Cook Islands Development Finance Assessment: A Thematic Review

A comprehensive review of key thematic areas has highlighted opportunities for improvement to enhance the Cook Islands’ economic growth, sustainability, and development cooperation.

Land Access and Labour Supply

Land Tenure System

The current land tenure system is in need of reform. A review reveals opportunities to promote equitable access to land and efficient use. Recommendations include:

• Exploring innovative land tenure systems, such as establishing land trusts or a publicly accessible “land bank” with clear ownership and valuation.
• Enabling investment projects through leases, rentals, or equity purposes while ensuring efficient land use and related infrastructure development.

Labour Supply

The decreasing population size and shortage of labour constrain the country’s development. To address this:

• Implement policies to increase labour force participation rates, particularly among women.
• Promote education and vocational training, encourage investment in human capital, and facilitate foreign worker employment.

Monitoring and Evaluation (M&E) System

Strengthening M&E

The Cook Islands has established an M&E framework, but many aspects are not fully implemented. To address this:

• Improve public finance monitoring by tracking actual budget allocation and service delivery.
• Enhance audit and parliamentary scrutiny of government financial reports.

Governance and Development Cooperation

Coordination and Dialogue

While the country has achieved country ownership of development projects, issues with coordination and M&E persist. To address this:

• Improve dialogue and accountability mechanisms between government, private sector, and parliament.
• Explore new sources of development finance.

Key Recommendations

1. Explore innovative land tenure systems, such as land trusts or a publicly accessible “land bank”.
2. Implement policies to increase labour force participation rates, particularly among women.
3. Improve public finance monitoring and evaluation systems.
4. Enhance dialogue and accountability mechanisms between government, private sector, and parliament.
5. Explore new sources of development finance.

Implementation Plan

1. Conduct a data mapping exercise to identify current data sources and institutional settings.
2. Develop a strategy to address M&E gaps and ensure implementation at both national and sector levels.
3. Establish an effective public sector performance management system.
4. Improve coordination between DCD, line ministries, and development partners.
5. Explore new sources of development finance.

By implementing these recommendations, the Cook Islands can strengthen its development finance framework, promoting sustainable economic growth and improving the lives of its citizens.