The Pacific is home to one third of the 52 Small Island Developing States in the world. With the exception of PNG, the rest of the Pacific SIDS are constrained by small administrations and limited economies of scale. Despite universal support for the MDGs, MSI and the high per capita ODA in the Pacific, the region is off track in achieving most of the MDGs by 2015 . Recognising this, the Pacific Isalands Forum Leaders in 2009 agreed to the (Cairns) Forum Compact on Strengthening Development Coordination. The Compact comprises various initiatives including: i) annual Millennium Development Goals (MDGs) tracking; ii) peer reviews of national institutions, policies and systems; iii) development partner reporting on aid effectiveness commitments; iv) Public Financial Management (PFM) reforms; v) more effective climate change financing; vi) private sector engagement/dialogue and vii) investment in infrastructure development The gains made through the Compact have been due to the significant and sustained interest and support from political leaders, senior public servants and development partners.

The implementation of the compact is through various partnerships across the key initiatives of the Compact. For MDGs Tracking, the PIFS partners with representatives of FICs (Nauru, Tonga, PNG, Samoa, Solomon Islands, Vanuatu) and technical agencies (SPC, UNESCAP, UNDP, ADB, Australia, New Zeland) to prepare the annual Regional MDGs Report. The PIFS works closely with National MDGs focal points and SPC to validate country data annually.The Peer Rewiews is an engagement between neighouring Pacific FICs and with their development partners. Facilitated and managed by the PIFS, the peer reviews are conducted through mutual respect and partnership between FICs and with their development partners. Around 40 senior officials from FICs and development partners have served on 13 FICs peer reviews without which the peer reviews would not have progressed as well as they had.Annual FICs and development partner reporting on key national and regional indicators on development coordination is managed by the PIFS.The Annual Private Sector High Level Dialogue is coordinated and managed by the PIFS in close collaboration with the Pacific private sector organisations.

A longstanding development challenge in the Pacific is limited capacities in terms of numbers, capacities and skills as well as depth of that caapcity in the Pacific SIDS.The Forum Compact, through the National Sustainable Development Strategy Partnership Group(NSDSPG), will be a regional coordination mechanism to provide more coherent support to FICS through capacity development assistance from a mix of short, medium and long term initiatives that include: south-south / triangular cooperation or attachments among FICs, short term Technical Assistance, targeted country/sub regional/regional training, sustained ongoing mentoring programs in selected areas, capacity supplementation (over medium to long term) and institutional strengthening programs. FICs had found value in the practical and context specific approach of the peer reviews and requested to use this modality to further assist in strengthening their systems and human resource capacities. The Pacific at the 2013 PIC-Development Partners meeting, the FEMM 2013, PPAC 2013 and FOC 2013 agreed on a regional initiative of South-South Cooperation. The South-South Attachments allow FICs that require further capacity building to learn from selected counterpart countries to contribute to reinforcing country leadership over the establishment of national priorities, and enhance capacity to guide the use of all development resources – both domestic and external.Through the NSDS Partnership Group, PIFS and/or other FICs will be available to help facilitate new aid policies and broker inclusive and accountable partnerships for development. While it is one country’s sovereign right to negotiate arrangements with donor organisations and other countries, an impartial and experienced partnership broker can promote a richer and more useful discussion

The Pacific Island Forum Leaders tasked the Pacific Islands Forum Secrtariat to facilitate/coordinate the implementation of the Forum Compact across the Forum Islands Countries and their development partners. They asked for annual reporting by the PIFS on progress of implementation and any early results through two regional reports; 1) Pacific Regional MDGs Tracking Report; and the 2) Tracking the Effectiveness of Development Efforts Report. Every year, the PIFS and region reports to 4 key regional meetings; 1) Pacific Island Countries and Development Partners Meeting; 2) The Forum Economic Ministers Meetings; 3) the Forum Officials Committee; and culminates at the 4) Forum Leaders Meetings.For the FICs peer reviews, the PIFS undertakes a follow up visit 1 year after completion of the Peer Review to track actions and implmentation progress and report to the PIF leaders at their annual leaders meeting.

Pacific Islands Forum members: Australia, Cook Islands, Federated States of Micronesia, Kiribati, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu. Development Partners & Organisations : ADB, EU, France, German Society for International Cooperation (GIZ), Israel, Japan, Republic of Korea, Secretariat of the Pacific Community, Thailand, Turkey, UN System, USA, WB, Pacific Financial Technical Assistance Centre (PFTAC), Pacific Regional Infrastructure Facility (PRIF), Pacific Islands Private Sector Organisation (PIPSO), Pacific Islands Alliance of NGOs (PIANGO)