiousdiseases, in particular respiratory diseasesrelated to overcrowding, and gastroentericdiseases related to water pollution, poorsanitation, and inappropriate health and hygienepractices. Poor-quality water and sanitationservices continue to contribute to public healthrisks. Dengue fever and infant diarrhea arecommon throughout the region. Sewagecontamination of coastal waters provided idealconditions for the cholera outbreak in Tarawa in1987 and more recently in Pohnpei. Higher seatemperature may increase the risks of choleraoutbreaks [Taeuea et al, eds. 2000]. Ciguaterapoisoning—the most frequently occurringhuman illness caused by ingestion of marinetoxins, which affects as many as 50,000 people ayear in tropical and subtropical countries—is

7

also prevalent in the Pacific and may becomemore prevalent as a result of global warming(Baden and others 1995).4 Infant mortality ratesremain high in many Pacific countries.

The deterioration of urban living environmentsis exacerbating health problems. Most low-income families have gravitated to squatter andinformal settlements that proliferate in andaround towns. The incidence of waterbornedisease in these communities is high, especiallyamong infants. However, these health risks alsoaffect the wider urban population and canjeopardize key economic sectors, such astourism.

At the same time, even the poorer countries inthe region, such as Kiribati, are experiencingincreasing incidences of so-called “lifestylediseases” such as stroke, hypertension, heartdisease, and the like, due to more sedentarylifestyles. Less nutritional diets of importedprocessed food are increasingly common, partlybecause opportunities for subsistence agriculturein urban areas have become more limited andpartly because consumption patterns arechanging. Few, if any, fresh vegetables ortropical fruits are grown in atoll countriesbecause of the shallow depth and poor nutrientqualities of the soil. In the Marshall Islands, forexample, the incidence of vitamin A deficiencyamong children is high (Department of Health,Marshall Islands 1999). Unfortunately, gardenwaste, which could be used as mulch to enrichpoor soils is, instead, normally disposed atlandfills.

Lack of Adequate Education

Notwithstanding a policy orientation in manyPacific countries that seeks to minimize or evenreverse urbanization, education systems areorienting young people to non-manualemployment in towns, primarily in government.It has not equipped them with the technical andbusiness skills demanded by the emerging urban

4 A study of eight Pacific Island countries found a positivecorrelation between the annual incidence of ciguaterapoisoning and local warming of the sea surface warmingduring El Niño conditions (Hales and others 1999b).

economy, however, and expatriate workers withthese skills are imported at very substantiallyhigher cost.

Many secondary school graduates are notprepared for further education. Schooladministrators at the Marshall IslandsCommunity College recently reported thatalmost 80 percent of students require remedialwork in English and mathematics.

There is growing recognition in Pacific countriesof the need for education strategies thatmaximize economic competitiveness andproductivity. The Marshall Islands is nowstrongly promoting vocational training insecondary schools. Remodeling the educationsystem to improve the links with the labormarket is also a major objective of Vanuatu’srecently published Education Master Plan.

A number of Pacific countries are also startingto appreciate that their relatively high schoolattendance and literacy rates represent acompetitive advantage. In addition, recenttechnological developments are transforming theeconomics of telecommunications and location.This gives them an opportunity to improve theprofitability of key existing sectors, such astourism, and attract new service exports ininformation industries. Many other small islandcountries have captured niche markets in thesehigh value–added economic activities. However,worldwide experience indicates that beingcompetitive in this area requires a favorableregulatory environment as well as a good levelof education and reliable, competitively pricedtelecommunications. These prerequisites are notyet in place in many Pacific countries, whichwill, as a result, continue to miss theseopportunities.

Improved access to information and knowledgehave the potential for enhancing the value-addedof traditional activities, such as agriculture,small-scale manufacturing, and tourism as wellas public policy functions and services, such asenvironmental management, preventive health,and education. In the global economy, wheremarkets are linked electronically, newemployment opportunities are also emerging in

8

service exports in activities such as data entryand e-commerce. Firms and residents in townsare likely to be most competitive in theseinformation-based niche markets.

Pressure on Infrastructure andServices

While economic prospects in urban areasremain significantly better than in rural areas,the productivity of the urban economy andquality of life in many Pacific towns isdeteriorating, particularly for the poor, becauseof deficiencies in essential infrastructure, utilityservices, and housing. In many Pacific townsthese services were established beforeindependence, and increasing demand from therapidly growing urban population hasoverwhelmed them.

Even in Fiji, where urban services are perhapsmost developed, many new town dwellers havegravitated to squatter and informal settlements,especially in peri-urban areas. As a result, by themid-1990s, about 40 percent of Fiji’s urbanpopulation lacked adequate access to water,proper sanitation facilities, and waste collectionservices. In Honiara, Solomon Islands, coverageby the government water supply system wasreported to be diminishing, as informalsettlements expanded in peri-urban areas in the1980s and 1990s (World Bank 1995).

The practice in many Pacific countries ofdelaying essential maintenance, in expectationof aid-funded capital replacement, threatens toreduce the effectiveness of existinginfrastructure and undercut the justification fornew investment. Lack of funding for equipmentand even basic tools hampers repair andmaintenance of the deteriorating seweragesystem in South Tarawa (Jones 1995b). Even inSuva maintenance for water and seweragesystems was estimated to be about seven yearsbehind schedule in the mid-1990s (World Bank1995). In Honiara, breakdowns and backflowing of water mains remains common.

Inadequate maintenance results in more rapiddeterioration of infrastructure and requires

rehabilitation or reconstruction sooner and athigher cost than would otherwise be required.However, donor financing primarily supportsnew investment, reinforcing the incentive todefer maintenance on an increasing stock ofinfrastructure assets. As a first-order priority,agencies should formulate sound assetmanagement strategies and demonstratereasonable performance in maintenanceoperations on existing assets as a basis forinvestment in new assets, most of which will bedonor-financed.

However, examples of good practice in “assetmanagement” are emerging. For example, inTuvalu, government infrastructure and facilitiesare being inventoried and appropriatemaintenance regimes established (with AusAIDassistance). In Samoa, asset management in theroads sector is an integral part of institutionalreform of Works Department operations and therecently introduced output budgetarymanagement system.

Water Supply The problems associated with deliveringsatisfactory water supply in Pacific island townsare primarily political and institutional ratherthan technical (box 3). They reflectinappropriate policies, undue governmentinterference, and the lack of appropriateincentives for consumers to reduce demand tosustainable levels, all of which undermine theability to operate and maintain water supplysystems properly. Budgetary support for waterand sanitation operations—a major contributorto government budgetary deficits in a number ofPacific countries—is unsustainable. Somecountries have turned this around, but it remainsa problem in many others. A key role forgovernments is to establish an appropriate policyframework and operating incentives oriented toimproving customer service whilst minimizingcosts.

The need to increase awareness of theimportance of protecting freshwater resourcescannot be overemphasized. Management ofwater sources is poor throughout the Pacificislands, even in atoll countries, where permeableground conditions make freshwater lenses

9

particularly vulnerable to contamination fromfertilizers, pesticides, and other pollutants.Traditional landowners are often unwilling toaccept any restrictions on their use of land,regardless of the risk of pollution. Throughbroad-based consultations, mechanisms need tobe found to reduce the pollution risk to theseessential water sources.

Box 3. Government-Managed Water SystemFaces Problems in South Tarawa

Water supply in South Tarawa highlights the difficultiesfaced by government-managed water systems throughoutthe Pacific. The Public Utilities Board (PUB), part of theMinistry of Works and Energy, is responsible for watersupply, sewerage, and power supply. PUB has limitedinstitutional capability, however, and the government isgenerally involved in key operational and managementdecisions. Connection fees and user charges have alwaysbeen inadequate to cover even essential operational andmaintenance costs, and PUB depends heavily on externalsupport and a government operating subsidy. As a result,operations and maintenance in water supply and seweragehave been poor, with network losses reportedly about 50percent (although PUB claims to have achieved somereduction recently).

As in many other Pacific atoll countries, supplies arelimited to a few hours a day, and daily consumption fromthe piped system probably averages no more than 25 litersper person (assuming a 50 percent loss rate) –almost downto a “lifeline” level of supply. Unregulated use of privatepumps and the habit of leaving taps permanently openexacerbates problems of low pressure, leakage, andinfiltration in many systems. As a result, use of shallowwells in residential areas remains common, even thoughmany are reported to contain high levels of fecal coliformsfrom septic tanks and pit toilets, leachate from solid waste,and organic and inorganic pollutants (Ministry of Health1998).

Despite the poor quality of the water supply inmany countries, most low-income families donot heed government warnings to boil water,partly because of the high fuel costs involved,putting themselves at risk of disease.Gastroenteritis, conjunctivitis, and infantdiarrhea, which are attributed to drinking orwashing with contaminated water, are among themost commonly reported communicablediseases requiring hospitalization. In some areas,fast growing timber is being planted in peri-urban or rural areas to supply a growing urbanmarket for wood fuel as a more economical

alternative to kerosene. This initiative is alsostrengthening urban-rural economic links andlivelihood.

Notwithstanding these problems and despiteprojections indicating continued growth inpopulation and water demand, few public waterenterprises have a strategic plan to guide watersupply operations. Satisfactory water supply andenvironmental sanitation represent key elementsin an effective preventive health care strategyand can have a positive effect on attempts toencourage investment and promote economicgrowth in the urban economy.

An appropriate improvement strategy for thewater sector includes the following elements:

� Establishing an institutional vision andaccountability, with meaningfulparticipation by consumers, appropriateinstitutional incentives, and sound operatingpractices.

� Reducing distribution losses (to say 30percent) as the most cost-effective way ofincreasing supply.

� Banning inappropriate land uses andeconomic activities to protect watercatchment areas.

� Enforcing existing regulations requiringrainwater catchment on new buildings.

� Restoring water tariffs.� Coordinating water and sanitation strategies.� Introducing simple community management

of local distribution networks, includingcollection of tariffs.

The high unit costs of small systems clearlysuggests the need for renewed emphasis on costrecovery and improved operational efficiency inwater and sewerage, especially in the context ofwider public sector management reform. Wherethere is resistance to such reform, community-managed projects could be piloted. In all cases,improved operations and maintenance andcustomer orientation should be a prerequisite fornew investment.

The strategy for improving both operating andfinancial performance should also focus on

improving the productivity of the cost baserather than only on increasing tariffs and onimplementing an improved maintenance regime,which should also be audited.

Figure 3. Rainwater Catchment in Low-income House in Majuro

EvPscimc

Othcr(ns3ifas(m

Taeuea et al, eds. 2000). The desalinization plantrecently installed in Tuvalu is also asubstantially higher cost alternative to rainwatercatchment, particularly where rainfall isreasonable.

Experience with corporatization of water utilitieshas been mixed in the Marshall Islands, Samoa,and Tonga. Institutional improvements alone areunlikely to be sufficient to improve waterservice. Rather, clear goals, policies, and actions

10

xamples of good practice, if not yet goodalue, are emerging in some small systems in theacific. These systems offer prospects ofustained improvements in water service toonsumers, in part by creating appropriatencentives. Pricing can improve demandanagement by increasingly proactive

onsumers.

ne example is the long-overdue increase inariffs in Majuro. The change in pricing policiesas encouraged more responsible water use byonsumers. As a result of the new policy, use ofainwater catchments is becoming widespreadfigure 3). Low-income families in particularow view catchments as the preferred waterource—an appropriate response in an area with00 days of rain a year. Less appropriate is thenstallation of desalination plants. While suchacilities can reduce the impact of droughts, theyre a much more expensive way of increasingupply than reducing existing network lossesA$3.0 per cubic meter versus A$1.44 per cubiceter from the existing lenses in Kiribati -

need to be agreed on that serve the interests ofthe community at large. Effective oversightarrangements should be established withmeaningful representation by consumers andother stakeholders, such as landowners. Even so,corporatization may be an appropriate first stepto establishing the independence of operationsrequired for consumer-oriented water service. Atthe same time, it is clear that privatemanagement in Port Vila is proving to be apractical way of improving water serviceoperations in the kind of small town system thatis typical in the Pacific (box 4).

Sewerage and Sanitation. Proper sanitation isessential for urban areas. There is a limit to theeffectiveness of septic tanks in urban centerssuch as Honiara, Suva, and towns in atollcountries. However, other low-cost sanitationtechnologies, such as composting toilets, haveproven successful in some countries includingvarious parts of Kiribati.

Wastewater management in Port Vila is typicalof many Pacific towns. It reveals the importanceof taking an integrated and coordinated approachto planning for water supply and wastewatermanagement, since improvements in waterinfrastructure without investments in wastewatermanagement will invariably result in increasesin public health risks (box 5).

A number of towns in atoll countries, wherepotable water supplies are extremely limited,have constructed sewerage systems usingpumped seawater for toilet flushing. Seawaterpumping costs are high, however, and few, ifany, of these systems are adequately maintainedor protect nearshore waters adequately frompollution.

11

Box 4. Private Provision of Water Service in Port Vila, Vanuatu

Port Vila privatized its water service in 1997 by concessioning the utility to UNELCO, the power utility. The lack of competitionand transparency in concessioning the company to the private sector raised widespread concern. But UNELCO has alreadyestablished a good record of operations and maintenance and significantly improved service coverage, quality, and reliability.Losses have been reduced since private sector management took over, and performance would have been even better but for thedifficulty of obtaining essential easements on customary land to provide service to some informal peri-urban communities.

The availability of an uninterrupted supply of good-quality potable water provides Port Vila with a competitive advantage forattracting industrial and commercial investment. It is an essential prerequisite for sustained tourism growth. The lack of anappropriate regulatory environment, however, has led to high connection fees and tariffs that limit affordability for lower-incomefamilies. In addition, the problem of unequal access due to customary land ownership issues has not been addressed.

The challenge for Port Vila is thus to expand the present 60 percent coverage to include lower-income families in the large andrapidly growing informal and squatter settlements and to formulate a strategy (including appropriate pricing) to link sanitationand wastewater management to match growing levels of water consumption in order to minimize public health risks (which couldalso tarnish the country’s image as a tourism destination). Political support will also be needed to prevent pollution frominappropriate land use in the water reserve area.

Box 5. Sanitation in Port Vila

The lack of properly designed facilities for treatment of wastewater is already causing environmental problems. Septic tanks arethe most common means of wastewater disposal. Only the hospital and the three main hotels have small sewage treatment plants,through these are not all well maintained. Both the public and private sectors provide septic tank emptying service with disposalat the municipal landfill site. However, the emptying charge (equivalent to US$110) discourages many households from usingthis facility.

A sewerage collection system has been proposed in the ADB-funded Sanitation Master Plan for at least the main urban areas ofPort Vila together with primary and secondary treatment with final effluent disposal to land. If feasible, continued use of septictanks with a small bore piped system for direct disposal to sea may be a more cost-effective alternative.

Pollution of groundwater in the dense, low-income informal settlements is also a growing problem and lack of appropriatesanitation or wastewater removal will continue to cause outbreaks of gastric illness, not only in the affected population but also inthe wider community with whom they have working contact. Needless to say, this could adversely affect inward investment andeconomic development and jeopardize the key tourism sector.

The problem of poor sanitation in these areas is exacerbated by the absence of storm water drainage which causes wider dispersalof polluted wastes including to near shore waters. Extending water supply service to these rapidly growing areas withoutmatching investments in appropriate sanitation, sewerage and drainage would likely worsen the incidence of gastro-entericdisease and risk rising levels of infant morbidity and mortality.

Many households continue to rely on moretraditional ways to dispose of human waste(such as defecation in beach areas). In manycases, sea outfalls need to be extended beyondthe reef to prevent continuing erosion.

Solid Waste Management

The institutional framework for disposal of solidand industrial (including hazardous) waste inPacific towns is outdated and ineffective. Inmost towns solid waste collection is a local

government responsibility and accounts for asignificant proportion of local budgets. Withoutexception, these systems lack sufficient financialresources and technical expertise. As a result,even where the percentage of waste collected ishigh, the maintenance of equipment andfacilities is poor and long-term sustainability isin doubt. Affordability and willingness to payare questionable, particularly for low-incomehouseholds, and cost recovery is low.

Even more serious problems relate to disposal.Municipal garbage dumps are usually located onor near coastal areas for land reclamation. Theyare inadequately sealed from flooding orseawater infiltration, creating a potentenvironmental hazard throughout their lifespan.Most agencies responsible for waste disposal areunclear as to the nature and quantities of thewaste they handle.

Conditions are particularly difficult in atollcountries, where disposal sites are located alongthe foreshore, provide little containment ofwastes, and are often poorly maintained (figure4). Cover material is scarce, and during rough

Figure 4. Disposal Site on Foreshore

wbwwaosdoirrd

Some examples of good practice are occurring.Port Vila has recently developed a well-locatedand designed sanitary landfill with facilities toreceive toxic waste and septic tank effluent. Thecoverage and reliability of the collection serviceare good. The municipality has also introducedinnovative programs to involve unemployedyouth in city cleanliness programs.

However, the municipality lacks the financialand technical resources to maintain and replacecollection vehicles, equipment, and facilities,much less promote waste minimization andrecycling or formulate and enforce policiesrelating to disposal of toxic wastes.Sustainability of the service is thereforeuncertain, particularly since the municipalityreceives no government funding. In addition,there is a need to extend waste collection serviceinto peri-urban areas, responsibility for which

12

eather garbage is washed onto adjacenteaches, polluting the beaches and nearshoreaters and creating a health hazard. Disposal ofaste on private land on the foreshore to create

dditional usable land for the benefit of thewners, but without any environmentalafeguards, is becoming become common. Theifficulty of securing suitable sites, particularlyn customary land, makes this one of the mostntractable service delivery problems in theegion. In Fiji the difficulty of finding aeplacement for the dump site at Lami has beenescribed as a “national dilemma”.

lies with the adjacent provincial government.That government has requested donor fundingfor its own collection equipment, even though ithas no capability to operate such a service. Morecost-effective approaches could involvecontracting out solid waste service to the PortVila municipality or establishing jointinstitutional arrangements to provide wastemanagement service throughout Greater PortVila.

With increasing incomes and changingconsumption patterns, solid waste volumes willincrease in many countries (figure 5). The wastestream will also include a greater proportion ofnon-biodegradable materials. Improvements inwaste disposal alone will not suffice, particularlygiven the limited land area. Waste volumes willhave to be reduced, through communityawareness and education campaigns aimed atminimizing waste and increasing recycling—programs similar to those Fiji has adopted.These programs should be combined with othermeasures, such as a tax on imports that containnon-biodegradable packaging materials that theEnvironmental Protection Agency of theMarshall Islands has recommended. Based onexperience in other countries, a 30 percentreduction in waste volumes should be achievable(World Bank 1995).

13

0

200

400

600

800

1994 2004

Kilo

gram

s

0

20

40

60

80

100

120

US$

Waste generated per person

Cost per person

Figure 5. Solid Waste Trends in the Pacific

Drainage

Poor drainage disrupts economic activity;compounds the problems of poor housing,particularly for low-income families; andincreases health risks throughout Pacific towns(figure 5). In many Pacific towns, flooding isfrequent, severe, and costly. Planning schemes,where they exist at all, have traditionally paidlittle attention to known flood risks. Feweffective flood prevention or ameliorationstrategies are in place. Accurate records andmapping of flood events are not maintained, andestimates of the economic damage attributable toflooding have rarely been made. Moreover,many urban areas are experiencing increasedflood risks as the upper parts of river catchmentsare developed (resulting in increased run-off).

Other key issues include the lack of healthawareness about stagnant water, which providesa breeding ground for disease vectors (causingmalaria and dengue fever); poor maintenance ofinfrastructure; and weak and inappropriate landuse and building control. New commercialconstruction in the Port Vila town center, forexample, has blocked drainage outfalls, causingserious seasonal flooding. In Majuro,accessibility to residential areas remains difficultfor long periods following frequent rainsbecause of the lack of coordinated planning,management and maintenance between theMinistry of Regional Development and PublicWorks, which is responsible for drainage on

primary roads, and the Majuro localgovernment, which is responsible for drainageon secondary roads.

Power Supply and Telecommunications

The growing interest in commercializing utilityoperations in Pacific countries is perhaps mostevident in the power and telecommunicationssectors. In those sectors, reliable andcompetitively priced power and

Figure 6. Poor Drainage in Majuro

taupiMgMtfoneHncsfc

elecommunications services are essential tottracting the investment necessary for growth inrban economic activity and employment,articularly in new higher value–added activitiesn information industries. The ability of the

arshall’s Energy Company to update itsenerating capacity and distribution networks inajuro using commercial loans from the U.S. is

estimony to its operational efficiency andinancial management. Interestingly, unlikether public service agencies, the company hasot experienced any problems obtainingasements from customary landowners.owever, an effective regulatory environmenteeds to be created to ensure reasonableonnection charges and tariffs for the powerector. UNELCO, in Port Vila has a special fundor extending electricity service to low-incomeommunities.

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Housing

Housing development in many Pacific countrieshas been constrained by overly prescriptiveplanning and construction standards that fail toreflect consumer demand. As a result, privateformal sector housing construction has generallybeen affordable only by higher-income families.The explosive population growth in manyPacific towns has far exceeded the willingnessor ability of governments throughout the regionto mobilize and service appropriate land to meetresulting housing needs (box 6).

Box 6. Growing Urban Populations PutStress on Housing throughout the Region

In Honiara, in the Solomon Islands, the number ofresidents in informal settlements grew 19 percent a year inthe 1980s. By 1989 there were more than 30 such areas,accommodating 15 percent of Honiara’s population. By themid-1990s about 23 percent of the town’s population livedin informal settlements, where health conditions were poorand sanitation and water supply inadequate (World Bank1995). In Betio, the most crowded islet in South Tarawa,about 25 percent of the more than 9,500 residents on the1.5 square kilometer island are squatters (Jones 1995).

In Port Vila, traditional landowners have been unable orunwilling to mobilize the resources required to subdivideand develop the land to meet growing housing demandgenerally, often preferring instead to enter into informalarrangements. In Port Vila, these informal arrangementshave led to the emergence of a class of informal landlordable to exploit the lack of affordable shelter generally inurban areas and to an underclass of urban poor dependanton irregular, informal employment.

Even in Fiji, where formal shelter sector efforts have beenperhaps the most extensive in the Pacific, housing problemshave worsened. A 1996 UNDP-funded survey of all urbanareas of Fiji found about 70,000 people living in variousforms of urban squatter and informal housing (Walsh1996). In and around Suva alone, there are 30–50 squatterareas, most on marginal lands (mangroves, flood-proneareas, unstable hillsides, stream banks, and areas adjacentto dumps or industrial plants).

Most government housing programs have beenhighly politicized. These projects have beendesigned to unnecessarily high planningstandards and are largely unaffordable by theincome groups for which they were intendedwithout unsustainable subsidies. The FijiHousing Authority found that some 70 percentof applicants were unable to afford repayments

for the purchase of its “low-cost” houses in themid-1990s (box 7).

Rental housing, where available, has beeninsufficient to meet rapidly increasing demandfrom lower-income families. It is generallyhighly subsidized and poorly maintained.

Box 7. The Impact of Housing Standards

Two recent donor-financed housing projects, one in Fijiand the other in Vanuatu, clearly demonstrate the impact ofdifferent housing standards.

In Fiji, initially, most plots developed by the HousingAuthority (HA) were sold without houses. Manypurchasers built their own houses in an incremental mannerover several years while they lived on the plot (thereby alsosaving rental costs elsewhere), sometimes in a small shackat the back while the prime residence was being built in thefront in pace with the available funds. The localgovernment and HA tacitly tolerated such an approachwhich quickly filled all plots; by project completion mosthouses were already completed to a fairly good standard.

Later, when HA switched to pre-building houses, only thelowest cost terrace (attached) houses on small plots ofabout 100 square meters sold well, while many of theexpensive, large 2 and 3 bedroom houses remained ininventory for years.

The demand for lower cost houses also led some localbuilders and lumber yards to offer very popular pre-fabricated house packages which were erected – by thesuppliers or the owners themselves – on serviced plots atvery competitive prices.

In Vanuatu, by contrast, the local government resisted theminimum 130 square meter plot sizes and prevented anytype of incremental “starter home” construction of the typecommon in Fiji. They insisted on high-cost, fullycompleted houses that were not affordable to lower-incomefamilies. As a result, less than 20 percent of the 500 oddplots developed by the National Housing Corporation(NHC) during the project were occupied by projectcompletion.

The housing needs of most urban migrants havetraditionally been met by the extended family(resulting in increased dwelling occupancy andhousehold size) and the kinship group (resultingin increased density as extensions are added tobuildings). For example, households of 20 ormore in Majuro and 40 or more in Ebeye are notuncommon. However, this system of informalwelfare support throughout the Pacific is highly

15

dependent on increasingly scarce urban land forcontinuation of subsistence agriculture.

The situation of rural-urban migrants who do nothave family or kinship relations in the urbanarea has been even more difficult. Moreover,town dwellers are finding themselves less able tosupport rural migrants, a large and growingproportion of whom are renting or illegallyoccupying land in slum areas at the edges oftowns, where basic services and secure tenureare lacking.

Pressure on urban housing and the need forshelter is intense because of the large size ofurban households, which are as large as or largerthan rural households in most Pacific islandcountries. The greatest rural-urban differentialsin average family size are in atoll countries, suchas the Marshall Islands and Kiribati. In SouthTarawa average family size is 7.7 people andrising. In contrast, the average family size inKiribati is 5.9 people and falling (Connell andLea 1998).

Pacific people can construct their own houses.What they need is serviced land and security oftenure. Studies in Fiji indicate that security oftenure is the most important priority in low-income communities (World Bank 1995).Without it residents generally cannot receivemetered water from the Public WorksDepartment, and they are understandablyunwilling to invest to improve their homes orneighborhoods. Community participation islikely to be sporadic at best where secure tenureis lacking. Problems with land tenure addsubstantially to the cost of providinginfrastructure to fragmented areas.

Housing is thus largely an issue of land supply.Housing market mechanisms are not functioningdue primarily to the constraints to developmentof customary land and the absence of securetenure, which in turn inhibits the development ofhousing finance mechanisms. As a result, theprivate housing sector plays a limited role, andthe building industry is unable to play its usualrole as a generator of economic growth andcreator of employment opportunities.

16

17

Chapter 2Issues and Opportunities

Urbanization has increased the diversificationand competitiveness of economies in the region,and it can continue to improve living standards.But this potential is being jeopardized by a lackof vision of the kind of economic, social, andphysical environment desired by town dwellersin the Pacific, an absence of appropriate policies,and poor urban management and servicedelivery. Dealing with the worsening problemscaused by urbanization and realizing its potentialto increase living standards calls for a policy andinstitutional response that goes beyondresettlement schemes of uncertain viability.Indeed, in light of the importance of the urbaneconomy and the proportion of the populationthat lives in urban areas, the time has come forurban management strategies to feature innational economic and social developmentstrategies and for accountabilities to be defined.

The problems are structural. The task isstrategic. The way ahead lies in reshaping thedebate on urbanization with a view to building abroad-based vision of how to achieve a moreequitable distribution of opportunities whilesafeguarding the fragile environment. Shapingthis vision will require a consensus throughoutPacific island societies on policies and practicalmeasures that draw on and enhance urban-rurallinkages and harness the potential of towns toabsorb population growth more productively.

Adaptability has long been a strength of Pacificpeople. It lies largely within the power of thesesocieties, acting alone and through regionalcooperation, to harness and enhance the positiveimpact of urbanization and the contribution itcan make to improving the competitiveness ofPacific island economies and the quality of lifefor these societies.

A. Improving UrbanGovernance and ManagementThe search for national identities in thepostcolonial era and the preoccupation withmacroeconomic development has relegatedplanning and management of the growing newtowns to secondary importance in most Pacificcountries, despite the considerable impactwrought by the pace of their growth. Negativeperceptions of urbanization by many politicalleaders, policy caution, weak institutionalmemory, the slow pace of administration, and alack of public sector innovation further inhibiturban management in the Pacific.

There is a crucial role for local governments inthe Pacific in planning and coordination. Butthese efforts invariably suffer from inadequatefinancial and technical resources to cover day-to-day operational and maintenance costs, muchless discharge the extensive range of functionsassigned to them.

Strengthening Local Governments

There appears to be little support in the regionfor strengthening local governments. In mostPacific countries, therefore, planning andmanaging services for urban areas is effectivelya national government function. At the nationallevel, responsibility is usually divided amongmany government departments and utilities, withlittle coordination. In South Tarawa, Kiribati, forexample, urban services are handled by theMinistry of Home Affairs and RuralDevelopment, the Ministry of Finance andEconomic Planning, the Public WorksDepartment, the Kiribati Housing Corporation,the Public Utilities Board, the Ministry of Healthand Family Planning, and the Ministry ofEnvironment and Social Welfare Development.

18

In Port Vila, the municipality and at least fivenational and provincial ministries anddepartments have responsibilities for land useplanning and development control. Despite thelarge number of agencies involved, Vanuatucould claim only two qualified land use plannersin 1999, one of whom was laid off as part of thegovernment’s comprehensive reform program.

In Fiji, responsibility for Suva is shared by anumber of local governments, including those ofSuva, Nausori, and Lami, while the expandingperi-urban areas are under the jurisdiction ofrural local authorities administered by theMinistry of Health. The range of agenciesinvolved in the town of Suva alone includes theCity Council, the Department of Town andCountry Planning of the Ministry of Housing,Urban Development and Environment, localplanning boards, the Native Lands Trust Board,the National Housing Authority, and individuallandowners. Metro Suva (the Lami-Suva-Nausori corridor) and the Nadi-Lautoka corridorare each forming metropolitan areas, but there isno regional planning to guide or control urbangrowth beyond municipal administrativeboundaries—or even any reliable information onits pace or direction. Nor is there provision forany sort of metropolitan management.

The current institutional structure in most of theregion is characterized by central governmentplanning and control that does not involve localauthorities in a coordinated manner; a lack ofcommunication among municipal governments,rural local authorities, and urban villages in thesame metropolitan area; a tax burden to supporturban development that falls unevenly onbeneficiaries in the urban region; and a lack ofcapacity to address the needs of the population,which vary greatly across jurisdictions.

Increasing the Efficiency of UrbanManagement

Until recently, there has been little, if any,recognition of the need to reduce the number(and costs) of the many national, provincial,local, and quasi-governmental agencies chargedwith urban management functions—each withits own agenda and few, if any, with adequate

funds or managerial and technical expertise.Establishing a coordinating locus for managingthese towns, creating a more inclusive processrepresenting a broad base of stakeholders, andrationalizing the institutional framework forplanning and delivering urban services is vital tohalting the declining productivity anddeteriorating quality of life in Pacific towns.

As the Pacific countries become more closelylinked to the global economy, pressure forefficient urban management will increase.Governments need to view urbanization as acrucial part of national development policy, andthey need to adopt measures that will enabletowns to continue to grow in an orderly way.

Improving the Responsiveness ofGovernment to Local Needs

Several obstacles stand in the way of goodgovernance in the region. Nationalgovernments—and to a large extent lower levelsof government—tend to be organized alongWestern institutional models, which are poorlyintegrated with traditional structures andprocesses. Decisions are generally made byformal government bodies, based on top-downplanning and budgeting, and do not often makesense in terms of traditional views of howdecisions should be made, nor do theyaccurately reflect local level priorities fordevelopment. In these circumstances, it is notsurprising that regulations that conflict withcustomary practices and traditional lifestyles—such as those relating to land use—are oftenignored.

Improvement of governance in the urbanenvironment should be based on one keyassumption: to the extent possible, higher-levelinstitutions should embody the basic norms andvalues of the people they are intended to serverather than imposing on them a new set of normsand values. In addition, the decision-makingprocess should be more responsive to sharednorms of how decisions should be reached. Thisimplies a shift in the role of technicians andother experts away from actually makingdecisions and devising plans to advisingrepresentatives of the people on how most

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effectively to meet the needs expressed bycommunities and the local level.

Inclusion of representatives chosen bycommunity institutions in higher-level bodieswould encourage the extension of traditionalmethods of building consensus across andamong different communities and groups,including women and urban youth as well asmarginalized groups such as the landless poor,who have not utilized such methods before. Itwould also increase the sense of ownershipamong participants and strengthen thewillingness by the members of the group to takethe necessary steps to implement a decision.

The lines of communication between local andhigher levels need to be improved. There shouldbe a well-defined point of entry for those at thelocal level who wish to communicate their needsand priorities to higher levels. Improvingcommunication between levels of governmentwould greatly improve the ability of localcommunities to make their needs known tohigher-level officials and to have those needsreflected accurately in planning and budgeting.It would also provide communities with a sourceof accurate and clear information. As traditionalcommunity-based institutions become moreinclusive, they should be formally recognized asthe representative institutions of people at thecommunity level. At the same time, these bodiesshould be empowered to determine who willrepresent them at higher institutional levels,where decisions are made that affectdevelopment, service delivery, and other publicactivities at the local level.

Pacific countries are fortunate in that they haveretained much of the vitality of traditional socialand cultural organization at the local communityor neighborhood level, whether this be in theform of the Samoan aigas and village fonos; orthe utus, kaingas, and maneabas of the I-Kiribati. Within these groups, the processes bywhich authority is expressed and decisions madeare well defined and understood. Although thespecifics vary a great deal across cultures, mostPacific societies are characterized by a strongemphasis on group decision-making. Mostdecisions are arrived at through a process that

allows all those eligible to participate in thediscussion before a course of action is chosen.

The challenge in urban areas is to find a meansto include all affected residents, including thosefrom different clans and ethnic groups, in thedecision-making process. Explicit attentionneeds to be paid to the needs and priorities ofthese otherwise marginal stakeholders or theywill act as disintegrative social forces in theurban environment. This is a daunting task, butit is not beyond the capacity of Pacific societies.The tradition of negotiation and consensusbuilding is strong and in most cases sufficientlyflexible to incorporate “outsiders” into at leastsome kinds of group activities.

The likelihood of success in this process wouldbe improved by clearly articulating theincentives for greater inclusion. Greaterinclusion would give the group access toadditional human and other resources at the locallevel and expand support from the communityfor local level demands. It would also strengthenthe legitimacy of the traditional structures anddecision-making processes—such as the Mataiin Samoa or the Unimane in Kiribati—as the“voice” of the community beyond the restrictedgroup it used to represent.

B. Moving Toward Community-Based PlanningIn most Pacific countries urban planning iseffectively a national government function,divided among many government departments.There are very few urban managers and virtuallyno capacity to enforce compliance with buildingcodes or other regulations, much less toformulate integrated physical, economic, andenvironmental plans to guide urban developmentat the national or local government level. Themost significant manifestations of the failure toexecute demand-based integrated planning is theinadequate provision of water supplies, solidwaste and sewage disposal, and housing thatcharacterizes many of the high-density urbanareas in the Pacific.

Appropriate land use planning is central toeffective environmental management. But

institutional arrangements for land use planningare weak, and the options for effectiveintervention to solve environmental problemsassociated with land use are limited. Inadequatezoning laws and un-enforced building codesfoster substandard housing, overcrowding, andpoor sanitary conditions.

Throughout the Pacific, information gaps are a

Ironically, Kiribati, one of the more traditionalPacific countries, has made most progresstoward developing an appropriate municipalframework for coordinated urban planning(box 8). Integration with the KiribatiEnvironmental Information Management System(KEIMS) being developed within the Ministryof Environment and Social Development wouldincrease the critical mass of its application and

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major stumbling block to the adoption ofeffective planning of any kind. Many of the datarequired to prepare urban plans are not available,and research on the degree of deprivation or howfamilies and firms cope with deficiencies inurban services has not been performed. In theabsence of any overall-planning framework,development controls are generally applied in anad hoc, inconsistent and (sometimes) corruptmanner. Moreover, formal planning is stillregarded in many Pacific countries as animposition from the colonial past and is resistedwhere it threatens to impinge on the rights oftraditional landowners.

Planning legislation is either outdated ornonexistent in most Pacific countries, and fewtowns have an approved land use plan.Despite—or perhaps because of—thisdeficiency, an effective approach to planningwas made in Ebeye, in the Marshall Islands, oneof the most densely populated towns in thePacific, in 1989. The major landowners gave theKwajalein Development Authority (KADA) aleasehold interest over more than 75 percent ofthe island. This enabled KADA to develop plansto establish commercial zones, expandrecreational facilities, and build the island's firsthigh school.

Similar reforms have proven more difficult inthe capital, Majuro, where major landowners arerepresented in the country’s political leadership.The establishment of a municipal government inMajuro has not led to effective land useplanning. Zoning laws proposed in 1991 weredefeated during public hearings. No other localgovernments have attempted to draft such laws,although national legislation assigns themresponsibility to do so.

potentially widen the client user base. It would,thereby, increase the commitment to sustain theinitiative since both have adopted the sameproprietary GIS software (MapInfo) and there isa logical synergy of benefit between Land andEnvironmental management.

Improving Land UseMore than 80 percent of land in the Pacificregion is under some form of indigenous control,with strict kinship rights affecting itsdevelopment (table 1). In urban areas, thisranges from about 40 percent in Kiribati tonearly 100 percent in the Marshall Islands.

Customary land ownership and kinshiptraditions of sharing resources have protectedcommunities against poverty by ensuring that allfamily and clan members have access to land.Customary traditions allocate land rightsaccording to status in society, roles, age, andgender. These rights are under constantrenegotiation to reflect the changing needs andinterests of individuals and groups. However,this has also complicated the provision of evenbasic services and limiting economic progressand growth of income opportunities in towns. Inmany Pacific countries land remains inunproductive or under-productive use. Easingthe constraints on land use and availabilitywould significantly increase the productivepotential of Pacific towns.

Modern economies rely on legal systems thatrecognize individual rights, gender equality, andindividual ownership of property. Notsurprisingly, land held under customary tenure isnot normally accepted as collateral for loanfinance by formal sector financial institutions.

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Box 8. Urban Management and Planning for South TarawaThe Urban Management Plan for South Tarawa (UMPST) prepared by the Land Management Department (LMD) of the Ministryof Home Affairs and Rural Development clearly defined the context and rationale for urban management, the main issues andobjectives for managing the urban environment. With the benefit of considerable community consultation, the plan provides anindicative planning strategy and direction, together with a proposed planning framework address key issues to guide future urbandevelopment and urbanisation in the short to medium-term. Significantly, the plan identified - “the lack of co-ordination,commitment and an absence of a single integrated policy framework, which cuts across all sectors of South Tarawa” - as theprimary obstacle to effective urban management.

Building on this experience the Government initiated, with ADB support, work on an Integrated Urban Plan and Program for thewhole of South Tarawa (TIPPS). This TIPPS was intended to provide a development “vision” for the whole of South Tarawa anda broad strategic structure plan that could, amongst other things, identify existing and potential land to accommodate futurepopulation growth in an orderly and planned fashion as well as infrastructure plans and programs together with a detailedphysical planning and financing framework for infrastructure development and an economic appraisal of water and sewageimprovements.

Whilst it fails to tackle the intractable ‘land supply’ issue and related cultural modalities for implementation, TIPPS’recommendations include a number of innovative approaches, such as: a Government land purchase strategy with valuationadvice; voluntary property trusts; and Comprehensive Urban Development Zones.

The computerised GIS land use database system being developed by LMD is being used to help resolve actual ownershipdisputes and to illustrate the importance of related land-use considerations. The system offers great potential as a contribution tomore effective land management. However, its success will depend on political commitment and resources for continueddevelopment and operation of the system as well as the extent to which other government agencies tap into this valuableinformation resource.

Lack of security of tenure and the practice ofrenegotiating lease terms ex post are frequentlycited by foreign investors as major constraints toinvestment, especially large-scale long-terminvestment.

Table 1. Land Ownership in Selected PacificCountries

CustomaryLand (%)

GovernmentLand (%)

FreeholdLand (%)

Fiji 83 9 8Vanuatu 98 2Solomon Islands 97 3Federated States ofMicronesia

60 40

Kiribati 40 60Marshall Islands 100Tonga 100

Land leasing by the government or the privatesector occurs in most Pacific urban centers inone form or another. Use of customary landremains problematic, however, even for essentialpublic facilities such as water supply and wastedisposal, since customary landowners usuallyoppose regulations that might restrict theirrights. Landowners in South Tarawa, forexample, succeeded in pressuring the

government to return land that had been setaside for urban water supply reserves. Lack ofbasic land ownership information showinglocation and boundaries does not exist in mostPacific countries, increasing the number ofdisputes over land ownership.

Governments are rightly keen to protect culturaltraditions. But intervention in the land marketneed not challenge customary values placed onland. The issue is not one of changing thetraditional land tenure system per se but ofunlocking land tied up in unproductive uses orheld speculatively.

For example, many of the custom owners in PortVila, some of whom own land individually,would like to register their land holdings and usethem to secure financing for subdivision andland development for residential purposes.However, formalizing custom land holdings(involving certification of ownership bytraditional authorities, surveying, registrationand issuance of a lease) is time-consuming andcostly – possibly amounting to VT 700,000 to 1million for a block of about 6-7 hectares. Few

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custom owners have such resources readilyavailable.

Devising means to facilitate the registration ofcustom land should be a high priority for theGovernment of Vanuatu. One possible solutionthat has been under consideration is the settingup of a revolving fund, possibly managed by theSHEFA Provincial Council, which wouldprovide loans to custom land owners to financethe costs of surveying, registration and titling oftheir land. Financing should be short term, say 2- 3 years, and at market interest rates.

Forging a broad-based consensus that action isnecessary to avert further deterioration in livingstandards holds the key to gradual progress inthis area. The problem should be brought intothe public domain and openly discussed amongkey stakeholders, including landowners andother affected parties, with a view to agreeing onpractical measures to promote the efficient useof land while protecting natural resources for thewider public good.

Important trends are becoming discernable in anumber of countries. Individualism andegalitarianism are replacing close kinshipstructures, with their emphasis on reciprocity,inherited social status, and rank. Concepts ofproperty and ownership are shifting from agroup to an individual orientation, andemigration and wage employment havedisrupted ritual obligations and communalactivities.

For example, in Samoa, village practices appearto have been diverging from “proper custom” forsome time. There is a growing expectation thatchildren will be able to inherit family house andland rights directly, without having to overrideclaims by other branches of the wider descentgroups of the village. (There is still no movetoward freeholding of customary land, however.)In Fiji, the importance of the Mataqali as a land-owning unit reduced, as access to land hasbecome more individualized. In many parts ofthe country, individual households intendbecoming the owners and users of tracts of land,parts of which they are unwilling to lease orlend.

To facilitate improved land management, thereis merit in intensifying networking and thepooling of knowledge within the region,discussing examples of good practice andexperience in addressing this problem, andcollaborating in pilot approaches in keeping withthe established traditions and needs of individualPacific countries.

C. Addressing EnvironmentalIssuesEnvironmental management issues in Pacificurban centers require urgent attention. Theseissues have become particularly important inrecent years because of the rapid increases inurban population pressures, often on small andlow land masses; the vulnerability of urban areasto sea level rise; the economic and culturaldependence on the natural environment; theprevalence of natural disasters and thevulnerability of freshwater lenses on atolls toenvironmental; and climate change impacts(box 9)

Most countries in the Pacific have preparedNational Environmental Management Strategies(NEMS) and some, such as Fiji, are particularlyactive in promoting recycling, awarenesscampaigns (including in schools), conservationof water resources, and the like. Fiji has alsoinvolved industries, such as Exxon, whichsponsors and promotes environmental clean-upprograms, and the tourism industry that has agrowing eco-tourism subsector and usesecological features in some resorts.

However, many NEMS do not deal extensivelywith “brown” issues of urban wastes.Recognition is not yet widespread thatenvironmental management of urban areas—particularly integrated planning andmanagement of land resources, including inlandand coastal areas—is a prerequisite forsuccessful long-term economic development.

Implementation and enforcement ofenvironmental regulations governinginappropriate land use are weak in manycountries, particularly in towns. For example,programs of the Environmental ProtectionAuthority of the Republic of the Marshall

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Box 9. Protecting the Watershed in Apia,Western Samoa

The problems in Apia are typical of those faced by otherPacific towns (Figure 2.7). The watershed is suffering fromerosion, sedimentation, and contaminated drinking waterdue to land conversion, livestock grazing, and uncontrolledwaste disposal. The Vaiusu Bay and its foreshore sufferfrom high concentrations of bacteria, nitrogen and solidwastes, shellfish contamination, and reduced fisheryproductivity caused by industrial pollution, destruction ofthe mangrove habitat, urban runoff, and wastes from theold disposal site. Low-lying areas of the city are affected byvector-borne diseases and unsanitary conditions caused byflooding and sedimentation. The Vaisigano RiverWatershed Management Project, supported by the UnitedNations Development Program and the Food andAgriculture Organization, is a good example of a low-costprogram that is working to protect critical areas,rehabilitate eroded lands, provide proper drainage,introduce agroforestry and conservation practices, andeducate the public.

Islands include public education and monitoringof public water quality and supplies, pesticides,solid and hazardous waste management, toiletfacility regulation, village environmental health,sewage disposal inspection, and dredging.Regulations governing these areas have beenapproved and are being implemented indredging, solid waste, toilets and sewage,and pesticide use. Water quality regulationshave also been approved. The Ministry ofHealth, Family Planning and Social Welfarehas been given responsibility for advising onand coordinating all these environmentalissues. However, enforcement of protectivemeasures will continue to be limited untilpolitical support and institutionalresponsibilities in this area are clarified.

Moreover, coordination is often weak. InKiribati, the Management Plan for TarawaLagoon was being prepared at the same time asthe Urban Management Plan for South Tarawa.Both were preceded by the NationalEnvironmental Management Strategy, but therewas no integration or cross-referencing ofresearch, findings, recommendations, orconclusions, even though the government has

monitored the status of the marine resources inTarawa Lagoon since the late 1970s.

Lack of legislation also hurts efforts to protectthe environment. Kiribati has no legislationdealing effectively with the collection anddisposal of waste of any kind, let alone toxic ornon-biodegradable waste or for dealing withpollution of the sea or lagoon from land-basedsources.

D. Improving DisasterManagementThe number of natural disasters world wideincreased fivefold during the 1990s, and damageincreased by a factor of 9. About half theeconomic impact of these disasters was borne bydeveloping countries—a massive burden relativeto their GDP. Much of this burden is borne bythe poor, especially in developing countries.

Pacific countries are exposed to the full range ofnatural hazards, including tropical cyclones,floods, landslides, extended droughts, volcaniceruptions, and earthquakes (table 2). Acceleratedchanges in demographic and economic trends,climate change, and sea level rise are allincreasing the vulnerability of the growingpopulation concentrations in towns, virtually allof which are located on coasts. Lower-incomecommunities—which gravitate to marginallands, such as foreshore mangroves, floodplains,and stream banks—are particularly vulnerable toflooding, cyclones, and storm surges.

Many Pacific countries have experienced andwill continue to experience increasedvulnerability to natural hazards as a result ofhigh population growth rates, over-development,increased exploitation of biological and physicalcoastal resources, mangrove clearance, sand andaggregate extraction (figure 7), overexploitationof fisheries, and poor waste management. Thesechanges may compromise the protectivecapacity of reefs, leading to a reduction insediment availability (Gillie 1997a, b; Mimuraand Peliskoti 1997; Nunn and Mimura 1997).

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Table 2. Vulnerability to Natural Disasters

Cyclone CoastalFlooding

RiverFlooding

Drought Earthquake Landslides Tsunami Volcano

Fiji High High High Medium Medium High HighVanuatu High HIgh High Low High HIgh HighSolomon Islands High High HIgh Low High High High HighFederated States ofMicronesia

Medium High Low High Low Low High High

Kiribati Low High High Low Low HighMarshall Islands Medium High High Low Low HighPalau Medium Medium Medium Low Low MediumTonga High High Medium High High Low High HighSource: SPREP (1994)

Potential impacts include accelerated coastalerosion, inundation, and flooding, which will putfurther pressure on infrastructure. These impactsare expected to be exacerbated by climatechange, sea level rise, and changes in stormfrequency and intensity (see Volume IV). Aspopulation growth continues to increase pressureon natural resources and the environment, risksto public infrastructure and facilities and thelarge and growing proportion of economicactivity in coastal towns increase.

Disaster management needs to go beyondminimising loss of life. Physical losses—including losses due to business interruption thatare often comparable to those resulting fromdirect physical damage—can impose enormousburdens on the population. Secondary loss fromdamage to communication and powerinfrastructure can be particularly significant incounties such as Vanuatu, Fiji, and Samoa,where major tourism assets are located in or nearurban areas and tourism revenues are significant.

Efforts in KiribatiThe recently updated Kiribati DisasterManagement Plan (Kiribati National DisasterManagement Office 1998) is alreadycomprehensive in its coverage, addressingmitigation, public awareness, and training aswell as relief, rehabilitation, and internationalassistance. A National Disaster ManagementCouncil—made up of secretary-levelrepresentatives of 10 sector ministries andchaired by the Secretary for the Ministry ofHome Affairs and Rural Development—isresponsible for overall disaster management on a

Figure 7. Sand Mining at Shoreline

continuous basis. A Mitigation and PreventionCommittee has been assigned the role ofpreparing policies for disaster mitigation,including training, education, and awarenessprograms at all levels of government and thecommunity.

The plan covers a range of issues and provides areasonable statutory platform from which tolaunch positive change. Although the urbanagenda appears to have been largely overlookedin the plan, current work to develop ageographic land and property informationsystem, mapping and survey registration systemtogether with the creation of an environmentalresource database could provide the spatialinformation on which to base hazard andvulnerability assessments.

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Efforts in VanuatuVanuatu has taken an active approach to disastermanagement, establishing a permanent NationalDisaster Operations Center in Vila. Its plan,originally drafted in 1985, was reviewed toincorporate the lessons learned during the1991/92 cyclone season, observations by theNational Disaster Executive Committee, andrecommendations of the Barr Report (AIDAB1989). The plan now covers preparednessmeasures, national disaster response, and post-disaster review, as well as stages ofimplementation and a warning and alert system.

The plan does not include any disastermitigation measures, and little attention has beenfocused on integrating vulnerability aspects intoa comprehensive preventative strategy orintegrating disaster management into nationaldevelopment strategies. The need for attention tohazard mitigation has been recognized, however.With assistance from the South Pacific DisasterReduction Program, the National DisasterManagement Office of Vanuatu is formulating aComprehensive Disaster Management Programthat will guide all future disaster managementactivities, including hazard and vulnerabilityassessment to facilitate the identification ofmitigation activities.

One omission common to the plans for bothVanuatu and Kiribati is the lack of explicitreference to the roles and responsibilities oflocal governments. The broad list of functionsthat may be conferred on local councils presentsa prima facie case for them to play at least animportant interface role between the governmentand the community and for them to berepresented in bodies responsible to formulatingand overseeing prevention and mitigationmeasures.

E. The Costs of Doing NothingThe absence of appropriate policies plans,strategies, and effective institutionalarrangements to guide urbanization will not onlyclose off the opportunities to harness thedynamic potential of the towns for economic

growth, but will have an increasingly negativeimpact on the existing productive capacity of theurban economy. It will also reduce the quality oflife in the region’s rapidly growing towns.

Further pressure will be placed on the alreadystretched infrastructure services and theinstitutions charged to deliver them.Unemployment will likely increase.Environmental conditions and pollution, whichreduce the carrying capacity of the limitednatural resource base, will worsen, and seriousoutbreaks of epidemic illnesses may becomemore frequent. These public health risks areunlikely to be confined to low-incomepopulations in informal and squatter settlements,since these communities provide much of theservice sector workforce in higher-incomehouseholds, in commerce and industry, and inhotels, restaurants, and other facilities associatedwith tourism. All of these effects will constraineconomic growth, deter investment, and increaseurban unemployment and underemployment.

Already the pace of urban growth has challengedthe ability of customary traditions to protectpeople from poverty, and a growing permanenturban underclass is emerging in towns and citiesin the region. Not surprisingly, furtherdeterioration in urban conditions will be feltmost directly by the poor, who represent a largeand growing proportion of the population. Theincreasing hopelessness among these veryyouthful urban populations is almost certain tolead to increased levels of crime and urbanviolence.

A “no action” scenario is thus likely to lead toan increasing gulf between the “haves” and the“have-nots” in terms of access to land, shelter,basic services, and quality of life. Lack of actionthreatens to reverse recent progress in improvingthe coverage, quality, and reliability of urbanutility infrastructure and services, as responsibleagencies become increasingly dependent ongovernment subsidies and external assistance.

This scenario is not inevitable. Action now bypolitical and community leaders and other keystakeholders could set in place the buildingblocks that would reduce these risks. The

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region’s long tradition of family and kinshipcould be harnessed through an urban dialoguebeginning in local neighborhoods andculminating in an urban “summit” in eachcountry intended to create a shared vision andconsensus on strategies, roles, andresponsibilities to mobilize the benefits ofurbanization and to achieve a more equitabledistribution of opportunities for all while

safeguarding the fragile environment. Achievingthis consensus requires a more inclusiveconstituency of stakeholders in the decision-making process, including policymakers, publicsector institutions, customary landowners, andordinary urban residents. The well-establishedcultural traditions of communal decision-makingmake doing so a realistic proposition.

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Chapter 3An Agenda for ManagingChange and Adaptation

Urbanization has significantly improved theeconomic prospects and social conditions for alarge and increasing proportion of the people ofthe Pacific. In many Pacific countries the urbaneconomy generates more than 60 percent ofGDP and is now a major, if not the major,contributor to economic diversification,competitiveness, and growth in the region.

A. The Need for Urban PolicyFew Pacific country governments haverecognized the productive and employment-generating potential of the urban economy,however, and fewer still have articulatedstrategies to realize this potential. This lack ofplanning has left Pacific countries poorlyprepared for economic globalization.

Population growth in many Pacific townsremains among the highest in the world.Governments and traditional leadershipstructures have found themselves unable toprovide and maintain basic services for the largeproportion of the population now living intowns. Deteriorating environmental and healthconditions and declining real incomes and livingconditions constitutes a crisis of urbanmanagement.

Population growth in the principal towns may bestarting to moderate. In many urban areas in theregion, increases in the populations reflectnatural growth rather than migration from ruralareas. Even so, migration is still regarded as themajor cause of problems rather than as aninevitable response to forces facing the ruralpopulation in the transition from subsistencelifestyles to cash employment. Against thisbackground it is not surprising that the policyresponse in many Pacific countries has been toencourage rural residents to remain at home.

Some countries have located productiveeconomic activities (even such asgarment factories) in rural areas, in an attempt todiscourage migration to towns. Where suchpolicies are founded primarily on incentives andsubsidies, they are unlikely to prove sustainablein providing sufficient livelihood opportunitiesto reverse the trend of urbanization.

National development strategies in many Pacificcountries recognize the overarching problemsresulting from rapid, unplanned urbanization,but none contains a comprehensive set ofpolicies to deal with them. There is no processthrough which issues affecting towncommunities are systematically reviewed. As aresult, urban policy results by default from theinterplay of other sector policies without havingbeen considered in their own right. The lack ofclearly defined roles means that no single bodytakes responsibility for urban issues. As a result,the benefits that might be derived from acomprehensive urban policy that is integratedinto national development strategies are neverrealized.

B. Establishing a Policy forUrban Management andPlanningProblems of poor-quality urban services aresystemic, structural, and political, but they havebeen addressed on a technical and sectoral basis.Successive governments have failed to addressthese basic issues or create an enablingenvironment for achieving communityawareness, stakeholder consensus, and politicalsupport for appropriate measures. The result hasbeen increasing urban poverty, inadequate orunaffordable infrastructure and utility services,lack of affordable housing, increasing publichealth problems and environmental degradation,

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and growing corruption and politicalpolarization in Pacific towns.

A more effective strategy for stemming thedecline in urban conditions calls for Pacificcountries to articulate a vision and create acomprehensive strategy for restoring the qualityof life of town dwellers and for increasing theproductive potential and competitiveness of theurban economy. The starting point for doing solies in:

� Recognizing the major contribution theurban economy makes to nationalemployment and GDP and the need for anappropriate policy framework that can beintegrated into national developmentstrategies.

� Understanding the important role thateffective urban-rural links can play inrevitalizing rural and regional economicefforts. Balanced urban-regional strategiesneed to be framed through a participatoryprocess oriented to economic opportunitiesthat reflect regional comparative advantagesand potentials.

� Taking action to address the lack of data onurban conditions and issues, particularlydata on land ownership and use, planning,population, health, education, economicactivity and employment, and income andpoverty.

� Incorporating a spatial component innational economic growth and socialdevelopment strategies that focuses attentionon towns.

� Reviewing education sector strategies andachievements in relation to the skillsrequired in the domestic and internationaleconomy to improve competitiveness inresponse to economic globalization.

� Strengthening disaster planning andmanagement, through adaptation measuresthat reduce the social and economicdisruption of these events, to which urbancommunities in the Pacific are particularlyvulnerable.

� Recognizing the importance and utility offull involvement of all urban stakeholders inthe process of urban planning andmanagement.

C. Expanding Livelihood,Improving ProductivityThe UNDP report (Sustaining Livelihood's,Promoting Informal Sector Growth in PacificIsland Countries, UNDP 1999a) observes thatwhilst most employment policies and programsin Pacific countries focus on formalemployment, only a minority of workers arecurrently in paid, formal sector jobs and that thissituation is unlikely to change in the foreseeablefuture. However, the urban informal sector facesnumber of barriers that must be removed ifinformal sector activities are to grow in size andproductivity.

The report concludes that, if governments wantto encourage informal sector growth, they mustexamine the institutional and policy environmentin which these enterprises operate and devisemore supportive regulatory systems anddevelopment programs, particularly involvingwomen and the urban youth. These mainlyinvolved credit schemes, and start-up programs,and various types of special assistance todisadvantage groups such as women and youth.

Conditions that would enable small enterprisesto succeed, which are often lacking, includeadequate transport and communicationsinfrastructure, non-formal education and skillsdevelopment, assistance with production andmarketing strategies, access to credit,information about viable business prospects ortechnologies, and removal of many obstacles inthe form of legal restrictions and unsupportivegovernment policies that these enterprises face.

Improving the base of information on existingemployment and labor patterns would alsofacilitate framing policies and strategies.Tapping into the improving experience withmicro-credit schemes in many countries aroundthe World would also be beneficial for thePacific countries.

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D. Developing an InclusiveApproach to Urban Planning,Management, Service Delivery,and Quality ControlUrban dwellers will be unable to achievesustainable livelihoods in the coming decadeunless Pacific governments and societies setclear strategic directions and priorities for urbanareas.

Prospects for sustaining the benefits ofdevelopment efforts can be improved byharnessing the energies of the wide range ofstakeholders and by integrating traditionaldecision-making structures and communitygroups at the village and local government levelwithin the wider urban decision-makingstructure through ongoing consultation andparticipation. For such a process to be fruitful,however, information on government services,policies, and proposals must be disseminatedand stakeholder views actively sought,especially from women and youth groups.

Nowhere is broad-based consensus moreurgently needed than on issues related to landuse, which directly affects the economicpotential of Pacific countries and theenvironment and health of people living inPacific towns. Land use is rarely guided bysound public good considerations, however.Public information campaigns can be aneffective vehicle for building public awarenessof the link between land use planning andenvironmental and health concerns, and they canhelp initiate meaningful consultations bystakeholders.

Giving a Voice to the People: TheRole of Local Government

The opening of effective channels forcommunity participation through the increasedengagement of community leaders, customarylandowners, and non-governmentalorganizations is needed to ensure more effectiveand sustainable development in Pacific towns.The formal and informal institutionalmechanisms that might be used for making the

voices of communities heard are likely to differfrom country to country. However, throughoutthe region, municipalities and town councilscould be used to disseminate information ongovernment services more effectively. Theycould also serve as forums in whichcommunities could voice their views on themanagement of local affairs, on governmentpolicies and plans, and on land use andenvironmental issues affecting them. This mayalso help address problems of resourceconstraints and poor coordination betweencentral government agencies and betweencentral and local governments. Such amechanism could be particularly effective iflocal governments were made responsible forcoordinating planning and service deliveryfunctions in their areas, as suggested above.

Developing a Shared VisionMany traditional development efforts in thePacific have focused on short-term priorityimprovements to urban infrastructure and utilityservices as a basis for also starting to addresssome of the urban management problems, whichrequire longer-term partnering. Certainly,infrastructure and utilities must keep pace witheconomic growth if productivity growth is to bemaximized. However, the crisis of urbanmanagement is so great and the stakes are solarge that without fundamental improvements inthe urban management process, the potentialimpact of these development efforts remains atsubstantial risk and in some (perhaps most)Pacific countries, consideration should be givento convening an “urban summit.” Such a summitwould provide a forum in which all stakeholderscould engage in shaping a vision to definepriorities and achievable goals for stemming thedecline in income-earning prospects and thequality of life. Stakeholders could also agree onactions to be taken, including actions forimproving land use and availability; delineateroles and responsibilities of the private andpublic sector and of civil society; and set atimetable for implementation. In principle, thisvision would create a strategic developmentframework that cuts across institutionalboundaries by establishing a multi-sector,multidisciplinary, partnership-based decision-

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Box 10. The Regional EconomicDevelopment Initiative (REDI) Approach

Tafea Province, in Vanuatu, has adopted a bottom-upapproach to economic development planning called theRegional Economic Development Initiative (REDI). Theinitiative seeks to bring together members of thecommunity together and various government departmentsin a technical assistance group to improve the province’sdevelopment.

The approach uses a participatory planning process toensure that communities identify what they themselves cando to achieve economic development and what services andassistance they need from others to help them achieve theirplans. This makes economic development “real” to thesecommunities and motivates them to act for themselvesrather than wait for government programs that may or maynot be consistent with local cultural traditions andpreferences.

Grassroots plans are first pulled together at a neighborhoodcouncil, then at the local level and finally at the districtlevel. At each level the support needed from variousgovernment departments is identified for incorporation intothe government’s development program. Support requiredmight include access to outside investors, markets, andcapital; improved infrastructure; or extension of municipalservices.

The REDI approach, aims to generate a more informedresponse to the communities’ development efforts. Itfocuses the attention of central and local government on theeconomic development needs of local communities, and itprovides a mechanism for coordinating the delivery ofgovernment services with the private sector to removebottlenecks.

Representatives from the appropriate governmentdepartments, area councils, NGOs, local businesses andchambers of commerce, and other stakeholders participateas the plan is being made. Area councils and island andprovincial governments commit resources within theircontrol. The output is a community-formulated resourcedevelopment action plan that is “owned” by a broad-basedconstituency of stakeholders, all of whom have a vitalinterest in the plan’s success.

making process. Community developmentindicators and benchmarks could be used tomonitor progress and to update and modifyprograms as deemed necessary by representativeforums.

It is not unusual for political dimensions orinstitutional considerations to cloud long-termstrategic thinking. This is often the case whenintractable and important topics—such as thecustomary land value system and its impact onsocial welfare and economic performance—areunder debate. In such cases the strategicimperative may be subordinated to politicalexpediency. Bringing a variety of stakeholderviews can bring a broader, more balancedperspective to options for action.

E. Strengthening Urban-RuralLinksThe future in the Pacific, as elsewhere, will beincreasingly urban. The impact of the dramaticdemographic shifts of recent decades is clear,and continued growth in the population of keytowns is inevitable.

However, physical planning needs to beintegrated with economic and socialdevelopment planning in a way that alsorecognizes the symbiotic relationship betweentowns and their hinterlands. Urban and ruraldevelopment plans need to be complementaryand mutually supportive and should includeimprovements in social and economicinfrastructure in rural as well as in urban areas.Good transportation and communications linkswith rural areas would ensure that the benefits ofurbanization are spread more widely.

In many Pacific countries, the most dramaticpopulation growth has been in informal peri-urban settlements. These communitiesparticipate in and contribute to the urbaneconomy, but they fall outside town boundaries,lack access to many of the public servicesprovided in formal communities in town, and arenot captured in urban statistics. Policies andinnovative institutional arrangements need tointegrate these communities into the urban socialand economic mainstream.

Forging better links between rural and urbancommunities will also help rural communities.Tafea Province, Vanuatu, for example, hasadopted a highly participatory, bottom-up

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approach to development that reflects theintrinsic economic potential, comparativeadvantages, and skill base of the province and itspeople (box 10). The practical economicorientation and broad-based local ownership ofthis approach could well prove more viable thantraditional government programs. Its successwill depend, however, at least partly on theeffective functioning of economic links withPort Vila. Improvements in urban managementin Port Vila will directly contribute tominimizing transaction costs and therefore topromoting a more balanced and equitabledevelopment strategy. Such an approach couldwell be appropriate for other Pacific countries.

F. Adopting an EffectiveHousing Sector Strategy

The first step to developing an effective housingsector strategy is understanding the problem.Data need to be collected on existing conditionsand needs. Socioeconomic surveys could helpidentify residents’ aspirations. Realisticassessments need to be made of affordability andreal demand. The next step is to understand theland and housing markets. The availability ofland and housing (types, standards, prices,owned versus rented) needs to be determined,and constraints to land supply identified.Infrastructure and building standards need to bereviewed and their impact on supply and pricesdetermined (as was done in Fiji).

Financing aspects of the housing market alsoneed to be understood. Analysis of the type andfunctions of financial institutions and financialintermediaries would help identify possiblesources and cost of funds, especially long-termfunds. Constraints to mortgage lending to lower-income clients also need to be identified.

The roles of the key players should be carefullydefined. Generally speaking, the governmentshould limit its role to studying the sector,identifying constraints, setting policy andplaying an enabling or facilitating role. Privatesector developers and contractors should acquireand service land, with private builders

constructing houses for sale or rent. Banksshould mobilize savings and make mortgageloans at market rates.

Most importantly, however, formal housingsector activity needs to be seen as part of a moreholistic shelter strategy that must also includelow-cost serviced sites and upgrading of basicinfrastructure, utilities and social services as ameans towards improved security of tenure andlivelihood in squatter and informal settlements.

G. Improving DisasterMitigation

As with other disasters, adaptation to climateand sea level changes will not be achieved by anad hoc response to specific threats. Rather,disaster management should be viewed as anessential element of strategic risk management,and development strategy for urbancommunities. It presents an opportunity torethink the way local governments can fulfiltheir statutory functions.

The basis for designing adaptation efforts is thehistorical record of extreme events, includingtheir timing, location and intensity.Interpretation of these records, in the light of ascientific understanding of the particular hazardphenomenon, provides the basis for hazardmapping and estimation of event frequency andlikely consequences. Hazard maps can be usedto identify existing development that is at riskand to designate areas which should either beavoided or for which special land use controlsand construction standards should be required.For obvious reasons, hazard mapping for keyurban areas is particular important, moreespecially so in high-density residential areasand where public or private capital investmentsare concentrated.

Disaster mitigation programs require policiesand procedures that coordinate and mediateamong government agencies as well as betweenthe government and the private sector andcommunity. Interventions and modalities mustbe culturally, socially, economically, financially,and politically acceptable to the communities

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that will be most directly affected. The highestlevel of political support and leadership will beneeded to bring all key players together and givelegitimacy to disaster mitigation programs.

Given the limited human and financial resourcesavailable and the sensitivity of traditionallandowners, adaptation programs need to drawon the views of a wide range of stakeholders andtarget sectors and areas in which the publicinterest is at greatest risk. Scoping exercisesshould be carried out to determine which sectorswill be most affected and what coordinationarrangements would be appropriate. The viewsof landowners, kinship groups and families, andcommunity, village, and religious leaders as wellas commercial enterprises should be solicited.

To generate interest and commitment, it isimportant that mitigation activities yield earlyresults and reach as wide a constituency ofstakeholders as possible. Public education andawareness programs provide an effective,affordable, and sustainable strategy. Regionalcooperation is needed to compile loss scenariosfor various parts of the country in order toprovide a comprehensive account (including thelonger-term losses of income to families,businesses, and tax revenues) and determine thecosts of relief and rehabilitation. The benefits ofsuch a regional effort would be large relative tothe costs. A dissemination program could beinstalled in a regional center as a component ofthe regional observatory concept proposed laterin this chapter.

At the national level governments should lead byadopting good practices themselves, prohibitingconstruction of government-owned structuresand facilities in hazard-prone areas.Governments could also improve buildingcodes, create incentives for compliance, providetechnical assistance, and promote low-costarrangements for retrofitting buildings to reducevulnerability to damage. The focus should be onrisk management rather than only on disasterpreparedness. The potential for risk transferthrough weather indices, insurance, re-insurance,etc. such as are being tested in the Caribbeanand Nicaragua, should also be explored.Adaptation measures should also be

incorporated in donor-assisted developmentprojects.

Whatever form activities take, adaptation anddisaster mitigation should becomeinstitutionalized, so that it becomes an extensionof the responsibility that comes with customarytraditions. This requires ownership of theconcept by the people, which in turn requirespromotion of the concept through communityparticipation.

H. Developing AppropriateAdaptation Measures forImproving Urban Services andEnvironmental HealthAn integrated, proactive, policy-driven responsethat addresses the range of factors that placecommunities at risk must be taken. The keypriorities should be improving sanitation, watersupply, and living conditions; protectinggroundwater and coastal ecosystems; preventingsewage, chemical, and solid waste (containers)pollution in order to reduce the damage to reefsand the disruptive effects of disasters; andimproving health facilities and services, inparticular primary health care facilities.

Measures for Improving Use ofFreshwater Resources

Adaptation options aimed at improving use offreshwater resources mainly involve demandmanagement measures including pricing policiesthat discourage high usage, consumer educationand awareness, etc., supply enhancementmeasures such as leakage control and waterconservation and plumbing measures. In theshort term, leakage control measures aregenerally likely to be more cost effective thandevelopment of alternative additional sources. Itshould be possible to reduce current physicalwater losses from more than 50 percent to 25–30percent. In Kiribati such a reduction in waterlosses would generate 300 cubic meters ofadditional water a day. Effective land useplanning and management are most importantfor the protection of water reserves. It isimperative in many Pacific countries thatagreement be reached with private landowners

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and the community at large on appropriatearrangements, including administrative and legalprocedures governing land use to protectexisting and future water resources or“groundwater protection zones.”

Measures for Creating Non-pollutingSanitation Systems

Appropriately designed composting toilets haveproven) to be simple to construct and effectivein protecting groundwater and in conservingwater (as no flushing water is required). Theyalso produce a useful agricultural fertilizer.

Measures for Reducing Illness

Reducing the availability of mosquito breedingsites can lower the incidence of dengue fever.The most effective way to do so is through acommunity-based approach. Fiji’s approachrelies on community motivation andparticipation to remove or modify potentialmosquito breeding sites such as used tires,container-type rubbish, and water storage drums.Public education and mobilization initiatives andenhancement of vector surveillance andmonitoring methods are also appropriate.

The incidence of diarrheal diseases can bereduced by enhancing sanitation services andpractices to minimize pollution of groundwater,lagoons, and coastal waters; improving thequantity and quality of water by protecting anddeveloping groundwater sources; and improvingprimary health care facilities, especially in termsof both professional and community expertise intreating infant and childhood diarrhea.

The risk of ciguatera poisoning can be reducedby reducing pollution of coastal waters withhuman waste and industrial wastes, fertilizerrun-off, and other chemical pollutants.

I. Pooling Regional andInternational KnowledgeEstablishing policies for strategic andoperational decision-making on urban issuesrequires a greater understanding of the issues,constraints, and opportunities affecting residentsand businesses in Pacific towns. It requires thatbasic information about the quality, coverage,

and reliability of basic services be collectedabout communities. It requires that performancein delivering urban and community services bebenchmarked and monitored against recognizedstandards of good practice (and good value) inother similar small town environments. It callsfor coordinated institutional arrangements and aregulatory environment that minimizestransactions costs and encourages investment—including investment in areas that would helpdiversify these economies into new, highervalue–added activities, such as service exports ininformation industries.

Efforts are being made throughout the Pacificregion to address these development problems.Each country suffers from a relatively smallknowledge base, however, and countries havefound it difficult to benefit from information andexperience of other countries in the region. Tostrengthen regional cooperation on urbanplanning and management issues, a repository ofknowledge and experience could be establishedregionally that would enable individual countriesto gain insights into options and approaches tothe complex problems confronting them. Such arepository would enable them to network withregional counterparts, regional and internationalagencies, and NGOs, which often have the mostto contribute to shaping approaches to urbanproblems, particularly through participatoryapproaches. National urban summits would bean ideal vehicle for widening the debate toemphasize the importance of access to relevantinformation and knowledge as an essentialingredient to integrating individual nations intothe Pacific regional and global economy.

A regional center—which could be known as thePacific Region Observatory on UrbanDevelopment (PROUD)—would serve as both aregional knowledge bank and a forum forexamination of and dialogue on urban andregional development issues. Internationalassistance could be sought to reinforce thecapacity of regional agencies, which isconsiderable albeit fragmented; supportinstitutional strengthening and capacity building;and facilitate networking to maximize access tointernational experience on relevant issues.

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