FOR decades, the Pacific Islands region has been heavily reliant on donor funding to support development, governance, and capacity-building initiatives. While donor support has played a role in strengthening institutions, it has also created a dependency cycle where many regional organisations struggle to be financially independent and responsive to the real needs of Pacific communities.
As someone who has worked at both national and regional levels for over 30 years, I have observed first-hand that capacity development is often paid lip service by regional agencies. Many well-intentioned programmes are developed, but without long-term financial sustainability, they remain short-term interventions rather than true institutional strengthening.
In contrast, I have been fortunate to establish one of the most financially independent and autonomous organisations in the Pacific—the Parties to the Nauru Agreement Office (PNAO)—which has successfully broken the cycle of donor dependency and achieved financial self-sufficiency.
The PNA Model: A Blueprint for Financial and Institutional Independence
The PNA Office is a rare example of a Pacific institution that has achieved true financial independence, generating its own revenue and making decisions driven by Pacific priorities rather than donor agendas.
Consider the latest PNA Financial Report (2024):
✔ Total revenue in 2024 was USD 7.42 million, with 70% (USD 5.14 million) generated from vessel registration and fisheries management fees.
✔ Net income for 2024 was USD 1.02 million, demonstrating strong financial management.
✔ Total assets amounted to USD 83 million, with USD 78 million in cash reserves—USD 64 million of which belongs directly to member countries.
✔ Interest-bearing investments alone generated an additional USD 1.44 million, proving that the PNA’s financial model is sustainable and scalable.
Unlike traditional regional organisations that rely heavily on donor funding, the PNA Office is self-funded and fully autonomous. It does not have to chase grants to survive or adjust its priorities to fit external funding cycles. Instead, it focuses on managing Pacific fisheries for the benefit of Pacific nations—a model that other regional institutions should aspire to.
The Pitfalls of Donor-Dependent Organisations
Most traditional regional organisations in the Pacific depend on external funding from donors such as the EU, Australia, New Zealand, Japan, China, and multilateral agencies like the World Bank and Asian Development Bank. While this funding is essential in many ways, it creates structural vulnerabilities:
❌ Funding Uncertainty – Many Pacific institutions are only as strong as their last grant. When funding cycles end, projects stall, and institutional capacity is lost.
❌ Shifting Priorities – Organisations must align with donor preferences, which may not always reflect Pacific priorities.
❌ Limited Long-Term Planning – Many initiatives operate in short-term cycles, making it difficult to invest in long-term institutional development.
❌ Bureaucratic Burdens – Donor-funded projects come with complex reporting and compliance requirements, which divert focus away from the real work that needs to be done.
Take, for instance, the SPC Organisational Capacity Assessment, which aims to strengthen regional institutions. While it is a well-intentioned initiative, the fundamental issue remains:
➡ Capacity assessments do not translate into sustainable institutions unless financial independence is built into the equation.
Lessons from the PNA Model: How the Pacific Can Break Free
If regional organisations in the Pacific want to achieve long-term sustainability, they must move beyond the donor-driven model. Here are four critical lessons from the PNA Office that can be applied elsewhere:
1️. Revenue Generation Must Be at the Centre of Institutional Strengthening
📌 Capacity development must go beyond training and governance reforms—it must focus on financial sustainability.
📌 Pacific institutions must leverage their natural resources, intellectual property, and regional expertise to generate independent revenue streams.
📌 The PNA model proves that Pacific nations can manage their own fisheries resources and generate income without donor dependency.
2️. Strengthen Governance and Financial Controls
📌 The PNA’s success is built on strong internal governance—it has clear financial management systems that ensure accountability and strategic growth.
📌 Many regional organisations lack these structures, making them dependent on external oversight from donors rather than being self-regulated and accountable to Pacific people.
3️. Think Beyond Project Cycles – Build for the Long-Term
📌 Many regional institutions operate within project-based funding cycles, which means that initiatives often collapse when the funding ends.
📌 PNA has created a long-term financial strategy that ensures sustainability beyond any one funding source—something that more Pacific institutions must prioritise.
4️. Pacific Institutions Must Own Their Future
📌 PNA has demonstrated that Pacific nations can control and benefit from their own fisheries resources without overreliance on external actors.
📌 Other regional organisations must take ownership of their strategic direction, rather than being dictated by external donors.
Final Thoughts: The Pacific Must Lead Its Own Future
For too long, the Pacific has been locked into a model where our regional organisations are dependent on external funding and external decision-making. While donor partnerships will always play a role, true sovereignty comes from financial and institutional independence.
The PNA Office has shown that it is possible to build a Pacific institution that is self-sustaining, profitable, and aligned with Pacific priorities. The question now is: Are we ready to take this model and apply it across other sectors?
The future of Pacific development should not be dictated by donors—it should be shaped by Pacific people, for Pacific people.
If we are serious about strengthening institutions, then we must ensure that they are not just well-governed but also financially resilient and independent.
The PNA has shown that it can be done. Now it’s time for the rest of the Pacific to follow suit.
By Dr Transform Aqorau
Dr Aqorau is the Vice-Chancellor of the Solomon Islands National University. He is an International Fisheries Law Specialist, iTuna Intel CEO and a Visiting Fellow ANCORS (University of Wollongong, Australia)
