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It might seem that Indonesia and the Pacific Island countries have nothing in common. Indonesia's population is more than one thousand times as large as the populations of most Pacific Islands. Indonesia has a huge pool of highly educated bureaucrats while some Pacific Island countries have only a few graduates in key areas. Indonesia has a dynamic and fast-growing economy; already the world's 18th largest, whereas most Pacific Island economies are very small and face limited growth prospects. But ensuring that central ministries have adequate capacity in economic management is a key issue in both parts of the world, with macroeconomic policy and good use of public resources underpinning all other aspects of development. In both contexts, the World Bank and other donors are working with local staff to strengthen skills, knowledge, capabilities, and systems for better policies, practices, and outcomes in these areas. Given the World Bank's role as a global 'knowledge bank', the author in the Pacific division have been working hard with staff involved in strengthening economic management capacity in Indonesia to ensure that lessons across these very different contexts are being exchanged.
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