small and isolated developing countries in the Pacific present a unique development challenge. They differ from the Bank's developing member countries (DMCs) in Asia in nearly every physical and economic respect, and this requires development strategies adapted to their special circumstances. The Bank's Charter requires it to have special regard for the needs of its smaller DMCs, nearly all of which are in the Pacific. The challenge for the Bank is to find a strategy that focuses on the development opportunities of the Pacific Island Developing Member Countries (PIDMCs) 1 yet takes account of both the large aid flows in the region and the Bank's own internal resource constraints and priorities. In the past the Bank has developed strategies for its operations in individual countries in the Pacific. Experience has shown, however, tha
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