Negotiations with the Marshall Islands could see this western Pacific nation become the first country in the world to receive a donation to its trust fund.
The Marshall Islands and the European Union are discussing the trust fund option to improve long-term sustainability of donor aid, said Ambassador Wiepke Van Der Goot, who heads the EU Delegation for the Pacific and is based in Fiji.
“The big issue is sustainability,” he said. He was in Majuro for a final visit before leaving his post at the end of August after four years in the region.
The challenge for the Marshall Islands and other Pacific islands is to move away from the traditional “project” mentality governing donor aid, which sees donors funding multiple projects that are frequently unsustainable in the long run, he said.
When he first arrived in the region, all governments were seeking funding for numerous projects. But, he said, it’s an issue of how much money can small islands effectively use.
“We must do something about this,” he said. “We have to do more with our aid and do it more effectively.”
