## Japan‑IMF Partnership on Capacity Development Annual Report (jsa2022)

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### Introduction and background: role, delivery, and financing of IMF Capacity Development (CD)
- Role and scope of IMF Capacity Development (CD):
  - IMF CD comprises hands-on technical assistance (TA) and training to help countries build effective economic institutions (central banks, finance ministries, tax authorities, and other economic institutions).
  - CD helps countries achieve growth and development objectives and contributes to progress toward the Sustainable Development Goals (SDGs).
  - CD is a core IMF mandate and represented about a quarter of Fund outputs in FY2022.
  - CD accounts for about one-third of the IMF’s spending.
- Delivery modalities and recent adjustments:
  - CD is delivered through remote and in-person visits; in-country placements of long-term Resident Advisors (RA); a network of regional CD centers; virtual and face-to-face training; and free online learning courses.
  - In response to the COVID-19 pandemic, IMF CD rapidly transitioned to a virtual format and provided immediate policy advice and CD virtually to around 180 countries.
  - IMF online learning reached more than 130,000 active learners during the pandemic.
  - Two Regional Capacity Development Centers (RCDCs)—CARTAC and AFRITAC East—celebrated their twentieth anniversaries in FY2022.
  - The IMF launched the COVID-19 Crisis Capacity Development Initiative (CCCDI) in 2019 and raised about $40 million so far; as of end-FY2022 CCCDI supported over 40 projects on issues such as debt management in Africa, fiscal risks in southeast Asia, gender-based budgeting in Central America and Africa, and tax and customs administration in the Middle-East and Africa.
  - In-person TA and training activities partly resumed in FY2022; the IMF will continue to use virtual, hybrid, and in-person CD and step up field presence in Fragile and Conflict-Affected States (FCS) following the new IMF strategy on FCS adopted during FY2022.
- FY2022 CD financing and external support:
  - Externally funded component of CD amounted to $141 million in FY2022, constituting 58 percent of total CD spending.
  - External partners support RCDCs, thematic funds, and bilateral projects; their contributions have grown steadily to meet rising demand.

### Japan‑IMF Partnership: strategic focus and financing
- Overview and strategic focus:
  - The Government of Japan is the longest-standing partner in IMF CD efforts, aligning support with Japan’s international cooperation priorities and the IMF’s commitment to the SDGs.
  - Japan-funded IMF programs typically address fiscal issues, monetary and capital market reforms, macroeconomic statistics, and macroeconomic management.
  - Japan supports multi-partner thematic initiatives including AML/CFT, TADAT, the Revenue Mobilization Thematic Fund (RMTF), the Data for Decisions (D4D) Fund, and the CCCDI.
  - Japan-supported CD has expanded to include support for IMF online courses and implementation through IMF regional CD centers such as CDOT and the IMF–Singapore Regional Training Institute (STI).
  - Japan supports two scholarship programs: the Japan-IMF Scholarship Program for Asia (JISPA) and the Japan-IMF Scholarship Program for Advanced Studies (JISP), and contributes to the IMF Regional Office for Asia and the Pacific (OAP).
- Japan’s financial contributions and FY2022 activity:
  - The Government of Japan’s contributions to the IMF since FY1990 total $790 million.
    - Of the $790 million total: about $648 million supported IMF CD projects, $43 million supported OAP activities, and $98 million supported JISPA and JISP.
  - In FY2022, Japan contributed $54 million to support a portfolio of 25 bilateral programs and the CCCDI.
  - Japan established a Digital Money Window under the Japan Subaccount (JSA) in FY2022 to support IMF CD on digital money, including Central Bank Digital Currencies (CBDC), and to support IMF analytical work on digital money to improve CD modalities.
  - In the period FY2017–22, Japan accounted for almost 30 percent of external financing for IMF CD.
  - In the past three years (FY2020–FY22), Japan was the largest partner to IMF CD, responsible for about a quarter of all external financing to IMF CD.
- Participation in multi-partner thematic vehicles (FY2022 contributions, in millions of U.S. dollars):
  - Anti-Money Laundering and Combating the Financing of Terrorism Subaccount (AML/CFT) - Phase III: 0.4
  - Externally Financed Appointee Subaccount (EFA) - Cohort III: 0.5
  - Tax Administration Diagnostic Assessment Tool Subaccount (TADAT) - Phase II: 0.5
  - Other FY2022 contribution to multi-partner vehicles: 1.4
  - Japan also participates in the joint IMF–World Bank Debt Management Facility (DMF) with a $0.5 million contribution through the World Bank (IMF portion of total contribution).
- Allocation and programmatic footprint:
  - Japan financed a large portfolio of 25 bilateral programs in FY2022.
  - Japan has contributed to thematic funds and regional initiatives and supports CD delivery via RCDCs and regional offices.

### Case example: Mongolia TA project to build public debt analysis capacity
- Objectives and context:
  - Objective: strengthen Mongolia’s Ministry of Finance (MoF) analytical skills for better public debt forecasting and analysis to inform policymaking and the budget process.
  - Context: Mongolia’s public debt was close to 90 percent of GDP in early 2017; recovery from the 2017 program continued until the COVID-19 shock in 2020; fiscal, financial, and external buffers remained low.
- Intervention design and delivery:
  - The TA combined training and TA using the Debt Dynamics Tool (DDT), customized to Mongolia, and incorporated DDT outputs into the MoF budget process.
  - Delivery occurred virtually during a strong COVID-19 wave, completed in less than 6 months with one 2-week mission and additional virtual engagements.
  - Initial virtual interactive training enabled a core group from the Debt Management Unit to learn DDT using Mongolian data; the core group performed long-term debt forecasts and analysis during the training.
  - Post-training remote consultations supported customization of the DDT and preparation of a debt report used in the budget process and published as an appendix to the budget document sent to Congress.
- Success factors and outcomes:
  - Key contributors to success:
    - DDT’s ease of use and requirement of only ten macro-fiscal variables for projections, making it suitable for virtual CD.
    - Broad initial training creating a critical mass of participants inside the MoF.
    - Close coordination with the IMF Asia and Pacific Department (APD) and continuous liaison by the IMF resident representative in Mongolia.
  - Outcome: all project objectives were fulfilled; the MoF produced a debt report using the DDT that fed into the budget document.

### Strengthening Public Investment Management (PIM) in Costa Rica (PIMA and C-PIMA)
- Role of public investment:
  - Public investment in Costa Rica plays an important role in facilitating economic and social development and promoting higher, greener, and more inclusive growth.
- Assessment conducted:
  - The IMF Fiscal Affairs Department (FAD) team conducted a Public Investment Management Assessment (PIMA) including the new Climate Module (C-PIMA), in November–December 2021.
- Main findings from the PIMA and C-PIMA:
  - The most significant areas of weakness were in budgeting and project execution.
  - Multi-year budgeting has substantial shortcomings mostly due to the absence of information on:
    - i) medium-term spending envelopes,
    - ii) ongoing and new projects, and
    - iii) a reliable aggregate of total cost of projects.
  - There is no standardized methodology for assessing routine and capital maintenance needs and required funding.
  - Weakness in project appraisal combined with poor project implementation and weak portfolio oversight contributes to cost overruns, delays, and poor-quality infrastructure.
  - These issues reflect a high level of fragmentation of the public sector and the existence of different PIM practices and approaches.
  - Climate risks and natural disasters pose major threats to Costa Rica’s public infrastructure and there is considerable scope to strengthen climate-responsive public investment.
- Recommendations and actions:
  - Detailed recommendations based on the findings of the PIMA and the C-PIMA were included in a sequenced action plan provided to the government.
  - The government has already taken initial steps to address identified shortcomings, including:
    - i) developing criteria for the identification and ranking of projects to help prioritize budget funded projects, and
    - ii) further detailing the project appraisal process.
- Integration with capacity development and Fund programs:
  - Costa Rica’s PIMA represents a good example of integration of capacity development (CD) in Fund’s surveillance and lending.
  - The PIMA contributed extensively to coordination efforts to ensure CD is consistently integrated in the authorities’ reform priorities and effectively supports the ongoing Costa Rica Extended Fund Facility-supported program.

### Seminar on Budget Classification in Madagascar
- Seminar purpose and context:
  - A seminar was organized in Antananarivo from March 21–25, 2022 to support the MoF in its modernization efforts to enhance budget classification in the context of a PFM CD project for Madagascar and Comoros.
  - Public spending monitoring and fiscal reporting have been recurring issues in Madagascar; difficulties in monitoring budget execution and preparing fiscal execution reports persisted for several years.
  - The COVID-19 pandemic and accountability requirements from development partners highlighted these deficiencies, especially in the social sector.
  - Minimum social spending is a commitment under the ongoing IMF-supported program, reinforcing the need for a modernized budget classification.
- Participants and organization:
  - The seminar was organized by the IMF’s RA in collaboration with the MoF.
  - Main stakeholders included: MoF (Budget, Treasury, Reform Coordination, and Financial Control departments), the National Statistical Institute, the High Council of Accounting, and some line ministries.
  - The seminar combined a diagnosis of main weaknesses with presentations on international standards and good practices.
- Identified changes to budget classification:
  - Participants identified necessary changes to the current budget classification structure, including:
    - (i) the addition of segments such as the functional classification segment compliant with Classification of Outlays by Functions of Government (COFOG) standards or an additional segment to follow-up on cross-cutting strategic or sensitive spending (e.g. COVID-19);
    - (ii) the need to update the economic classification segment to comply with the standards deriving from the Public Finance Statistics Manual (MSFP) 2014;
    - (iii) the revision of the administrative classification segment to streamline information and avoid redundancies.
- Implementation timeline and rationale:
  - Due to heavy implications for budget preparation and execution and the need to perform pilot exercises to ensure feasibility of budget operations and comprehensiveness of budget information under the new structure, participants targeted 2026 for the full completion of those changes.
  - The phased approach reflects the need to test feasibility via pilot exercises and to safeguard budget preparation and execution processes.
- Action plan and initial implementation:
  - The seminar produced a detailed action plan to achieve the 2026 goal.
  - The action plan identifies responsibilities, collaboration, and cross-cutting activities, for instance:
    - establishment of a committee to oversee the reform;
    - necessary updates on legal and regulatory frameworks;
    - need for training and capacity development.
  - The action plan received a high-level validation, and a communication was prepared for the Council of Ministers.
  - Implementation of the first activities is currently in progress with the introduction of functional classification, expected to be used for reporting on 2022 budget outturn and for the preparation of the 2023 budget.

### High Level Partner Dialogue (April 2022): Digital money and policy approach
- Event participation and purpose:
  - Japan participated in the high-level partner CD dialogue entitled “Digital Money: Building Capacity for a Virtuous Circle”.
  - Japan highlighted the importance of the IMF’s role in identifying urgent CD needs and providing guidance that is practical and useful for member countries.
- Agreed policy approach:
  - Participants agreed that policymakers should take a balanced approach to digital money.
  - To harness benefits and address risks, digital money needs to adhere to:
    - strict regulatory standards,
    - appropriate governance and risk management practices,
    - a sound legal basis.
- Potential benefits of digital money:
  - Digital money, including central bank digital currency—CBDC, can:
    - offer lower transaction costs,
    - increase the speed of international payments,
    - ease access to finance,
    - strengthen the payment system,
    - increase financial inclusion.
- Identified risks and challenges:
  - Digital money can lead to:
    - banking disintermediation,
    - privacy protection and legal challenges,
    - data silos,
    - anti-competitive practices,
    - financial integrity and cyber risks,
    - central bank operational risks.
- Risk mitigation design features:
  - Some risks can be mitigated by appropriate design.
  - Example design choices considered by most central banks:
    - not remunerating CBDC,
    - having limits on how much CBDC a user can have.
- IMF capacity development response:
  - In response to member countries’ requests for technical assistance (LICs and emerging economies, in particular), the IMF provides:
    - bilateral engagements (providing tailored and hands-on advice),
    - regional workshops (building awareness and sharing experiences and lessons),
    - analytical work (providing foundations, empirical insights, and best practices).

### APPENDIX III — Externally Financed Appointee (EFA) Program: structure and Japanese participation
- Program purpose and approval:
  - The EFA program was established to accommodate growing interest from member countries in having their officials employed temporarily by the IMF to gain experience and build their skills.
  - The cost of placing and hosting appointees is financed by the home country.
  - IMF management approved the EFA program in July 2013 with an initial maximum of 15 appointments at a time.
  - The Board approved establishment of the EFA Subaccount in August 2013.
- Assignments, supervision, and contributions:
  - EFA appointees are assigned to IMF core surveillance and program activities and also provide CD in order to broaden their exposure to IMF operational work.
  - EFA appointees are supervised by IMF senior staff.
  - To date, ten countries, including Japan, participate in the EFA and have made corresponding financial contributions to the program.
  - A total of ten Japanese officials have been hired under the program.
- Current staffing and recent movements:
  - Three officials currently participate in the program; one economist, one financial expert and one legal expert.
  - Two officials will conclude their assignments and will return to Japan in summer 2022.
  - The experience and knowledge gained at IMF will enable the returned officials to contribute more effectively to the Japanese government’s economic policy agenda.
- Key points (program chronology and Japanese participation):
  - Program launch and approval dates: July 2013 (IMF management approval), August 2013 (Board approval of Subaccount).
  - Initial maximum appointments: 15 appointments at a time.
  - Japanese participation: ten Japanese officials hired; three currently participating; two scheduled to return in summer 2022.

### APPENDIX IV — JSA Financial Statement (Administered Accounts—Japan Financial Statement FY2022)
- Balance Sheet as of April 30, 2022, 2021 and 2020 (In thousands of U.S. dollars)
  - Years presented: 2022 2021 2020
  - Assets
    - Cash and cash equivalents1: 116 , 5 2 5    82,854  60,428
    - Total assets: 116 , 5 2 5    82,854  60,428
  - Resources
    - Total resources: 116 , 5 2 5    82,854  60,428
- Income Statements and Changes in Resources for the Years Ended April 30, 2022, 2021 and 2020 (In thousands of U.S. dollars)
  - Balance, beginning of the year: 82,854  60,428   5 5 , 211
  - Income earned on investments: 69   6   1,021
  - Contributions received: 59,4 4 6    44,349    33,707
  - Contributions transferred (net): (1,400) (2,900) (3,109)
  - Operating expenses: (24,444) (19,030) (26,403)
  - Net changes in resources: 33,671   22,426   5, 217
  - Balance, end of the year: 116 , 5 2 5    82,854  60,428
- Notes and audit:
  - Note: The IMF arranges for an annual audit of the JSA to be undertaken by its external auditors, in connection with their annual audit of the IMF’s own accounts, and for a separate certificate of completion to be provided to the Japanese authorities.
  - 1 Net of accruals. The financial statement of the Administered Accounts in the IMF annual report, which includes this Subaccount, reports year end accruals separately.

### ANNEX I — JSA Technical Assistance and Training FY2022 portfolio: selected financials, projects, and FY2023 directions
- Portfolio financials (selected entries; monetary amounts as presented):
  - FAD_IMF_2021_09 (JSA#: S_JPNCOV; Program: FY22; Region: Global; Topic: FAD; Project: Revenue Administration COVID-19) — Overall Program Budget: 2.3; Approved Budget through FY22: 0.9; Expenses through FY22: 0.6
  - FAD_IMF_2021_10 (JSA#: S_JPNCOV; Program: FY22; Region: Global; Topic: FAD; Project: Public Financial Management COVID-19) — Overall Program Budget: 3.8; Approved Budget through FY22: 1.6; Expenses through FY22: 0.8
  - MCM_IMF_2022_07 (JSA#: S_JPNCOV; Program: FY22; Region: Global; Topic: MCM; Project: Strengthen Capacity on Central Bank Digital Currency (CBDC) in selected LIDCs and EMDEs) — Overall Program Budget: 1.3; Approved Budget through FY22: 0.3; Expenses through FY22: 0 .1
  - FAD_AFR_2021_02 (JSA#: JPN131; Program: FY22; Region: AFR; Topic: FAD; Project: FAD AFR Customs Administration) — Overall Program Budget: 1.7; Approved Budget through FY22: 0.3; Expenses through FY22: 0.2
  - ICD_IMF_2021_05 (JSA#: S_JPNCOV; Program: FY22; Region: Global; Topic: Training; Project: Macroframeworks) — Overall Program Budget: 2.6; Approved Budget through FY22: 1.1; Expenses through FY22: 0.7
  - LEG_IMF_2022_04 (JSA#: JPN303; Program: FY22; Region: Global; Topic: LEG; Project: Anti-Corruption and Rule of Law Capacity Building Project) — Overall Program Budget: 1.2; Approved Budget through FY22: 0.6; Expenses through FY22: 0.2
  - MCM_KHM_2021_01 (JSA#: JPN422; Program: FY22; Region: AFR/APD; Topic: MCM; Project: Monetary Policy in Cambodia) — Overall Program Budget: 1.4; Approved Budget through FY22: 0.5; Expenses through FY22: 0.0
  - ICD_APD_2022_01 (JSA#: JPN207; Program: FY22; Region: AFR/APD; Topic: Training; Project: Singapore Regional Training Institute (STI) - Continuing Training and Technical Assistance on Economic and Financial Policy Analysis in Asia) — Overall Program Budget: 8.2; Approved Budget through FY22: 2.6; Expenses through FY22: 1.3
  - STA_APD_2021_01 (JSA#: JPN514; Program: FY21; Region: AFR/APD; Topic: STA; Project: Improving External Sector Statistics in the Asia-Pacific Region) — Overall Program Budget: 2.2; Approved Budget through FY22: 0.6; Expenses through FY22: 0.2
  - MCM_AFR_2021_02 (JSA#: JPN421; Program: FY21; Region: AFR; Topic: MCM; Project: Strengthening Debt Management Operational Frameworks in Africa) — Overall Program Budget: 3.7; Approved Budget through FY22: 1.9; Expenses through FY22: 1.2
  - FAD_APD_2021_03 (JSA#: JPN129; Program: FY21; Region: AFR/APD; Topic: FAD; Project: Supporting for Improved Treasury Management and Modernization of Financial Systems - II) — Overall Program Budget: 5.0; Approved Budget through FY22: 3.3; Expenses through FY22: 2.1
  - FAD_IMF_2021_03 (JSA#: JPN130; Program: FY21; Region: Global; Topic: FAD; Project: Strengthening and Modernizing Customs Administration in Asia and West Africa) — Overall Program Budget: 8.5; Approved Budget through FY22: 5.3; Expenses through FY22: 2.4
  - ICD_IMF_2021_02 (JSA#: JPN206; Program: FY21; Region: Global; Topic: Training; Project: The Japan-IMF Flagship Partnership on Online Learning) — Overall Program Budget: 7.4; Approved Budget through FY22: 4.3; Expenses through FY22: 3.7
  - STA_IMF_2021_01 (JSA#: JPN508; Program: FY21; Region: Global; Topic: STA; Project: Improving Data Dissemination for Globally Selected Countries) — Overall Program Budget: 1.3; Approved Budget through FY22: 0.9; Expenses through FY22: 0.4
- Major projects and substantive findings (selected):
  - FAD AFR Customs Administration (JPN131; Implementation: from May 1, 2021 to April 30, 2024)
    - Objective: enhance customs administration capacity in Comoros, Madagascar, and Zimbabwe to increase government revenue and reduce the compliance gap in taxation of international trade.
    - Findings and achievements in first year:
      - Strengthened data analytics for operational purposes, including use of mirror data for risk management and audit selection.
      - Comoros Customs designed key performance indicators for implementation in 2022–23.
      - Zimbabwe Revenue Authority outlined a comprehensive revised framework for administration of excise duties on goods.
      - Madagascar identified gaps in customs procedures for monitoring economic free zones, leading to planned legal amendments in FY2023 and developed standard operating procedures for import to be published online.
    - FY2023 focus: customs examination techniques and procedures (Comoros); missing customs clearance directives and security steps for customs processing system (Madagascar); exemption monitoring and control (Zimbabwe); attention to supply chain and urgent revenue mobilization needs.
  - Strengthening Revenue Administration to Address COVID-19 Challenges (JSA#: JPNCOV; IMF ID: FAD_IMF_2021_09; Implementation: from May 1, 2021 to April 30, 2023)
    - Objective: assist revenue administrations in selected Asia and SSA countries to manage fiscal challenges of COVID-19 and implement post-COVID-19 revenue recovery action plans, strengthen digitalized processes, and revise compliance improvement plans.
    - Delivery and FY2022 activities:
      - All activities delivered remotely due to IMF suspension of non-essential travel.
      - Regional webinar for Cambodia, Lao PDR, Mongolia, and Vietnam promoted tax-customs data sharing and collaborative revenue recovery.
      - Africa-focused support included IT architecture and data management strategy design (Cameroon), recruitment and placement of a resident advisor (Nigeria: started January 2022, installation due June 2022), detection and data-use initiatives (Togo), business process reengineering and ITAS specification development (South Sudan), donor coordination engagement and planned staff visit (Uganda).
    - FY2023 plans: enhance customs-tax collaboration including data exchange, joint risk management and joint audits; focus on ITAS implementation, customs control procedures, and reforms management in African beneficiaries.
  - Enhancing Fiscal Sustainability Through Basic Fiscal Functions in the Post-COVID-19 (JSA#: JPNCOV; IMF ID: FAD_IMF_2021_10; Implementation: from May 1, 2021 to April 30, 2023)
    - Objective: assist countries in Asia, SSA, and Middle East and Central Asia to address immediate PFM system needs, prioritize PFM reforms to bolster spending efficiency and increase fiscal transparency.
    - Delivery and FY2022 activities and results:
      - Two long-term experts (LTXs) started December 2021: RA for Madagascar and the Comoros (Mr. Bruno Imbert), and RA for Anglophone SSA countries (Mr. Dzingai Francis Chapfuwa).
      - Comoros: onsite mission (April 11–22, 2022) delivered an action plan covering (i) establishment and timely preparation of quarterly Government Financial Operations Table (TOFE); (ii) enhancement of TOFE quality and coverage; (iii) strengthening supervision capacities and legal framework on public enterprises; drafted decree to organize timeframes, collaborations, and responsibilities.
      - Madagascar: seminar (March 2022) to modernize budget classification and introduce functional classification in compliance with COFOG standards; implementation started with FY2022 budget execution monitoring.
      - Mali: HQ mission (Dec 2021–Jan 2022) presented Fiscal Risk Analysis Tool and SOE Health Check Tool; increased capacity to identify and manage fiscal risks.
      - Kenya, Rwanda, Gambia: hands-on support to Government Investment and Public Enterprises Department and SOE fiscal stress testing; regional peer-learning online workshop with 46 officials from 9 SSA countries.
    - Analytical support: tailoring of FAD fiscal risks analytical tools for practical use in SSA countries; desk review of SOE reform documents (Eswatini, Zambia).
  - The Japan-IMF Flagship Partnership on Online Learning (JPN206; Implementation: from May 1, 2020 to April 30, 2023)
    - Scope and scale:
      - Since launch in 2013: over 140,000 active learners and more than 39,000 government officials have completed an IMF online course.
      - FY2022: over 26,000 actively engaged learners and close to 8,500 government officials successfully completed an IMF online course.
    - Curriculum expansion and modalities:
      - Launched 17 new MOOCs and modular courses (e.g., Inclusive Growth (IGx), Revenue Forecasting and Administration (RFAx), National Accounts Statistics (NASx), Consumer Price Index (CPIx), Bank Resolution Online Course (BROC), Debt Dynamic Tool modular courses (DDTx, DDUx), VITARA modules, and Macroeconomics of Climate Change (MCCx)).
      - Nine new translations of existing courses into Spanish and French.
      - 82 course re-runs offered to increase anytime availability.
      - Development of blended learning approaches and a blended learning toolkit for delivery teams.
    - Outcomes and performance metrics:
      - Completion rate: 50 percent overall; 68 percent for government officials.
      - Learning gains: about 19 percentage points on average for all courses.
      - Satisfaction: 95 percent of survey respondents agree the course enhanced their understanding of the topic.
      - IMF Institute Learning Channel: over 10,000 subscribers and over a million individual views.
  - Anti-Corruption and Rule of Law Capacity Building Project (JPN303; IMF ID: LEG_IMF_2022_04; Implementation: from July 6, 2021 to July 5, 2023)
    - Target countries: Zambia, Sudan, PNG, Republic of Congo.
    - FY2022 progress:
      - Zambia: comprehensive Governance Diagnostic Assessment main mission in April 2022; Assessment to be completed in July 2022 to identify corruption vulnerabilities and define an action plan for governance improvements.
      - Sudan and PNG: political issues paused progress (governance crisis in Sudan; PNG elections caused dialogue pause).
      - IMF expects substantial increase in activities after completion of Zambia Assessment and initiation in Republic of Congo.
  - Improving External Sector Statistics in the Asia-Pacific Region (JPN514; IMF ID: STA_APD_2021_01; Implementation: from November 1, 2021 to October 31, 2023)
    - Target countries: Cambodia, Lao P.D.R., Vietnam, Nauru, PNG, Samoa, Timor-Leste, Tonga.
    - Achievements:
      - Remote TA supported continuity during the pandemic and helped countries with direct investment data, external debt restructuring and emergency financing transactions, reserve transactions, and SDR allocation recording.
      - Validation procedures improved in Lao P.D.R., Nauru, PNG, and Tonga.
      - New data sources introduced in several countries (enterprise surveys, administrative data).
      - Tonga resumed compilation and dissemination of international investment position; all countries advanced compilation of external debt statistics with proper recording of debt reorganization initiatives and SDR allocation.
      - Institutional settings strengthened via top management engagement and inter-agency collaboration.
- Policy focus, capacity building modalities, and FY2023 directions:
  - Cross-cutting CD themes emphasized:
    - Revenue mobilization and customs-tax data sharing for evidence-based recovery programs.
    - Digitalization strategies and ITAS implementation for tax administrations.
    - Strengthening PFM core functions: TOFE preparation, budget classification modernization (functional classification / COFOG), fiscal risk analysis, and SOE monitoring and stress testing.
    - Debt management operational frameworks, MTDS support, and development of domestic securities markets.
    - Central bank operations support: monetary operations, interest rate corridor instruments, liquidity monitoring, FX data collection and disclosure.
    - CBDC capacity building: feasibility assessments, institutional preparedness, legal/regulatory frameworks, cyber and operational risk assessment, macro-financial implications; development of CBDC Handbook chapters (assessing feasibility/readiness via decision trees/toolkits; capital flow management; monetary policy implications; managing CBDC projects).
  - Delivery modalities:
    - Remote bilateral engagements, virtual regional workshops, webinars, blended learning, long-term and short-term resident advisors (LTXs/STXs), peripatetic assistance, in-country missions where feasible.
  - Planned FY2023 priorities (selected):
    - Continue customs and tax collaboration enhancements including data exchange, joint risk management, and joint audits in Asia beneficiaries.
    - Continue targeted customs reforms and revenue mobilization support in Comoros, Madagascar, and Zimbabwe.
    - Support ITAS implementation, customs control procedures, and reform management in African beneficiaries.
    - Complete Governance Diagnostic Assessment deliverables in Zambia and scale up implementation support in Republic of Congo.
    - Finalize and apply CBDC analytical handbook chapters; continue bilateral and regional CBDC capacity building.
    - Expand blended learning offerings and institutionalize blended CD design and delivery practices across IMF CD engagements.

*International Monetary Fund — Japan‑IMF Partnership on Capacity Development Annual Report (jsa2022).*

### Introduction and Background

### Introduction and Background

### Role and scope of IMF Capacity Development (CD)
- IMF CD comprises hands-on technical assistance (TA) and training to help countries build effective economic institutions (central banks, finance ministries, tax authorities, and other economic institutions).
- CD helps countries achieve growth and development objectives and contributes to progress toward the Sustainable Development Goals (SDGs).
- CD is a core IMF mandate and represented about a quarter of Fund outputs in FY2022.
- CD accounts for about one-third of the IMF’s spending.

### Delivery modalities and recent adjustments
- CD is delivered through remote and in-person visits; in-country placements of long-term Resident Advisors (RA); a network of regional CD centers; virtual and face-to-face training; and free online learning courses.
- In response to the COVID-19 pandemic, IMF CD rapidly transitioned to a virtual format and provided immediate policy advice and CD virtually to around 180 countries.
- IMF online learning reached more than 130,000 active learners during the pandemic.
- Two Regional Capacity Development Centers (RCDCs)—CARTAC and AFRITAC East—celebrated their twentieth anniversaries in FY2022.
- The IMF launched the COVID-19 Crisis Capacity Development Initiative (CCCDI) in 2019 and raised about $40 million so far; as of end-FY2022 CCCDI supported over 40 projects on issues such as debt management in Africa, fiscal risks in southeast Asia, gender-based budgeting in Central America and Africa, and tax and customs administration in the Middle-East and Africa.
- In-person TA and training activities partly resumed in FY2022; the IMF will continue to use virtual, hybrid, and in-person CD and step up field presence in Fragile and Conflict-Affected States (FCS) following the new IMF strategy on FCS adopted during FY2022.

### FY2022 CD financing and external support
- Externally funded component of CD amounted to $141 million in FY2022, constituting 58 percent of total CD spending.
- External partners support RCDCs, thematic funds, and bilateral projects; their contributions have grown steadily to meet rising demand.

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### Japan-IMF Partnership on Capacity Development

### Overview and strategic focus
- The Government of Japan is the longest-standing partner in IMF CD efforts, aligning support with Japan’s international cooperation priorities and the IMF’s commitment to the SDGs.
- Japan-funded IMF programs typically address fiscal issues, monetary and capital market reforms, macroeconomic statistics, and macroeconomic management.
- Japan supports multi-partner thematic initiatives including AML/CFT, TADAT, the Revenue Mobilization Thematic Fund (RMTF), the Data for Decisions (D4D) Fund, and the CCCDI.
- Japan-supported CD has expanded to include support for IMF online courses and implementation through IMF regional CD centers such as CDOT and the IMF–Singapore Regional Training Institute (STI).
- Japan supports two scholarship programs: the Japan-IMF Scholarship Program for Asia (JISPA) and the Japan-IMF Scholarship Program for Advanced Studies (JISP), and contributes to the IMF Regional Office for Asia and the Pacific (OAP).

### Japan’s financial contributions and FY2022 activity
- The Government of Japan’s contributions to the IMF since FY1990 total $790 million.
  - Of the $790 million total: about $648 million supported IMF CD projects, $43 million supported OAP activities, and $98 million supported JISPA and JISP.
- In FY2022, Japan contributed $54 million to support a portfolio of 25 bilateral programs and the CCCDI.
- Japan established a Digital Money Window under the Japan Subaccount (JSA) in FY2022 to support IMF CD on digital money, including Central Bank Digital Currencies (CBDC), and to support IMF analytical work on digital money to improve CD modalities.
- In the period FY2017–22, Japan accounted for almost 30 percent of external financing for IMF CD.
- In the past three years (FY2020–FY22), Japan was the largest partner to IMF CD, responsible for about a quarter of all external financing to IMF CD.

### Participation in multi-partner thematic vehicles (FY2022 contributions)
- FY2022 contributions (in millions of U.S. dollars):
  - Anti-Money Laundering and Combating the Financing of Terrorism Subaccount (AML/CFT) - Phase III: 0.4
  - Externally Financed Appointee Subaccount (EFA) - Cohort III: 0.5
  - Tax Administration Diagnostic Assessment Tool Subaccount (TADAT) - Phase II: 0.5
  - Other FY2022 contribution to multi-partner vehicles: 1.4
- Japan also participates in the joint IMF–World Bank Debt Management Facility (DMF) with a $0.5 million contribution through the World Bank (IMF portion of total contribution).

### Allocation and programmatic footprint
- Japan financed a large portfolio of 25 bilateral programs in FY2022.
- Japan has contributed to thematic funds and regional initiatives and supports CD delivery via RCDCs and regional offices.

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### Case Example: Mongolia TA Project to Build Public Debt Analysis Capacity (Box 1)

### Objectives and context
- Objective: strengthen Mongolia’s Ministry of Finance (MoF) analytical skills for better public debt forecasting and analysis to inform policymaking and the budget process.
- Context: Mongolia’s public debt was close to 90 percent of GDP in early 2017; recovery from the 2017 program continued until the COVID-19 shock in 2020; fiscal, financial, and external buffers remained low.

### Intervention design and delivery
- The TA combined training and TA using the Debt Dynamics Tool (DDT), customized to Mongolia, and incorporated DDT outputs into the MoF budget process.
- Delivery occurred virtually during a strong COVID-19 wave, completed in less than 6 months with one 2-week mission and additional virtual engagements.
- Initial virtual interactive training enabled a core group from the Debt Management Unit to learn DDT using Mongolian data; the core group performed long-term debt forecasts and analysis during the training.
- Post-training remote consultations supported customization of the DDT and preparation of a debt report used in the budget process and published as an appendix to the budget document sent to Congress.

### Success factors and outcomes
- Key contributors to success:
  - DDT’s ease of use and requirement of only ten macro-fiscal variables for projections, making it suitable for virtual CD.
  - Broad initial training creating a critical mass of participants inside the MoF.
  - Close coordination with the IMF Asia and Pacific Department (APD) and continuous liaison by the IMF resident representative in Mongolia.
- Outcome: all project objectives were fulfilled; the MoF produced a debt report using the DDT that fed into the budget document.

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*Japan-IMF Partnership on Capacity Development Annual Report*

### Box 2. Strengthening Public Investment Management (PIM) in Costa Rica for a Resilient and Sustainable Future

### Strengthening Public Investment Management (PIM) in Costa Rica for a Resilient and Sustainable Future

### Role of public investment
- Public investment in Costa Rica plays an important role in facilitating economic and social development and promoting higher, greener, and more inclusive growth.

### Assessment conducted
- The IMF Fiscal Affairs Department (FAD) team conducted a Public Investment Management Assessment (PIMA) including the new Climate Module (C-PIMA), in November–December 2021.

### Main findings from the PIMA and C-PIMA
- The most significant areas of weakness were in budgeting and project execution.
- Multi-year budgeting has substantial shortcomings mostly due to the absence of information on:
  - i) medium-term spending envelopes,
  - ii) ongoing and new projects, and
  - iii) a reliable aggregate of total cost of projects.
- There is no standardized methodology for assessing routine and capital maintenance needs and required funding.
- Weakness in project appraisal combined with poor project implementation and weak portfolio oversight contributes to cost overruns, delays, and poor-quality infrastructure.
- These issues reflect a high level of fragmentation of the public sector and the existence of different PIM practices and approaches.
- Climate risks and natural disasters pose major threats to Costa Rica’s public infrastructure and there is considerable scope to strengthen climate-responsive public investment.

### Recommendations and actions
- Detailed recommendations based on the findings of the PIMA and the C-PIMA were included in a sequenced action plan provided to the government.
- The government has already taken initial steps to address identified shortcomings, including:
  - i) developing criteria for the identification and ranking of projects to help prioritize budget funded projects, and
  - ii) further detailing the project appraisal process.

### Integration with capacity development and Fund programs
- Costa Rica’s PIMA represents a good example of integration of capacity development (CD) in Fund’s surveillance and lending.
- The PIMA contributed extensively to coordination efforts to ensure CD is consistently integrated in the authorities’ reform priorities and effectively supports the ongoing Costa Rica Extended Fund Facility-supported program.

*Assessment conducted by the IMF Fiscal Affairs Department (FAD) in November–December 2021.*

### Box 11. Seminar on Budget Classification in Madagascar

### Box 11. Seminar on Budget Classification in Madagascar

### Seminar purpose and context
- A seminar was organized in Antananarivo from March 21–25, 2022 to support the MoF in its modernization efforts to enhance budget classification in the context of a PFM CD project for Madagascar and Comoros.
- Public spending monitoring and fiscal reporting have been recurring issues in Madagascar; difficulties in monitoring budget execution and preparing fiscal execution reports persisted for several years.
- The COVID-19 pandemic and accountability requirements from development partners highlighted these deficiencies, especially in the social sector.
- Minimum social spending is a commitment under the ongoing IMF-supported program, reinforcing the need for a modernized budget classification.

### Participants and organization
- The seminar was organized by the IMF’s RA in collaboration with the MoF.
- Main stakeholders included: MoF (Budget, Treasury, Reform Coordination, and Financial Control departments), the National Statistical Institute, the High Council of Accounting, and some line ministries.
- The seminar combined a diagnosis of main weaknesses with presentations on international standards and good practices.

### Identified changes to budget classification
- Participants identified necessary changes to the current budget classification structure, including:
  - (i) the addition of segments such as the functional classification segment compliant with Classification of Outlays by Functions of Government (COFOG) standards or an additional segment to follow-up on cross-cutting strategic or sensitive spending (e.g. COVID-19);
  - (ii) the need to update the economic classification segment to comply with the standards deriving from the Public Finance Statistics Manual (MSFP) 2014;
  - (iii) the revision of the administrative classification segment to streamline information and avoid redundancies.

### Implementation timeline and rationale
- Due to heavy implications for budget preparation and execution and the need to perform pilot exercises to ensure feasibility of budget operations and comprehensiveness of budget information under the new structure, participants targeted 2026 for the full completion of those changes.
- The phased approach reflects the need to test feasibility via pilot exercises and to safeguard budget preparation and execution processes.

### Action plan and initial implementation
- The seminar produced a detailed action plan to achieve the 2026 goal.
- The action plan identifies responsibilities, collaboration, and cross-cutting activities, for instance:
  - establishment of a committee to oversee the reform;
  - necessary updates on legal and regulatory frameworks;
  - need for training and capacity development.
- The action plan received a high-level validation, and a communication was prepared for the Council of Ministers.
- Implementation of the first activities is currently in progress with the introduction of functional classification, expected to be used for reporting on 2022 budget outturn and for the preparation of the 2023 budget.

*Annual Report | Japan-IMF Partnership on Capacity Development*

### Box 17: High Level Partner Dialogue, April 2022

### Box 17: High Level Partner Dialogue, April 2022

### Event participation and purpose
- Japan participated in the high-level partner CD dialogue entitled “Digital Money: Building Capacity for a Virtuous Circle”.
- Japan highlighted the importance of the IMF’s role in identifying urgent CD needs and providing guidance that is practical and useful for member countries.

### Agreed policy approach
- Participants agreed that policymakers should take a balanced approach to digital money.
- To harness benefits and address risks, digital money needs to adhere to:
  - strict regulatory standards,
  - appropriate governance and risk management practices,
  - a sound legal basis.

### Potential benefits of digital money
- Digital money, including central bank digital currency—CBDC, can:
  - offer lower transaction costs,
  - increase the speed of international payments,
  - ease access to finance,
  - strengthen the payment system,
  - increase financial inclusion.

### Identified risks and challenges
- Digital money can lead to:
  - banking disintermediation,
  - privacy protection and legal challenges,
  - data silos,
  - anti-competitive practices,
  - financial integrity and cyber risks,
  - central bank operational risks.

### Risk mitigation design features
- Some risks can be mitigated by appropriate design.
- Example design choices considered by most central banks:
  - not remunerating CBDC,
  - having limits on how much CBDC a user can have.

### IMF capacity development response
- In response to member countries’ requests for technical assistance (LICs and emerging economies, in particular), the IMF provides:
  - bilateral engagements (providing tailored and hands-on advice),
  - regional workshops (building awareness and sharing experiences and lessons),
  - analytical work (providing foundations, empirical insights, and best practices).

*High Level Partner Dialogue, April 2022*

### APPENDIX III.

### APPENDIX III. Externally Financed Appointee Program

### Program purpose and approval
- The EFA program was established to accommodate growing interest from member countries in having their officials employed temporarily by the IMF to gain experience and build their skills.
- The cost of placing and hosting appointees is financed by the home country.
- IMF management approved the EFA program in July 2013 with an initial maximum of 15 appointments at a time.
- The Board approved establishment of the EFA Subaccount in August 2013.

### Assignments, supervision, and contributions
- EFA appointees are assigned to IMF core surveillance and program activities and also provide CD in order to broaden their exposure to IMF operational work.
- EFA appointees are supervised by IMF senior staff.
- To date, ten countries, including Japan, participate in the EFA and have made corresponding financial contributions to the program.
- A total of ten Japanese officials have been hired under the program.

### Current staffing and recent movements
- Three officials currently participate in the program; one economist, one financial expert and one legal expert.
- Two officials will conclude their assignments and will return to Japan in summer 2022.
- The experience and knowledge gained at IMF will enable the returned officials to contribute more effectively to the Japanese government’s economic policy agenda.

### Key points
- Program launch and approval dates: July 2013 (IMF management approval), August 2013 (Board approval of Subaccount).
- Initial maximum appointments: 15 appointments at a time.
- Japanese participation: ten Japanese officials hired; three currently participating; two scheduled to return in summer 2022.

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### APPENDIX IV. JSA Financial Statement (Administered Accounts—Japan Financial Statement FY2022)

### Balance Sheet as of April 30, 2022, 2021 and 2020 (In thousands of U.S. dollars)
- Years presented: 2022 2021 2020
- Assets
  - Cash and cash equivalents1: 116 , 5 2 5    82,854  60,428
  - Total assets: 116 , 5 2 5    82,854  60,428
- Resources
  - Total resources: 116 , 5 2 5    82,854  60,428

### Income Statements and Changes in Resources for the Years Ended April 30, 2022, 2021 and 2020 (In thousands of U.S. dollars)
- Balance, beginning of the year: 82,854  60,428   5 5 , 211
- Income earned on investments: 69   6   1,021
- Contributions received: 59,4 4 6    44,349    33,707
- Contributions transferred (net): (1,400) (2,900) (3,109)
- Operating expenses: (24,444) (19,030) (26,403)
- Net changes in resources: 33,671   22,426   5, 217
- Balance, end of the year: 116 , 5 2 5    82,854  60,428

### Notes and audit
- Note: The IMF arranges for an annual audit of the JSA to be undertaken by its external auditors, in connection with their annual audit of the IMF’s own accounts, and for a separate certificate of completion to be provided to the Japanese authorities.
- 1 Net of accruals. The financial statement of the Administered Accounts in the IMF annual report, which includes this Subaccount, reports year end accruals separately.

*Annual Report | Japan-IMF Partnership on Capacity Development*

### ANNEX I.

### JSA Technical Assistance and Training—FY2022 Portfolio Detailed (ANNEX I)

### Portfolio financials (selected entries)
- FAD_IMF_2021_09 (JSA#: S_JPNCOV; Program: FY22; Region: Global; Topic: FAD; Project: Revenue Administration COVID-19) — Overall Program Budget: 2.3; Approved Budget through FY22: 0.9; Expenses through FY22: 0.6
- FAD_IMF_2021_10 (JSA#: S_JPNCOV; Program: FY22; Region: Global; Topic: FAD; Project: Public Financial Management COVID-19) — Overall Program Budget: 3.8; Approved Budget through FY22: 1.6; Expenses through FY22: 0.8
- MCM_IMF_2022_07 (JSA#: S_JPNCOV; Program: FY22; Region: Global; Topic: MCM; Project: Strengthen Capacity on Central Bank Digital Currency (CBDC) in selected LIDCs and EMDEs) — Overall Program Budget: 1.3; Approved Budget through FY22: 0.3; Expenses through FY22: 0 .1
- FAD_AFR_2021_02 (JSA#: JPN131; Program: FY22; Region: AFR; Topic: FAD; Project: FAD AFR Customs Administration) — Overall Program Budget: 1.7; Approved Budget through FY22: 0.3; Expenses through FY22: 0.2
- ICD_IMF_2021_05 (JSA#: S_JPNCOV; Program: FY22; Region: Global; Topic: Training; Project: Macroframeworks) — Overall Program Budget: 2.6; Approved Budget through FY22: 1.1; Expenses through FY22: 0.7
- LEG_IMF_2022_04 (JSA#: JPN303; Program: FY22; Region: Global; Topic: LEG; Project: Anti-Corruption and Rule of Law Capacity Building Project) — Overall Program Budget: 1.2; Approved Budget through FY22: 0.6; Expenses through FY22: 0.2
- MCM_KHM_2021_01 (JSA#: JPN422; Program: FY22; Region: AFR/APD; Topic: MCM; Project: Monetary Policy in Cambodia) — Overall Program Budget: 1.4; Approved Budget through FY22: 0.5; Expenses through FY22: 0.0
- ICD_APD_2022_01 (JSA#: JPN207; Program: FY22; Region: AFR/APD; Topic: Training; Project: Singapore Regional Training Institute (STI) - Continuing Training and Technical Assistance on Economic and Financial Policy Analysis in Asia) — Overall Program Budget: 8.2; Approved Budget through FY22: 2.6; Expenses through FY22: 1.3
- STA_APD_2021_01 (JSA#: JPN514; Program: FY21; Region: AFR/APD; Topic: STA; Project: Improving External Sector Statistics in the Asia-Pacific Region) — Overall Program Budget: 2.2; Approved Budget through FY22: 0.6; Expenses through FY22: 0.2
- MCM_AFR_2021_02 (JSA#: JPN421; Program: FY21; Region: AFR; Topic: MCM; Project: Strengthening Debt Management Operational Frameworks in Africa) — Overall Program Budget: 3.7; Approved Budget through FY22: 1.9; Expenses through FY22: 1.2
- FAD_APD_2021_03 (JSA#: JPN129; Program: FY21; Region: AFR/APD; Topic: FAD; Project: Supporting for Improved Treasury Management and Modernization of Financial Systems - II) — Overall Program Budget: 5.0; Approved Budget through FY22: 3.3; Expenses through FY22: 2.1
- FAD_IMF_2021_03 (JSA#: JPN130; Program: FY21; Region: Global; Topic: FAD; Project: Strengthening and Modernizing Customs Administration in Asia and West Africa) — Overall Program Budget: 8.5; Approved Budget through FY22: 5.3; Expenses through FY22: 2.4
- ICD_IMF_2021_02 (JSA#: JPN206; Program: FY21; Region: Global; Topic: Training; Project: The Japan-IMF Flagship Partnership on Online Learning) — Overall Program Budget: 7.4; Approved Budget through FY22: 4.3; Expenses through FY22: 3.7
- STA_IMF_2021_01 (JSA#: JPN508; Program: FY21; Region: Global; Topic: STA; Project: Improving Data Dissemination for Globally Selected Countries) — Overall Program Budget: 1.3; Approved Budget through FY22: 0.9; Expenses through FY22: 0.4

### Major projects and substantive findings (selected)
- FAD AFR Customs Administration (JPN131; Implementation: from May 1, 2021 to April 30, 2024)
  - Objective: enhance customs administration capacity in Comoros, Madagascar, and Zimbabwe to increase government revenue and reduce the compliance gap in taxation of international trade.
  - Findings and achievements in first year:
    - Strengthened data analytics for operational purposes, including use of mirror data for risk management and audit selection.
    - Comoros Customs designed key performance indicators for implementation in 2022–23.
    - Zimbabwe Revenue Authority outlined a comprehensive revised framework for administration of excise duties on goods.
    - Madagascar identified gaps in customs procedures for monitoring economic free zones, leading to planned legal amendments in FY2023 and developed standard operating procedures for import to be published online.
  - FY2023 focus: customs examination techniques and procedures (Comoros); missing customs clearance directives and security steps for customs processing system (Madagascar); exemption monitoring and control (Zimbabwe); attention to supply chain and urgent revenue mobilization needs.

- Strengthening Revenue Administration to Address COVID-19 Challenges (JSA#: JPNCOV; IMF ID: FAD_IMF_2021_09; Implementation: from May 1, 2021 to April 30, 2023)
  - Objective: assist revenue administrations in selected Asia and SSA countries to manage fiscal challenges of COVID-19 and implement post-COVID-19 revenue recovery action plans, strengthen digitalized processes, and revise compliance improvement plans.
  - Delivery and FY2022 activities:
    - All activities delivered remotely due to IMF suspension of non-essential travel.
    - Regional webinar for Cambodia, Lao PDR, Mongolia, and Vietnam promoted tax-customs data sharing and collaborative revenue recovery.
    - Africa-focused support included IT architecture and data management strategy design (Cameroon), recruitment and placement of a resident advisor (Nigeria: started January 2022, installation due June 2022), detection and data-use initiatives (Togo), business process reengineering and ITAS specification development (South Sudan), donor coordination engagement and planned staff visit (Uganda).
  - FY2023 plans: enhance customs-tax collaboration including data exchange, joint risk management and joint audits; focus on ITAS implementation, customs control procedures, and reforms management in African beneficiaries.

- Enhancing Fiscal Sustainability Through Basic Fiscal Functions in the Post-COVID-19 (JSA#: JPNCOV; IMF ID: FAD_IMF_2021_10; Implementation: from May 1, 2021 to April 30, 2023)
  - Objective: assist countries in Asia, SSA, and Middle East and Central Asia to address immediate PFM system needs, prioritize PFM reforms to bolster spending efficiency and increase fiscal transparency.
  - Delivery and FY2022 activities and results:
    - Two long-term experts (LTXs) started December 2021: RA for Madagascar and the Comoros (Mr. Bruno Imbert), and RA for Anglophone SSA countries (Mr. Dzingai Francis Chapfuwa).
    - Comoros: onsite mission (April 11–22, 2022) delivered an action plan covering (i) establishment and timely preparation of quarterly Government Financial Operations Table (TOFE); (ii) enhancement of TOFE quality and coverage; (iii) strengthening supervision capacities and legal framework on public enterprises; drafted decree to organize timeframes, collaborations, and responsibilities.
    - Madagascar: seminar (March 2022) to modernize budget classification and introduce functional classification in compliance with COFOG standards; implementation started with FY2022 budget execution monitoring.
    - Mali: HQ mission (Dec 2021–Jan 2022) presented Fiscal Risk Analysis Tool and SOE Health Check Tool; increased capacity to identify and manage fiscal risks.
    - Kenya, Rwanda, Gambia: hands-on support to Government Investment and Public Enterprises Department and SOE fiscal stress testing; regional peer-learning online workshop with 46 officials from 9 SSA countries.
  - Analytical support: tailoring of FAD fiscal risks analytical tools for practical use in SSA countries; desk review of SOE reform documents (Eswatini, Zambia).

- The Japan-IMF Flagship Partnership on Online Learning (JPN206; Implementation: from May 1, 2020 to April 30, 2023)
  - Scope and scale:
    - Since launch in 2013: over 140,000 active learners and more than 39,000 government officials have completed an IMF online course.
    - FY2022: over 26,000 actively engaged learners and close to 8,500 government officials successfully completed an IMF online course.
  - Curriculum expansion and modalities:
    - Launched 17 new MOOCs and modular courses (e.g., Inclusive Growth (IGx), Revenue Forecasting and Administration (RFAx), National Accounts Statistics (NASx), Consumer Price Index (CPIx), Bank Resolution Online Course (BROC), Debt Dynamic Tool modular courses (DDTx, DDUx), VITARA modules, and Macroeconomics of Climate Change (MCCx)).
    - Nine new translations of existing courses into Spanish and French.
    - 82 course re-runs offered to increase anytime availability.
    - Development of blended learning approaches and a blended learning toolkit for delivery teams.
  - Outcomes and performance metrics:
    - Completion rate: 50 percent overall; 68 percent for government officials.
    - Learning gains: about 19 percentage points on average for all courses.
    - Satisfaction: 95 percent of survey respondents agree the course enhanced their understanding of the topic.
    - IMF Institute Learning Channel: over 10,000 subscribers and over a million individual views.

- Anti-Corruption and Rule of Law Capacity Building Project (JPN303; IMF ID: LEG_IMF_2022_04; Implementation: from July 6, 2021 to July 5, 2023)
  - Target countries: Zambia, Sudan, PNG, Republic of Congo.
  - FY2022 progress:
    - Zambia: comprehensive Governance Diagnostic Assessment main mission in April 2022; Assessment to be completed in July 2022 to identify corruption vulnerabilities and define an action plan for governance improvements.
    - Sudan and PNG: political issues paused progress (governance crisis in Sudan; PNG elections caused dialogue pause).
    - IMF expects substantial increase in activities after completion of Zambia Assessment and initiation in Republic of Congo.

- Improving External Sector Statistics in the Asia-Pacific Region (JPN514; IMF ID: STA_APD_2021_01; Implementation: from November 1, 2021 to October 31, 2023)
  - Target countries: Cambodia, Lao P.D.R., Vietnam, Nauru, PNG, Samoa, Timor-Leste, Tonga.
  - Achievements:
    - Remote TA supported continuity during the pandemic and helped countries with direct investment data, external debt restructuring and emergency financing transactions, reserve transactions, and SDR allocation recording.
    - Validation procedures improved in Lao P.D.R., Nauru, PNG, and Tonga.
    - New data sources introduced in several countries (enterprise surveys, administrative data).
    - Tonga resumed compilation and dissemination of international investment position; all countries advanced compilation of external debt statistics with proper recording of debt reorganization initiatives and SDR allocation.
    - Institutional settings strengthened via top management engagement and inter-agency collaboration.

### Policy focus, capacity building modalities, and FY2023 directions
- Cross-cutting CD themes emphasized:
  - Revenue mobilization and customs-tax data sharing for evidence-based recovery programs.
  - Digitalization strategies and ITAS implementation for tax administrations.
  - Strengthening PFM core functions: TOFE preparation, budget classification modernization (functional classification / COFOG), fiscal risk analysis, and SOE monitoring and stress testing.
  - Debt management operational frameworks, MTDS support, and development of domestic securities markets.
  - Central bank operations support: monetary operations, interest rate corridor instruments, liquidity monitoring, FX data collection and disclosure.
  - CBDC capacity building: feasibility assessments, institutional preparedness, legal/regulatory frameworks, cyber and operational risk assessment, macro-financial implications; development of CBDC Handbook chapters (assessing feasibility/readiness via decision trees/toolkits; capital flow management; monetary policy implications; managing CBDC projects).
- Delivery modalities:
  - Remote bilateral engagements, virtual regional workshops, webinars, blended learning, long-term and short-term resident advisors (LTXs/STXs), peripatetic assistance, in-country missions where feasible.
- Planned FY2023 priorities (selected):
  - Continue customs and tax collaboration enhancements including data exchange, joint risk management, and joint audits in Asia beneficiaries.
  - Continue targeted customs reforms and revenue mobilization support in Comoros, Madagascar, and Zimbabwe.
  - Support ITAS implementation, customs control procedures, and reform management in African beneficiaries.
  - Complete Governance Diagnostic Assessment deliverables in Zambia and scale up implementation support in Republic of Congo.
  - Finalize and apply CBDC analytical handbook chapters; continue bilateral and regional CBDC capacity building.
  - Expand blended learning offerings and institutionalize blended CD design and delivery practices across IMF CD engagements.

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_Source: https://www.imf.org/-/media/files/capacity-developement/jsa-annual-reports/jsa2022.pdf_