Changes in the role of government from the 1970s onward have led to a new formula widely used by the World Bank and aid donors as a prescription for public sector reforms and development both economic and administrative. This study illustrates the adoption of this formula in the context of development, specifically in one developing country in the South Pacific, Fiji Islands, and in the region of Oceania. It defines the formula first and then concentrates on its application in Fiji, describing its scope and aim, its main features, and briefly assessing its results. Next, the expansion of the formula is described to include the concept of 'good governance,' a new social and political dimension, which is illustrated by Oceanic experience. Ultimately, possibilities for better future formulations are explored, suggesting a need for more flexibility and participation by aid recipients in this area, and more concern, on part of aid donors, for political processes and cultural values of developing countries in dealing with public reforms, including public enterprise reforms.
