## d4d-phase-ii-concept-note-2024-01-03

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---

### Overview and objectives
- Proposed budget for Phase II (May 2025 – April 2030) is US$ 45 million; this reflects an increase of US$ 12 million over the Phase I budget to cover new workstreams on climate and data dissemination and the integration of Big Data sources into tailored capacity development (CD).
- Phase II will:
  - Continue to focus on serving low- and lower middle-income countries (LLMICs) and fragile and conflict-affected states (FCS).
  - Build on Phase I successes and incorporate lessons from seven years of delivery and the recommendations from the mid-term independent evaluation.
  - Adopt a change management approach to enhance lasting CD impact, emphasizing the data usage dimension in program design and post-delivery stages and encouraging earlier engagement with country authorities for greater ownership and absorption capacity.
- The note outlines core priorities for Phase II of the D4D Fund with a view to securing funding for implementation.

### Why Phase II? (Demand and strategic fit)
- Continued demand for CD on policy-relevant staple and advanced macroeconomic statistics is expected to endure this decade to support evidence-based policymaking amid weak medium-term growth prospects and risks of divergence across countries.
- D4D Fund activities support IMF policy priorities to:
  - (1) safeguard macroeconomic stability and rebuild buffers while enhancing prosperity through growth-oriented and green reforms; and
  - (2) bolster international cooperation to strengthen the global financial safety net and debt architecture and to support cross-border fundamental transitions.
- Emerging needs driving demand for CD:
  - Updates to core statistical manuals addressing climate accounting, digitalization, financial inclusion and the informal economy.
  - Expanding interest in the use of Big Data for timelier indicators, especially in LLMICs/FCS.
  - Methodological advances on the seven climate recommendations of the G-20 Data Gaps Initiative 3 and implications for compiling climate indicators to support instruments such as the IMF Resilience and Sustainability Trust.
- IMF will work closely with other stakeholders to support development of policy-relevant climate indicators.

### Background and Phase I achievements
- The D4D Fund, launched in June 2018, became the flagship funding vehicle for IMF CD on statistics to support evidence-based macroeconomic policymaking in LLMICs and FCS.
- Phase I accomplishments include:
  - Improved availability and quality of national accounts, balance of payments, international investment position statistics, high-frequency indicators (HFIs), and residential property price indices (RPPI) among LLMICs.
  - Improvements in government finance statistics (GFS), particularly public debt transparency and policy formulation.
  - Expanded Financial Access Survey (FAS) database coverage and scope, with more gender-disaggregated data and new datasets such as mobile and internet banking.
  - Development of a comprehensive online learning curriculum in multiple languages, with over 12,000 participants benefiting from foundational concepts on macroeconomic and financial statistics.
  - Delivery to date of over 600 CD activities (about 500 technical assistance missions and 100 multicountry trainings), almost 100 online course offerings in three different languages, and nearly 300 limited engagements, benefiting more than 130 countries over five years.
  - Africa region received the bulk of D4D-funded support.
- The mid-term external evaluation covering June 2018 to April 2021 concluded the program is highly relevant, effective, coherent and efficient and made recommendations to increase the likelihood of longer-term impact at the data user level.
- The IMF’s response to the external evaluation recommendations will inform Phase II design.

### Rationale for integrating new data sources and dissemination
- Key constraint: access to primary/source data for macroeconomic statistics.
- Digitization of government service delivery and greater availability of private sector data provide new primary data opportunities.
- Examples of Big Data sources: value added tax data, social security data, personal and corporate income tax data, customs data, earth observation data, website traffic data, scanner data, mobility data, transportation data (e.g., vessel traffic).
- These sources require specific technologies and skills to transform them into primary data usable for macroeconomic statistics and policy-relevant climate indicators.
- Member countries increasingly seek STA assistance to access and process these ‘new’ data sources; integrating Big Data into tailored CD will support macroeconomic and environmental/climate statistics workstreams.
- Data dissemination emphasis:
  - Support for timelier and more efficient dissemination, including National Summary Data Pages (NSDPs), APIs, integration with R and Python, interactive front ends, and SDMX-based machine-readable datasets and free SDMX community tools.
  - Proposed support includes SDMX refresher training for Enhanced General Data Dissemination System (e-GDDS) participants and assistance for Special Data Dissemination Standard (SDDS) subscribers to adopt SDMX.

### Proposed Phase II: Objectives and structure
- Phase II will retain the modular structure of Phase I but strengthen integration between modules.
- Phase I modules (current):
  - Module 1: Fiscal, external, and real sector (national accounts, HFIs, RPPI).
  - Module 2: Sustain and expand the FAS database.
  - Module 3: A 12-course curriculum in English, French and Spanish.
  - Module 4: Initially piloted statistical information management practices; shifted toward supporting SDMX adoption.
- Under Phase II:
  - All Phase I workstreams remain; Module 4 will be enhanced to include data dissemination and use; a new Module 5 on climate statistics will be added.
  - Module 1 will remain the largest component; RPPI workstream may be broadened to other price measures such as CPI, PPI, XMPI, CPPI; CD tailored to addressing source data gaps is covered here.
  - Module 2 (FAS) will remain broadly unchanged but the questionnaire will be expanded based on upcoming pilot data collection to extend coverage of fintech and gender-disaggregated data; may include more targeted TA alongside regional training workshops.
  - Module 3: Foundational online courses will be aligned to upcoming revisions of the system of national accounts and balance of payments and international investment position manuals in 2025; additional targeted courses (e.g., international trade in goods and services, SDMX and NSDPs), user-oriented short videos, and translation into additional languages (e.g., Russian, Arabic) are planned.
  - Module 4 (data dissemination and use) will comprise three workstreams:
    - Sub-module 1: Continue engagement on IMF Data Standards Initiatives and support migration to SDMX, building on current Japan-funded project on Global Data Dissemination (to end in June 2025); include SDMX refresher training for e-GDDS and support for SDDS adoption of SDMX.
    - Sub-module 2: Assist countries to implement enhanced processes for SDMX usage to foster more timely dissemination of key macroeconomic and financial data including automated NSDP updates and modernization of NSDPs.
    - Sub-module 3: Focus on data use to strengthen CD impact monitoring, especially for new statistical products (e.g., RPPI, HFI).
  - Module 5 (new): Support compiling and disseminating macro-relevant environmental and climate change statistics, based on country needs assessments; will have a stand-alone strategic log frame and will map CD activities to Module 1 and Module 4 and to financial sector statistics on climate change; use of Big Data will be integrated where applicable.

### Country eligibility
- Proposals:
  - Maintain engagement with countries that were initially in the LLMIC group if they leave the grouping during the phase.
  - Make permanent the expansion of eligibility to non-LLMICs that are within a ten percent range from the LLMIC ceiling.
  - Expand D4D eligibility to non-LLMIC countries on a case-by-case basis, preferably at program level, but at least for Module 4 (data dissemination) and Module 5 (environmental and climate change statistics).

### CD modalities and delivery approach
- Phase II will leverage complementarities among modules and mix CD modalities for efficiency, tailoring, and impact:
  - Blended learning:
    - Multi-country training remains a feature and diagnostic tool to tailor follow-up TA.
    - Multi-lingual online course material enables blended learning where asynchronous virtual components supplement synchronous training.
    - Blended modalities help countries with high staff turnover by providing knowledge toolkits and enabling advanced hands-on application during synchronous interactions.
  - Single country training:
    - Considered where CD needs are acute and absorption capacity is lower (notably in FCS and some LLMICs).
    - Training components included in TA missions can help build institutional knowledge and improve statistical programs.
  - Continuous engagement:
    - Continuous engagement between missions and throughout projects will be a permanent feature, aligning with a more programmatic approach to CD and enabling remote support for ad hoc or targeted needs.
    - Requirement to explicitly discuss and agree targeted results with authorities before commencing a project will be reinforced to support a shift to a change management approach.
  - Long-term resident advisors:
    - Stationing long-term resident advisors will be considered where geographic and permanent expert presence will help groups of countries reach expected results; builds on Phase I pilot on external sector statistics in Central Africa.
  - Online learning:
    - Further develop Phase I curriculum by updating courses to reflect updates in statistical standards; develop shorter targeted courses to support blended learning and focus on policy relevance.

### Coordination, complementarity, governance and accountability
- Integration with IMF surveillance and lending:
  - TA work plans designed in close consultation with Area Departments.
  - D4D Fund TA activities will generate inputs for policy advice during Article IV consultations and for structural benchmarks and reform measures in IMF lending programs.
  - Results will inform Country Engagement Strategies in FCS and be reflected in project proposals and reports to the Steering Committee (SC).
- Complementarity with other IMF CD:
  - D4D-funded activities will complement CD delivered by regional capacity development centers (RCDC) and other TA initiatives; an updated delineation of CD delivered by D4D Fund and RCDC will be established.
  - Similar integration sought with other IMF funding vehicles and functional departments (examples: integrated debt strategies with Monetary and Capital Markets and Fiscal Affairs departments; improving gender data disaggregation for financial inclusion).
- Coordination with external development partners:
  - Close program- and project-level coordination will be pursued with the World Bank within existing IMF-World Bank coordination mechanisms on CD, methodology and data, including periodic strategic and operational meetings, systematic peer reviewing by STA of new World Bank statistics projects, active engagement between TA project managers, and World Bank participation in D4D Fund SC meetings.
  - Coordination with United Nations, regional development banks, or bilateral donors will be ensured whenever relevant.
- Governance:
  - Steering Committee (SC) composed of contributors to Phase II and the IMF; World Bank invited as an observer.
  - SC meetings semi-annually in June (hybrid) and January (virtual). IMF staff serve as the secretariat.
  - SC responsibilities: provide strategic guidance, endorse rolling 18-month work plans, review progress, endorse new work plans, and discuss the annual report prepared by IMF staff at the June meeting.
- Results measurement:
  - Objectives presented in a strategic log frame to measure and monitor results at module, sub-module and workstream levels.
  - Log frame will build on the new results-based management (RBM) catalogue developed following the launch of CDMAP, use SMART indicators, and reflect external evaluation recommendations.
  - Phase II log frame will report results at a strategic level, complementing and aggregating individual project log frames; IMF staff will update individual project log frames annually.
- Independent evaluation and visibility:
  - An independent evaluation is proposed at mid-point in the phase to be conducted by external experts.
  - Visibility measures include continued use of the D4D Fund logo, maintenance/enhancement of the D4D Fund external website, posts on IMF social media, and organization/participation in events during IMF-World Bank Spring and Annual Meetings.

### Budget and timeframe
- Total estimated cost of Phase II: "The cost of Phase II of the D4D Fund is estimated at $45 million of partner funding."
- Rationale for increased budget from Phase I's $33.1 million:
  - Broadening scope to new data sources through Big Data.
  - Implementation of new statistical standards (BPM7/2025SNA).
  - Fostering data transparency through global data dissemination standards (Module 4), building on the Japan-funded Project on Improving Data Dissemination for Globally Selected Countries commenced in 2021.
  - Introduction of Module 5 to support countries in developing policy-relevant climate indicators; builds on a Switzerland-funded pilot targeting ten countries.
  - Other modules remain broadly within the same budget envelope range as Phase I in nominal terms.
  - Broader country eligibility will not result in higher costs because only a selection of countries will receive TA in each work plan cycle.
  - Budget factors in widened blended learning reducing travel costs and a smaller online learning program compared to Phase I.
  - Module 1 budget incorporates stationing of one resident advisor for the duration of Phase II.
  - Additional fundraising will be pursued given the increase in scope and envelope.
- Table 1. D4D Phase II Budget Proposal, FY25–29 (compared to Phase I) — USD Million:
  - Module 1: Phase I "18-20" ; Phase II "20-22"
  - Module 2: Phase I "4-5" ; Phase II "3-4"
  - Module 3: Phase I "6.5-8.5" ; Phase II "5-6.5"
  - Module 4: Phase I "0.5-1" ; Phase II "4.5-5.5"
  - Module 5: Phase I "-" ; Phase II "5-6"
  - Program Management: Phase I "1.3" ; Phase II "1.3"
  - Governance and Evaluation: Phase I "0.4" ; Phase II "0.3"
  - Subtotal: Phase I "30.8" ; Phase II "42.1"
  - Trust Fund Management Fee (7%): Phase I "2.3" ; Phase II "2.9"
  - Total: Phase I "33.1" ; Phase II "45.0"
- Timeframe:
  - Phase II will cover five years—the standard duration of a phase in a thematic fund.
  - Depending on partner pledges and contributions, Phase II is expected to begin in May 2025 and cover the period May 2025-April 2030.

### Findings and recommendations from the external evaluation (selected highlights)
- Overall assessment:
  - The midterm independent evaluation found overall results positive: the D4D Fund provides CD that is relevant, effective, coherent, and efficient; but more could be done to ensure longer-term sustainable impact.
  - Key recommendation: move from a CD-delivery-centered approach toward a change management approach (greater emphasis on organizational change) and increase focus on use of data for policy decisions, integrated into CD delivery, ex-ante assessments, and monitoring of results.
- Recommendation 1 (Priority: High): Move from “CD delivery” to a “change management” approach to increase likelihood that short-term CD effects translate into longer-term organizational change and policy improvements (especially for M1 and M3).
  - Evaluators’ proposed actions include requiring authorities to review and confirm CD proposals, ensure staff/resources availability, and commit to post-mission follow-up to monitor adoption.
  - IMF staff planned actions:
    - Shift from one-year focus to three-year roadmap orientation through medium-term work (MTW) plans.
    - Discuss roadmaps earlier with authorities; STA to work with Area Departments (ADs) to strengthen links between roadmaps and policy relevance and sensitize authorities to resource implications.
    - Proactively discuss resource needs and CD impact with high-level authorities during IMF Annual and Spring Meetings and work with AD teams (including IMF Resident Representatives) to identify underfunding.
    - Include more specific macroeconomic statistics recommendations in Article IV reports where appropriate.
    - Explore continuous engagement through regular informal check-ins between CD missions.
    - Upgrade country management practices by repurposing roles of regional managers and country coordinators.
    - Encourage documentation of country data compilation processes, promote online learning and How-to Notes, develop a Compilers’ Hub, ensure training is more oriented to data compilation using country or synthetic datasets and STA tools.
    - Examine feasibility of regular post-mission follow-ups (C3) particularly for new statistical products; formal documentation occurs at project close-out in CDMAP and through post-project independent evaluations.
- Recommendation 2 (Priority: not fully agreed): Include explicit needs assessments for data use during intervention planning and design.
  - Evaluators’ proposed actions: assess how interventions fill data gaps, local interest in using improved data, and involve recipients in designing terms of reference.
  - IMF response: Partially agree — planned STA actions to strengthen needs assessments, ownership, and linkages to policy use.

### Assessing data needs and data user engagement
- Recommendation 2 restated: include explicit needs assessments for data use for (i) CD recipients (M1 and M3), (ii) Area Departments (M1 and M3), and (iii) third-party data users (all modules).
- IMF Staff planned actions:
  - STA will consult extensively with country authorities at the project design phase to assess data use needs.
  - Regional workshops will include country-specific engagements on how potential CD interventions would address data gaps and readiness to embark on a new project.
  - IMF Country Engagement Strategies will inform CD planning and design and include the IMF country team's assessment of:
    - (a) the data gaps addressed by the project;
    - (b) the relevance of these data for specific surveillance or program monitoring purposes;
    - (c) a score that reflects the likelihood that the data will be used by area departments.
  - For third party data users, assessments could be qualitative (e.g., surveys for FAS users).
  - A FAS Advisory Group is being formed under M2 to provide feedback on FAS development work.
  - For standard macroeconomic datasets under M1, IMF staff encourage national user consultations for key CD projects such as a GDP rebasing.
- Contextual notes:
  - Assessments of macroeconomic statistics for FCS and assessments of data adequacy for surveillance are included in Article IV Reports.
  - Assessments by other IMF Capacity Development Departments also flag data gaps.

### Ownership and absorption capacity
- Recommendation 3: Require a more systematic assessment of ownership and absorption capacity, particularly for M1.
- Evaluators proposed explicit assessment of:
  - Factors affecting ownership for data-related reforms.
  - Absorption capacity gaps among recipient organizations.
- IMF planned actions:
  - STA will systematically engage with country authorities before project design on pressing data gaps and required resources.
  - Diagnostic missions will include use case analysis and address resource availability and absorptive capacity through engagements with compiling and source data-providing agencies.
  - Regional workshops will encourage agencies to conduct user outreach prior to decisions on D4D-funded country engagement.
  - Planned actions aim to design and implement interventions owned by authorities at all levels.

### Impact monitoring and evaluation at the data-user level
- Recommendation 4: Improve impact monitoring at the level of data users by including user-level indicators in the strategic log frame, more systematic reporting, more frequent post-mission follow-up, clear responsibility for monitoring, and budgeting for monitoring.
- Evaluators proposed actions:
  - A. Include user-level indicators in the strategic log frame and/or RBM Catalogue.
  - B. Encourage project teams to report user-level indicators more systematically and carry out post-mission follow-up to collect qualitative proxies/examples of policy use at:
    - IMF area departments (Article IV reports, DSAs, REOs, WEO, etc.);
    - National authorities (reports/publications/websites);
    - Relevant third parties (rating agencies, investment banks, researchers, development partners, NGOs).
  - C. Clarify responsibilities for follow-up monitoring.
  - D. Allocate a share of the D4D Fund budget to monitoring user-level outcomes.
- IMF planned actions:
  - STA will explore feasibility of including qualitative information on use of improved data in D4D Fund progress reports using readily available government policy publications.
  - Outreach to national policymakers and IMF mission chiefs; include examples of successful use of data in D4D Fund Annual Reports.
  - Continue to monitor internal usage of the FAS data including in Staff Reports, Policy Notes, Article IVs, and other documents under M2.
  - STA's Data Product Evaluation will monitor usage of IMF's statistical products and estimate FAS user statistics and references in IMF internal documents using data mining.
  - Under CDMAP, active project monitoring during the project life cycle is the responsibility of the STA project manager.
  - IMF will assess feasibility of integrating post-project follow-up into existing processes.
  - STA will propose to the D4D Fund Steering Committee a share of the Phase II budget for implementing systematic monitoring, including post-project surveys; the proposal will be articulated in the Program document for endorsement.

### Coordination and synergies with other development partners
- Recommendation 5: Enhance coordination and strengthen synergies with other development partners (e.g., the World Bank, UN Statistics Division, PARIS21).
- Evaluators’ proposed actions include:
  - A. Include a systematic overview in D4D Fund annual reports of CD activities of other relevant development partners, potentially based on PARIS21 information.
  - B. Disseminate D4D Fund TA reports more widely and share TA reports with other DPs on request and subject to recipient agreement.
  - C. Continue and institutionalize coordination with the World Bank, including sharing project design information and mapping projects.
  - D. Strengthen external coordination at the project level and involve UN Statistics Division staff in online M3 courses.
- IMF planned actions:
  - Leverage the Clearinghouse for Financing Development Data to enhance coordination; D4D Fund Annual Reports beginning in 2024 will feature more systematic reporting on complementarities.
  - Advance sharing of CD outputs in line with IMF Staff Operational Guidance on the Dissemination of Capacity Development Information (2022); steps to disseminate high-level summaries (HLS) and increase number of technical assistance reports (TARs) on the IMF website.
  - STA has established mechanisms with the World Bank for coordination and will further strengthen collaboration; since 2022 the World Bank has been engaging STA at the design phase of their statistics CD projects.
  - Under M2, coordination with the World Bank's Findex has helped enhance financial inclusion data collection; FAS and Findex are discussing complementarities in the context of the FAS pilot data collection and Data Gaps Initiative 3 Recommendation 12: Fintech-enabled financial inclusion. FAS is also leveraging complementarities with FSB's Fintech Credit survey, World Bank’s Global Payment System Survey, OECD's financial literacy surveys, etc.

### Tailoring the RBM framework to the D4D Fund
- Recommendation 6: Further tailor the RBM framework to the D4D Fund.
- Evaluators’ proposed actions:
  - A. Discuss with ICD how the RBM framework can be adapted to or merged with the D4D Fund Strategic Log Frame.
  - B. Expand the granularity of the RBM Catalogue to include more context-appropriate outcomes and indicators, and proxies for data use.
  - C. Combine country-specific outcomes/milestones with global or regional targets and report both in annual progress reports.
  - D. Ensure STA project managers rate outcomes and milestones in CD-MAP timely and with consistent interpretation.
- IMF planned actions:
  - STA has updated and will continue to expand the RBM catalogue (e.g., more objectives for real sector statistics and climate statistics CD delivery).
  - Design of the Phase II strategic log frame will be undertaken in close consultation with ICD.
  - Global/regional targets will build on country-specific outcomes.
  - Monitoring and reporting inputs for the strategic log frame will be drawn from CDMAP; annual project assessments and an RBM data completeness monitor are in place to improve quality.

### Continue developing and institutionalizing the blended (online and in-person) CD delivery model
- Evaluators’ findings and proposed actions:
  - Leverage remote CD delivery experience to treat remote and in-person CD as complements.
  - Prior to missions: use remote tools for pre-CD assessments and offer online training (e.g., one month in advance) to improve absorption capacity.
  - Consider making M3 course certification by senior technical staff a requirement for receiving follow-up TA from M1 to increase relevance and effectiveness of in-person CD.
  - During missions: encourage staff/experts to recommend online course registration where gaps are identified.
  - Following missions: use remote tools for follow-up and momentum maintenance.
  - Maintain remote CD as a complement, noting constraints in fragile and low-income countries.
- IMF Staff response and planned actions:
  - Fully agree and will mainstream blended CD delivery.
  - Roll out blended learning courses piloted during FY23 to all workstreams, countries and regions.
  - Integrate Modules 1 and 3 through blended learning (example cited in 2023 D4D Fund Annual Report).
  - STA will request authorities to encourage staff to register for online courses; in some instances make completion of online foundational courses a precondition for workshop attendance.
  - Expand blended modality to scheduled TA activities with embedded training, leveraging M3 curriculum.
  - During missions, STA will recommend online course enrollment when gaps are identified; following missions, STA will use remote tools for follow-up.
  - Continue to leverage hybrid CD delivery to widen audience reach and tap expertise of other organizations (example: World Bank participation in STA training on external debt statistics).

*Concept Note, Data for Decisions (D4D) Fund: Phase II, International Monetary Fund, January 3, 2024.*

### Section 1

### Data for Decisions (D4D) Fund: Phase II — Concept Note (Section 1)

### Overview and objectives
- The note outlines core priorities for Phase II of the D4D Fund with a view to securing funding for implementation.
- Proposed budget for Phase II (May 2025 – April 2030) is US$ 45 million; this reflects an increase of US$ 12 million over the Phase I budget to cover new workstreams on climate and data dissemination and the integration of Big Data sources into tailored capacity development (CD).
- Phase II will continue to focus on serving low- and lower middle-income countries (LLMICs) and fragile and conflict-affected states (FCS), build on Phase I successes, and incorporate lessons from seven years of delivery and the recommendations from the mid-term independent evaluation.
- A change management approach will be adopted to enhance lasting CD impact, emphasizing the data usage dimension in program design and post-delivery stages and encouraging earlier engagement with country authorities for greater ownership and absorption capacity.

### Why Phase II? (Demand and strategic fit)
- Continued demand for CD on policy-relevant staple and advanced macroeconomic statistics is expected to endure this decade to support evidence-based policymaking amid weak medium-term growth prospects and risks of divergence across countries.
- D4D Fund activities support IMF policy priorities to:
  - (1) safeguard macroeconomic stability and rebuild buffers while enhancing prosperity through growth-oriented and green reforms; and
  - (2) bolster international cooperation to strengthen the global financial safety net and debt architecture and to support cross-border fundamental transitions.
- Emerging needs driving demand for CD:
  - Updates to core statistical manuals addressing climate accounting, digitalization, financial inclusion and the informal economy.
  - Expanding interest in the use of Big Data for timelier indicators, especially in LLMICs/FCS.
  - Methodological advances on the seven climate recommendations of the G-20 Data Gaps Initiative 3 and implications for compiling climate indicators to support instruments such as the IMF Resilience and Sustainability Trust.
- IMF will work closely with other stakeholders to support development of policy-relevant climate indicators.

### Background and Phase I achievements
- The D4D Fund, launched in June 2018, became the flagship funding vehicle for IMF CD on statistics to support evidence-based macroeconomic policymaking in LLMICs and FCS.
- Phase I accomplishments include:
  - Improved availability and quality of national accounts, balance of payments, international investment position statistics, high-frequency indicators (HFIs), and residential property price indices (RPPI) among LLMICs.
  - Improvements in government finance statistics (GFS), particularly public debt transparency and policy formulation.
  - Expanded Financial Access Survey (FAS) database coverage and scope, with more gender-disaggregated data and new datasets such as mobile and internet banking.
  - Development of a comprehensive online learning curriculum in multiple languages, with over 12,000 participants benefiting from foundational concepts on macroeconomic and financial statistics.
  - Delivery to date of over 600 CD activities (about 500 technical assistance missions and 100 multicountry trainings), almost 100 online course offerings in three different languages, and nearly 300 limited engagements, benefiting more than 130 countries over five years.
  - Africa region received the bulk of D4D-funded support.
- The mid-term external evaluation covering June 2018 to April 2021 concluded the program is highly relevant, effective, coherent and efficient and made recommendations to increase the likelihood of longer-term impact at the data user level.
- The IMF’s response to the external evaluation recommendations will inform Phase II design.

### Rationale for integrating new data sources and dissemination
- Macroeconomic statistics are largely derived from primary/source data; a key constraint is access to primary/source data.
- Digitization of government service delivery and greater availability of private sector data provide new primary data opportunities.
- Examples of Big Data sources: value added tax data, social security data, personal and corporate income tax data, customs data, earth observation data, website traffic data, scanner data, mobility data, transportation data (e.g., vessel traffic).
- These sources require specific technologies and skills to transform them into primary data usable for macroeconomic statistics and policy-relevant climate indicators.
- IMF member countries increasingly seek STA assistance to access and process these ‘new’ data sources; integrating Big Data into tailored CD will support macroeconomic and environmental/climate statistics workstreams.
- Data dissemination is emphasized: modern dissemination practices and tools are needed so statistical authorities provide open access and ensure data are discovered, understood, and used by policymakers, researchers, and citizens.
- Phase II envisages a broad data dissemination workstream to assist countries with timelier and more efficient dissemination, including National Summary Data Pages (NSDPs), APIs, integration with R and Python, interactive front ends, and SDMX-based machine-readable datasets and free SDMX community tools.
- Proposed support includes SDMX refresher training for Enhanced General Data Dissemination System (e-GDDS) participants and assistance for Special Data Dissemination Standard (SDDS) subscribers to adopt SDMX.

### Proposed Phase II: Objectives and structure
- Phase II will retain the modular structure of Phase I but strengthen integration between modules.
- Phase I modules (current):
  - Module 1: Fiscal, external, and real sector (national accounts, HFIs, RPPI).
  - Module 2: Sustain and expand the FAS database.
  - Module 3: A 12-course curriculum in English, French and Spanish.
  - Module 4: Initially piloted statistical information management practices; shifted toward supporting SDMX adoption.
- Under Phase II:
  - All Phase I workstreams remain; Module 4 will be enhanced to include data dissemination and use; a new Module 5 on climate statistics will be added.
  - Module 1 will remain the largest component; RPPI workstream may be broadened to other price measures such as CPI, PPI, XMPI, CPPI; CD tailored to addressing source data gaps is covered here.
  - Module 2 (FAS) will remain broadly unchanged but the questionnaire will be expanded based on upcoming pilot data collection to extend coverage of fintech and gender-disaggregated data; may include more targeted TA alongside regional training workshops.
  - Module 3: Foundational online courses will be aligned to upcoming revisions of the system of national accounts and balance of payments and international investment position manuals in 2025; additional targeted courses (e.g., international trade in goods and services, SDMX and NSDPs), user-oriented short videos, and translation into additional languages (e.g., Russian, Arabic) are planned.
  - Module 4 (data dissemination and use) will comprise three workstreams:
    - Sub-module 1: Continue engagement on IMF Data Standards Initiatives and support migration to SDMX, building on current Japan-funded project on Global Data Dissemination (to end in June 2025); include SDMX refresher training for e-GDDS and support for SDDS adoption of SDMX.
    - Sub-module 2: Assist countries to implement enhanced processes for SDMX usage to foster more timely dissemination of key macroeconomic and financial data including automated NSDP updates and modernization of NSDPs.
    - Sub-module 3: Focus on data use to strengthen CD impact monitoring, especially for new statistical products (e.g., RPPI, HFI).
  - Module 5 (new): Support compiling and disseminating macro-relevant environmental and climate change statistics, based on country needs assessments; will have a stand-alone strategic log frame and will map CD activities to Module 1 and Module 4 and to financial sector statistics on climate change; use of Big Data will be integrated where applicable.

### Country eligibility
- Proposal to maintain engagement with countries that were initially in the LLMIC group if they leave the grouping during the phase.
- Proposal to make permanent the expansion of eligibility to non-LLMICs that are within a ten percent range from the LLMIC ceiling.
- Proposal to expand D4D eligibility to non-LLMIC countries on a case-by-case basis, preferably at program level, but at least for Module 4 (data dissemination) and Module 5 (environmental and climate change statistics).

### CD modalities and delivery approach
- Phase II will leverage complementarities among modules and mix CD modalities to be more efficient, tailored, and impactful, including:
  - Blended learning:
    - Multi-country training will remain a feature and a diagnostic tool to tailor follow-up TA.
    - Availability of multi-lingual online course material enables blended learning where asynchronous (self-paced) virtual components supplement synchronous (in-person or virtual) training for greater CD efficiency and impact.
    - Blended modalities will help countries with high staff turnover by providing accessible knowledge toolkits and enabling more advanced hands-on application during synchronous interactions.
  - Single country training:
    - Considered in circumstances where CD needs are acute and CD absorption capacity is lower (notably in FCS and some LLMICs).
    - Training components included in TA missions can help build institutional knowledge and improve statistical programs.
  - Continuous engagement:
    - (Text ends at the start of the continuous engagement discussion in the provided content.)

*Concept Note, Data for Decisions (D4D) Fund: Phase II, International Monetary Fund, January 3, 2024.*

### Section 2

### D4D Fund Phase II — Section 2

### Continuous engagement and CD delivery modalities
- Continuous engagement between missions and throughout projects will become a permanent feature, aligning with a more programmatic approach to CD and enabling remote support for ad hoc or targeted needs.
- Requirement to explicitly discuss and agree targeted results with authorities before commencing a project will be reinforced to support a shift from pure CD delivery to a change management approach.
- Long-term resident advisors:
  - Stationing long-term resident advisors will be considered in the CD taxonomy for Phase II in instances where a geographic and permanent expert presence will help a group of countries reach expected results in statistical development.
  - This approach builds on the Phase I pilot on external sector statistics in Central Africa and is particularly relevant for regions with a sizeable portion of FCS.
- Online learning:
  - Further develop the Phase I curriculum by updating existing courses to reflect updates in statistical standards during Phase II (e.g., for external sector statistics or national accounts).
  - Develop additional, sometimes shorter and more targeted courses to support blended learning (e.g., international trade in goods and services, informal economy) and to focus on policy relevance to foster data usage and support user impact analysis.

### Coordination and complementarity
- TA under Phase II will be fully integrated with IMF surveillance and lending activities:
  - TA work plans will be designed in close consultation with Area Departments.
  - D4D Fund TA activities will generate inputs for policy advice during Article IV consultations and for structural benchmarks and reform measures in IMF lending programs.
  - Results will inform Country Engagement Strategies in FCS and be reflected in project proposals and reports to the Steering Committee (SC).
- Complementarity with other IMF CD:
  - D4D-funded activities will be designed to complement CD delivered by regional capacity development centers (RCDC) and other TA initiatives.
  - An updated delineation of CD delivered by the D4D Fund and the RCDC will be established to maximize synergy and complementarity.
  - Similar integration will be sought with other IMF funding vehicles and functional departments (examples include establishing a debt strategy per recipient country with integrated work plans with Monetary and Capital Markets and Fiscal Affairs departments; improving gender data disaggregation for financial inclusion).
- Coordination with external development partners:
  - Close program- and project-level coordination will be pursued with the World Bank within existing IMF-World Bank coordination mechanisms on CD, methodology and data.
  - Coordination includes periodic strategic and operational meetings, systematic peer reviewing by STA of new World Bank statistics projects, active engagement between TA project managers, and World Bank participation in D4D Fund SC meetings.
  - Coordination with other partners such as the United Nations, regional development banks, or bilateral donors will be ensured whenever relevant.

### Governance and accountability
- Governance arrangements broadly follow Phase I:
  - The D4D Fund will be designed and implemented under guidance of a Steering Committee (SC) composed of contributors to Phase II and the IMF.
  - The World Bank will be invited as an observer to SC meetings; potential partners may be invited on a non-objection basis from SC members.
  - SC meetings will be held semi-annually in June (hybrid) and January (virtual). IMF staff will serve as the secretariat to the SC.
- SC responsibilities:
  - Provide strategic guidance and endorse rolling 18-month work plans.
  - Review progress under approved work plans and broader program performance; endorse the new work plan for the following period.
  - IMF staff will prepare an annual report on D4D Fund activities for discussion at the June SC meeting.
  - IMF will continue a demand-driven approach to work plan design.
- Results measurement:
  - Objectives of Phase II will be presented in a strategic log frame to measure and monitor results at module, sub-module and workstream levels.
  - The log frame will build on the new results-based management (RBM) catalogue developed following the launch of CDMAP, use SMART indicators, and reflect recommendations from the external evaluation.
  - The Phase II log frame will report results at a strategic level, complementing and aggregating individual project log frames. IMF staff will update individual project log frames annually.
- Independent evaluation and visibility:
  - An independent evaluation is proposed at mid-point in the phase to be conducted by external experts; findings will inform operations for the remainder of the phase and beyond.
  - Visibility measures include continued use of the D4D Fund logo on official material, maintenance and enhancement of the D4D Fund external website, posts on IMF social media (LinkedIn, X, Facebook, YouTube, etc.), and organization or participation in events during the IMF-World Bank Spring and Annual Meetings.

### Budget and timeframe
- Total estimated cost of Phase II: "The cost of Phase II of the D4D Fund is estimated at $45 million of partner funding."
- Rationale for increased budget from Phase I's $33.1 million:
  - Broadening scope to new data sources through Big Data.
  - Implementation of new statistical standards (BPM7/2025SNA).
  - Fostering data transparency through global data dissemination standards (Module 4), building on the Japan-funded Project on Improving Data Dissemination for Globally Selected Countries commenced in 2021.
  - Introduction of Module 5 to support countries in developing policy-relevant climate indicators; builds on a Switzerland-funded pilot targeting ten countries.
  - Other modules remain broadly within the same budget envelope range as Phase I in nominal terms.
  - Broader country eligibility will not result in higher costs because only a selection of countries will receive TA in each work plan cycle.
  - The budget factors in widened blended learning reducing travel costs and a smaller online learning program compared to Phase I.
  - Module 1 budget incorporates stationing of one resident advisor for the duration of Phase II.
  - Additional fundraising will be pursued given the increase in scope and envelope.
- Table 1. D4D Phase II Budget Proposal, FY25–29 (compared to Phase I) — USD Million:
  - Module 1: Phase I "18-20" ; Phase II "20-22"
  - Module 2: Phase I "4-5" ; Phase II "3-4"
  - Module 3: Phase I "6.5-8.5" ; Phase II "5-6.5"
  - Module 4: Phase I "0.5-1" ; Phase II "4.5-5.5"
  - Module 5: Phase I "-" ; Phase II "5-6"
  - Program Management: Phase I "1.3" ; Phase II "1.3"
  - Governance and Evaluation: Phase I "0.4" ; Phase II "0.3"
  - Subtotal: Phase I "30.8" ; Phase II "42.1"
  - Trust Fund Management Fee (7%): Phase I "2.3" ; Phase II "2.9"
  - Total: Phase I "33.1" ; Phase II "45.0"
- Timeframe:
  - Phase II will cover five years—the standard duration of a phase in a thematic fund.
  - Depending on partner pledges and contributions, Phase II is expected to begin in May 2025 and cover the period May 2025-April 2030.

### Findings and recommendations from the external evaluation (Annex)
- Overall assessment:
  - The midterm independent evaluation found overall results positive: the D4D Fund provides CD that is relevant, effective, coherent, and efficient; but more could be done to ensure longer-term sustainable impact.
  - Key recommendations include moving from a CD-delivery-centered approach toward a change management approach (greater emphasis on organizational change) and increasing focus on use of data for policy decisions, integrated into CD delivery, ex-ante assessments, and monitoring of results.
  - Evaluation confirms relevance of IMF’s demand-driven CD approach and positive impact in building national statistical systems and supporting new or improved statistical products in low- and lower middle-income countries.
- Summary of evaluation recommendations and IMF responses (selected highlights):
  - Recommendation 1 (Priority: High): Move from a “CD delivery” to a “change management” approach to increase likelihood that short-term CD effects translate into longer-term organizational change and policy improvements (especially for M1 and M3).
    - Evaluators’ proposed actions:
      - Encourage authorities to allocate resources for sustained data collection and dissemination and to use improved data for policy decisions through increased ownership.
      - Require that country authorities (preferably senior management or senior technical staff) review CD proposals and include their suggestions in CD design where possible.
      - Ask authorities to confirm explicitly that staff and resources are available for implementation.
      - Ensure newly acquired knowledge is shared within institutions and embedded in organizational systems and processes; include more country-specific recommendations and devote more attention to data compilation during training.
      - Prior to missions, ask authorities to agree to dedicate sufficient national resources to CD implementation and indicate how data will be used for policy purposes; during missions, discuss data usage for policy and include recommendations; follow up regularly after project end to monitor adoption and bottlenecks, coordinating with Area Departments.
    - IMF staff response and planned actions:
      - Aim to design and implement CD interventions better tailored to country context and geared to lasting impact.
      - With CDMAP, shift from one-year focus to three-year roadmap orientation through medium-term work (MTW) plans periodically reviewed and updated.
      - Discuss roadmap proposals earlier with authorities; STA to undertake this with ADs to strengthen links between roadmaps and policy relevance and sensitize authorities to resource implications.
      - STA will proactively discuss resource needs and CD impact with high-level authorities during IMF Annual and Spring Meetings and work with AD teams (including IMF Resident Representatives) to identify underfunding of statistical programs.
      - More specific recommendations on macroeconomic statistics will be included in IMF Article IV reports (based on prioritization), with attention to countries under an IMF Program.
      - Leverage new CD modalities to explore more continuous country engagement through regular informal check-ins between CD missions.
      - Upgrade country management practices (during FY24) by repurposing roles of regional managers and country coordinators to ensure more regular dialogue with ADs on country data needs, MTW progress, and data usage for policy.
      - STA will encourage documentation of country data compilation processes, promote online learning and How-to Notes, develop a Compilers’ Hub for knowledge sharing, and ensure training is more oriented to data compilation using country or synthetic datasets and STA tools (e.g., supply-use table balancing tool).
      - STA will examine feasibility of following evaluators’ proposal for regular post-mission follow-ups (C3) particularly for new statistical products; formal documentation occurs at project close-out in CDMAP and through post-project independent evaluations, while post-project sustainability is also gauged through surveillance, lending missions, and reporting gaps to STA databases.
  - Recommendation 2 (Priority: not fully agreed):
    - Evaluators’ proposed actions:
      - During intervention planning and design, include an explicit requirement to provide a clear needs assessment for data use for (i) CD recipients (M1 and M3), (ii) Area Departments (M1 and M3), and (iii) third-party data users (all modules).
      - For country authorities: assess how intervention fills data gaps, indications of local interest in using improved data for macroeconomic analysis and policy, and likelihood of data use by national authorities (which agencies, for what purposes).
      - Involve recipients more actively in jointly designing terms of reference, including selection of realistic and relevant project outcomes/milestones and more frequent (online) discussions during planning to increase ownership.
    - IMF staff response: Partially agree — actions described above (see STA planned actions) to strengthen needs assessments, ownership, and linkages to policy use.

*Source: D4D Fund Phase II concept note, Section 2.*

### Section 3

### d4d-phase-ii-concept-note-2024-01-03 - Section 3

### Assessing data needs and data user engagement
- Recommendation 2: During intervention planning and design, include an explicit requirement to provide a clear needs assessment for data use, for (i) CD recipients, for M1 and M3; (ii) area departments, for M1 and M3; and (iii) third party data users, for all modules.
- IMF Staff response and planned actions:
  - STA will consult extensively with country authorities at the design phase of each project to clearly assess the data use needs.
  - During D4D-funded regional workshops, country-specific engagements will cover how potential CD interventions would address data gaps as well as readiness of the authorities to embark on a new project.
  - IMF Country Engagement Strategies will inform CD planning and design and include the IMF country team's assessment of:
    - (a) the data gaps addressed by the project;
    - (b) the relevance of these data for specific surveillance or program monitoring purposes;
    - (c) a score that reflects the likelihood that the data will be used by area departments.
  - For third party data users (for all modules), assessments could be made in a qualitative way (e.g., for the FAS, consider conducting a survey among third party data users on their data needs and feed the results into subsequent project design).
  - A FAS Advisory Group is being formed under M2, consisting of prominent policymakers, reporting countries, stakeholder organizations, and academia, to provide feedback on FAS development work.
  - For standard macroeconomic datasets under M1, IMF staff encourage countries to undertake national user consultations for key CD projects such as a GDP rebasing.
- Contextual notes cited by the IMF:
  - Assessments of macroeconomic statistics for Fragile and Conflict-Affected States (FCS) and assessments of data adequacy for surveillance are included in IMF Article IV Reports.
  - Assessments by other IMF Capacity Development Departments (CDDs) also flag data gaps (e.g., analysis of financial sector risks impaired by lack of data on property prices).

### Ownership and absorption capacity
- Recommendation 3: During CD planning and design, require a more systematic assessment of ownership and absorption capacity, particularly for M1.
- Evaluators proposed that CD planning and design should require an explicit assessment of:
  - Factors that affect ownership for data-related reforms, to ensure D4D-supported CD projects address areas with political willingness to reform.
  - Absorption capacity, i.e., capacity gaps among recipient organizations.
- IMF Staff response and planned actions:
  - STA will continue to systematically engage with country authorities before designing the project on their views of the most pressing data gaps and discuss the required resources to achieve project objectives.
  - Diagnostic missions will include use case analysis where feasible; and address more directly countries’ resource availability and absorptive capacity through engagements with key stakeholders, including both compiling and source data-providing agencies.
  - Regional workshops on new statistical products (e.g., residential property price index) will communicate to country participants the importance of their agencies conducting user outreach prior to making decisions on D4D-funded CD country engagement.
  - Planned actions will aim to design and implement interventions that are owned by the authorities at all levels.

### Impact monitoring and evaluation at the data-user level
- Recommendation 4: Improve the impact monitoring and evaluation at the level of data users, e.g., by including user-level indicators in the strategic log frame; encouraging project teams to at least report on them more systematically in progress reports; carrying out more frequent post-mission follow-up monitoring (especially for Module 1); specifying who should be responsible for such monitoring; and allocating a share of the D4D budget to ensure that such monitoring can take place.
- Evaluators’ actions proposed:
  - A. Include user-level indicators in the strategic log frame and/or the next version of the RBM Catalogue to measure outcomes at the data-use level.
  - B. Encourage project teams to report on user-level indicators more systematically in progress or annual reports; conduct more frequent post-mission follow-up to collect information on use of newly compiled or improved data; collect qualitative, country-specific proxies or examples of successful use of improved data for policy analysis and decisions at three levels:
    - IMF area departments (examples of data use for Article IV reports, DSAs, REOs, WEO, etc.);
    - National authorities (examples of data use by relevant government or central bank agencies in their reports/publications and on their websites);
    - Relevant third parties (examples of data use by rating agencies, investment banks, researchers, development partners, NGOs, etc.).
  - C. Clarify who should be responsible for follow-up monitoring (e.g., STA economist, STA project manager, Resident Representative offices, or the IMF country team).
  - D. Allocate a share of the D4D Fund budget to monitoring user-level outcomes by short-term experts or STA staff, including ex-post surveys for training courses.
- IMF Staff response and planned actions:
  - STA will explore the feasibility of including in D4D Fund progress reports qualitative information on the use of improved data for policy analysis and decisions, drawing on readily available information in government policy publications.
  - Outreach to national policymakers and to IMF mission chiefs will be undertaken, and examples of successful use of data will be included in D4D Fund Annual Reports.
  - STA will continue to monitor internal usage of the FAS data including in Staff Reports, Policy Notes, Article IVs, and other documents under M2.
  - STA's Data Product Evaluation aims to monitor the usage of IMF's statistical products and will continue to estimate FAS user statistics and references of FAS data and definitions in IMF internal documents using data mining.
  - Under CDMAP processes, active project monitoring during the project life cycle is the responsibility of the STA project manager.
  - IMF will assess feasibility of integrating post-project follow-up into existing processes.
  - STA will propose to the D4D Fund Steering Committee a share of the Phase II budget for implementing systematic monitoring, including post-project surveys; the proposal will be articulated in the Program document for endorsement.

### Coordination and synergies with other development partners
- Recommendation 5: Enhance coordination and strengthen synergies with other development partners (e.g., the World Bank, UN Statistics Division, or via PARIS21).
- Evaluators’ actions proposed:
  - A. Include a systematic overview in the D4D Fund’s annual reports of the CD activities of other relevant DPs in the area of macroeconomic statistics, potentially based on information obtained through PARIS21.
  - B. Consider disseminating the D4D Fund’s TA reports more widely:
    - B.1. Share TA reports more actively with other DPs offering CD in macroeconomic statistics, and consider publishing summaries of TA reports on the IMF website.
    - B.2. Communicate more clearly in project proposals, TA reports and annual reports how D4D Fund-supported CD is complementary to what others are doing, and which improved data are expected to become available.
  - C. Continue recent progress with enhancing coordination with the World Bank:
    - C.1. Institutionalize agreements to obtain information regularly and systematically from the World Bank on relevant statistics-related CD projects that have passed the design phase.
    - C.2. Increase coordination on potential complementary projects also at the design stage (e.g., invite each other to share proposals for projects at the design stage).
    - C.3. Improve mapping of projects, e.g., by aligning field codes of projects with those from the WB.
  - D. Strengthen external coordination at the project level:
    - D.1. Renew efforts to involve UN Statistics Division staff in online M3 courses such as NASx.
    - D.2. Enhance monitoring of potential overlaps and complementarities with the World Bank between the FAS (M2) and the World Bank Global Findex databases.
- IMF Staff response and planned actions:
  - Planned actions will further strengthen—and report—on synergies with other development partners; and operationalize IMF guidelines on the dissemination of CD outputs.
  - (A) STA would leverage the more granular information accessible in the recently launched Clearinghouse for Financing Development Data to enhance existing coordination mechanisms. Beginning in 2024, D4D Fund Annual Reports will feature more systematic reporting on how D4D Fund-supported CD is complementary to those of other development partners.
  - (B) STA will advance work on sharing of CD outputs in line with the IMF Staff Operational Guidance on the Dissemination of Capacity Development Information issued in 2022. Steps will be taken to disseminate high-level summaries (HLS) and increase the number of technical assistance reports (TARs) on the IMF website. TARs may be shared with other DPs on request and subject to the CD-recipient country’s agreement.
  - (C) STA has established mechanisms with the World Bank for coordination on activities of mutual interest and will further strengthen the collaboration (e.g., public sector debt statistics, national accounts, prices, climate). Since 2022, the World Bank has been engaging STA at the design phase of their statistics CD projects.
  - (D) Avenues for coordination with other DPs involved in statistical development will be pursued for each new project/activity under the D4D Fund (including tapping the expertise of other international organizations for remaining online courses to be produced).
  - Under M2, coordination with the World Bank's Findex has helped enhance financial inclusion data collection. The FAS and Findex are discussing complementarities, particularly in the context of the FAS pilot data collection and Data Gaps Initiative 3 Recommendation 12: Fintech-enabled financial inclusion. The FAS is also harnessing complementarities with other databases such as the FSB's Fintech Credit survey, World Bank’s Global Payment System Survey, OECD's financial literacy surveys, etc.

### Tailoring the RBM framework to the D4D Fund
- Recommendation 6: Further tailor the RBM framework to the D4D Fund.
- Evaluators’ actions proposed:
  - A. Discuss with ICD how the RBM framework to be used by the D4D Fund can potentially be better adapted to, or merged with, the D4D Fund Strategic Log Frame.
  - B. Further expand the granularity of the new RBM Catalogue to include:
    - B.1. More outcomes and indicators that better fit the country context.
    - B.2. Outcomes and outcome indicators that can be used as proxies for data use.
    - B.3. A more direct link between project or country-specific milestones and (general) outcomes, especially for Module 1.
  - C. Combine the use of country-specific outcomes and milestones with global or regional targets (e.g., the target that a certain share of countries should have outcome ratings of 3 or 4 for a certain outcome or objective), and report both country targets and global targets in annual progress reports.
  - D. Ensure STA project managers of D4D-supported projects rate outcomes and milestones in the new CD-MAP system on a timely basis and provide more guidance to ensure they interpret RBM ratings correctly and consistently.
- IMF Staff response and planned actions:
  - STA has updated its RBM catalogue; and will undertake further updates based on business needs.
  - (A) To be undertaken in designing the strategic log frame for Phase II of the D4D Fund—in close consultation with ICD.
  - (B) STA has already expanded the number of objectives available in the RBM Catalog (e.g., real sector statistics has 4 for national accounts instead of 1 in the old catalog). Expansion will continue (e.g., for climate statistics CD delivery).
  - (C) Global or regional targets will build on country-specific outcomes in the design of the strategic log frame of the Phase II of the D4D Fund.
  - (D) Inputs for monitoring and reporting of the strategic log frame of the D4D Fund will be directly drawn from CDMAP, ensuring ratings of outcomes and milestones are properly and timely recorded in CDMAP. Annual project assessments are a part of the CDMAP deliverables, and STA has implemented an RBM data completeness monitor to improve the quality of these assessments.

*Prepared from IMF/STA D4D Phase II concept note, Section 3.*

### Section 4

### Continue developing and institutionalizing the blended (online and in-person) CD delivery model

### Evaluators' findings and proposed actions
- Leverage the COVID experience with remote CD delivery to enhance synergies between remote CD (including online courses) and in-person CD, treating remote and in-person CD as complements rather than substitutes.  
- Prior to missions:
  - Use remote tools more systematically to conduct pre-CD assessments (assessment of the need for M3 online courses or an online component of the CD project).
  - Based on this assessment, offer online training prior to CD missions (e.g., one month in advance) to improve absorption capacity, level the playing field for participants, and increase the effectiveness of in-person CD.
- Consider making M3 course certification by senior technical staff a requirement for receiving follow-up TA from M1 (or for other TA in the same area offered by STA or other IMF trust funds) to:
  - Increase the relevance of online training.
  - Increase the effectiveness of in-person CD, since M3 has the potential to improve the absorption capacity of in-person CD (funded by M1 or other sources).
- During missions:
  - Encourage IMF staff and experts to more actively recommend participants sign up for online courses if technical capacity gaps are identified.
- Following missions:
  - Use remote tools more systematically to follow up and keep momentum going (e.g., via regular meetings recommended in Recommendation 1).
- Maintain remote CD as a complement, not a substitute for in-person CD, noting constraints such as IT capacity limits in fragile and low-income countries, participants being called away, and limited opportunities for hands-on support and dialogue.

### IMF Staff response and planned actions
- IMF Staff: Fully agree.
- Planned actions will fully mainstream blended CD delivery.
- Blended learning is now an established CD delivery modality; STA will continue to roll out the blended learning courses piloted during FY23 to all workstreams, countries and regions.
- Integration of Modules 1 and 3 of the D4D Fund through blended learning has already started; one example (HFIEA/QNA) is cited in 2023 D4D Fund Annual Report.
- STA will request authorities to encourage their staff to register for the available online courses.
- STA will, in some instances, make completion of online (foundational) courses a precondition for attendance to its in-person workshops and trainings.
- STA will expand the blended modality to scheduled TA activities that have an embedded training component, leveraging the online learning curriculum developed under M3 (either taking the course in its entirety or using selected videos from the course).
- During missions, STA will encourage IMF staff and experts to recommend participants sign up for online courses when technical capacity gaps are identified.
- Following missions, STA will use remote tools more systematically to follow up and keep momentum going (e.g., via regular meetings recommended in Recommendation 1).
- STA will continue to leverage hybrid CD delivery to widen audience reach and tap expertise of other international/regional organizations to sharpen the focus on use of data in its training programs (example: World Bank to discuss use of Quarterly External Debt Statistics during STA training on external debt statistics).

### Recommendation
- Recommendation 7: Continue developing and institutionalizing the blended (online and in-person) CD delivery model.

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_Source: https://www.imf.org/-/media/files/capacity-developement/d4d/jan-2024/d4d-phase-ii-concept-note-2024-01-03.pdf_