Achieving the Sustainable Development Goals:

The Role of Capacity DevelopmentMark Lewis

IMF-Wor ld Bank Spr ing Meet ings

Apr i l 2017

IMF—PARTNER ON THE ROAD TO PARIS (2015)

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Surveillance

Lending

Capacity Development

TA

Training

IMF Support to Sustainable Development: Capacity Development (CD)—One of 3 Core Mandates

28%57%

15%

Capacity Development: $332 million(about 60%

financed by IMF)

Total IMF Activities:

$1,201.7 Million

IMF Spending by Output, FY2016

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Build strong

institutions (TA) and

boost skills

(training) to

formulate and

implement sound

macroeconomic

policies to promote

economic stability

and sustainable

growth

IMF CD: FOCUS ON ECONOMIC INSTITUTION BUILDING

Fiscal Policy & Management

Tax policy and administration

Public financial management

Fiscal institutions

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

Monetary Policy & Financial Systems

Monetary policy and operations

Financial sector supervision & regulation

Debt management

Financial stability and inclusion

Macroeconomic Frameworks

Macroeconomic diagnostics, analysis,

modeling, and policies

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IMF SUPPORT TO SUSTAINABLE DEVELOPMENT: 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 : Reduce inequality within and among countries

Environment

SDG 13 : Take urgent action to combat climate change and its impacts.

Global partnership

SDG 17 : Strengthen the means of implementation and revitalize the

global partnership

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All Focus Areas of

IMF Policy Advice

IMF SUPPORT TO SUSTAINABLE DEVELOPMENT: LENDING

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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

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♦ Implementing the SDGs • 30 SDG indicators to monitor 17 goals and 169 targets

♦ 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

♦ Developing an effective SDG monitoring framework • Progress measured at national, regional

and global levels

♦ Increased focus on data availability, data quality, data gaps, comparability of country data &

compliance with international statistical standards

Focus of IMF

Capacity

Development

♦ 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]

IMF SUPPORT TO SUSTAINABLE DEVELOPMENT: MONITORING OF SDGS

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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.)

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

CAPACITY DEVELOPMENT IN ACTION: MALI

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)

Conflict Situation

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.

The IMF’s Response

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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.

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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.

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