ASEM TF2 - Status Summary by Country and Activity (April 2006)

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1 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by 1 hia Scial Secrity efrm The bjective f this grat wl be t: (i) prvie expert avice i establishig a strategy fr the evelpmet f maagemet systems a ifrmati techlgy fr pblic pesi systems sig tw prvices as pilts fr atial plicy; a (ii) ertake srveys, aalysis a relate traiig pesi plicy refrm ptis tilizig liability melig techiqes. 777,000 ctivities cmplete a mplemetati mpleti Memram isse. The grat assiste i plicy aalysis a capacity bilig t the Pilt. Sties cvere a wie tpics: pesi prjecti, emplymet israce prgram a labr market plicy, basic livig allwace (Diba) fr rba resiets, a T sb-system f labr market. The tpts reflecte the sicere effrts f the cliet a its csltat team t flfill liste tasks i the grat agreemet. While the epth f aalysis varies frm reprt t reprt, the reprts ctai rich ifrmati fr erstaig may peratial etails a prgram specific ifrmati f Liaig scial secrity system. Overseas sty trs brae the views f lcal fficers. T traiig ehace the skills f varis level fficials t esre the smth implemetati f T system establishe i the Pilt. The SM grat cstittes a cmpet f the verall ivestmet i spprt f the atial pilt, which receive sbstatial gvermet fiscal spprt at cetral a lcal level. While there are still ifferet views the scial secrity plicy atiwie, the Liaig experimet helpe clarify sme thikig a als pshe the cetral gvermet t frther aalyze certai aspects f the prgram. The Liaig pilt prgram has bee expae t elgjiag a Jili, tw ther prvices i rtheast hia with sme mificati i their implemetati plas. 1 Develpig Gvermet Secrities Market The prpse techical assistace prject wl assist the MOF t bil the capacity as a leaig frce i evelpig the GS market by fcsig active gvermet cash maagemet. ecgizig the magite f the refrms, the prject is esige t be a first step i the evelpmet f active cash maagemet i hia. t wl fcs cceptal esig a implemetati strategy. 310,000 ctivities cmplete a mplemetati mpleti Memram isse. Oe fial prct f the grat, a reprt ame Gvermet ash Maagemet, is well receive by the recipiet a has bee share with key fctial agecies isie the gvermet. While i the past, there was sme kwlege f cash maagemet practices i the MOF, especially i the Treasry Brea, a mch braer aiece (iclig the MOF, the etral Bak a lie miistries alg with ecisi makig level members f the State cil) have a erstaig t ly f the isses bt als the cash maagemet plicies/appraches i place i ther ctries, as a reslt f the grat activities. The cliet is please with i particlar the techlgical kw-hw i qite a few areas, sch as esigig f reasable receipts/paymets system, cash flw prjecti, a ile balace sage ehacemet. The grat s fiigs are als alreay helpig t shape the meim a lg term strategies fr the Gvermet s cash maagemet. 2 Bak Techical Spprt fr the State cil Office fr efrm f the cmic System (SOS) The techical assistace will prvie spprt t the State cil Office fr efrm f the cmic System (SOS), a key istitti er the State cil t assist the Premier i esigig, evelpig a evalatig ecmic refrm strategies a prgrams. The prject bjective is t spprt the gvermet i evelpig plicies a strategies fr fiacial sectr refrm, a i implemetig thse refrms. The pricipal areas f fcs will be t prvie plicy avice a capacity bilig t assist the SOS i frmlatig a implemetig strategies cmmercial bak refrm, especially the fr large state we baks (SBs), a bakig spervisi. 600,000 The grat cties t make prgress steaily. Plicy tes prepare with fs frm the grat have alreay ha a majr impact several f hia s plicies, iclig iterest rate liberalizati a the separati f bak spervisi frm the cetral bak. itial fig was apprve fr the prject t spprt activities with a special fcs rral a micrfiace. Jly 2005, the hia Bakig eglatry mmittee (B) isse Gielies bak leig t meim a small size eterprises, prviig frther impets t cmmercial micrfiace. iteratial wrkshp cmmercial micrfiace was hel i vember 2005, ivlvig the Peple s Bak f hia (PB) a B. PB has w lache a pilt t test appraches t micrfiace i five prvices. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 1 f 27

2 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by 2 Techical Spprt t the hiese Secrities eglatry mmissi (S) The techical assistace will ivlve prvisi f spprt t S by iteratial experts i esrig the apti f wrl-class risk maagemet plicies i the secrities a ftres markets. The prject will fcs the reglatry framewrk, spervisry prceres a reprtig system. t cstittes the first phase f a lger term strategy that will ivlve the apti fr the verall secrities markets f risk maagemet plicies i prceres a ifrmati systems by S heaqarters a braches, ftres a secrities exchages, fiacial firms a ther market players i hia. t will spprt apti f cmplemetary legal a reglatry staars, a implemetati f gig, ctis spervisi f risk maagemet practices by market players. Drig this first stage, the prject will fcs evelpig the reglatry framewrk fr the secrities a ftres markets a the ccrete implemetati i the ftres segmet, while implemetati f the framewrk the ver all secrities istry will be cvere sbseqetly. 850,000 Phase f the grat, clse i 2004, prvie the hiese Secrities eglatry mmissi (S) with iteratially accepte mechaisms fr risk maagemet, iclig assessmet f the secrities market a reprtig tls t track a clarify the et capital ftres prtfli, a better istittial capacity. s a reslt f Phase, S apte et capital rles fr secrities firms, evelpe spervisry reprtig systems fr ftres a secrities firms, evelpe the Secrities vestrs Prtecti F scheme, a traie prfessial staff wh are i charge f spervisig itermeiaries a ftres markets. hia amee its Secrities Law i 2005 t frther pe p the capital market a stregthe the market-base apprach i capital market evelpmet. The ew law recgizes fiacial erivatives, a S is taske with evelpig mre sphisticate risk-base spervisry rles fr emergig fiacial prcts sch as fiacial ftres. The grat was tppe p t spprt the ctiati f this wrk. The fcs f Phase f the grat is evelpig the spervisry framewrk a a risk mel fr gvermet b ftres. s f December 2005, S ha cmmissie the risk melig t lcal csltig firms a ietifie the US a Germay/rpe as key areas fr fiel sty a -the-jb traiig, i accrace with the implemetati pla. iitial review f the iagstic reprt is expecte by May De t the tight schele f S staff a visa isses, it is likely that S will ly arrage fr shrt-term -the-jb traiig a sty trs i the targete ctries. Speig is expecte t remai withi the rigial grat allcati. Bilig the Pblic Debt ecrig, Mitrig a alyzig System i hia This prpse T prject aims at spprtig the gig eeavr f the hiese athrities twars ehacig their pblic ebt maagemet capacity by csliatig the ebt-relate atabases it e sigle itegrate ifrmati system a evelp a trai relevat staff t se key aalytical tls a reglar basis s as t spprt pblic ebt maagemet ecisi-makig i hia. t is als a first step twars mitrig the fiscal risks emaatig frm the Gvermet s ctiget liabilities. This is beig ertake by the athrities with a view twars recig the risks f fiscal crises, ctrl ebt csts, a imprve market perceptis f fiacial risks i hia. 500,000 ll bt e cmpet f the prject have bee flly implemete. With the istallati f sftware fr itegrate reprtig a maagemet f pblic ebt trasactis, the gvermet is a step clser t acqirig the ability fr straight-thrgh prcessig a acctig f its pblic ebt a ebt service trasactis. This, i tr, will pt the gvermet i a better psiti t rece the risks f fiscal crises, ctrl ebt csts, a imprve market perceptis f fiacial risks i hia. risk maagemet wrkshp a tw sty trs helpe the gvermet ersta the practical ifficlties ther ctries face i implemetig cmprehesive pblic ebt reprtig a mitrig systems. The recipiet has reqeste, a the Wrl Bak has apprve, ather extesi f the clsig ate t cct e mre sty tr t ctries applyig the S- DMS system by gst 31, Sty Pblic Service Uit efrm The prpse T prject aims t assist the Gvermet i evelpig s strategy a gielies fr the PSU refrm. By prviig the eee techical assistace, it will help esre that the prpse refrm strategy a gielies are evelpe withi the right theretical framewrk, reflect the fll cmplexity f the PSU sectr, a bil a wie rage f relevat iteratial experieces. The prpse techical assistace will have 2 cmpets: (i) ivestigati it the crret sitati f PSUs a case sties f selecte sectrs; (ii) cmparative sty iteratial experieces. 780,000 Grat implemetati has bee prgressig satisfactrily. sltats are prcig a series f twelve iagstic reprts i selecte sectrs; thse the health, persel, scietific a research sectrs, a state cmmercial baks are reay fr issemiati. cmparative sty f iteratial experieces i pblic service refrm has bee pblishe fr a wie aiece. Gvermet fficials have ertake a sty tr t Fila, the etherlas, a the UK t acqire kwlege pblic service its. Gratfe activities have mae a majr ctribti t the plicy iscssi f a pblic service it refrm strategy amg relevat miistries a stakehlers, a have raise pblic awareess f the rgecy a cmplexity f this refrm. raft tlie f the refrm strategy has bee sbmitte t the State cil fr iscssi. Grat clsig ate has bee extee, a SM has mae available aitial fs t spprt the esig f refrm experimet plas fr sme prvicial a micipal gvermets. By e f 2005, all f these raft plas ha bee cmplete. Three csltat ctracts sige fr ebei Prvice absrb half f the isbrse grat, a the balace will fiace tw csltat ctracts i Shaghai a a, tw iteratial wrkshps i ebei a Shaghai, a a sty tr t trasiti ctries. cmprehesive evalati f the prject a a issemiati wrkshp are plae befre the prject clses i gst Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 2 f 27

3 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by Stregtheig Pblic ealth Prgrams i ral Pverty reas*/ The prpse T will seek t (a) ratialize the health services thrgh fctial criati a thrgh the implemetati f the regial plaig plicy alreay apte by the Gvermet; a (b) imprve health stats f the pplatis livig i the prest areas f the ctry by imprvig access a qality f the services a by icreasig service tilizati. 564,000 The prject was extee fr six mths a was fiishe Febrary 28, The extesi allwe time fr i-epth rigrs aalysis f the rich ata that were cllecte at the early stage f the research. The tw sty reprts prvie ifrmati health stats i Gizh a Gas prvices, pblic health a the basic health ees f the rral pplati, the perfrmace f pblic a private health services, barriers t access t health services, a recmmeatis t ratialize the prvisi f pblic health a health services i selecte areas. teral issemiati wrkshps were ccte i Febrary 2006 a the fiigs are alreay feeig it plicy iscssis imprvig the prvisi a tilizati f health services i pr rral areas. The implemetig agecy expects t isbrse all grat fs rig the grace peri. 4 Prmtig ral (F) Markets**/ The bjective f this grat wl be: 1. Styig pertiet isses i hiese rral fiacial markets Srveyig ema fr a spply f rral fiace, bth frmal a ifrmal Prviig recmmeatis ptimal crprate gverace f Fs a apprpriate reglatry framewrk 2. Kwlege sharig fr capacity bilig Semiars a traiig wrkshps t issemiate research methlgies a fiigs Semiars a traiig wrkshps t issemiate F best practices i reglatig F markets Gie sty trs t select ctries kw fr their implemetati f best practices i rral fiace 14,684 The rigial bjective f this prject was t bil the capacity f the Gvermet a selecte rral fiace istittis t establish a mre rbst rral fiacial system, thrgh imprve crprate gverace a a eablig reglatry framewrk. The prject ha mae sbstatial prgress fr 15 mths sice effectiveess, a was cacelle by the recipiet i May 2005, citig available capacity t implemet. This ecisi was fllwe by sme isptes with the Wrl Bak plae prcremet f csltacy services. The isptes have bee reslve recetly, a the TF acct was clse i early Labr Market Plicy Develpmet: ressig Uemplymet a Develpig ma esrces fr the Ftre This prpse T will spprt hiese gvermets (cetral, prvicial, micipal) i pshig frwar a refrm agea that (a) prmtes the itegrati f the atial labr market, (b) evelps sstaiable a effective scial prtecti istrmets fr wrkers, a (c) istittes a hma resrce evelpmet strategy fr the lger-term evelpmet f the wrkfrce. T assist plicy-makers i the iscssi a frmlati f this labr market refrm agea, a tw-year techical assistace prgram fcsig plicy evelpmet a capacity bilig is beig prpse. The prgram icles three cmpets: (1) labr market aalysis a plicy evelpmet; (2) assistace i applie a peratial isses relate t the emplymet spprt prgrams; (3) capacity bilig f fficials thrgh traiig a semiars. 450,000 The grat implemetati cties t prgress well. The mai tpts s far icle a series f aalytical reprts t spprt the peratial melig, a a raft reprt labr market isses i resrce-epletig areas. mel evelpe by the Wrl Bak is beig pilte i three cities; raft reprts the experiece are w available frm each micipal team. The grat has als fiace tw traiig wrkshps, five techical wrkshps, a tw sty visits t rpe a Lati merica. The verall isbrsemet level f this grat is lw, althgh it has imprve i the past six mths. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 3 f 27

4 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary 4 Bilig apital Flw Vlerability alysis a arly Warig System i hia 4 terprise, Privatizati, estrctrig a Gverace The prpse T will spprt the gig effrts f the hiese athrities twars ehacig their risk maagemet capacity by icrpratig capital flw-relate atabases it a early warig system, a evelpig a traiig relevat staff t vlerability aalysis a reglar basis s as t spprt exteral risk maagemet ecisi-makig i hia. t will als mitr the exteral risks emaatig frm icreasig capital liberalizati i the pst-wto peri, a twars ehacig exchage rate-metary plicy-fiscal criati. The mai cmpets f the prpse T icle: (a) pttig i place a mitrig system fr shrt-term capital flws; (b) estimatig iteratial ivestmet psitis i hia; (c) establishig a early warig system; a () prviig traiig fr SF staff the recrig, mitrig, maagemet a aalysis f crss-brer capital flws a expsre t iteratial best practice. The bjective f this grat wl be: 1). Privatizati Srvey a aalysis f hiese privatizati experiece; cmpariss with OD a ast rpea experiece; a recmmeatis presale eterprise preparati a rgaizati f eterprise sales; 2). estrctrig Srvey a aalysis f hiese SO restrctrig experiece a recmmeatis treatmet f key restrctrig isses (e.g, pririties amg claimats); 3). Maagemet perfrmace mitrig a cmpesati Srvey f practices amg large private cmpaies a SOs i hia; recmmeatis fr ehace perfrmace mitrig a cmpesati f key Owership gecy staff a SO irectrs; 4). a risk maagemet prceres ase sties best practices a prblem areas i hia; iteratial cmpariss; a recmmee prceres maal; 5). rprate gverace prceres ase sties best practices i hia; iteratial cmpariss; a recmmee prceres maal. 640,100 Scial Ttal Grat mt by ll the rigially plae activities er the grat ha bee cmplete by e gst 2005: 2 wrkshps, 2 verseas sty trs, a the evelpmet f 2 systems: (1) fr high-freqecy mitrig f ebt (DSM), eablig mre tha 200 fiacial istittis t reprt t SF a aily basis; a (2) fr srveyig market expectatis thrgh a reglar teret-base cmmicati chael betwee SF a the market participats. The 2 systems bega peratig i December The grat has eable SF t bil p bth the har techlgy a hma resrces eee t aalyze the vlerability f capital flws. s state i a letter frm Mr. Deg, Vice miistratr, it has sigificatly ehace the athrities capacity t maage capital flws, ietify fiacial a exchage risks, mitigate the isrptive impact f capital flws reversal, a prtect hia frm fiacial a crrecy crises. the lg term, these imprvemets will facilitate a fll liberalizati f capital acct trasactis a help t maitai exchage rate stability. With the aitial fs apprve, SF ccte a iteratial wrkshp ctiget liabilities i December 2005 at which experts frm Swee, Sth Krea, the Bak fr teratial Settlemets, a the Wrl Bak mae presetatis. SF is w rawig p a acti pla apprpriate fr hiese citis. Grat isbrsemet has speee p rastically sice a year ag. reallcati f grat prcees was apprve i Jly 2005 t cver the aitial cst f sftware prcremet. 650,000 ctivities cmplete a mplemetati mpleti Memram isse. ll fr prject cmpets were implemete i accrace with the grat agreemet, a elivere sefl reslts withi the rigial timetable. The grat spprte prcti f the first etaile srvey f SOs, which prvies accrate ifrmati fr plicymakers. The wrk crprate gverace a cmpay law refrm has alreay ha a emstrable impact: the D avise the SLO t make amemets t hia s mpay Law, which the P passe i Octber Key amemets icle varis ew prtectis fr pblic sharehlers, limits relate party trasactis, a ficiary ties fr crprate irectrs. aiti, the miimm capital reqiremet fr a ew limite liability mafactrig cmpay has bee rece, frm MB 500,000 er the l law t MB 30,000 er the ew law. ther tpt frm grat a etaile review f SO perfrmace mitrig a cmpesati le SS t ecie t ecrage all SOs t establish bars f reglatrs t set salary levels a perfrmace targets. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 4 f 27

5 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by 4 slvecy efrm sltats will evelp p t te case sties cmparig likely reslts a legal a implemetati isses frm SO bakrptcy r crt-spervise rergaizati er tw alterative scearis: (i) applicati f the ew raft islvecy law r (ii) ctie se f the 1986 SO bakrptcy law. Base fiigs frm these case sties as well as relevat iteratial experiece, the sltat wl prvie recmmeatis aitial islvecy refrm t the mmittee. The sltat s aalysis wl pay particlar atteti t the fllwig isses: eligibility fr sbmittig a SO islvecy petiti; cmmecemet criteria fr SO bakrptcy r crt-spervise rergaizati; rle f the amiistratr; the rle f SO wrkers i rergaizati/bakrptcy cases; a ptetial fiacial sectr a scial csts er each sceari. Traiig wrkshps fr jges, trstees, a ther islvecy prfessials wl fcs key elemets f the relevat islvecy legislati pls traiig i basic fiacial aalyses a bsiess isses likely t arise i islvecy cases. 300,000 The prject was implemete i accrace with the grat agreemet a prce sefl aalyses a case sties eterprise islvecy a partership islvecy withi the rigial timetable. sltats prce a excellet reprt cverig islvecy refrm isses f key ccer t P, iclig islvecy amiistratrs, treatmet f SOs, pririty f claims, a cmmecemet criteria. sty tr t Germay (whse experiece is highly relevat t hia s bsiess laws) was rgaize, a iteratial experts were cslte relate isses. vice resltig frm the grat prject prevete the raft islvecy law frm beig passe with a majr falt, which relate t the treatmet f secre creitrs. t als persae the Staig mmittee that the raft law (which eals with cmpaies ly) ees t be spprte by chages i the partership law t aress bakrptcy f parterships, a by a ew bakrptcy law fr atral perss, which is beig rafte at preset. t the time f grat clsre i gst 2005, P ha faile t pass the raft islvecy law, e t plitical ifficlties i reslvig whether wrkers claims shl have pririty ver thse f secre wever, it is realistic t expect that this isse will be reslve i 2006, a that the ew law will represet a majr imprvemet a a srce f sigificat spprt fr evelpmet f hia s market ecmy. Sice there is fially-apprve law t serve as a referece pit, it i t make sese fr the grat prject t prvie the rigiallyplae traiig t bakrptcy jges a ther prfessials. ece the traiig cmpet was elaye a evetally cacelle, resltig i the cacellati f 6 percet f the rigial grat. v- stablishig a Prfessial ssciati f Gvermet Maagers The mai prpse f this techical assistace prject aims at establishig a Prfessial ssciati f Gvermet Maagers ( the ssciati ). The ssciati will be a ecatial rgaizati eicate t the ehacemet f pblic fiacial maagemet. t will serve gvermet acctig prfessials by prviig qality ecati, fsterig prfessial evelpmet a certificati, a spprtig staars a research t avace gvermet acctability. The T prvies fr: (i) establishig iitial bylaws a peratig prceres fr the ssciati gverace; (ii) establishig a mplemetati mmittee () prviig avisry services t members f the ; (iii) spprtig the evelpmet f Jral f Gvermet Maagemet (iv) prviig leaership traiig; a (v) istittial spprt. 300,000 The first tw f the fr cmpets have bee flly implemete. wever, the gvermet csiers the establishmet f the assciati t be part f the verall gvermet acctig/treasry maagemet refrm. Becase key staff members f the prject maagemet rgaizati were t available til March 2006, the prject experiece sme elay i evelpig the prpse prfessial jral a i ctiig the traiig a wrkshp cmpet. These factrs have le t lw isbrsemet. wever, there is a agree acti pla fr implemetati betwee March a May 2006, a prgress will be clsely mitre by the Bak s task team. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 5 f 27

6 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by Fial apacity fr egial esearch Pverty a eqality T spprt a ew geerati f cheret plicies aressig pverty & regial ieqality, this activity will eliver empirical tls & traiig t a prmiet atial hiese research ist. & its regial cterparts. s several f hia s prvices are w amg ast sia s largest ecmies, mre etaile isight it their w grwth challeges & their rle i atial ev. is essetial fr the gvermet. This ew capacity will eable the State cil & ther hiese agecies t better ersta etaile iciece & facilitate mre eqitable grwth, exteig its beefits t the lw-icme majrity f the ctry. The prject will icle rigial ata ev., research capacity ev., cllabrative prttype sties, & regial traiig & issemiati wrkshps. These state-f-the-art ata & melig meths evelpe will establish a cheret framewrk fr mre sstaiable, etaile & rigrs plicy aalysis. t shl be te that these meths ca als be trasferre t spprt plicy research elsewhere, particlarly i ther ast sia ecmies targete by SM iitiative. 315,605 The grat bjective has bee largely accmplishe. strg team f yg ecmic researchers have bee itrce t state-f-the-art statistical techiqes fr estimatig regial ecmic accts (i.e. regial scial acctig matrices) sig all available, eve if icmplete, ifrmati. Separate teams have bee give the tls t ertake regial ecmic aalysis a have sccessflly applie thse tls t a series f practical plicy isses fr example the ptetial cseqeces f the 2008 Olympics fr the hiese ecmy. The prject will be cmplete with a wrap-p cferece i Beijig i March 2006, t itrce the statistical a melig techiqes t a aiece f sme 70 regial a atial plicy aalysts. The tpts f the prject, iclig the prvicial atabase, geeral eqilibrim mels, a plicy tes, will als be mae available mre braly i the frm f a cmpeim i hiese. Slw isbrsemet cties t plage this prject. The task team a the implemetig agecy are strivig t reslve remaiig isses with csltat ctracts, bt bth sies are sfferig frm limite experiece with maagig this type f prject a pr cmmicati e t lagage, istace, a the time ifferece. The ctractig isses have bee escalate t the atteti f Wrl Bak maagemet. pstprcremet review was ccte all ctracts prcre er this grat, a clarificatis are beig sght befre frther paymet is mae t the implemetig agecy. t is hpe that the isse will be reslve befre grat clsre. hia Ttal 4,944,784 2,106,605 7,051,389 % 70% 30% mber f ctivities Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 6 f 27

7 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by 1 Spprtig Pr- Pr Plicy Develpmet i a Decetralize esia The prpse T will be se t spprt the evelpmet a activities f a by beig create t assess the atre f pverty i esia a t evelp a meim- t lg-term strategy t rece pverty, iclig efiig a rle fr atial plicies i a ecetralize gvermet, a establishig plicy a prgram pririties. 207,500 ctivities cmplete a grat flly isbrse i vember 20. mplemetati mpleti Memram isse. The Grat was sccessfl at geeratig a cmm erstaig f pverty isses a sltis at lcalize level thrgh a participatry prcess, fcse learig the assessmet a evlti f pverty at the ecetralize lcal level i 10 cmmities, a mbilizig a participatry apprach t erstaig pverty i lcalize settigs a i stimlatig the participatry evelpmet f lcalize sltis t pverty recti i a ecetralize ctext i these 10 settigs. Mrever, the skills a capacity f thse ivlve i these exercises were ehace by the Grat. wever, the imprtat gais i kwlege frm these activities have t bee braee sfficietly bey the immeiate participats, r leverage a impact the evelpmet f istrict a atial pverty recti strategies (espite the e wrkshp hel fr this prpse). Sice atial a istrict level pverty strategies are yet t be cmplete, the sigificat achievemets f the Grat activities cl still have a braer impact thrgh their reflecti i these strategies fr pverty recti, if apprpriately tilize by the Gvermet. D O S 1 mprvig Fiscal Plicy alysis (xpasi f activities fe er SM TF2661) 1 Bak Bilig Debt Maagemet apacity i Gvermet The prpse techical assistace wl frther imprve fiscal plicy i esia by spprtig MOF s capacity t aalyze macrecmic effects the bget, a effects f bgetary plicy the ecmy. This prject wl spprt the mlti-year prcess f bilig the capability i the Gvermet f esia t maage the ctry s pblic ebt alg the lies f iteratial s practices alg with ther rs (sch as sd, MF, DB a USD) ver the peri Jly Je t wl spplemet the techical assistace frm ther rs, sch as sd, by facilitatig the issemiati f aitial iteratial s practices i svereig ebt maagemet frm ther SM member ctries. 200,000 ll activities were cmplete ahea f schele a grat flly isbrse. The mel was evelpe a cmplete. t is w se as a mai tl fr macr ecmic aalysis a bget preparati. sigificat mber f MOF staff have bee traie i the mel. mplemetati mpleti Memram isse. fllw-p prpsal was apprve i Jaary ,000 Thgh the grat is expecte t be less tha flly isbrse, its bjectives will be achieve. The Gvermet has se resrces frm the grat t prce a Pblic Debt Maagemet Strategy, which was sige by the Miistry f Fiace i September, prgram t itegrate exteral a mestic ebt ata is beig implemete a is expecte t be fialize by the e f March Qarterly itegrate exteral a mestic ebt reprts are available t the pblic. The grat was extee i 2005, with a reallcati f fs amg its cmpets. lthgh its bjectives will be largely met, a sigificat amt f the resrces remai se, sice the Gvermet has bee sig its w a ther grat resrces t evelp its ebt maagemet capacity.(three csltats will be hire a tw wrkshps will be rgaize i Febrary-Jly 2006, leavig abt US$ 100,000 tilize.) 2 Split Bilig vestr fiece by Prmtig G rprate Gverace The techical assistace (T) is itee t raise awareess f the ee fr g crprate gverace a stregthe crprate gverace practices amg reglatrs a crpratis, iclig State Owe terprises (SOs). The gal is t ecrage mre trasparecy, acctability, fairess a respsibility i the maagemet f crpratis i esia factrs crcial i restrig ivestr cfiece a i tr, evelpig a yamic capital market. evelpe capital market, i aiti t bak fiacig, is vital fr grwth a a rbst private sectr rive ecmy. 501,000 ctivities cmplete a grat flly isbrse i Jly mplemetati mpleti Memram isse. The Trst F bjectives were sccessflly met fr each f the recipiet agecies. The Jakarta Stck xchage is crretly preparig t implemet its emtalizati strategy which is a tpt frm the grat, BPPM s capacity fr srveillace has bee ehace with several iteral traiig sessis, the stitte f rprate Directrs has lache classes, with almst e hre participats i ttal a geerate zes f ew traiers. itially, D s traiig materials have bee sbstatially pgrae as a reslt f the grat assistace. The atial mmittee has pate the e f G rprate Gverace a beefite frm several Grat fiace r-table iscssis with experts a a braer aiece. The Jakarta itiative Task Frce bega bilig a ew lcal capacity fr meiati. ll agecies cmplete their activities as set t i the grat prpsal. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 7 f 27

8 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by Bak Methlgy fr egial ivil Service efrm The prpse T will evelp methlgies fr regial gvermets t aress civil service isses. The methlgies will be evelpe i cperati with selecte regial gvermets er the giace f a atial steerig cmmittee, a bilig iteratial g practice. The T will: (i) etify key regial civil service isses.. (ii) etify key cstraits regial civil service maagemet stemmig frm cetral reglati a plicies. (iii) Develp key bilig blcs fr civil service refrms; a (iv) Develp a civil service refrm implemetati pla. 547,200 Grat implemetati ly starte i gst Despite the late start, the grat implemetati is makig g prgress. mplete wrk t ate icles a typlgy f civil service isses; a aalysis f the legal a reglatry framewrk fr the civil service; a iagsis f prblems, alg with iicative recmmeatis, fr tw pilt regis (TB a West Smatra); a aalysis f bsiess prcesses i the mai civil service rgaizatis; a a assessmet f hma resrce maagemet i the civil service. wrkshp was hel t iscss fiigs frm the regis. Fr bth regial a cetral gvermet, the aalytical reprts a the fielwrk have helpe t evelp a ivetry f actis that wl eable the regis t better maage their civil services a imprve service elivery. Wrk ccte er the grat has raise awareess i the cetral gvermet f the ifficlties the regis face i maagig their civil services. The reprts are timely as the gvermet is rethikig the ecetralizati legislati (Law 32/04), as well as raftig reglatis fr se i implemetig the law. Disbrsemet is 79 percet as f March 2006 a the grat is expecte t be flly tilize a clse by Je 30, D O S sig Fiace Plicy efrm The prpse techical assistace will prvie spprt t the hsig fiace plicy refrm prgram beig evelpe by the esia Gvermet with the spprt f the Wrl Bak. t will fcs the fllwig tw areas f assistace: 1. ssistace t the iterepartmetal team hsig plicy a fiacig ptis 2. Traiig semiars hsig prgram a fiace ptis fr bakers a market participats. 289,000 De t chages i the strctre f the exectig agecy, this grat was clse with abt 60 percet isbrsemet. The activities fiace have etheless prvie valable ipts fr imprvig the istittis that evelp esia s hsig plicy. The tpts icle a aalysis f imprvemets i the atial Bar the trl f sig a Settlemet Develpmet (BKP4), the atial sig thrity, atial hsig fs, a f the gvermet s capacity t evelp the hsig prgram. Other tpts are a assessmet f effectiveess f the existig hsig bar a prpsals t imprve it, a a assessmet f the tasks a fctis f the ewly create psiti f State Miister f sig. The fiigs f the grat-fiace sties were iscsse i several meetigs with stakehlers, bt with the cacellati f the plae traiig semiars they were t flly issemiate. Pverty ecti thrgh llective cti The prpse T will prvie fr a sty the etermiats f the capacity fr cllective acti f the rba pr i esia. t will be carrie t i the ctext f a cmmity rive ev. (DD) prject, the Sec Urba Pverty Prject (UPP2) that was sige with the gvermet i Sep. 20. t will ivlve the cllecti f ata prir t a fllwig prject implemetati (at the mi-term) & will cmbie qalitative a qatitative aalysis. ther iqe featre is the iclsi f ctrl grps i the qalitative aalysis. s sch, this will cstitte a pieerig piece f wrk i the area f DD prjects i the Bak sice sch a cmprehesive aalysis has t bee carrie t Bak-fiace DD prjects t ate. The expectati is that the reslts f this sty will t ly ifrm r erstaig f DD appraches, bt als fee it the esig f gvermet-spsre cmmity rive ev. activities i rba areas i the ftre. The sty is clsely like with GO s mi-term evalati f the UPP2 & will frm a critical ipt it the evalati. 297,700 The grat implemetati is prgressig well. The first evalati f esia s Urba Pverty Prgram has bee cmplete, rawig the reslts f a srvey i 30 cmmities. The fiigs have bee se t mify the implemetati f this prgram. Tw wrkshps t issemiate the fiigs are plae. alf f the grat ha bee isbrse by March, 2006 a the remaiig half is expecte t be se by its preset clsig ate f Je 30, Tw cmpets f the grat are er implemetati a e has t bee starte yet. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 8 f 27

9 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by D O S v- v- v- Develpig a Diversifie Sectr i esia: Stregtheig apacity f the apital Market a -Bak stittis virmetal Gverace a Sstaiable ities itiative stittial Stregtheig fr Departmet f mmity a Village Develpmet The T is itee t sbstatially frther the prcess f evelpig a iversifie fiacial sectr i esia by stregtheig the reglatrs f the esia capital market a -bak fiacial istittis (BFs) thrgh prmtig iteratial staars a best practices amg the reglatrs. The prpse T will prvie assistace t five beeficiary agecies: the apital Market Spervisry gecy (BPPM), Jakarta Stck xchage (JSX) a ther self reglatig rgaizatis (SOs), Directrate f srace, Directrate f Pesi Fs a Directrate f Bakig a Other Fiacig Services. The beeficiaries ca be grpe er tw categries: apital Market a BFs. ach f the five beeficiary agecies is prpsig assistace t imprve its staars a reglatis as well as srveillace a efrcemet. teratial experts wl be sght t assist the agecies i these areas lger term basis (ie mths). itially, a extesive prgram fr capacity bilig f the agecies staff is prpse as ecrage by the Bali itiative (SM meetig i Jly 20). The mai prpse f this Grat is t prvie techical assistace t the Miistry f virmet (KL) t imprve the verall scpe, qality, a implemetati f its G virmetal Gverace Prgram a relate activities, a by ig s, esre that the lgterm beefits f ecetralizati are achieve. The prpse techical assistace will have fr cmpets: (i) Stregtheig Pblic virmetal wareess; (ii) hacig Mitrig a valati Systems t Measre virmetal Perfrmace; (iii) apacity Bilig t Develp Strategic virmetal Plas (i.e. saitati, sli waste cllecti, water qality); a (iv) Fiacig Mechaisms fr Urba virmetal Services This techical assistace prpsal csists f three activities : (i) assessmet f PMD,s revise missi, rgaizati, staffig, bget strctre a maagerial capacities by a prfessial maagemet csltat; (ii) a participatry assessmet by PMD regial a atial ffices f PMD's revise strctre a fctis er ecetralizati; (iii) Preparati f a rgaizatial imprvemet pla fr PMD/Miistry f me ffairs maagemet review, t be isse as a Miisterial ecisi. 1,716,600 The grat has bee extee, a at the Gvermet s reqest, sme f the fs have bee reallcate away frm csltat services t traiig a exchage prgrams. The wrk f the iteratial a lcal csltats is expecte t be cmplete by the e f March, We expect almst 100 percet isbrsemet by the clsig ate. The crret stats f each f the majr reglatrs f the capital market a -bakig fiacial istittis i esia has bee aalyze, key cstraits ietifie, a recmmeatis mae fr imprvemet f the istry. Staff f five majr players i the istry have bee traie, a iteratial best practices have bee share with them. iteratial cferece best practices i the fiacial sectr jitly rgaize by tw agecies attracte mre tha 350 participats. mplemetati f this grat has imprve sice 2005, thrgh reglar meetigs betwee the Bak a each implemetig agecy. 457,350 The grat implemetati is prgressig well. Tw f the grat s fr cmpets have bee cmplete a the thers are makig satisfactry prgress. The tpts ths far will allw the Miistry f virmet t better mitr evirmetal gverace. The achievemets f the Prgram fr Pllti trl valati a atig (POP) icle the apprval f a Miisterial Decree makig participati i POP maatry fr every istrial facility i esia. The rigial POP prgram has bee aapte t esia s ecetralize system a scale p. The G virmetal Gverace Prgram is beig extee t 135 cities atiwie frm the rigially plae 53. The Miistry f virmet is explrig the pssibility f ctiig the gig activities er a ifferet srce f fig. 6,900 t all the plae activities were carrie t, becase f the freqet rergaizati f PMD. Otpts frm the prgram csiste f a mber f wrkshps i Jakarta t iscss the chagig rle f village gvermet er esia s ew ecetralizati laws. psitive tcme f this grat, hwever, is that all parts f gvermet w agree that a majr rethikig is eee f hw village gvermet is strctre a what its rle shl be i the revise evelpmet plaig prcess. v- Stregtheig Fiscal Plicy alysis apacity Miistry f Fiace The primary bjective f the prpse grat ivlves wrkig with the cre MODF staff a imprtat melig aiti a reifrcig the se f the mel a traiig its issemiati rig a imprtat trasiti t a ew strctre at the Miistry f Fiace. The sec key extesi bjective is t reach wier ser-grps i a tsie the MF (especially iversity a research istittis). Fially, t meet the grwig ee fr imprvemet i the plicy aalysis capacity i fiace a fiacial istittis. 360,000 The grat has bee extee a restrctre. Disbrsemet stas at 86 percet a there is a g pssibility that the grat will be flly isbrse by its clsig ate f gst 31, Plae activities are prgressig satisfactrily, with the mel evelpig well, bt with treach activities a traiig elaye by the late release f esia s 2005 state bget. The grat has greatly extee the capacity f MOF t aalyze macrecmic effects the bget a cct fiscal plicy aalysis. The macrecmic a bget prjectis mel has bee expae a refie, regial mels have bee evelpe, a a etaile abk f MODF 2005 is w available t ptetial sers. The Miistry rgaize tw treach semiars tsie Jakarta. The mel will be ctie t be se after the grat is cmplete; it has bee accepte by MOF as a iteral tl a MOF staff will be able t maitai it witht exteral assistace. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 9 f 27

10 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by v- Desigig ffective mmity mpwermet Prgrams The prpse f this T is t help the esia State Miistry fr atial Develpmet Plaig (Bappeas) imprve its capacity t aalyze, prgram, a evalate its cmmity evelpmet prjects. The prpse T will evelp a implemet methlgies, atabases, a staarize aalytical appraches that allw Bappeas t assess a cmpare the csts a beefits frm ifferet kis f cmmity evelpmet prjects. The T will als help Bappeas evelp jb escriptis a staarize reprtig frmats fr Bappeas ecisi-makers s that the capacities evelpe thrgh the SM grat ca be sstaie after the prject is cmplete. 450,000 ctivities cmplete a mplemetati mpleti Memram isse. Overall, the grat perfrme well. Bappeas has beg sig the tls f empirical aalysis t assess variability i the effectiveess f the ifferet mels f cmmity evelpmet. Several review semiars were ccte a were very well attee. The reslts f the grat ctribte t the Gvermet s ecisi t itrce a plicy-base cmmity evelpmet pla it the meim-term expeitre prgram. ll ew DD prjects are w icrpratig a M& mechaism, similar t the e evelpe by the grat. s a fllw-p activity, Bappeas has reqeste help i esigig a capacity imprvemet prgram t carry t the type f M& evelpe er the grat. D O S v- ral vestmet limate Srvey (S) This activity will ertake a rral ivestmet climate srvey. The srvey istrmet wl cmplemet the geeral, rba-fcse, ivestmet climate srvey erway begiig mi-20 with the DB a the WB spprtig srvey implemetati by the etral Brea f Statistics (BPS). The rral srvey will raw the methlgical framewrk a srvey istrmet recetly evelpe i the gricltre a ral Develpmet Departmet f the WB a crretly beig pilte i Sri Laka. verage will be bth - a ff- Java, a will icle (bt t be restricte t) Districts (at a miimm twety a p t sixty) crretly icle i the itiatives Fr Lcal Gverace efrm Prject (LGP) er preparati. part frm the sefless f the aalytical tcme a plicy recmmeatis f this activity, it wl als give Gvermet experiece with this iagstic tl, a give it the capacity t implemet it periically i the ftre as part f giig its plicies a prgrams i spprt f rral ecmic grwth. 200,000 This grat has t yet isbrse. T facilitate isbrsemet, it was amee t icle the atial Statistics gecy (BPS) as the exectig agecy behalf f the riatig Miistry f cmic ffairs (KU). The Bak a the exectig agecy have agree the six istricts that will be cvere er the BPS srvey f the rral ivestmet climate a it is expecte that the srvey will be lache immietly. Fial cmic Beefits f mmity vestmet Prjects*/ The sty will cver three activities: (a) alclati f cmic teral ate f etr which will sample apprx rral ifrastrctre prjects i apprx. 100 villages i three majr islas i esia: Java, Smatra a Slawesi; (b) alclati f cmic mpact f ral frastrctre Villages, which will als examie the verall impact f ifrastrctre i prject villages; a (c) mparis f Village-Level frastrctre, which will cmpare ifrastrctre with ther village ifrastrctre. Sty Team Leaer will be hire as a csltat t maage a irect this sty. The Sty Team Leaer will versee the wrk f a team f eight t te egieers t be hire thrgh the prject. Tw ata etry peratrs will als ee t be hire a shrt-term basis. ll MS ata a ifrastrctre reprts will be mae available t the sty team thrgh the exectig agecies. 350,000 The tpts frm the grat activities cmprise: (1) estimates f iteral rates f retr fr cmmity ivestmets i ras, briges, water spply, a irrigati, (2) a aalysis f the macrecmic impacts f varis ifrastrctre a ther activities that were esige t spprt cmmity evelpmet prgrams, a (3) a re-cstig f cmmity ivestmet prjects. Five csltati wrkshps were ccte with mltiple stakehlers civil sciety rgaizatis, gvermetal rgaizatis, a iteratial GOs, a lcal gvermets. The fiigs frm the grat have the ptetial t stregthe cmmity-rive evelpmet (DD) appraches a t gie the evelpmet f mre cst effective a better esige DD prgrams. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 10 f 27

11 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by D O S Fial ma esrce apacity Bilig f the ti rrpti mmissi esia s atial Dev. Prgramme accrs a high pririty t fightig crrpti & the atial strategy icles the establishmet f the rrpti raicati mmissi (KPK) which has the ptetial t be a imprtat avee i takig legal acti & prsectig crrptrs as well as implemet a cmprehesive prgramme f preveti actis. KPK has bee spprte thrgh Partership fr Gverace efrm that brigs tgether Gvermet agecies with Dev. parters icl. WB & civil sciety rgaizatis; hwever there is capacity bilig prvie ce staff has bee emplye. The recritmet f permaet staff is schele t start i Je 2004 & is expecte t be cmplete by Oct T bil p KPK t esre that it is sli istitti that has itegrity takes time & while all the abve-metie stras f spprt ctribte t the same verall gals, KPK remais hamstrg as regars the implemetati f a cmprehesive & flexible hma resrce ev. prgramme that will allw seir mgmt. t qickly resp t traiig & ther relate ees. 350,000 reqest frm KPK t reallcate sme fs frm csltig services t traiig a exte the grat til gst 31, 2006 was grate i Jaary Oe cmpet f the grat has bee cmplete, while the ther tw are beig implemete at a satisfactry level. Freqet meetigs have take place betwee KPK a the Wrl Bak sice May 2005 t spee p implemetati. cmprehesive hma resrce evelpmet pla fr KPK has bee evelpe. Traiig f sme 150 ew staff, f whm 35 percet are fresh graates, is i prgress, a prgrams with ther ati-crrpti cmmissis i sia a specialize agecies i rpe are beig rgaize. its tw years f peratial experiece, KPK has sigificatly imprve its capacity, perfrmace, a prfessialism. ts mst sigificat reslt t ate was that f tw highprfile cases ivestigate by KPK staff wh ha receive specialize fresic traiig er the grat. The tw cases were sbseqetly prsecte by KPK a the ti- rrpti rt. The ivestigati f the Spreme rt ccte by KPK staff has prce mmetm fr a refrm f the crt system. fllw-p prgram fr mch a larger grat will be implemete jitly by Bak, KPK, a the State it Bar t target crrpti. Discssis have starte a the prpsal is beig circlate fr fial review. esia Ttal 3,316,600 3,462,650 6,779,250 % 49% 51% mber f ctivities Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 11 f 27

12 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary 1 Kwlege hacemet f Key sses i rprate Gverace The techical assistace aims t cmplemet the gig effrts i the Philippies by the gvermet, private sectr, civil sciety a the Wrl Bak t imprve crprate gverace. The T is esige t ctie t aress capacity bilig i istittis fllwig the fiacial crisis by bilig p crret mmetm i aressig imprtat isses i crprate gverace thrgh imprve learig prgrams a the issemiati f ifrmati key isses i crprate gverace. Scial Ttal Grat mt by 444,000 ctivities cmplete a mplemetati mpleti Memram isse. The Grat bjectives were met althgh the likelih f sstaiability f the grat activities appears t be very limite less the Gvermet is willig t cmmit aitial resrces fr them as well as t implemet the key recmmeatis f the csltats. P L P P S Split Pesi efrm The prpse T will spprt the fllwig activities aime at imprvig the systemic eficiecies f the system: (a) ratializig the existig pesi schemes: SSS, GSS, a rme Frces f the Philippies etiremet a Separati Beefit System (FP-SBS); (b) imprvig pesi maagemet; (c) imprvig pesi f ivestmet gverace a maagemet; () efiig pesi eligibility, a, (e) assessig the relate fiscal trasiti csts a pssible srces f fig. t the same time, this grat will facilitate the efiiti f strctral pre-reqisites eee fr a ew pesi system. Split Sstaiable Pverty ecti a G Gverace The prpse T will prvie istitti-bilig techical assistace t stregthe macrecmic stability a rece pverty a vlerability t ftre crises, fcsig pririty areas t cvere by ther srces f techical assistace. The grat will fiace the fllwig activities: (1) Stregtheig the maagemet f fiscal risks; (2) Stregtheig lcal gvermet its effectiveess i pverty alleviati a service elivery; (3) hacig the pr-pr impact f pblic expeitres thrgh mre effective versight arragemets; (4) mprvig jicial effectiveess by spprtig civil sciety ivlvemet i jicial appitmets; a (5) Grat implemetati, criati a ait arragemets. 992, ,000 sty t imprve the ivestmet f maagemet plicies f the Scial Secrity System (SSS), the gvermet-r private beefits system, has w bee cmplete a may f its recmmeatis have bee icrprate i the 2006 rprate Pla f the SSS. actarial assessmet f the private beefits system a the esig f a cmmicati a avcacy pla spprtig selecte refrms is er implemetati. ssessmets f the actarial a fiacial sitati f the military pesi system a the evelpmet f the relate atabases a emgraphic prfiles have bee cmplete. T bil capacity, i 2004, selecte fficials frm the rme Frces f the Philippies etiremet a Separati Beefit System (FP-SBS) a the Departmet f Fiace tk part i a three-week traiig prgram ccte by the teratial Labr Orgaizati, a represetatives f the FP-SBS ertk a sty tr a meetigs military pesi systems. Prcremet is earig cmpleti the thir cmpet er the Bak execte prti f the grat, relatig t the strctral refrm f the Philippie pesi system. The cmpet stregtheig likages betwee atial a regial plaig maage by the sciecmic plaig agecy has bee cmplete. eprts ietifyig best practices i fiscal a fiacial maagemet by lcal gvermet its have bee prepare a issemiate i a series f frms fr atial a lcal gvermet fficials. reprt stregtheig ebt maagemet capability has bee cmplete a traiig has bee ccte with key stakehlers. The reprts were well receive a fllw p actis have bee agree. Fig has bee cmplete fr the civil sciety (Batay Katarga) etity egage t participate i the versight f jicial appitmets. The law-stet mitrs wh valiate the creetials f caiates fr key psts i the jiciary ejye strg spprt a appreciati frm the Jicial a Bar cil. Part f this grat has bee reallcate t accmmate tw ew capacity bilig prjects aime at spprtig the privatizati effrts a the revee itegrity prtecti prgram f the Departmet f Fiace; bth f these prjects are w i prgress. T bil capacity i the gressial Plaig a Bget Office, the grat has spprte the evelpmet f a web prtal a traiig its se a maiteace. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 12 f 27

13 SM TF2 - Stats Smmary by a ctivity (pril 2006) xec. By Prject Title Stats T Smmary Scial Ttal Grat mt by Bak lsig the Prctivity Gap The prpse T aims t establish key plicy actis that wl stregthe firm-level prctivity grwth by eepeig likages betwee freig trae a ivestmet the e ha a mestic ecmic activity the ther. mprve prctivity grwth i tr wl cmplemet crprate restrctrig effrts by icreasig the private sectr s resiliece t ftre crisis, as well as eliver greater pverty recti beefits by bstig icme grwth. Startig frm Philippies stregths, the prpse wrk wl fcs the fllwig tw qestis: 1. w ca trae a FD iflws be better like t mestic firms, resltig i a pgraig f mestic techlgical capabilities? 2. w ca the relatively high ecati levels i the ctry be better leverage t bth attract kwlege-itesive FD a imprve the mestic absrptive capacity fr receivig techlgical spillvers? 300,000 ctivities cmplete a mplemetati mpleti Memram isse. Sties fe by the grat have bee cmplete, a a series f wrkshps has bee hel amg researchers, acaemics, bsiess leaers, a plicymakers t iscss the fiigs a bil a csess ar recmmee plicy appraches t stregthe prctivity grwth. The Wrl Bak ctry team will carry t fllw-p iscssis i the crse f its braer plicy ialge grwth a ivestmet climate isses with the gvermet a ther evelpmet parters. P L P P S 4 Split Pverty Mitrig a alysis The gal f the techical assistace is t ehace impacts f pverty aalysis i plicy-makig t esre that ecisis f the gvermet are base ifrme aalysis, a resrces are allcate fr itervetis with maximal impacts pverty recti. Bilig the strg caliber f its staff, the gvermet has reqeste Bak s assistace t ai gvermet agecies i imprvig the methlgy fr estimatig fficial pverty statistics a i ehacig their aalytical tls i pverty mitrig a aalysis. Ths, the techical assistace will take the frm f capacity bilig activities i imprvig the qality f pverty measremet methlgy a aalysis as well as ehacig qality f ata. 755,250 Grat implemetati has ha a slw start, i part becase f its very cmplex a fragmete strctre, with eight sbcmpets fr five implemetig agecies beig versee by a iteragecy Prject Steerig mmittee. Bt may cmpets have w beg implemetati a the key cmpet f the prject harmizati f pverty a family icme a expeitre srveys is i fll swig. Utilizati f the gvermet-execte prti f the grat, which fiaces traiig a wrkshps, has picke p w that a mber f the sties have bee cmplete. 4 Stregtheig apacity fr Bak Spervisi*/ The prpse techical assistace bils p the activities alreay ertake with resrces frm previs grats a plicy ialge with the Gvermet fllwig the Sectr ssessmet Prgram (FSP) i Specifically, this grat will prvie techical avisry spprt t stregthe the cetral bak s capacity t spervise the bakig sectr er the fllwig cmpets: (1) Develpmet f ifrmati techlgy (T) spervisi capacity; (2) Stregtheig capacity fr risk base csliate spervisi; a (3) Grat implemetati. 479,650 The Grat implemetati is prgressig well. creasigly, baks a -bak istittis i the Philippies are aptig ifrmati techlgy-base prcts a services a e-cmmerce. The grat has helpe t spprt BSP s effrts t alig the T a risk maagemet plicies f these istittis with iteratial best practices a ehace its examiers capacity t spervise these istittis. The BSP has establishe a ew re frmati Techlgy Spervisi Uit a has evelpe a baselie f miimm staars fr maagig T risk. Thrgh techical assistace prvie er the grat a er the FST iitiative f the teratial Metary F, BSP examiers have shifte the emphasis f spervisi frm trasactis review t prcess (risk maagemet) review. sltats prvie frmal traiig a the jb cachig t bak examiers ifrmati techlgy, csliate market risk examiati a treasry peratis. BSP has sbseqetly isse Gielies Spervisi by isk which lay t its expectatis risk maagemet by fiacial istittis er its spervisi a hw it will cct spervisi fllwig the risk-base apprach. Stats = : ctive; : lse */ = Peig issace f mplemetati f mpleti Memram Page 13 f 27