Achieving the Sustainable Development Goals: The Role of Capacity Development Mark Lewis IMF-World Bank Spring Meetings April 2017
IMF PARTNER ON THE ROAD TO PARIS (2015) 2
IMF Support to Sustainable Development: Capacity Development (CD) One of 3 Core Mandates IMF Spending by Output, FY2016 Build strong institutions (TA) and boost skills (training) to formulate and implement sound macroeconomic policies to promote economic stability and sustainable growth TA Training Capacity Development 28% Lending 15% Surveillance 57% Total IMF Activities: $1,201.7 Million Capacity Development: $332 million (about 60% financed by IMF) 3
IMF CD: FOCUS ON ECONOMIC INSTITUTION BUILDING Fiscal Policy & Management Tax policy and administration Public financial management Fiscal institutions Monetary Policy & Financial Systems Monetary policy and operations Financial sector supervision & regulation Debt management Financial stability and inclusion Legislative Frameworks Economic laws Anti-money laundering and combating the financing of terrorism (AML/CFT) Macroeconomic & Financial Statistics Fiscal, monetary and financial, real, and external sectors, and data dissemination Macroeconomic Frameworks Macroeconomic diagnostics, analysis, modeling, and policies 4
IMF SUPPORT TO SUSTAINABLE DEVELOPMENT: POLICY ADVICE All Focus Areas of IMF Policy Advice Sustainable and inclusive growth SDG 1 : End poverty in all its forms everywhere SDG 8 : Promote inclusive and sustainable economic growth SDG 9 : Build resilient infrastructure SDG 5 : Achieve gender equality and empower all women and girls SDG 10 : Environment SDG 13 : Global partnership SDG 17 : Reduce inequality within and among countries Take urgent action to combat climate change and its impacts. Strengthen the means of implementation and revitalize the global partnership 5
IMF SUPPORT TO SUSTAINABLE DEVELOPMENT: LENDING 6
IMF SUPPORT TO SUSTAINABLE DEVELOPMENT: CAPACITY DEVELOPMENT A CORE MANDATE OF THE IMF A key priority for the Fund is to further strengthen capacity development (CD) in support of Financing for Development, including in the areas of revenue mobilization and financial sector deepening, and putting in place a more resilient CD framework in fragile states. - The Managing Director s 2016 Global Policy Agenda 7
Focus of IMF Capacity Development IMF SUPPORT TO SUSTAINABLE DEVELOPMENT: MONITORING OF SDGS Implementing the SDGs 30 SDG indicators to monitor 17 goals and 169 targets Developing an effective SDG monitoring framework Progress measured at national, regional and global levels SDG Monitoring SDGs go beyond traditional macro and financial statistics, and require investment donors can help, but countries also need to step up their own investment Increased focus on data availability, data quality, data gaps, comparability of country data & compliance with international statistical standards IMF CD helps with four IMF databases for monitoring of key SDG indicators Indicator: 10.5.1. on financial stability: FSI database (http://fsi.imf.org) (FSSF) Indicator 8.10.1. on financial inclusion: Financial Access Survey database (http://fas.imf.org) [D4D Fund] Indicator 17.1.1. on tax revenue: WoRLD tax revenue database (http://data.imf.org/revenues) (RMTF) Indicator 17.1.2. on share of domestic budget funded by domestic taxes: GFS database (http://data.imf.org/gfs) [Government Finance Statistics CD from RTACs and D4D Fund] 8
CAPACITY DEVELOPMENT IN ACTION: MALI Challenges: Civil strife after a military coup in 2012; fiscal deficit soars as donors withdraw. Support from IMF HQ and the West Africa regional TA center even as the conflict is ongoing. Priorities: the PFM system (to reassure donors) and to support fiscal decentralization.) Conflict Situation Conflict in the north of the country prompted thousands to flee (AFP) Conflict Situation Military officers announce their take-over on state TV in March 2012 (AFP) Results: Donors reengaged and pledged $4 billion. Progress with IMF-supported fiscal and local tax policy helps reach a peace agreement in 2015 Economic recovery takes hold with high growth and a strengthened fiscal position The IMF s Response Key success factors for Mali TA: Timeliness; strong and continued synergies with the AFR dept.; relevant topics closely linked with Mali government urgent needs; and donors support. 9
CAPACITY DEVELOPMENT IN ACTION: LIBERIA Challenges: - Building a professional Liberia Revenue Authority (LRA) after decades of civil war. - Extensive and coordinated support from the IMF and multiple partners from 2011 onwards, with IMF CD financed from the Revenue Mobilization Trust Fund (formerly Tax Policy and Administration Trust Fund) - Focus on strategic planning, taxpayer services, and institutional organization; close support continues remotely as the Ebola crisis breaks out. Results: - LRA is launched in 2014 at the height of the Ebola crisis. - An effective organization and professional staff support strong revenue collection (tax-to-gdp ratio reached 19.2 percent in 2015). - Tax revenues help Liberia work towards its development goals. 10
CAPACITY DEVELOPMENT IN ACTION: MANAGING NATURE RESOURCE WEALTH (MNRW) Results supported by MNRW trust fund Nine countries have reformed the laws relating to the EI fiscal regimes to protect state interest Eleven countries adopted new or revised frameworks for public financial management to better manage natural resource revenues. A new template for collecting data on government revenues from natural resources was developed and field-tested in several countries, Extractive Industries Transparency Initiative (EITI) will collaborate with the IMF in using the template to improve transparency. Kenya: Developed production sharing contract template and Mining Bill, a draft Sovereign Wealth Fund (SWF) Bill is being prepared Mali: a new petroleum code was adopted in mid-2015 Tanzania: July 2015, adopted (i) Petroleum Act, (ii) Oil and Gas Revenue Management Act and(iii) Extractive Industry (Transparency and Accountability) Act. 11
JOIN THE CONVERSATION www.imf.org/capacitydevelopment #IMFCapDev 12