## 1. CD and Surveillance Interactions in the Policy-Making Cycle

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### Introduction and rationale for integration
- Integration across the Fund’s three core pillars—surveillance, lending, and capacity development (CD)—strengthens the Fund’s ability to serve its members and realize synergies from its global reach and mandate.
- Paper focus:
  - Integration of CD and surveillance (noting integration of CD and lending is more advanced in program cases).
  - Stocktake of efforts to integrate CD and surveillance and proposals to strengthen synergies.

### Why better integration is necessary
- Complementary roles:
  - Surveillance: assesses whether members’ policies promote national and system-wide economic and financial stability.
  - CD: strengthens institutions, policy frameworks, and technical skills; supports implementation of sound policies.
- Interaction:
  - Surveillance identifies risks/opportunities that help build the CD agenda; CD improves specificity and implementation of policy advice.
- Key differences to manage:
  - Surveillance is mandatory; CD is voluntary and request-driven.
  - Different internal policies, processes, and organizational structures.
- Benefit statement:
  - Closer integration produces nimbleness and efficient leveraging of expertise in a resource-constrained environment.

### Efforts to strengthen integration (history and 2017 reforms)
- Historical measures:
  - 2005 IEO finding: weak link between TA priorities and Article IV consultations; call for medium-term collaborative frameworks.
  - 2006 creation of Committee on Capacity Building (CCB).
  - 2008 introduction of Regional Strategy Notes (RSNs).
  - 2013 CD Strategy Review: FINE (Focused, Integrated, Nimble, Effective) model; call for CD integration with surveillance and programs; two-level prioritization system.
- 2017 integration reforms:
  - Strengthened cross-departmental coordination:
    - semi-annual management meetings with department heads;
    - shift from annual to three-year Resource Allocation Plan (RAP) cycle.
  - Formalized area department review of TA briefs:
    - explicit area department agreement required on timing and scope of CD missions.
  - Standardized Country Strategy Notes (CSNs) for heavy CD users:
    - CSNs authored by area departments in consultation with CD departments;
    - CSNs present CD priorities for three years with explicit links to surveillance or program needs and reflect consultations with authorities.
- RBM role:
  - “Results chains” aim to ensure common understanding of expectations and risks for CD at project and strategic levels.
  - Tracking CD milestones and broader access to CD information to inform area departments on implementation progress and policy implications.

### Methods used to draw lessons
- In-depth review of ten country cases with country-team interviews.
- Three brainstorming sessions across surveillance and CD departments.
- Targeted RTAC survey (8 out of 14 RTACs responded).
- Other interviews with Fund staff and external inputs.

### Key lessons from case studies and reviews
- CD–program integration relatively strong:
  - CD integral to program frameworks; priority in resource allocation facilitates dialogue and coordination.
  - Country ownership of implementing CD-based reforms typically strong.
- Alignment between surveillance and CD improving:
  - Participatory RAP enhances coordination; RSNs and CSNs support consistency where present.
- Variable internal coordination in surveillance cases:
  - Ongoing dialogue in large CD recipient or program countries; elsewhere coordination often depends on individual mission chief interest.
  - Impediments: unclear CD contact points and limited familiarity with CD offerings.
- Information sharing gaps:
  - No single repository for all relevant TA information; move toward integrated information platform underway.
- Follow-up responsibilities unclear:
  - CD is demand-driven; monitoring implementation difficult without subsequent missions.
  - Project-based planning and greater area department involvement needed.
- Resident representatives and cross-mission participation helpful:
  - Resident reps can liaise, monitor implementation, and enhance authority communication.
  - CD experts participating in area missions and area desks joining CD missions improved integration.
- Factors hindering traction (selected counts from 10 country cases):
  - Fund-side: supply-driven CD (2 out of 10), lack of specificity in TA recommendations (3 out of 10), inadequate recognition of local conditions (2 out of 10).
  - Recipient-side: lack of ownership and weak implementation capacity, high staff turnover.
- Mission chiefs in weak-capacity countries request more concrete, country-tailored, detailed TA; combining TA with training is effective.

### Good practices and departmental initiatives (selected examples)
- AFR: explicit ownership/incentives; goal to draft CSNs for every AFR country; CSNs included in Article IV documents; fragile states pilot under capacity building framework.
- APD: country-specific CD-surveillance matrices; strengthened early discussions with CD teams; RCDC participation in Article IV missions.
- STA: new TA report formats with high-level “chapeau”; country-specific statistical scorecards; balance sheet approach tool.
- FAD: standardized assessment tools (e.g., Revenue Administration Fiscal Information Tool, TADAT); “How-To” Notes; post-mission questionnaires.
- MCM: quantitative macrofinancial tools; Financial Sector Stability Review (FSSR) diagnostic module; single-contact staff for TA coordination.

### Measures to take integration further (common themes)
- Deepen strategic engagement with country authorities in scoping and implementing CD.
- Strengthen internal processes and incentives to recognize CD as integral to country engagement and complement to surveillance.
- Better leverage specialized expertise: improve availability and accessibility of CD information and promote cross-participation in missions.

### Deepening strategic engagement with country authorities (measures)
- Central role for countries in scoping CD needs via specific discussions during surveillance missions and active interactions in CSN and RAP preparation.
- Recipient authorities to agree on broad project objectives and milestones under RBM log frames.
- More tailored TA outputs:
  - Pre-mission definition of delivery mechanisms and how CD will inform policy dialogue.
  - Post-mission feedback from authorities to be sought consistently.
- Authorities to be closely consulted on action plans and report on implementation progress.

### Improving internal processes and incentives (measures)
- Shared understanding of roles and procedures across departments:
  - Stronger strategic CD planning, closer dialogue before/after missions, greater visibility of CD in surveillance documents.
  - Area departments to lead overall country engagement in collaboration with CD departments.
  - Consider retitling “mission chiefs” to reflect broader responsibilities; standardize resident representative ToRs to support CD.
- CD departments retain technical content responsibility and leadership in knowledge hub functions.

### Better leveraging specialized expertise (initiatives)
- TA documents and knowledge management:
  - KMU-led Institutional Repository (IR) initiative to replace fragmented systems.
  - Over 300 MCM reports added to IR in 2017; work continues to improve availability across CD departments and RTACs.
  - Establish Enterprise Business Vocabulary for metadata and assisted tagging; improve Knowledge Exchange Country Pages with mission timelines.
- Broader TA information and systems:
  - Plans for integrated “Digital Workplace” for staff access to documents, data, and tools.
  - Capacity Development Management and Administration Program (CDMAP) to strengthen CD management, data capture, coordination, and strategic decision-making.
- Dissemination of user-friendly CD diagnostic tools (examples):
  - MCM quantitative methods for macro-financial analysis.
  - STA country-specific statistical scorecards.
  - FAD tools: Revenue Administration Fiscal Information Tool, Revenue Administration Gap Analysis Program, Tax Administration Diagnostic Assessment Tool, Fiscal Transparency Evaluations, Public Management Investment Assessment.
  - MCM: Financial Sector Stability Review (FSSR).

---

### Translating technical CD outputs for nonexperts
- Need: better translation of technical work for nonexperts to inform policy advice and support area departments’ role in country strategies.
- Role of RBM: results chains can clarify top-line objectives and milestones but require proactive CD-team effort.
- Recommendations/modalities to explore:
  - Bring out policy-relevant messages more clearly in TA Reports:
    - Keep granular technical advice for technical staff while translating top-line messages on policy relevance, impact, and recommendations for nonexperts.
    - Standardized sections suggested: executive summary, streamlined objectives, recommendations, explicit links to surveillance, less technical language.
    - Reviewers for short-term expert missions could translate technical advice into policy language.
  - Ongoing STA efforts:
    - New TA report formats with high-level “chapeau” for senior policy makers.
    - Internal guidelines for clearer prioritization and links to surveillance.
  - Experiment with concise reports, presentations, or post-mission report delivery to strengthen engagement.
  - Expand topical notes and cross-country distillations (e.g., FAD “How-to” Notes; MCM Technical Notes and Manuals; LEG “Tax Law Notes”).

### Participation and mission-level integration
- Benefits:
  - CD staff participation in area surveillance missions adds macro-critical technical depth and traction.
  - Desk economists participating in CD missions add country context.
  - Dedicated training alongside CD engagements (examples: ICD training in Ghana, Malawi, Rwanda, Tanzania, Uganda, Sri Lanka on FPAS).
- Caveats:
  - Resource constraints limit mission participation; pursue targeted dialogue when participation not feasible.
  - Distinct goals/processes: CD experts should contribute on technical issues linked to broader CD prioritization, not serve as routine sectoral data collectors for surveillance missions.

### Coordination with other CD providers
- Importance of increasing coordination to avoid duplication and leverage external expertise.
- Positive examples: regular CD providers committees, resident CD coordinators (example: Ukraine).
- Resident CD coordinator may be relevant in exceptional high-intensity CD countries.

### Towards systematic CD–surveillance integration (playbook and mechanisms)
- Develop a more consistent playbook for year-round interaction among area departments, CD departments, RTACs, resident representatives, and authorities.
- Elements:
  - Use RBM to ensure mutual understanding of top-line CD objectives.
  - Systematic interaction through CD planning, execution, and follow-up reflecting surveillance and CD priorities, country context, and cross-country experiences.
  - Explore synergies with initiatives on fragile states.
- Continued experience gathering to inform policy, procedure, and guidance updates.
- 2020 Comprehensive Strategy Review expected to explore further integration.

---

### Working group evidence base and case study overview
- Case study analysis: 10 countries over 2012–2017, reviewed Article IV reports, selected TA reports, RSNs, CSNs; interviewed area mission chiefs and CD staff.
- Country list with Program status and Heavy TA user indicator (as provided):
  - 1 Botswana AFR N Y
  - 2 Liberia AFR Y* (ECF) Y (top 10)
  - 3 Angola AFR N Y
  - 4 Cambodia APD N Y (top 10)
  - 5 Philippines APD N Y
  - 6 Paraguay WHD N N
  - 7 Guyana WHD N N
  - 8 Kyrgyz Republic MCD N Y
  - 9 Lebanon MCD N N
  - 10 Ukraine EUR Y (EFF) Y (top 10)
  - *Liberia’s Extended Credit Facility (ECF) ended in November 2017.
- Brainstorming/surveys: two focus groups (23 and 25 participants) and one joint workshop (30 participants); RTAC survey response: 8 out of 14 RTACs.

---

### Departmental initiatives to improve CD–surveillance integration (selected examples)
- AFR: integrate CD in accountability frameworks; target CSNs for all AFR countries; CSN implementation expected by end 2018; CSN discussions included in Article IV documents.
- APD: CD-surveillance matrices mapping CD against surveillance priorities; participation of RCDC staff in Article IV missions; enhanced resident representative engagement.
- STA: strategy on Data and Statistics; consultations before launching thematic funds; TA report chapeau; statistical scorecards; support for Statistical Annex updates in Article IVs.
- FAD: standardized assessment tools and “How-To” Notes; post-mission questionnaires; mainstreaming taxation in surveillance.
- MCM: macrofinancial surveillance tools; FSSR diagnostic module; single contact TA staff.

---

### Capacity Development prioritization and delivery outcomes (key statistics preserved)
- CD resource envelope stabilized at approximately 31 percent of overall spending (post-growth stabilization).
- CD delivery priorities for FY2019–21 include Finance for Development, Aligning CD/Surveillance/Lending, and better integration across departments using RBM/CEF.
- Delivery outcomes:
  - About 85 percent of Fund TA reflects CD priority topics.
  - FY18 strong growth areas: financial market deepening for LICs; domestic revenue mobilization; financial supervision, regulation, and monetary policy frameworks; financial integrity.
  - Fragile states:
    - Share of CD delivered to fragile states remained about the same from FY2013 to FY2018 at about 28 percent of field-based FTEs and about 19 percent of overall spending.
    - In FY2018, the Fund delivered more than a quarter of its TA and about one fifth of its training to countries in fragile situations.
    - RTACs cover 38 of the 43 countries in fragile situations.
  - TA to Fund-supported program countries increased from 33 percent in FY2013 to 40 percent in FY2018.
  - TA to highly vulnerable countries fell from 23 percent in FY2013 to 21 percent in FY2018.
  - Overall: about 95 percent of TA is delivered on priority topics or to priority countries.
- Top recipients of CD spending, FY2013–18 (Top 10 total: 24.1 Million USD, 9.5% share of total average spending FY13–18):
  - 1 Myanmar — 4.4 — 1.7%
  - 2 Ukraine — 3.7 — 1.5%
  - 3 China — 2.3 — 0.9%
  - 4 Greece — 2.3 — 0.9%
  - 5 Liberia — 2.2 — 0.9%
  - 6 Mozambique — 2.0 — 0.8%
  - 7 Jamaica — 1.9 — 0.7%
  - 8 South Sudan — 1.8 — 0.7%
  - 9 Ghana — 1.8 — 0.7%
  - 10 Mongolia — 1.7 — 0.7%
  - Five fragile states (DRC, Guinea, Liberia, Myanmar, South Sudan) were among the top 20 recipients over FY2013–18.

### Prioritization framework evolution and governance
- Management translates Board strategic direction into CD procedures via the CCB (meets three times a year).
- 2014 external funding framework principles preserved (IMF financing where donors not available; external funding when interests align; external funding should add CD delivery).
- Since May 2014, new initiatives require interdepartmental review before management approval.
- 2017 reforms: allocate resources by project (not mission), recognize direct costs and FTEs, move RAP to medium-term three-year assessment with area department review of briefs.

### Delivery trends and key statistics (FY figures preserved)
- CD share of total Fund spending: grew from 26 percent in FY2013 to 31 percent in FY2018.
- Donor-funded CD share of direct CD spending: rose from 49 percent in FY2013 to 55 percent in FY2018.
- Total spending:
  - FY18 (Total Spending:  1.3 Billion USD)
  - FY13 (Total Spending:  1 Billion USD)
- Regional distribution (selected figures):
  - AFR about 31 percent of Fund CD spending in FY2018.
  - FY13 regional shares illustrated: Sub-Saharan Africa 27%, Asia and the Pacific 23%, Europe 14%, Middle East and Central Asia 21%, Western Hemisphere 15%.
  - FY18 regional shares illustrated: Sub-Saharan Africa 28% (alternate chart), Asia and the Pacific 22% (alternate chart). AFR around 31% in text.
  - Multiple or no region specified accounted for 18% in one FY18 chart.
- Departmental spending on CD (FY18):
  - FAD 39%
  - MCM 19%
  - STA 12%
  - LEG 5%
  - ICD 14%
  - Other 11%
- IMF training participation:
  - Online learning accounted for about 30 percent of training participants in FY2018.
  - Face-to-face participant counts by year (chart data): 7,811; 8,799; 9,950; 10,631; 10,498; 11,550.
  - Online/distance counts by year (chart data): 951; 1,488; 3,879; 3,370; 4,860; 7,931.
- In FY2018 the Fund conducted 5,321 missions.

### Econometric findings on TA reallocation (1990–2015)
- IMF TA reallocates over several years to changing country circumstances.
- Specific event responses (averages preserved as phrased):
  - Formation of a new state: by the second year after formation, countries received on average an additional year (FTE) of IMF TA, with TA gradually increasing through the fifth year.
  - Ending of conflict: associated with an additional five months of TA on average, but only in the fourth year after peace.
  - Financial crises: IMF TA was not strongly associated with outbreak of financial crises overall; examples noted (Indonesia vs. Korea post-1997).

---

### Recommendations and institutional reforms (preserved)
- Implement 2017 RAP reforms fully:
  - Support stronger integration across Fund functions and prepare country CD strategies for more cases.
  - Regular Heads of Department meetings to discuss emerging reprioritization needs.
- Refine prioritization process:
  - Narrow Fund-wide “priorities” to focused topics/groups where CD growth is important.
  - Strengthen use of results and evaluation information (Common Evaluation Framework) in November CCB meetings.
  - Link prioritization to country CD strategies, FSAPs, FSSRs, Article IV diagnostics, and assessments of country ownership.
  - Build integrated, user-friendly business processes and IT systems for CD information.
- Greater synergy between CD activities and surveillance through deeper area department engagement.
- Increase sustainability and fungibility of external financing:
  - Promote multi-partner and umbrella funding arrangements to improve flexibility.
- More flexible delivery modalities:
  - Move from “what to do” technical advice to implementation assistance “how to do it” and tailor delivery modalities.
  - Recognize administrative demand; allow time for teams to assess resource/planning implications.
  - Consider HQ vs RCDC delivery balance and experimentation vs quality standards.
- Continue CDMAP and other systems to strengthen CD management and monitoring.

---

### Monitoring, evaluation, and RBM
- RBM framework:
  - Standardized “results chains/log-frames” for all CD projects; RBM Catalog covers 16 workstreams with over 70 objectives, 320 outcomes, and 720 indicators.
  - As of June 2018, results monitored across more than 600 projects.
- Common Evaluation Framework (CEF) adopted in 2016 to standardize evaluation methodology and planning cycles.
- Training results monitoring (ICD):
  - Post-course reaction surveys; pre- and post-course learning tests; follow-up surveys several months after courses; broader triennial survey of sponsoring agencies.
  - Learning proxied by increases in average test scores post-course vs pre-course and share achieving 60 percent and above.
- RTAC pilots:
  - Three-element phased roll-out for country/topic log frames, milestone reporting, and use of results for management and reporting to steering committees.
  - Ratings scale: 4 = Fully Achieved, 3 = Largely Achieved, 2 = Partially Achieved, 1 = Not Achieved/Started.
- RBM challenges and lessons:
  - Organizational change takes years; requires leadership, incentives, realistic expectations, selectivity in indicators, attention to attribution and data quality, and linking financial and performance information.
- Evaluation program recommendations:
  - Balance donor accountability with Fund learning objectives.
  - Build internal evaluation agenda, self-evaluation templates, response mechanisms, and a central repository for evaluations and responses.

---

### Training, technology, and delivery innovation
- Online learning (launched 2013) achievements:
  - Contributed to nearly 70 percent increase in government officials trained.
  - In FY18 online learning accounted for about 30 percent of training participants.
  - Online courses attracted over 42,000 active participants; almost 12,000 government officials and 10,000 public users completed an online course from 192 countries.
  - Participants who completed online courses scored 18 percentage points higher on average on end-of-course tests compared with pre-course tests.
- Technology-enabled dissemination and delivery:
  - Webinars, videoconferencing, apps, games, social media, and MOOCs used for wider dissemination and to reach dispersed audiences.
  - FAD hackathons and 85 specialized databases/tools support evidence-based TA.
- Future directions:
  - Short on-demand modules, videos, podcasts, mobile learning, analytics, and machine learning for course management.
  - Cloud-based sharing, PWAs for low-bandwidth mobile learning, big data and D4D Fund collaboration for statistics and SDGs.
- CD on emerging issues (examples and modalities):
  - Energy: online Energy Subsidy Reform course since FY15; TA on fiscal frameworks for oil and gas.
  - Technology: cyber risk embedding strategy; fintech courses and guidance; digitalization seminars and tools.
  - Inequality and gender: Inclusive Growth course (2013) with gender module; about 1,100 officials trained since 2013.
  - Climate change: TA on carbon taxation; Climate Change Policy Assessments in St. Lucia and Seychelles in 2017.

---

### Coordination with other CD providers and country-level examples
- Institutional/thematic/country-level coordination exists via MoUs, joint trust funds, joint tools (PEFA, MTDS, TADAT), RTAC engagement, ICD/STA with regional training centers, and country-led coordination structures (example: Rwanda).
- Challenges:
  - Duplication, overwhelmed authorities, poor communication, differences in approaches, competition, and limited resources for coordination.
  - IMF CD equals about two percent of total CD by IFIs in some measures.
- Options to enhance coordination:
  - Country-driven coordination committees in high CD-need countries.
  - Greater Fund presence and resident CD coordinators in heavy-user countries.
  - Thematic periodic meetings among CD providers and shared country-level matrices of planned CD activities.
  - Use of virtual platforms and online contact lists for TA coordination.

---

### Dissemination, knowledge management, and publication of TA reports
- Dissemination policy:
  - TA reports generally available to staff; routinely sent to the Executive Director for the recipient country unless the country objects.
  - May be disseminated to other EDs and donors 60 days after transmittal to authorities unless objections or expedited permissions exist.
- Publication statistics and issues:
  - Only 82 TA reports published externally during 2015–17 versus some 2,500 final TA reports deposited in the IR in the same period.
  - STA published 18 reports in 2017 and 21 in Q1 2018 following a new TA report template.
  - Barriers: translation costs (23 percent of STA reports non-English in 2017), editorial quality for short-term expert reports, declassification process dependent on authors, and lack of a dedicated external TA report section (COM working on this).
- KMU and IT initiatives:
  - Text mining projects to create a text-analytics database of Article IVs and published TA reports.
  - Work to digitize/incorporate TA reports into text-mining database and simplify IR deposit processes.
  - As of mid-March 2018, 8,434 TA reports on the KE site, including 2,151 reports from FY2015–17.
  - Database of TA recommendations being developed.
- Accessibility to donors and public:
  - ICD to add TA reports to Partners Connect platform in FY2019.
  - Publication requires recipient consent and authoring department approval; benefits include donor acknowledgement and improved public visibility.

---

### Delivery to fragile states, small states, and regional centers (selected operational lessons)
- RTACs (examples: East AFRITAC, CAPTAC-DR, METAC, PFTAC, CARTAC, SARTTAC) demonstrate tailored approaches:
  - Off-site provision and remote follow-ups to maintain CD when on-site not feasible.
  - Embedding training in TA; attachments and mentoring for knowledge transfer.
  - PFTAC role in PFM, revenue administration, and climate finance readiness for Pacific small states.
  - METAC adaptations to conflict-affected countries: off-site missions, short missions, sequencing requirements, and regional workshops.
  - SARTTAC as a fully integrated CD center customizing packages combining training and TA.
- Absorptive capacity considerations:
  - High staff turnover and thin human capital reduce absorptive capacity.
  - Online learning and modular approaches help scale and adapt to limited institution sizes.
  - Customization needs careful selection due to resource intensity.

---

*Italic: Source — pp1002182018reviewfunds-cdstrategybackgroundshortnotes (2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES).*

### 1. CD and Surveillance Interactions in the Policy-Making Cycle _________________________ 9

### 1. CD and Surveillance Interactions in the Policy-Making Cycle

### Introduction
- Integration across the three core pillars of the Fund’s work—surveillance, lending, and capacity development (CD)—strengthens the Fund’s ability to serve its members.
- The Fund’s global reach and broad mandate provide it with a unique potential to promote economic and financial stability—potential that can only be fully realized through synergies in its work.
- The Fund is seen as one institution, not a collection of separate business lines, by its member countries, requiring strong coordination and consistency across its multiple functions.
- This paper focuses on integration of two of these functions—CD and surveillance.
- The focus does not discount the importance of integration of CD and lending, but recognizes that integration in nonprogram cases has been particularly challenging.
- The greater success with integration in program cases is not surprising given the key role technical advice plays in designing and implementing program reforms.
- In surveillance work, closer linkage between policy and technical advice requires more concerted attention.
- The Fund has long recognized this challenge, though efforts to date have met with mixed success.
- This paper takes stock of the Fund’s efforts to integrate CD and surveillance and proposes measures to strengthen synergies.
- Section B explores why better integration is necessary. Section C describes efforts to date to strengthen integration. Section D presents lessons from the experience of staff. Sections E and F present proposals for further integration.

### Why is Better Integration Necessary?
- Surveillance and CD serve complementary and mutually reinforcing roles.
- Surveillance focuses on whether members’ policies are promoting their own and system-wide economic and financial stability.
- CD focuses on strengthening institutions, policy frameworks, and technical skills, and supports implementation of sound policies.
- By identifying economic and financial risks and opportunities, surveillance helps build the CD agenda, which in turn enhances the focus and specificity of policy advice, keeps institutions up-to-date on risks and innovations, and, often, unveils risks (Figure 1).
- The Fund acts as a “trusted advisor” in both capacities.
- Notwithstanding their shared objectives, surveillance and CD differ in important ways.
- Surveillance is mandatory for both the Fund and its members, while CD is voluntary, based on requests for assistance from country authorities in areas of Fund expertise and taking into account institutional priorities and available resources.
- Internally, the two functions are conducted under different policies, processes, and organizational structures.
- Externally, the Fund is often seen, on the one hand, as “a watchdog of the global and individual economies,” and, on the other hand, as a technical counterpart sharing highly-specialized expertise and experience that contribute to countries’ efforts to improve policy and institutional frameworks.
- Closer integration is beneficial to both the Fund and its member countries.
- Dynamic economic and financial conditions in an interdependent world call for nimbleness by the Fund, which—in a resource constrained environment—can best be achieved by efficiently leveraging its expertise and realizing synergies between its core functions.

### Efforts to Strengthen Integration
- Better integration of CD and surveillance has been a longstanding objective.
- In a 2005 report, the IEO “found a weak link between technical assistance (TA) priorities and (...) key policy issues identified in Article IV consultations.”
- The IEO called for medium-term policy frameworks developed collaboratively to guide prioritization.
- A high-level Committee on Capacity Building (CCB) was created in 2006 with a mandate to strengthen coordination in the Fund’s CD work.
- In 2008, Regional Strategy Notes (RSNs) were introduced to help reconcile surveillance priorities with country’s CD requests.
- Building on these reforms and further reviews in 2008 and 2011, the 2013 Capacity Development Strategy Review emphasized the Focused, Integrated, Nimble, and Effective (FINE) model as a guiding framework for CD, with CD to be “integrated with core surveillance and program responsibilities.”
- The strategy also called for a two-level system of prioritizing CD activities combining more effectively institutional surveillance priorities with country CD needs to deal with excess demand.

*Source: IMF staff background note "1. CD and Surveillance Interactions in the Policy-Making Cycle", 2018 CD Strategy Review—Staff Background Studies and Short Notes.*

### 8.      Surveillance reviews also called for further integration. The 2014 Triennial

### 8.      Surveillance reviews also called for further integration. The 2014 Triennial

### Integration efforts and reforms (2017)
- Strengthened cross-departmental coordination and prioritization through:
  - semi-annual management meetings with department heads; and
  - a shift from an annual to a three-year Resource Allocation Plan (RAP) cycle, which will facilitate a closer involvement of area departments in multi-year CD projects.
- Formalized procedures for area department review of TA briefs, including:
  - requirement of explicit area department agreement on the timing and scope of all CD missions.
- Standardized use of Country Strategy Notes (CSNs) for heavy users of CD, complementing existing annual RSNs:
  - CSNs are authored by area departments in consultation with CD departments;
  - CSNs present CD priorities for three years with explicit links to surveillance or program needs;
  - CSNs are to reflect consultations with country authorities.

### Results-Based Management (RBM) framework role
- “Results chains” under the RBM framework aim to ensure a common understanding of expectations for (and risks to) CD at both the individual project and broader strategic level.
- Tracking of CD milestones and increasing ease of access to a broader range of CD information will enable area departments to understand progress with implementation and potential implications for policy engagement, as well as country and regional strategies.

### Methods used to draw lessons from experience
- In-depth review of ten country cases, including interviews with respective country teams.
- Three brainstorming sessions bringing together representatives from all departments involved in surveillance and CD.
- Targeted survey of Regional Technical Assistance Centers (RTACs).
- Other selected interviews with Fund staff and review of input from external sources.

### Key lessons from case studies and reviews
- Integration between CD and Fund programs is relatively strong:
  - CD is often integral to program frameworks and helps define priorities for both the area department and authorities (e.g., in cases of banking, currency, or debt crises).
  - Program countries benefit from priority in resource allocation (i.e., staffing, review by CD departments of country policy papers) which facilitates greater dialogue and coordination across departments.
  - Country ownership in implementing reforms based on CD advice received is typically strong.
- Alignment of topics and priorities between surveillance and CD is improving:
  - Participatory RAP process has enhanced coordination across CD and area departments as the CD agenda was being set.
  - RSNs and CSNs, where in place, were viewed as supporting consistency and strategic prioritization of CD in line with surveillance objectives.
- Degree of internal coordination in surveillance cases varies:
  - In large CD recipient countries or program cases, an ongoing dialogue generally takes place between the country team and CD departments.
  - In other cases, communication and coordination depend too much on the individual interest of the area department mission chief in CD issues.
  - Impediments include lack of clarity on the appropriate contact in CD departments and limited familiarity of country teams with CD offerings, in particular specific training available.
- Information sharing infrastructure needs to be strengthened:
  - No single place where all relevant TA information can be found, representing a strong impediment for staff needing timely access to comprehensive and updated information.
  - A multi-pronged strategy is being implemented to enhance accessibility of institutional knowledge on both CD and surveillance, including a move to a more integrated information platform.
- Responsibilities for follow-up with CD recommendations should be clarified:
  - CD departments note missions are mostly demand-driven, making monitoring implementation difficult if no subsequent missions are requested.
  - Ongoing shift to a project-based planning framework seeks to address this issue, but effective follow-up will also benefit from more direct area department involvement.
  - Area departments note their ability to support follow-up requires technical findings to be presented in a way that better facilitates understanding of prioritization or policy implications by nontechnical staff.
- Involvement of resident representatives and cross-mission participation can help:
  - Resident representatives can liaise between CD and surveillance teams, monitor implementation of recommendations, and enhance communication with authorities.
  - RTAC teams could be tapped more to enhance synergies between surveillance and CD.
  - Participation of CD department experts in area department missions and of desks in CD missions enabled closer integration of specialized advice into policy recommendations and improved understanding of local conditions.
- Factors hindering traction:
  - From the Fund side: supply-driven CD (2 out of 10 country cases), lack of specificity in TA recommendations (3 out of 10 cases), inadequate recognition of the local conditions (2 of 10 cases).
  - From the recipient country: lack of ownership and weak implementation capacity of the authorities (including due to high staff turnover).
  - Mission chiefs for countries with weak capacity point to increased demand for more concrete, country-tailored, and detailed TA advice; combining TA with training is particularly effective in low-capacity countries.

### Good practices and departmental efforts
- AFR has originated many good practices and is actively promoting greater integration between surveillance and CD.
- APD has started implementing a more comprehensive approach.
- Examples of CD/mission coordination from case studies:
  - Angola team reported devoting about 10 percent of its time to align CD with macro priorities, resulting in high consistency between surveillance and CD missions.
  - Botswana mission chief reported spending considerable time to coordinate CD and surveillance, resulting in increased traction of policy advice with authorities.
  - Myanmar mission chief has regular meetings with CD departments on CD planning and delivery.
  - APD organized a seminar with participation of all CD departments and APD mission chiefs to improve understanding of CD offerings.
  - Practice of a single CD-department staff member as a single-point-of-contact is appreciated by area departments.

### Measures to take integration further (common themes)
- Deepen strategic engagement with country authorities in scoping and implementing the CD agenda.
- Strengthen internal processes and incentives to recognize CD as integral to engagement with country authorities and as a complement to surveillance.
- Better leverage specialized expertise by improving availability and accessibility of CD information and through cross-participation in missions.

### Deepening strategic engagement with country authorities (measures)
- Central role for countries in scoping their own CD needs:
  - Facilitated by specific discussions of CD needs during surveillance missions and more active interactions (e.g., conference calls, involving resident representatives and RTACs resources) in preparation of CSNs and RAP.
- Greater involvement in preparing individual CD projects:
  - Recipient authorities should agree on the broad individual project objectives and milestones under the RBM log frame.
- More tailored TA outputs:
  - Pre-mission discussion with authorities should include definition of delivery mechanisms and how to ensure CD work informs the policy dialogue.
  - Post-mission feedback from authorities should be sought more consistently.
- Central role in implementation:
  - Authorities should be closely consulted on action plans and should monitor and report on progress with implementation.

### Improving internal processes and incentives (measures)
- Integration depends on a shared understanding of roles and supporting procedures across departments:
  - Stronger strategic planning of CD.
  - Closer dialogue between area and CD departments before and after both CD and surveillance missions.
  - Greater visibility of CD in surveillance documents.
  - Greater involvement of area department teams in monitoring implementation of CD recommendations with policy relevance.
- Ongoing work to ensure consistent branding across IMF operations recognizes the Fund is one institution, not a series of separate business lines.
- Clarify roles and responsibilities:
  - Area departments should lead on overall country engagement, including establishing country strategies and priorities for CD, in collaboration with CD departments.
  - Consider retitling “mission chiefs” to recognize broad responsibilities beyond surveillance missions.
  - Standardize responsibilities to support CD as part of the resident representative terms of reference.
  - CD departments retain responsibility for technical content of CD and a leadership role in building the Fund’s role as a knowledge hub.

### Better leveraging specialized expertise (initiatives)
- TA documents:
  - KMU-led program to strengthen internal access to Fund documents, beginning with TA reports; replace fragmented systems with a single, easily searchable Institutional Repository (IR).
  - Filling gaps: over 300 documents, covering over two years of reports from headquarters-led MCM missions were added to the IR in 2017; work continues to improve availability of reports across other CD departments and RTACs.
  - Strengthening searchability: establishing a uniform Enterprise Business Vocabulary to support metadata fields and assisted tagging with cognitive tools; improving Knowledge Exchange Country Pages by adding timelines linking relevant documents (including TA reports) with each mission.
- Broader TA information:
  - Plans for an integrated “Digital Workplace” to provide staff with better access to documents, data, analytical tools, and productivity tools.
  - Capacity Development Management and Administration Program (CDMAP) is underway to strengthen CD management and the capture and dissemination of data on CD delivery and results; support better management and targeting of CD resources across departments; more effective coordination between CD and surveillance/program work; and more informed strategic decision-making and governance.
- Increased dissemination of user-friendly CD diagnostic tools:
  - MCM made available a range of quantitative methods for macro-financial analysis.
  - STA developed country-specific statistical scorecards for area departments to quickly identify issues with data reporting for ongoing surveillance.
  - Other diagnostic tools developed by FAD (e.g., Revenue Administration Fiscal Information Tool, Revenue Administration Gap Analysis Program, Tax Administration Diagnostic Assessment Tool, Fiscal Transparency Evaluations, Public Management Investment Assessment) or by MCM (e.g., Financial Sector Stability Review) support identification of macro-critical risks and feed into surveillance.

*2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES*

### 25.      There is a need to better “translate” the Fund’s technical work for nonexperts to

### pp1002182018reviewfunds-cdstrategybackgroundshortnotes - 25.      There is a need to better “translate” the Fund’s technical work for nonexperts to

### Translating technical CD outputs for nonexperts
- Need: Better “translate” the Fund’s technical work for nonexperts to inform policy advice and strengthen area departments’ role in country strategies and prioritization.
- Role of RBM: Results chain under RBM can clarify top-line objectives and milestones to area department teams and country authorities, but requires a proactive effort by CD teams.
- Recommendations and modalities to explore (noting resource costs):
  - Bring out policy-relevant messages more clearly in TA Reports:
    - TA reports must continue to provide concrete and granular technical advice for technical staff, while also translating top-line technical advice into clear messages on policy relevance, impact, and recommendations.
    - Standardized sections could include an executive summary, streamlined summaries of objectives, recommendations, and explicit linkages to surveillance policy priorities, delivered in less technical language to bridge technical and policy-relevant materials for nonexpert Fund staff and senior country authorities.
    - Ensure these steps do not undermine the core technical content needed by authorities.
    - In missions conducted by short-term experts, reviewers could play an active role in translating technical advice for policy-making.
  - Ongoing efforts:
    - STA has introduced new TA report formats to present key TA messages and recommendations that clarify “what’s in it for the country” rather than “methodology dictates.”
    - New reports will include a high-level “chapeau” section presenting the essence of the analysis and key recommendations for senior policy makers and non-statisticians.
    - STA has developed internal guidelines for clearer prioritization and presentation of TA recommendations, with more specific links to surveillance.
  - Experiment with new modalities for documenting advice:
    - More concise reports, greater use of presentations, or delivery of reports after missions could strengthen engagement by leaving more time for team discussions with authorities on policy options and implementation “how to” issues.
  - Expand topical notes:
    - Leverage cross-country distillations (e.g., “How-to” Notes by FAD, “Technical Notes and Manuals” by MCM and others, and “Tax Law Notes” by LEG) to share relevant experience and policy considerations.

### Participation and mission-level integration
- Participation benefits:
  - CD department staff participation in area department surveillance missions can help investigate and sometimes address macro-critical issues, strengthening policy advice and traction.
  - In many Fund program teams, participation of MCM and FAD experts is customary and increases specificity and traction of policy advice.
  - Ad hoc expert participation (e.g., an FAD expert joining the Angola country team) and overlapping key TA and surveillance missions can allow joint discussions with authorities.
  - Area department desk economists participating in CD missions can add country-specific context (example: Paraguay country desk participation in FAD TA missions).
  - Dedicated training to area department teams in parallel with CD engagements (example: ICD training for Ghana, Malawi, Rwanda, Tanzania, Uganda, and Sri Lanka on Forecasting and Policy Analysis (FPAS)).
- Caveats:
  - Resource constraints: both area and CD departments have limited resources; where direct mission involvement is not possible, pursue targeted dialogue including pre-mission discussions.
  - Distinct goals and processes: area departments’ mission chiefs should not use CD experts as regular mission members for sectoral data collection, analysis and policy advice; experts should be contributors on specific technical issues linked to broader CD prioritization.

### Coordination with other CD providers
- Need to increase coordination to avoid duplication and leverage outside expertise, especially where the Fund’s capacity is limited.
- Positive examples exist through regular CD providers committees or resident CD coordinators (example: Ukraine).
- A resident CD coordinator could be relevant on an exceptional basis in high-intensity CD countries.

### Towards systematic CD–surveillance integration (playbook and mechanisms)
- Leverage existing good practices more broadly; develop a more consistent playbook for year-round interaction among area departments, CD departments, RTACs, resident representatives, and authorities.
- Comprehensive approach elements:
  - RBM is increasingly helping ensure mutual understanding of top-line CD objectives among authorities, CD departments, and area departments.
  - Explore mechanisms for systematic interaction throughout CD planning, execution, and follow-up, reflecting surveillance and CD priorities, country-specific context (including ownership and capacity), and cross-country experiences.
  - Explore synergies with related initiatives (notably lessons from CD in fragile states for other high-intensity CD cases).
- Continued experience gathering will inform updates to policies, procedures, and internal guidance governing CD operations.
- The 2020 Comprehensive Strategy Review is expected to explore further integration of CD and surveillance.

### Working Group modalities and evidence base
- Case studies:
  - Analysis of CD-surveillance integration in 10 countries over a five-year period (2012–2017), reviewing Article IV reports, selected TA reports, RSNs, and CSNs, and interviewing area department mission chiefs and selected CD staff.
  - Country list with Program status and Heavy TA user indicator:
    - 1 Botswana AFR N Y
    - 2 Liberia AFR Y* (ECF) Y (top 10)
    - 3 Angola AFR N Y
    - 4 Cambodia APD N Y (top 10)
    - 5 Philippines APD N Y
    - 6 Paraguay WHD N N
    - 7 Guyana WHD N N
    - 8 Kyrgyz Republic MCD N Y
    - 9 Lebanon MCD N N
    - 10 Ukraine EUR Y (EFF) Y (top 10)
    - *Liberia’s Extended Credit Facility (ECF) ended in November 2017.
- Brainstorming and surveys:
  - Two focus groups (area departments and CD departments) and one joint workshop; participant counts: 23, 25, and 30 respectively.
  - Targeted RTAC survey: 8 out of 14 RTACs responded.
- Selected interviews with Fund staff with past assignments in CD beneficiary authorities and staff involved in CD delivery and prioritization.

### Departmental initiatives to improve CD–surveillance integration (selected examples)
- AFR:
  - Senior-level ownership/incentives: CD integration is explicit in accountability frameworks and terms of reference for resident representatives; part of performance evaluation.
  - CSNs: goal (set in 2016) to draft CSNs for every AFR country; CSNs initially drafted by country teams and circulated to CD departments; most AFR countries have a CSN; full implementation expected by end 2018.
  - CSN summaries circulated to authorities and reflected in CSNs; CSN discussions being included in Article IV documents.
  - Fragile states pilot under the capacity building framework (endorsed by the Board in 2015) to support institutional change and strengthen engagement.
- APD:
  - Country-specific CD-surveillance matrices map CD activities against surveillance priorities.
  - Strengthened procedures and incentives: early discussions between country and CD teams; inclusion of CD issues in Policy Consultation Meetings where appropriate; participation of RCDC staff in Article IV missions; enhanced resident representative engagement; incentives to recognize CD management.
- STA:
  - Strategy on Data and Statistics emphasizes surveillance–CD nexus.
  - Consultations with area departments before launching thematic CD funds or bilateral donor projects.
  - New TA report formats with a high-level “chapeau” to enhance traction and follow-up.
  - Country-specific statistical scorecards and a balance sheet approach tool consistent with the 2014 TSR.
  - Other measures: support for Statistical Annex updates in Article IV reports; increased mission participation; CD support to Financial Soundness Indicators and Financial Access Survey; focus on public sector debt statistics.
- FAD:
  - Standardized assessment tools (Revenue Administration Fiscal Information Tool; Revenue Administration Gap Analysis Program; Tax Administration Diagnostic Assessment Tool; Fiscal Analysis of Resource Industries; Fiscal Transparency Evaluations; Public-Private Partnership Fiscal Risk Assessment Model; Public Investment Management Assessment).
  - “How-To” Notes offering practical advice.
  - Post-mission questionnaires to solicit authorities’ feedback.
  - Other initiatives: mainstream taxation and macro-structural reform in surveillance; provide international tax analysis in 10 countries in surveillance; one-off mission assignments to advance guidance on fiscal rules; lead advisory group on operationalizing inequality analysis.
- MCM:
  - Quantitative tools for macrofinancial surveillance and systemic risk analysis.
  - Financial Sector Stability Review (FSSR) with a diagnostic module informing surveillance risk assessments.
  - Single contact staff member to coordinate department-wide TA agenda in a country (practice also introduced in FAD and LEG).

### Capacity Development prioritization
- Context:
  - Achieving the Fund’s strategic objectives requires a strong CD prioritization framework; CD requests continue to exceed resources despite donor funding increases, regional vehicles, and technological innovation.
  - After rapid growth driven by external funding, the CD resource envelope is budgeted to flatten in real terms at approximately 31 percent of overall spending.
  - As the Fund moves from growth to stabilization, prioritization will become even more important.

*Italic: Source — pp1002182018reviewfunds-cdstrategybackgroundshortnotes (PDF chapter/section).*

### 3.      Effective prioritization requires agility in decision-making and flexibility in both

### 3.      Effective prioritization requires agility in decision-making and flexibility in both resource allocation and delivery modalities

### Overview
- Meeting evolving country demands requires nimble coordination mechanisms, a seamless flow of relevant information, and innovative delivery to support efficiency.
- This background note: 
  - Takes stock of prioritization efforts.
  - Section A describes past and current efforts to strengthen the prioritization process.
  - Section B provides an overview of delivery according to current priorities.
  - Section C discusses challenges and opportunities.
  - Section D concludes with recommendations.
- Findings are based on analysis of previous reviews and CD delivery data, interviews with staff in area and CD departments, OBP, and questionnaire responses of RCDCs.

### A. Evolution of the Prioritization Framework
- Key elements of the current framework:
  - Management translates Board strategic direction and overall budget into procedures and practices that govern CD via the CCB, which meets three times a year.
  - Reforms stemming from 2013 Strategy Review: processes to align CD and overall Fund priorities and ensure externally financed CD initiatives are in line with Fund priorities.
  - Updated CD policies and procedures issued in 2014 established the framework for prioritization and guidance from the Board through Board work programs and discussion of Management’s Key Goals; the November CCB meeting focuses on prioritization.
  - 2014 update of the external funding framework:
    - External financing assigned mainly to medium-term needs; Fund financing mainly used for quick response to emerging needs, program support, or where donor and Fund interests do not overlap.
    - Funding principles:
      - The IMF should finance CD in countries/topics where donor funding is not available, including program cases, when a quick reaction is required, and in areas where Fund expertise needs to be maintained;
      - External funding should be considered when donor’s interests are consistent with the IMF priorities and objectives and there is sufficient space in the IMF’s budget to co-finance the CD; and
      - External funding should result in additional delivery of CD to members.
    - New initiatives must go through an interdepartmental review process before management approval since May 2014.
    - The Board approves the overall external funding envelope for CD as part of the medium-term budget and, on a lapse of time basis, the opening of new externally-financed sub-accounts.
  - 2017 reforms to increase transparency and efficiency:
    - Require allocation of resources by project rather than by mission and recognize overall direct costs and those associated with FTEs.
    - Move RAP toward a medium-term (three-year) strategic assessment of country demand, with area department mission chiefs reviewing briefs in writing and RTAC coordinators endorsing RTAC expert briefs.
- Historical milestones (Box 1 highlights):
  - 1993: major CD-delivering departments required to forecast TA delivery in a RAP subject to centralized review.
  - 1999: nine criteria ("filters") endorsed to screen TA requests.
  - By 2005: filter system abandoned; creation of a high-level CCB; RSNs introduced in 2007.
  - 2013: two-level system to consider Fund priorities with greater role for area departments via RSN and RAP.
  - 2017: RAP reforms required medium-term aggregate plan for all CD activities and a management-approved strategic summary each May; CD delivery plans monitored against CCB-updated priorities each November.
- Stakeholders in prioritization (Box 3): Members; Executive Directors; Area departments; CD departments; Donors. Reconciling competing demands adds complexity and underscores importance of governance.

### B. Delivery According to Priorities
- Current priorities for FY2019–21 (Box 4):
  - Finance for Development:
    - Fragile states: increase CD activities in selected fragile states.
    - Revenue mobilization and sound public financial management, including domestic and international tax regimes and quality of expenditure programs, especially public investment management.
    - Financial market deepening for low-income developing countries (LICs), including regulatory, supervisory, risk and crisis management frameworks, correspondent banking relationship withdrawal, and enhanced debt sustainability and sound public debt management.
  - Aligning CD, Surveillance, and Lending:
    - Addressing high vulnerabilities identified in the Vulnerability Exercise or surveillance work, and Fund program countries.
    - Financial supervision and regulation, including fintech implications (particularly supervisory approaches to managing cyber risks), and monetary policy frameworks in emerging and frontier market economies and other LICs.
    - Closing data gaps, ratcheting up data quality, broadening data dissemination.
    - Financial integrity as part of engagement on governance and corruption issues.
  - Better integration of activities across departments, and enhanced use of RBM and Common Evaluation Framework to improve prioritization, efficiency, and monitoring.
- Delivery outcomes:
  - About 85 percent of Fund TA reflects CD priority topics.
  - Particularly strong growth in FY18 in: financial market deepening for LICs; domestic revenue mobilization; financial supervision, regulation, and monetary policy frameworks; and financial integrity.
  - Fragile states:
    - Share of CD delivered to fragile states remained about the same from FY2013 to FY2018 at about 28 percent of field-based FTEs and about 19 percent of overall spending.
    - In FY2018, the Fund delivered more than a quarter of its TA and about one fifth of its training to countries in fragile situations.
    - RTACs cover 38 of the 43 countries in fragile situations.
  - TA to Fund-supported program countries increased from 33 percent in FY2013 to 40 percent in FY2018.
  - TA to highly vulnerable countries fell from 23 percent in FY2013 to 21 percent in FY2018.
  - In total, about 95 percent of TA is currently delivered on priority topics or to countries identified as a priority.
- Top recipients of CD spending, FY2013–18 (Table 1):
  - Top 10 recipients total: 24.1 Million USD, 9.5% share of total average spending FY13–18.
  - Ranking and country-level figures:
    - 1 Myanmar — 4.4 — 1.7%
    - 2 Ukraine — 3.7 — 1.5%
    - 3 China — 2.3 — 0.9%
    - 4 Greece — 2.3 — 0.9%
    - 5 Liberia — 2.2 — 0.9%
    - 6 Mozambique — 2.0 — 0.8%
    - 7 Jamaica — 1.9 — 0.7%
    - 8 South Sudan — 1.8 — 0.7%
    - 9 Ghana — 1.8 — 0.7%
    - 10 Mongolia — 1.7 — 0.7%
  - Five fragile states (Democratic Republic of Congo, Guinea, Liberia, Myanmar, and South Sudan) were among top 20 recipients of Fund CD spending over FY2013–18.

### C. Challenges and Opportunities
- Stakeholder views (from interviews and RCDC surveys):
  - Broad support for recent prioritization reforms, noting reforms are in early implementation and will be tested as CD growth phase ends.
  - Departments welcome medium-term project-based planning but stress the need to retain flexibility for urgent requests.
  - Need to maintain monitoring framework that considers delivery against a range of topics/country types.
  - Collaboration:
    - Fund is one among CD providers; Fund staff need information on other providers to avoid duplication and seek complementarities.
    - Fund CD spending was about 2 percent of the Official Development Assistance on “Economic Infrastructure” in 2016.
  - Information gaps:
    - Remaining gaps in sharing comprehensive, up-to-date information on multi-year projects, results achieved, and projected resources within budget envelopes.
    - 2017 RAP reforms improve visibility on three-year committed resources and pipeline externally financed initiatives.
    - Timely diagnostics and understanding of country ownership and traction with past CD support better prioritization.
  - Agility constraints:
    - Reliance on external financing limits short-term flexibility to reallocate resources to entirely new priorities; typical trust fund structures have five-year work plans and pre-committed staff resources.
    - Human resources dedicated to specialized topics are not easily reallocated in short term; input-based planning (e.g., targets for specific modalities) can reinforce rigidities.
  - Area department role:
    - Need for further efforts to integrate CD with lending and surveillance; mission chiefs best positioned to take comprehensive view, but concern exists about new “unfunded mandates.”
    - CD Country Strategies can help identify priorities in the context of surveillance.
  - Flexible delivery modalities:
    - Growing demand for integration of TA and training and customized training for countries or cohorts.
    - Online training introduction expands delivery menu; online courses can support TA and serve as prerequisites for in-person training.
    - Experience suggests online training augments rather than substitutes for CD demand; careful consideration of resource trade-offs needed.
  - RCDCs and HQ harmonization:
    - Division of labor generally clear: HQ TA focuses on policy and diagnostics; RCDCs focus on regional implementation and training.
    - Less than ten percent of RCDC CD typically focuses on diagnostic missions; increasing share devoted to workshops and peer-to-peer learning.
    - Need to standardize practices across CD-delivering departments, strengthen information sharing from HQ, and provide clearer guidance on RTAC budget governance.

### D. Recommendations
- The paper indicates Section D concludes with recommendations. (Details of those recommendations are provided in Section D of the full background note.)

*pp1002182018reviewfunds-cdstrategybackgroundshortnotes — INTERNATIONAL MONETARY FUND*

### 12.      Consistent with the above findings, the following recommendations should be

### 12.      Consistent with the above findings, the following recommendations should be considered

### Recommendations and institutional reforms
- Implementation of the 2017 RAP reforms
  - Full implementation will help address several challenges and support stronger integration between the Fund’s three core functions.
  - Preparation of country CD strategies for a greater number of cases will support prioritization and better position CD delivery in a medium-term context, taking account of efforts of other providers.
  - Regular Heads of Department meetings with management will provide timely discussion of emerging needs for reprioritization of limited CD resources and provide clear guidance on priorities.
  - Reforms will provide more timely information on CD resource allocation across regions, while facilitating close involvement of area departments in multi-year CD projects.

- Continued refinement of the prioritization process
  - Narrowed list of priorities: Fund-wide “priorities” should be reserved for topics or groups where growth in CD delivery is particularly important and where the share of CD needs to be increased. Priorities need not be a large share of CD delivery, and the CCB would continue to monitor a wider selection of topics or country groups not identified as priorities.
  - Strengthened use of results and evaluation information: Measuring past CD results and feeding this information into prioritization is an important goal of the new Common Evaluation Framework. The November CCB meetings should be expected to use evaluation results to assist with setting CD priorities. More focused country and topic-specific evaluations and diagnostics on CD needs and authorities’ buy-in are critical for effective decision-making. The prioritization process can be more closely linked to country CD strategies, Financial Sector Assessment Programs (FSAP), FSSRs, Article IV diagnostics, and assessments of country ownership.
  - Integrated and user-friendly business processes and IT systems: Current efforts to strengthen the information infrastructure for CD and broader Fund work recognize the need for a comprehensive approach to building supporting business processes and systems to drive more informed resource allocation and prioritization efforts.

- Greater synergy between CD activities and surveillance
  - As area departments engage more fully on CD-related issues, they will be better positioned to help strengthen prioritization.

- Continued efforts to increase the sustainability and fungibility of external financing
  - Promote multi-partner and umbrella funding arrangements to increase fungibility and flexibility and enable the Fund to allocate funding across a range of CD activities.

- More flexible modalities
  - Move from providing mainly technical advice (“what to do”) to assistance with implementation (“how to do it”) and more tailored delivery modalities.
  - Recognize administrative demands on resource allocation functions; time is needed for teams to understand resource and planning implications of nontraditional delivery modalities.
  - Related questions include the roles of HQ versus RCDC-based delivery and the balance between experimentation and reinforcement of quality standards.
  - Note: With 5,321 missions in FY 2018, strengthening processes and systems is critical.

### Delivery trends and key statistics
- CD share of total Fund spending
  - CD has grown from 26 percent of total spending in FY2013 to 31 percent in FY2018.
- Donor-funded CD
  - From FY2013 to FY2018, the share of donor-funded CD as a share of direct CD spending rose from 49 percent to 55 percent.
- Total spending
  - FY18 (Total Spending:  1.3 Billion USD)
  - FY13 (Total Spending:  1 Billion USD)
- Regional distribution (selected figures)
  - AFR remains the largest recipient of Fund CD, receiving about 31 percent of the Fund’s CD spending in FY2018.
  - FY13 regional shares (illustrated): Sub-Saharan Africa 27%, Asia and the Pacific 23%, Europe 14%, Middle East and Central Asia 21%, Western Hemisphere 15%.
  - FY18 regional shares (illustrated): Sub-Saharan Africa 28% (alternate chart), Asia and the Pacific 22% (alternate chart). (Multiple charts show variations; AFR around 31% in FY2018 is the stated figure in text.)
  - Multiple or no region specified accounted for 18% in one FY18 chart.
- Departmental spending on CD (FY18)
  - FAD 39%
  - MCM 19%
  - STA 12%
  - LEG 5%
  - ICD 14%
  - Other 11%
- IMF training participation
  - Online learning accounted for about 30 percent of training participants in FY2018.
  - Training participation under online learning started in FY2014 and has since grown to account for about 30 percent of training participants in FY2018.
  - Participant counts by modality (chart data): face-to-face counts by year: 7,811; 8,799; 9,950; 10,631; 10,498; 11,550. Online/distance counts by year: 951; 1,488; 3,879; 3,370; 4,860; 7,931. (Presented as in the source figures.)

### CD modalities and innovation in delivery
- Integration of TA and training
  - Greater emphasis on integrating TA and training; most TA now includes at least a modest training component.
  - Online, classroom, customized training, and peer-to-peer workshops are increasingly coordinated with country-specific TA projects.

- Regional and bilateral modalities
  - Fund leverages RTACs, regional training centers (RTCs), and bilateral projects to optimize CD delivery.
  - Examples of integration: Rwanda bank supervision long-term expert advice complemented by AFRITAC East training missions; joint RTAC-RTCs (e.g., ATI housed with AFRITAC South); launch of SARTTAC in 2017 as a fully integrated CD center.

- Delivery to fragile and conflict-affected states
  - Innovative approaches (off-site provision, remote online follow-ups) enabled continuation of CD when on-site provision was not feasible due to security concerns.
  - Effective in countries including Afghanistan, Iraq, and Somalia; in some cases off-site locations included Azerbaijan, Jordan, Lebanon.

### Econometric analysis of reallocation of IMF TA (1990–2015)
- General finding
  - IMF TA has been reallocated to reflect changing circumstances and broad needs of individual member countries, although movements occur over several years.

- Specific event responses
  - Formation of a new state: By the second year after formation, countries received on average an additional year (FTE) of IMF TA, with TA gradually increasing through the fifth year.
  - Ending of conflict: The ending of a conflict was associated with an additional five months of TA on average, but only in the fourth year after the emergence of peace.
  - Financial crises: IMF TA was not strongly associated with the outbreak of financial crises (systematic banking crisis, currency crisis, or sovereign debt crisis). Examples: after the Asian financial crises of 1997, TA moved strongly into Indonesia, but not to Korea; overall, IMF TA increased in less than half of the countries experiencing financial crises during 1990–2015.

- Notable intensive TA cases (post-crisis or transition)
  - Large increases in TA delivery occurred in Vietnam, Cambodia, and Laos in the 1990s; Indonesia in the late 1990s; Timor-Leste in the early 2000s; Post-Soviet states in the mid-1990s; West Bank, Gaza and Yemen in the late 1990s; and Cyprus and Greece after 2011.

### Monitoring and evaluation (M&E) and results-based management (RBM)
- Governance and framework development
  - 2013 CD Strategy Review emphasized strong monitoring and evaluation under a robust governance framework to foster accountability and learning.
  - Since 2013, the Fund initiated a comprehensive RBM framework defining ex ante objectives, outcomes and milestones for monitoring and evaluation.
  - As of May 2017, information is being systematically gathered and monitored for all newly initiated CD projects.
  - The Common Evaluation Framework (CEF) was put in place in 2016 to clarify evaluation methodology and medium-term evaluation planning cycles.
  - CD governance strengthened: CD policy statement updated, role of the CCB strengthened, regular reviews and analysis of CD policy mandated.

- Monitoring arrangements and quality control
  - Resource planning procedures monitor activities and use of inputs measured in dollars and FTEs against allocations in the Fund-wide RAP and project budgets.
  - Quality control mechanisms include HQ backstopping of field experts, formal interdepartmental review for CD mission briefs, departmental review for TA reports and outputs, and regular outreach by CD leadership for informal feedback.
  - In training, limitations on use of consultants, systematic internal review of briefs and course materials, annual course reviews, and routine front office review of back-to-office reports and participant feedback by ICD are in place.

- Results monitoring and RBM rollout
  - Results monitoring has been introduced over the past decade with decentralized piloting (e.g., STA country scorecards since 2012; FAD thematic trust fund portfolio approach since 2011).
  - All CD is now designed with standardized “results chains” or “log-frames.”
  - As high-quality data and analytic/reporting tools become available, results data will inform monitoring, adaptation, evaluation, strategic decision making, and reporting.
  - A snapshot as of June 2018 shows that results are being monitored across more than 600 projects.
  - Current work focuses on consistent adoption across HQ and field offices, quality testing, and strengthening business processes, tools and systems to implement RBM cost-effectively.

### CD governance reforms (summary)
- Policy framework
  - 2014: Statement on IMF Policies and Practices on Capacity Development updated to reflect 2013 Review outcomes; CCB governance reforms instituted; procedures defined to ensure new externally financed initiatives align with priorities and funding principles.
  - Late 2017: CCB procedures for resource allocation strengthened and semi-annual management-led discussions with department heads on CD issues initiated.

- Budget
  - External funding envelope integrated into the Fund’s medium-term budget; Board approves overall envelope for internally and externally funded CD activities as part of the Fund’s medium-term budget discussions.
  - CD planning cycle aligned with Fund’s strategic/medium-term budget cycle.

- Board oversight
  - CD strategy reviews regularized on a five-yearly cycle; CD routinely covered in strategic planning reports and staff and IEO policy reviews for the Board.
  - Informal Board briefings by CD departments initiated in FY18.

- Public information
  - Fund has expanded information available on CD activities, including an updated CD landing page and increased CD coverage in its Annual Report.

*Source: 2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES*

### 5.      A structure for data gathering on training-related results has also been developed

### 5.      A structure for data gathering on training-related results has also been developed

### Training results monitoring structure (ICD / IMF Training Program)
- Multiple levels of results-based monitoring for ICD training:
  - Post-course reaction surveys (end-of-course surveys assessing the value of the course).
  - Pre- and post-course tests of learning.
  - Occasional surveys of participants and managers several months after the course.
  - A broader survey of training directors and other stakeholders every three years.
- Since 2017, systematic strengthening of classroom training results focus across these dimensions.
- Reaction:
  - Outcome indicator: a composite satisfaction rating based on end-of-course surveys.
  - A revamped survey is being rolled out in FY2019.
  - Suggestions are collected through the questionnaire and discussion during the closing session.
- Learning:
  - Most tests revamped and standardized across deliveries, with each question linked to specific course objectives.
  - Learning proxied by increases in average test scores post-course versus pre-course and the share of participants achieving 60 percent and above on post-course tests for classroom and online courses.

### Good Practice Example in Results Monitoring (Box 2 — TPA-TTF / Revenue Mobilization Trust Fund)
- Tax Policy and Administration Topical Trust Fund (TPA-TTF) (2011–2016) and successor Revenue Mobilization Trust Fund (2016–2021) used RBM experimentation.
- Collection of results information began in 2011; data used to analyze portfolio and identify lagging projects to take remedial action or reallocate resources.
- Projects rated by aggregating ratings against expected outcomes to create an overall RBM score (scale from 1 not achieved to 4 fully achieved).
- This portfolio analysis approach integrated into the Revenue Mobilization Trust Fund using data from the new RBM framework.

### IMF CD Results Chain (Box 3)
- A CD results chain/log frame specifies causal links from inputs (dollars, staff time) → activities (missions, backstopping) → outputs (advice, reports, workshops) → expected outcomes (capacity improvements).
- The IMF’s RBM Catalog standardizes objectives, outcomes, and indicators across Fund CD:
  - Catalog developed by CD departments for 16 workstreams covering over 70 objectives, 320 outcomes, and 720 indicators.
- Outcomes are the primary measure of success for Fund CD; achievement assessed via outcome indicators.
- Milestones defined for each project to measure interim steps toward higher-level results and to signal need for intervention.

### Follow-up surveys, triennial survey, course review, and online evaluation
- Follow-up surveys:
  - Sent one year to eighteen months after the course to participants and sponsoring managers to assess use of taught skills on the job.
  - Coverage recently expanded to all courses delivered by ICD under the external training program.
- Triennial (every three years) survey of sponsoring agencies:
  - Conducted since 1995; most recent survey completed in 2015.
  - Sent to sponsoring government agencies to gather views on effectiveness of the Fund’s training program and future training needs.
  - Seeks overall evaluation from sponsoring agencies; does not target specific course or participant views.
- Annual review of each course to facilitate ongoing improvement of course material and teaching methods.
- Online course evaluation:
  - Systematic use of post-course surveys and pre- and post-course tests.
  - Use of click-tracking to assess courses and identify drop-off points.

### Early use of new RBM framework — RTACs (Box 4)
- The Fund’s network of 10 RTACs have piloted results frameworks with varied content and reporting practices.
- Phased roll-out of the Fund’s new RBM framework for RTACs comprising three elements:
  1. Development of country- and topic-specific log frames based on the standardized RBM catalog and milestones, with outreach to authorities.
  2. Reporting progress towards milestones regularly, as well as against indicators.
  3. Using results information for management purposes and annual reporting to steering committees and dialogue with beneficiaries.
- Near-term focus: ensure consistent application across RTACs, development of standardized reporting suites, and learning lessons for framework governance.
- Ratings scale used: 4 = Fully Achieved, 3 = Largely Achieved, 2 = Partially Achieved, 1 = Not Achieved/Started.
- Example performance statistic: CARTAC Average Milestone Ratings for FY17 (at October 31, 2017) shown in the source (figure referenced).

### Strengthening RBM, business processes, and reporting tools
- As more data becomes available and is used for decision-making, the RBM framework will continue to be strengthened.
- Key elements to reinforce:
  - Business processes and systems:
    - CD delivery staff interact with various corporate IT systems and area departments need access to CD information.
    - Rapid growth in CD, expansion of regional CD centers, and increased external funding add complexity to monitoring performance, planning, and financial data.
    - Need to harmonize processes, retire/replace outdated technology to reduce data fragmentation, reliance on manual entry, and institutional risks.
  - Strengthening reporting tools:
    - Additional reporting tools needed to analyze and share results information for strategic decision-making and reporting to the Board and donors.
    - Modernized reporting tools for inputs and outputs expected to strengthen monitoring and governance.
  - Facilitating area departments’ leading role on overall country engagement:
    - Area departments need more systematic access to CD results and planning information to monitor and follow up on macro-critical recommendations and support integration of CD and surveillance.

### Evaluation framework, CEF adoption, and evaluation types
- The Fund undertakes regular evaluations of CD projects and programs; these feed into broader reviews of CD policies and activities.
- Donor-mandated evaluations:
  - External donors fund 55 percent of Fund CD.
  - Most externally funded activities are subject to mandatory periodic evaluations, often broad in scope and including governance arrangements.
  - For regional CD centers and thematic trust funds, evaluations typically conducted midway through each funding cycle.
- CD department-led evaluations:
  - Range of informal and formal evaluations to assess effectiveness, impact, and relevance of CD advice and extract lessons.
  - Include inspection and assessment visits, self-evaluation of projects, and topical evaluations.
- Adoption of a CEF in 2016 to strengthen evaluation:
  - Streamlines practices, increases comparability with a common approach across departments, and strengthens focus on results achievement in-line with RBM.
  - CEF mandates all evaluations follow OECD DAC evaluation criteria of relevance, impact, effectiveness, efficiency, and sustainability.
  - Expected outcomes: shorter, more focused, comparable evaluations that feed into practice changes.
  - More detailed staff guidelines to be issued following initial experience.

### Challenges and lessons from RBM literature (Box 5)
- Challenges:
  - Requires fundamental organizational change (behavioral and cultural).
  - Takes years: at least four to five years to get the system up and running.
  - Costs: measurement-focused or under-resourced efforts likely to produce slow, spotty, and unsustained progress.
- Lessons:
  - Foster the right climate through strong leadership, incentives, learning culture, and valuing evidence-based outcome information.
  - Set realistic expectations for RBM: informing, not determining, decisions.
  - Get buy-in and use performance data through sustained bottom-up and top-down approaches.
  - Set reasonable performance expectations, clarify whether targets are predictive or stretch, and consult beneficiaries.
  - Be selective in information gathered to avoid information overload.
  - Avoid distorting behavior by focusing on higher-level outcomes and regularly reviewing indicators to prevent perverse incentives.
  - Define accountability for outcomes carefully, considering factors outside implementers’ control.
  - Pay attention to measurement, attribution, and data quality; accept uncertainty and experiment to find robust measures.
  - Credibly report performance, combining performance story with numbers.
  - Link financial and performance information by determining costs of results.

### Key challenges in strengthening the Fund’s evaluation function under the CEF
- Need to build a more strategic evaluation program balancing donor accountability needs and the Fund’s learning and accountability objectives.
  - From 2013–2017, 25 out of 30 external evaluations were commissioned in relation to externally financed programs.
  - External evaluations have provided feedback on program governance, RBM, results reporting, and delivery of CD, but can be repetitive.
  - Planning of evaluations largely driven by donor obligations; consulting with donors to avoid duplication would be useful.
- Leverage existing budget resources for an effective agenda for internally funded evaluations.
- Align self-evaluation of TA projects with the CEF via a self-assessment questionnaire at project end.
- Establish a more systematic response mechanism to evaluations, with action plans and periodic reporting on progress; systematize for all formal evaluations.
- Create a central repository and reporting:
  - New page to be established within the “Capacity Development” section of the IMF’s website for published evaluations.
  - Complement an in-house central repository of all internal and external evaluations and their responses.
  - Summaries of key findings to be incorporated into future CD reviews.

### Summary of Recommendations (paragraph 12)
- RBM:
  - Continue intensive cross-department efforts to embed results culture and systematically collect results information to strengthen monitoring, cooperation, and decision making.
  - Possible actions: review incentives to strengthen results focus; develop and roll out project management and RBM training for new CD delivery staff; establish an interdepartmental RBM network to share best practices.
  - Agree with authorities on CD design and result frameworks upfront and use them as communication tools during implementation.
- Engine room (CDMAP and systems):
  - Continue updated program to build out CD management and administration processes and systems (CDMAP).
  - Provide adequate tools to monitor and report various aspects of CD, including results; increase transparency; harness efficiency gains via harmonized business practices and modernized systems.
  - Enhance CD governance effectiveness and area departments’ role in monitoring CD.
  - Use CD effectiveness data to feed into institutional risk assessment.
- Evaluation:
  - Follow-up on CEF to: (i) clarify response and follow-up mechanisms to external evaluations; (ii) develop a central repository for evaluations and include a link to all published evaluations on the CD landing page; (iii) build out a medium-term evaluation plan driven by internal strategic considerations and donor accountability needs; (iv) begin using evaluations as input to prioritization driven by the CCB; (v) roll out new self-evaluation template to all projects; (vi) issue staff guidelines for CEF rollout.
  - Rebalance the evaluation program by considering best use of internal evaluation resources, enhanced consultation with area departments and across departments via the CCB, and exploring flexible donor use of evaluation resources (e.g., pooling for a three-year rolling evaluation program or theme-focused evaluations).

*Source: 2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES, International Monetary Fund*

### Annex I. CD Responsibilities of the Executive Board and the

### Annex I. CD Responsibilities of the Executive Board and the Managing Director

### Allocation of legal responsibilities
- Article XII, Section 3(a): “[t]he Executive Board shall be responsible for conducting the business of the Fund.”
- Article XII, Section 5(b): “[t]he Managing Director shall [...] conduct, under the direction of the Executive Board, the ordinary business of the Fund.”

### Distinctive but complementary roles (practice and decisions)
- The Executive Board:
  - Provides strategic direction and oversight through (i) regular reviews of, and policy guidance for, the Fund’s CD policies and activities; and (ii) the budget process.
  - Approves nonmembers and international organizations for eligibility to receive CD from the Fund.
- The Managing Director / Management:
  - Implements the Executive Board’s overall strategic direction.
  - With staff, conducts the operations related to the Fund’s CD activities.

### Operational implication
- Delineation of responsibilities has evolved through the adoption of general decisions by the Board or through practice.

---

### Annex II. History of Results Monitoring and RBM in the Fund

### Chronology of key reviews and developments
- 2002 Review of Technical Assistance:
  - Recommends the Fund acquire a TA management system and systematize TA monitoring.
  - Board stressed need for greater standardization in planning, monitoring, and evaluation, and requested additional information on the actual effectiveness and impact of TA.
- 2005 IEO Evaluation of IMF Technical Assistance:
  - Recommends staff define ex-ante results frameworks and use the TA management system to strengthen tracking of progress.
  - Board endorses recommendations to develop more systematic approaches to track progress on major TA activities and to identify reasons behind major shortfalls.
- 2008 Enhancing the Impact of Fund Technical Assistance:
  - Proposes move toward “results-focused” project management and introduces common terminology for results frameworks.
  - Board supports results-focused management of TA projects, assessed against benchmarks on outputs and outcomes.
- 2011 Report of the Task Force on the Fund’s Technical Assistance Strategy:
  - Recommends systematizing focus on outcomes and introduction of RBM, starting in RTACs and thematic trust funds.
- 2013 The Fund's Capacity Development Strategy—Better Policies Through Stronger Institutions:
  - Recommends a comprehensive RBM framework to cover all Fund CD and systematize focus on outcomes.
  - Board supports continuing implementation of results-based management, with increasing emphasis on outcomes and clear objectives.

---

### Annex III. RBM at Peer/Partner Institutions

### Swiss State Secretariat for Economic Affairs (SECO)
- Implementation history:
  - RBM implementation started in the early 2000s and evolved gradually over ~15 years.
  - Drivers: strengthen sustainability of development interventions, improve communication with partners, and respond to demand for accountability by Parliament and civil society.
- Coverage:
  - Applies results chains for projects of CHf1 M (about $1.1 million USD) or more.
  - A pre-defined set of 26 Standard Indicators is included selectively in results frameworks for aggregate external results reporting.
  - Implementing partners required to report along the structure of the results frameworks.
  - No supporting project management software.
- Dynamic processes:
  - Results frameworks reviewed periodically and adjusted when necessary (midterm evaluation, internal review, or based on progress reports).
  - “Inception phase” may be used to define a results framework in complex circumstances.
- Reporting and learning:
  - Progress reports and evaluations assess results against results frameworks; major deviations must be explained.
  - Annual results report submitted to the Federal Council and Parliament, describing major results and challenges; balance sought between accountability and learning.
- Risk management:
  - RBM complemented by a risk management system with clearly defined categories.
  - Risks periodically reassessed and tracked at project, country and institutional level.
  - High risks added to a risk register and monitored systematically on a quarterly basis.

### World Bank
- RBM practice:
  - At project inception, a results framework is developed to rationalize project design and project logic.
  - World Bank teams work with borrowers during preparation to set up Management and Information Systems and gather baseline information.
- Evaluation framework:
  - Self-evaluation: Bi‐annual self-evaluations via Implementation Supervision Report; Implementation Completion Report (ICR) produced upon completion; self-evaluation validated by the Internal Evaluation Group (IEG).
  - IEG review: Systematic project ratings to track institutional progress and incentivize better performance.
  - Corporate scorecards: 22–25 indicators across three tiers—long-term development outcomes, client results, and performance—with targets and a traffic light system.
- Processes and systems:
  - An Operations Portal provides a one stop shop for managers to monitor project progress from conception to ICR, with documented workflow, sign off processes, and document retrieval.

---

### Annex IV. Internal and External Evaluations, 2013–2020

### Inventory of internal and external evaluation reports (selected years)
- 2013: Internal — STA—Bhutan; Internal — STA—Macedonia; External — East AFRITAC Phase III; External — CAPTAC-DR Phase I; External — West AFRITAC Phase III.
- 2014: External — FIRST, Phase II; Internal — MCM—Bangladesh, Maldives, and Nepal; External — METAC, Phase III; External — Japan Subaccount.
- 2015: External — Swiss Subaccount, 2009-2015; External — Tax Policy and Administration TTF, Phase I; External — Managing Natural Resource Wealth TTF, Phase I; Internal — STA—Guatemala; External — AFRITAC South Phase I; External — PFTAC, Phase IV; External — Evaluation of the Fragile States Project; External — CARTAC, Phase IV.
- 2016: External — Final Evaluation Project Strengthening Capacity in VAT Implementation and Budget Formulation; The Gambia; External — Central AFRITAC, Phase II; External — South Sudan Trust Fund.
- 2017: External — FIRST, Phase III Operations (2013-2017); External — Africa Training Institute; External — CAPTAC, Phase II; External — AFRITAC West 2, Phase I; External — Japan Subaccount; External — AML/CFT, Phase II; External — Debt Management Facility II Trust Fund, Phase II; External — Somalia Trust Fund; External — Tax Administration Diagnostic Assessment Tool; Internal — FAD—Building Fiscal Capacity in Fragile States; Internal — FAD/AFR—Domestic Revenue Mobilization in AFR Countries; Internal — MCM—Malawi/Zambia; Internal — MCM—Central Bank Operations.
- 2018: External — East AFRITAC, Phase IV; Internal — FAD/AFR—Treasury and Cash Management; Internal — MCM—ECCU: Financial System Strengthening; Internal — MCM—Bhutan: Financial Supervision, Stability, and Central Bank Operations.
- 2019: External — METAC, Phase IV; External — PFTAC, Phase V; External — Netherlands Capacity Development Partnership Program; Internal — STA/AFR—Joint Capacity Development Evaluation; Internal — MCM—AFR: Domestic Debt Market Development; Internal — MCM—Ukraine: Central Bank Operations.
- 2020: External — Managing Natural Resource Wealth, Phase II; External — Revenue Mobilization, Phase II; Internal — MCM—Tunisia: Bank Supervision OR Algeria: Liquidity Management; Internal — MCM—Monetary Operations coupled with FPAS work; Internal — MCM—Myanmar: Banking Supervision and Central Bank Operations.

---

### Annex V. Findings and Recommendations from Evaluations, 2014–2017

### Overview
- Summarizes major findings and recommendations from 15 CD evaluations completed since the 2013 review.
- All evaluations note a high degree of satisfaction with the technical competence of IMF CD, based on client surveys.
- Review reinforced importance of the CEF reforms: shorter reports focused on major issues, comparability of results under common methodologies and definitions, focus on achievement of objectives defined ex-ante, and clear identification of project/program risks up front.

### Common evaluation conclusions and implications
- Results conditionality:
  - Many evaluations conclude that results (whether the advice is adopted and whether advice has a positive effect) are conditional on factors outside the control of those delivering assistance.
  - Two prominent external factors: commitment to reform by key authorities and capacity of their staff and availability of resources to implement and sustain reforms.
- Recommendations emphasized:
  - Increase pre-CD screening against these risk factors.
  - Increase efforts to measure achievement of results (addressed through RBM and CEF implementation).
- Staff responses:
  - IMF staff prepared responses to recommendations for five RTAC evaluations, the ATI evaluation, two thematic fund evaluations, and one bilateral evaluation; five responses are published online or included in published Annual Reports.
  - The Common Evaluation Framework provides for more systematic tracking and review of responses to recommendations.

### DAC criteria ratings and interpretation
- Evaluations report findings using DAC criteria: Relevance, Effectiveness, Impact, Efficiency, Sustainability.
- Ratings ranged between 2.4 and 3.8 on a scale of 1–4.
- For the 11 (of 15) evaluations that reported ratings:
  - Average of all ratings was 3.1.
  - Average score for Relevance was 3.5 (statistically significant at the 10 percent level compared with overall average).
  - Achievement of objectives (Effectiveness) average rating was 3.0.
  - Evidence for achievement of outputs was stronger than for achievement of outcomes; sub-ratings showed outputs rated higher than outcomes (examples: AFRITAC South (2015) and AFRITAC Central (2016) — average rating for effectiveness regarding outputs was 3.7 and for outcomes was 3.1).
  - Ratings for Impact, Efficiency, and Sustainability were all close to 3.0 and not statistically distinguishable.
- Note on comparability:
  - Variations in definitions of DAC criteria across evaluations have limited cross-evaluation comparability; the Common Evaluation Framework requires greater consistency in definitions.

### Common obstacles to project success (mentioned in at least two evaluations)
- Lack of commitment by the authorities; political uncertainty.
- Weak capacity of the implementing agency; insufficient resources.
- Turnover of long-term experts.
- Turnover of local staff.
- Lack of security.

### Themes from evaluation recommendations and typical staff responses
- RTAC evaluations:
  - Called for greater focus on results and suggested greater engagement of steering committees on assessing results.
  - Common themes: more programmatic/medium-term planning, use of country strategies, stronger recording and reporting of results to enable substantive steering committee engagement.
  - Staff responses generally agreed and noted implementation of the comprehensive RBM initiative addresses many issues raised.
- Thematic Fund evaluations:
  - Recommended devoting greater resources to pre-project screening.
  - Specific recommendations: (i) better diagnostic work including detailed risk assessments and country-needs assessments; (ii) pre-project confirmation of broad-based commitment by authorities to outcomes (not just one or two individuals); (iii) pre-project confirmation that resource allocation and staff capacity are sufficient to support intended outcomes (examples: MNRW, TPA).
  - MNRW and TPA agreed to devote more time and resources to pre-project scoping activities.

*Annexes I–V, 2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES*

### Box 1. Major Recommendations of RTAC Evaluations 2014–2017

### Box 1. Major Recommendations of RTAC Evaluations 2014–2017

### 1. Manage towards the achievement of substantive, longer-term objectives
- Three of five RTAC evaluations reviewed included this recommendation.
- Examples of recommendations:
  - “deliver strategically important multicountry, multiyear programs of technical assistance that are carried through to completion independently of the tenures of individual advisors;”
  - “IMF should develop medium-term strategies informed by capability assessments for each country.”
- Staff response:
  - Staff responses agreed with this recommendation.
  - Country strategies and annual work plans are moving towards formulation of objectives and outcomes over a multiyear horizon, backed up by increased use of log frames and measurable indicators developed under RBM.

### 2. Improve focus on results
- All RTAC evaluations recommended greater focus on outcome indicators and results.
- Specific recommendations included:
  - Refinement of milestones, updating of topical indicators, and development of targets in consultation with recipients.
  - “systems are less important than investing in the measurement of results.”
  - “Define clear and measurable performance indicators and targets;”
  - “Shift monitoring and reporting from input-output to the assessment of the likelihood of achieving expected results;”
  - “Strengthen further its RBM through better linkage of outcomes with TA, more focused risk definition, and ensuring log frames cover the entire results chain.”
- Staff response:
  - Staff responses noted that the RBM initiative and the Common Evaluation Framework were being implemented to respond to calls for improved focus on results and more consistent evaluation.

### 3. Steering committee meetings should shift focus to strategic questions, priorities, and results achieved
- Two of five RTAC evaluations recommended greater engagement of the steering committee on prioritization and results, with emphasis on:
  - More strategic advice.
  - Reduction in the volume of information requested.
  - Exploration of options to consolidate information.
  - Highlighting specific reasons for nonachievement of targets.
  - Presentation of key performance indicators.
- Staff response:
  - Staff responses accepted this recommendation and noted that many of the proposed strengthening actions were in progress or had been put in place.
  - Increased use of the outcome indicators being developed under RBM are expected to further facilitate more substantive discussion of results in steering committee meetings.

### 4. Improve governance of steering committee
- Three evaluations called for more engagement by steering committee members, including:
  - Calls for steering committee members to better represent the views of organizations they represent.
  - Suggestion: “Appoint beneficiary member countries’ heads of finance departments and central banks or, in their absence, their deputies, as voting members of the steering committee.”
- Staff response:
  - In response, RTAC staff have acted to ensure early circulation and discussion of draft program documents and annual work plans and encourage representation of both ministries of finance and central banks at steering committee meetings.

### 5. Other recommendations
- Highlighted importance of diversified funding sources.
- Touched on RTAC-HQ roles and outreach.

*Source: Box 1. Major Recommendations of RTAC Evaluations 2014–2017 (2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES).*

### 5.      Flexible delivery modalities. Staff have expanded experimentation in delivery modalities to

### pp1002182018reviewfunds-cdstrategybackgroundshortnotes - 5.      Flexible delivery modalities. Staff have expanded experimentation in delivery modalities to

### Combining training modalities
- Development of modules for online and classroom training courses allows more flexible deployment of training materials.
- Online courses used as prerequisites for classroom training (example: Debt Sustainability Analysis courses developed with FAD, MCM, RES, and ICD).
- Peer-to-peer workshops increase traction by allowing country authorities to learn from each other.
- ICD will convene a working group to consider further leveraging online training to modernize delivery.

### Customized and peer-to-peer training
- Demand for customized training has increased since 2013, with several departments and RTACs developing targeted programs.
- ICD provides peer-to-peer seminars to help member-country agencies set up and organize staff training programs, drawing on the Fund’s Internal Economics Training experience.

### Integration of training and TA
- Embedding training in TA: TA deliveries often involve process-oriented, hands-on training, such as workshops with practical exercises; demand is increasing.
- Combining TA and classroom training:  
  - Integration can increase impact and durability of CD but requires close coordination within and between departments to (i) coordinate selection, timing, and sequencing of courses to build required skills in time to support target TA activities, and (ii) select participants strategically to include TA-receiving teams.  
  - Examples:  
    - STA’s external sector statistics TA for Georgia in 2008 coordinated a range of training activities to support TA.  
    - ICD planned a classroom forecasting course at the Bank of Jamaica (BoJ) in 2018 to support an ongoing MCM/CARTAC project on monetary policy modernization at BoJ.  
    - SARTTAC planned an MCM monetary policy and operations course to support monetary policy modernization TA in South Asia.
- Broader packages of CD: workshops, peer-to-peer events, CT, and TA can be bundled to strengthen impact.  
  - Example: ICD and MCM joint project combining TA, CT, and country-specific training to strengthen capabilities in monetary policy formulation and implementation for the Reserve Bank of Malawi.  
  - Several projects integrate CT and TA on modernizing monetary policy frameworks in Belarus, Ghana, Mozambique, Rwanda, Sri Lanka, Tanzania, and Uganda.

### Lessons and challenges for integration going forward
- RTACs have played a key role in integration by identifying and prioritizing CD needs and coordinating selection, timing, and delivery modes.
- Inclusion of training in the RAP/RSN process will help ensure effective planning; adoption of a three-year horizon in the new RAP process will aid sequencing of CD activities.
- Challenge: maintain sufficient flexibility within a flat resource envelope to respond to emerging urgent needs.
- Cost-effective, flexible delivery requires close coordination within and across departments to manage complexity when multiple delivery departments are involved.
- Modular approach to online and classroom courses and increased emphasis on CT facilitate integration; however, development of online modules requires significant upfront resources and easier access/dissemination mechanisms should be explored.
- Area department teams play a key role in identifying integration opportunities; strong two-way engagement between country teams and CD departments is necessary, especially for countries not directly covered by an RTAC.

### CD and emerging issues — recent work and modalities
- Emerging issues covered include technology, energy, inequality, gender, and climate change; CD on these issues remains modest to date but demand may increase with Fund analytical work.
- Energy:  
  - Course on Macroeconomic Management in Resource-Rich Countries includes an online option.  
  - An online Energy Subsidy Reform course delivered annually since FY15; similar class offered at JVI in 2016.  
  - Annual workshop on energy subsidy reform held in Kuwait since 2013.  
  - Since FY15, TA from AFRITAC East to Tanzania and Uganda on fiscal frameworks for oil and gas revenues; TA to Sri Lanka on automatic pricing mechanisms; TA to Brunei Darussalam on fuel subsidy reform strategy.  
  - AFRITAC East and RES held a workshop on debt sustainability and growth in resource-rich economies for Kenya, Tanzania, and Uganda in FY16.  
  - STA implementing a project in resource-rich countries with TA and training on revenue and national accounts statistics for nonrenewable natural resources.
- Technology:  
  - Cyber issues: group led by MCM, ITD, LEG, and SPR developing a strategy to embed cyber risk in risk assessment; MCM held a workshop in December 2017 for authorities from 60 middle- and low-income countries; workshop to be repeated in December 2018; bilateral TA delivered to two LICs in the first quarter of 2018; regional workshops at four RTACs planned in FY19; bilateral TA expected to increase.  
  - Fintech: MCM developing a new Financial Market Infrastructures and Fintech (FMIF) course with first delivery at STI in April 2018; lectures on fintech included in courses since 2016; a lecture on virtual currencies will be included in the Monetary Policy course in FY19; MCM plans further guidance on crypto-assets regulation and supervisory technology use.  
  - Digitalization: April 2017 seminar by FAD with the Bill and Melinda Gates Foundation on technological advances in public finances; April 2018 Fiscal Monitor addressed ‘Digital Government’; STA examining measurement of the digital economy.
- Inequality and gender:  
  - Inclusive Growth course created in 2013, module on demographics and gender added in 2015, and lecture on corruption links; scheduled for delivery in all five regions in CY18. A revised and expanded unit on gender issues and a unit on climate change expected in FY19. Since 2013, about 1,100 government officials benefitted from external training on inclusive growth issues.  
  - Gender CD: peer-learning events, regional workshops on gender budgeting, and advice on gender budgeting as part of FAD TA missions; AFR and SPR organized a November 2017 peer learning event in Rwanda with over 170 representatives from over 20 countries. Workshops conducted with FAD support in CAPTAC-DR, CARTAC, JVI, and SARTTAC from end-2017 to March 2018. FAD advised on gender budgeting in Cambodia, Niger, and Ukraine since 2016.
- Climate change: TA on climate mitigation and carbon pricing; increased support to small states exposed to climate-related natural disasters (PFTAC/CARTAC Notes from the Field). Climate Change Policy Assessments in St. Lucia and Seychelles in 2017; TA since 2016 to Guatemala and Colombia on carbon taxation design and impact; TA to Jamaica on environmental taxation reform as part of broader tax policy mission.

### Considerations and challenges for CD on emerging issues
- Factors to consider: demand from members; macro-criticality; degree of in-house expertise; cost; synergies with surveillance and UFR; collaboration and partnerships with other providers.
- The FINE model (Focused, Integrated, Nimble, Effective) remains relevant for delivering CD in emerging areas under constrained resources.
- Challenges include limited overall resources and growing demand, need for specialist expertise, and rapidly evolving topics (e.g., fintech, cyber risks).
- Departmental responses:  
  - Building internal expertise for macro-critical areas (example: MCM recruited one specialist and is recruiting a second for cyber security TA; MCM building in-house fintech expertise supplemented with external experts).  
  - Leveraging partnerships and external experts, and developing tools and collaborations (example: FAD working with IMF training institutes to deliver gender workshops and developing STATA-based tools for energy subsidies).

### Technology in CD delivery — role and effects
- Technology enables:  
  - Knowledge-sharing with wider audiences (public, member officials, specialists).  
  - Significant scaling up of training volume to member country officials.  
  - Enriched delivery modalities offering richer cross-country experience, easier peer-expert connections, and distilled practical tools.

_Italic: Source — 2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES, INTERNATIONAL MONETARY FUND._

### 2.      Content. This paper provides an update on technology-linked delivery since 2013 and

### 2.      Content. This paper provides an update on technology-linked delivery since 2013 and

### B. Update Since 2013 — Online learning and digital dissemination

- Online learning program launched in 2013 and delivering on four objectives:
  - Scale up the volume of training to government officials.
    - Online learning contributed to the bulk of the nearly 70 percent increase in the number of government officials trained.
    - In FY18, online learning accounted for about 30 percent of all training participants.
  - Share knowledge with the wider public through massive open online courses (MOOCs).
    - Online courses have attracted over 42,000 active participants.
    - Almost 12,000 government officials and 10,000 members of the public from 192 countries have successfully completed an online course.
  - Complement classroom training with advance preparation.
    - Participants score significantly higher on end-of-course tests: 18 percentage points higher on average compared with pre-course test performance.
    - Preliminary research suggests classroom training performance is stronger for participants who have successfully completed an online course.
  - Improve absorption of TA by offering online training on related topics.
    - Curriculum development emphasizes introductory or intermediate material, tools for analysis, Fund country examples and case studies, and TA-training synergies.

- Distilling and disseminating specialized knowledge using technology:
  - Customized webinars and web conferences to reach specialized, dispersed audiences and officials in locations with security concerns (example: 2017 ICD pilot three-hour webinar on “Economic Issues in Regional Integration” for Brazil’s Central Bank).
  - Videoconference and email enabled FAD to provide fiscal TA to Liberia during the Ebola crisis.
  - Creation and use of websites, blogs, games, apps, educational videos, podcasts, and social media to disseminate knowledge:
    - FAD PFM blog, mobile phone application introducing TADAT, and first gaming application addressing “Medium-Term Revenue Strategy.”
    - COM and ICD sponsoring outreach using social media.
    - STA promoting an e-learning series of videos on Government Finance Statistics Manual 2014.
    - APD piloting a collaboration site in the ASEAN region.

- Improved technology infrastructure opening new TA areas:
  - FAD “hackathons” in Uganda, Senegal and Cote d’Ivoire (with Gates Foundation support) used crowd sourcing to identify gaps and write first IT specifications for tax administration challenges.
  - FAD developed and provided access to 85 specialized databases and numerous tools for evidence-based TA advice; databases store cross-country information permitting analysis of fiscal transparency, PIMA efficiency frontier, impact of revenue administration practices, expenditure structure, and extent of energy subsidies.

### C. Looking Ahead — Opportunities and strategic directions

- Expand short, on-demand learning formats:
  - Short modules, educational videos, podcasts, mobile learning (mLearning).
  - Use platform analytics to assess effectiveness.
  - ICD project to use MOOC big data for a “live data” approach to online course management.
  - Machine learning algorithms to perform text analysis of discussion forum posts to assess participant experience and peer-to-peer exchange depth.

- Video and immersive technologies:
  - Cloud-based video conferencing is affordable and supports collaboration without location constraints.
  - Virtual reality technology could be explored for interactive shared experiences.

- Leverage web-based applications and cloud technology:
  - Progressive web apps (PWA) optimized for mobile devices could support mobile learning in low-bandwidth environments.
  - 2018 Board-endorsed overarching strategy on data and statistics promotes integrating country websites into a global data commons.
  - STA assisting countries to adopt cloud-based dissemination of NSDP data in SDMX format to enable machine-to-machine data exchange and support Fund surveillance needs.

- Cloud-based sharing of data frameworks and compilation tools:
  - New cloud database technology enables maintenance of structured and unstructured information, correlation, targeted reporting, and sharing with dispersed audiences.
  - Country-specific data compilation tools can be easily extended to other members on demand.

- Information management and big data:
  - Data for Decisions (D4D) Fund aims to put more and better data in the hands of decision makers to enhance evidence-based macroeconomic policies and support achievement of the SDGs.
  - Fund to provide advice on statistical information management practices and technical environment for statistical offices, central banks, and ministries.
  - Big data as a viable option to strengthen statistics; Fund could develop statistical TA to help countries understand and implement big data options.
  - New strategy on data and statistics recommends CD support for big data use in two ways:
    - (i) learning from country authorities that lead on big data to facilitate peer learning across the membership;
    - (ii) sponsoring visits of member countries’ statistical office staff leading in big data use to countries interested in learning to produce statistics.
  - Best practices learned could be used to customize Fund CD.

---

### IV. CAPABILITY ASSESSMENT PROGRAM

### A. Introduction — CAP pilot overview

- CAP purpose: voluntary, assess ability of central banks and ministries of finance to effectively formulate and implement sound monetary and fiscal policies through high-level institutional assessments (complementing ROSCs and PEFA).
- Pilots intended to inform country CD priorities in consultation with multilateral and bilateral development partners.

- Pilot implementations (2013–15):
  - Libya CAP: comprehensive (Central Bank and Ministry of Finance); concluding report with high-level summary, cross-cutting themes, and training needs; security situation impeded implementation of follow-up CD plan.
  - Tunisia CAP: assessed Central Bank; concluding report presented; mission included an external advisor with policy-making experience; economic problems and frequent government changes in 2013–15 delayed authorities’ responses to recommendations.
  - In both Libya and Tunisia, authorities appreciated the exercise for identifying institutional priorities and training needs.

- Somalia (outside pilot framework): capability assessment for central bank and finance ministry with concluding discussions, action plan, and donor coordination; considerable progress since 2013 in rebuilding capacity to prepare and monitor annual budget, implement national currency reform, and strengthen central bank governance.

### B. Lessons learned

- General value recognized by authorities, Fund staff, and donors; strong authority interest in capacity building and donor willingness to help.
- Tunisia: senior external consultant presence seen as particularly useful.
- CAP emphasized synergies between TA and training:
  - ICD participated in concluding missions and training venue identification.
  - IMF courses through Middle East Center for Economics and Finance in Kuwait, METAC, and IMF HQ identified; Libya and Tunisia officials given priority participation.
- Challenges observed:
  - Pilot countries undergoing deep transitions may have been assessed too early; long lags between exercise stages due to political and economic pressures.
  - Off-site field visits reduced outreach and internal consensus-building opportunities.
  - Importance of country ownership and authority drafting of reform roadmaps; capacity constraints can impede this.
  - CAP framework is resource intensive at staff level.

### C. Proposed way forward

- Leverage CAP elements selectively in CD work:
  - Role of mission chief: active engagement of area department mission chief critical to emphasize institutional capacity importance for implementing Fund technical advice.
  - Flexible, modular approach: Somalia experience suggests targeted CAP elements tailored to case needs; comprehensive approach may not be effective in many cases.
  - Supporting tools: since 2013, CD departments developed several assessment and diagnostic tools to clarify institutional frameworks and identify CD reform priorities; useful for fragile states and countries with relatively strong institutions for sequencing and prioritization.

- Draw on external experience and partnerships:
  - Facilitate links between countries seeking institutional capability improvements and peer countries with successful reforms.
  - Engage other CD providers and partners as part of country strategies, especially where Fund lacks expertise (e.g., civil service reform).

---

### V. COORDINATION WITH OTHER CD PROVIDERS

- Coordination is needed to promote sequenced, consistent, and complementary CD and to avoid duplication.
- Current coordination arrangements (levels and examples):
  - Institutional level: formal agreement between the IMF and the World Bank (WB) and other MoUs.
  - Thematic level: joint topical trust funds (FIRST, DMF with WB); Tax Policy Platform of IMF/WB/United Nations; joint diagnostic tools (PEFA, MTDS with WB); joint efforts for fragile and conflict-affected states (IMF/WB DMF).
  - Regional level: RTAC engagement with donors and CD providers; ICD and STA coordination with regional training centers (Center for Latin American Monetary Studies, WAIFEM, MEFMI); ICD joint programs with MEFMI, WAIFEM, South African Reserve Bank; SARTTAC and STI joint courses with SEACEN and Malaysian Research and Training Centre.
  - Country level: country teams meet other CD providers, resident representatives participate in donor committees, WB staff participate in PIMA missions and share missions in financial sector reform and public debt management; area departments sometimes include other CD providers’ work programs in country strategy notes.

- Coordination objective: enhance what works, identify challenges, and propose ways to improve coordination among CD providers.

*pp1002182018reviewfunds-cdstrategybackgroundshortnotes - 2.      Content.*

### 2.      There are many examples of effective coordination approaches. The list below

### pp1002182018reviewfunds-cdstrategybackgroundshortnotes - 2.      There are many examples of effective coordination approaches. The list below

### Institutional Level
- MoUs, e.g., between STA and the Economic Commission for Latin America and the Caribbean, facilitates coordination in compiling statistics in various countries in the region.

### Thematic Level — Examples of coordination and information sharing
- Annual meetings with other CD providers to discuss CD delivery in regions or specific countries, e.g., World Customs Union meeting with IMF/IDB/WB.  
- Joint working groups in specific technical areas, e.g.,  
  - Inter-Secretariat Working Group on National Accounts (Eurostat, IMF, OECD, UN, and WB)  
  - Advisory Expert Group on National Accounts (Eurostat, IMF, OECD, UN, WB, and member countries experts)  
  - Balance of Payments Committee (IMF, Bank for International Settlements, the European Central Bank, Eurostat, OECD, UN)  
  - IMF Government Finance Statistics Advisory Committee (Eurostat, IMF, OECD, WB, International Public Sector Accounting Standards Board, compilers, users, and academia)  
  - Global Conference on the G-20 Data Gaps Initiative (IMF, Financial Stability Board, and G-20 countries officials)  
  - Statistical Forum (policy makers and academics)  
- Informal information-sharing arrangements, e.g., public debt management matrix for sharing future work plans with the WB.  
- Jointly-developed CD tools, e.g., the MTDS framework and the TADAT, which is supported by international donors, the WB, and the European Commission.

### Country Level — Examples of country-focused coordination
- Country-led coordination structures in Rwanda: authorities prioritize the overall agenda for CD in line with the government-led development vision; established an overall division of labor among various CD providers (IMF, WB, UNDP, ILO, the Food and Agriculture Organization (FAO), ADB, and multiple donor countries) based on individual ability to provide the preferred aid modality; local coordinators appointed within key government institutions to facilitate continuous oversight of CD projects.  
- Resident representative participation in donor coordination committees (e.g., Bosnia and Herzegovina).  
- Resident CD coordinator: countries with high CD usage such as Mozambique and Ukraine have a dedicated resident expert assigned to manage coordination of Fund CD and to coordinate with other CD providers.  
- Thematic country coordination committees, e.g., coordination committee for financial sector TA in Myanmar: participants coordinate TA delivery, share plans, programs, and advice; established sub-sectoral groups to implement work plans and develop milestones for monitoring performance.  
- Joint country meetings where all major IFIs present main findings of recent TA and future work plans to the government, e.g., recent meeting in Brazil with the IMF/ WB/IDB.  
- Country reform strategies developed by the Fund working with the country and other CD providers to deliver the plan, e.g., Uganda: IMF developed the Medium-Term Revenue Mobilization Strategy and coordinated with other CD providers on delivery.  
- Joint/coordinated delivery: Bank for International Settlements and the Fund working together to deliver courses to strengthen expertise and skills of financial regulators and supervisors, including in relation to financial technology.  
- Informal information sharing arrangements between Fund CD managers and counterparts in other providers (e.g., WB).

### Challenges (What are the Challenges?)
- Coordination has been challenging in some countries and thematic areas; staff interviews highlighted difficulties from duplication of efforts and countries being overwhelmed with recommendations and advice, sometimes contradictory, from several CD providers.  
- The Fund accounts for about two percent of total CD provided by IFIs.  
- Coordination challenges can arise from:  
  - Poor communication, lack of information exchange, and difficulty finding relevant contact points in other institutions or in-country with information on TA provision.  
  - Complexity of coordination in countries with high CD demands and multiple CD providers.  
  - Differences among CD providers in working approaches, level of expertise and views on best advice or practices.  
  - Competition among CD providers and misaligned incentives, including the absence of effective incentives for coordination.  
  - Lack of resources set aside to manage coordination by the Fund or others.

### Moving Forward — Enhancing Coordination (Recommendations and options)
- Effective coordination requires significant resources and is best tailored to the individual country and thematic area; factors to consider include the level of economic development, institutional capacity, the volume of CD needs and current delivery, the level of risk, and the absorption capacity of the country. Initiatives include:  
  - A country-driven and managed CD coordination structure/committee, especially for countries with large CD needs; increases country ownership of TA and traction of TA programs and recommendations. In countries with low institutional capacity, greater support from donors and providers, including the Fund, may be appropriate.  
  - Greater Fund presence on the ground in high volume CD countries; options include a role for the resident representative in CD coordination committees, RTACs playing a more active role in coordinating with other CD providers, or a resident CD coordinator.  
  - More coordination at the thematic level, e.g., participation in periodic meetings of groups of CD providers (yearly or more frequently) to discuss CD delivery and plans; could take the form of in-country, thematic coordination committees with revenue administration officials and other CD providers.  
  - Coordination throughout the CD cycle from the diagnostic stage to developing CD plans to delivery and impact evaluations, especially in fragile and low-income states.  
  - Enhanced communication and information sharing with other CD providers; current communication is largely informal and as-needed, while more formal arrangements can be costly and introduce rigidities. Potential options:  
    - Area department mission chiefs and resident representatives—in their upgraded coordinating role—can step up contact with other CD providers active in their countries and facilitate dialogue on CD planning and coordination.  
    - In high CD user countries, annual meetings among IFIs and CD providers, using videoconferencing as necessary; compile shared matrices (plans) with details on major CD plans, developed and maintained by country authorities and shared with IFIs and CD coordination committees.  
    - Use improving systems solutions and virtual/online platforms to improve communications and develop topical and/or country-specific online contact lists for individuals responsible for TA coordination at major CD providers; lists could be regularly updated by each participating party and would be especially important for program countries and heavy users of CD.  
  - In-country, joint CD providers annual meeting with the government, where all major CD providers present findings of recent CD and planned work (as in Brazil); Fund representation could be by the resident representative or functional TA coordinator where appropriate.

*Italic: Prepared by a team led by Teresa Curristine (FAD) comprising Myrvin Anthony (MCM), Oana Croitoru (ICD), and Lisbeth Rivas (STA); series of structured interviews conducted with IMF staff in CD and area departments in late 2017; other inputs obtained from Fund and other CD providers’ documents.*

### 5. Against this backdrop, staff have been focusing on risk mitigating measures to meet

### 5. Against this backdrop, staff have been focusing on risk mitigating measures to meet fundraising goals, strengthen partnerships, and support efficient, transparent use of resources.

### Donors
- Fundraising for Fund CD is hampered by the fact that the Fund is sometimes not viewed as a traditional “development partner.”
- Staff actions:
  - Take a broad institutional approach to highlight the Fund’s role as an effective development partner aligned with global initiatives such as the SDGs.
  - Aim to diversify the donor base with a focus on:
    - Strategic bilateral donors (expanding and deepening CD partnerships with existing donors; using opportunities arising from new donors or those expanding development cooperation).
    - Multilateral institutions.
    - Private entities.

### Vehicles (funding architecture and adjustments)
- Current model: matrix of thematic and regional vehicles.
- Scope for refinement to enhance completeness, flexibility, integration, and alignment with global development priorities. Specific elements include:
  - (i) Seek greater funding certainty, e.g., through broader funding envelopes that cover multiple MPVs.
  - (ii) More consolidation and flexibility, e.g., steer more donor resources into MPVs and away from smaller, less strategic bilateral arrangements.
  - (iii) Closer integration across the three types of CD funding vehicles—regional, thematic, and bilateral—to strengthen CD delivery.
  - (iv) In due course, complete a structure of regional and thematic MPVs aligned with strategic CD priorities, capacities, and resource constraints.
- Table of Fund Vehicles for Capacity Development (selected examples and cycles preserved from source):
  - Pacific Financial RTAC (PFTAC): Est. 1993, Location Fiji, Partners ADB, Australia, EU, Korea, New Zealand, Member coverage: 16 Pacific island countries and territories, Current Funding Cycle: V: Nov. 2016–Apr. 2022.
  - Caribbean RTAC (CARTAC): Est. 2001, Location Barbados, Partners Canada, CDB, EU, Mexico, U.K., Member coverage: 22 Caribbean countries and territories, Current Funding Cycle: V: Jan. 2017–Apr. 2022.
  - AFRITAC East (AFE): Est. 2002, Location Tanzania, Partners EIB, EU, Germany, Netherlands, Switzerland, U.K., Member coverage: Eritrea, Ethiopia, Kenya, Malawi, Rwanda, Tanzania, and Uganda, Current Funding Cycle: IV: July 2015–Apr. 2020.
  - AFRITAC West (AFW): Est. 2003, Location Côte d’Ivoire, Partners China, EIB, EU, France, Germany, Luxembourg, Member coverage: WAEMU plus Guinea and Mauritania, Current Funding Cycle: IV: Jun. 2017–Apr. 2022.
  - South Asia Regional Training & Technical Assistance Center (SARTTAC): Est. 2017, Location India, Partners Australia, EU, India, Korea, U.K., Member coverage: Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka, Current Funding Cycle: I: Jan 2017–Apr. 2022.
  - Thematic Funds (selected):
    - FIRST: Phase III: Germany, Luxembourg, Netherlands, Switzerland, U.K.; Phase IV: Germany, Switzerland (joint with WB); Worldwide; III: July 2012-June 2018 (extended to Dec. 2020); IV: July 2018– Dec. 2022.
    - Debt Management Facility (DMF II): II: Apr. 2014–Dec. 2019; III: Jan 2020.
    - AMLCFT II: II: May 2014–Apr. 2020.
    - Managing Natural Resource Wealth (MNRW): II: Jan. 2017–Jan. 2022.
    - TADAT: II: May 2019–Apr. 2024.
    - Revenue Mobilization (RM): II: Jan. 2017–Jan. 2022.
    - Financial Sector Stability Fund (FSSF): I: Nov. 2017–Oct. 2022.
    - Data for Decisions (D4D): I: May 2018–Apr. 2023.
  - Country Trust Funds: South Sudan I: Nov. 2012–Apr. 2020; Somalia I: Feb. 2015–Apr. 2021.
- Note preserved: "...* — These RCDCs have specific funding arrangements, which are not based on 5-year funding cycles."

### Operations (efficiency, standardization, and technology)
- Problem: Much time is spent handling small donor funds and donor-specific requests, limiting higher-value donor engagement.
- Opportunities and measures:
  - Free up resources for higher-value donor engagement to promote cost effectiveness.
  - Efficiency gains from standardizing and simplifying CD procedures to improve efficiency and transparency in CD management, fundraising, and delivery, including by leveraging new technologies.
  - Specific operational proposals:
    - Continued standardization across funding instruments.
    - More flexible umbrella funding arrangements.
    - A simplified process for small-scale agreements.
    - Revising the policy and procedures for charging advanced economies for TA.
    - More transparent information on IMF “co-financing” and “pricing” of IMF products to partners.
    - Strengthened external reporting mechanism.

### Communications (visibility, outreach, and future priorities)
- Past status and progress:
  - At 2013 review, Directors observed CD activities were relatively less well known than other Fund work.
  - Initial focus since 2013: CD-focused platforms (CD webpage, videos, high-level seminars, “introduction to IMF CD” sessions), RCDC websites and social media, MOOCs.
  - From November 2015, concerted effort to transition CD communications to a higher level: present unified, holistic view; broader audiences; greater visibility for partners.
  - Examples: Increased focus in Fund management speeches and events; coverage in Jeune Afrique and The Banker; refreshed platforms (Finance & Development, podcasts, blogs); animated video primer among most-watched IMF videos on Facebook and YouTube in 2017.
  - CD-focused social media traction: CD-focused Facebook and Twitter accounts have attracted more than 21,000 and 12,000 followers, respectively.
  - MOOCs reach: more than 42,000 active participants from 192 countries.
  - Events and platforms: “CD Experience” at Spring and Annual Meetings; “Postcard Series” talks; partner-focused videos and how-to notes; internal CD story competition in 2016.
- Challenges remaining:
  - CD continues to be the least-understood core activity of the Fund among broader audiences.
  - Lack of understanding of CD activities and their tangible benefits to countries.
- Forward communication priorities:
  - Global development effort: reinforce CD as part of the broader global development effort; focus messages on the benefit of CD to countries; highlight linkages with the SDGs and issues such as inequality, gender, climate change, and technology.
  - Storytelling: intensify website stories, videos, Postcard Series, and innovative platforms (e.g., graphic novels); publicize CD stories more frequently via social media; develop more content in languages other than English.
  - Audience-focused efforts: arrange quarterly training sessions for CSOs and media on relevant policy issues; post videos of training programs on IMF.org; intensify partner-focused activities by providing partners greater visibility, inserting references to partnerships in communications, and organizing joint events.
  - Integration between CD, surveillance and lending: develop issue-specific and region-specific summaries of CD efforts (e.g., IMF CD in AML/CFT) for management, staff, and the public; highlight CD activities on country pages of IMF.org, beginning with priority cases.
  - Keep current with communications technology: evolve CD communications to adapt to new platforms and content-types as needed.

### Dissemination of TA documents, knowledge management, and text-mining initiatives
- Fund dissemination policy:
  - 2008: Executive Board endorsed staff proposals to support greater dissemination of TA information; operational guidelines in 2009 with update in 2013.
  - Guidelines cover dissemination to Fund staff, to the Executive Board, and outside the Fund, including the World Bank, donors and CD providers beyond the World Bank, as well as the broader public.
- TA reports dissemination:
  - TA reports are generally available to staff.
  - Routinely disseminated to the Executive Director (ED) for the recipient country when transmitted to authorities, unless the country objects.
  - May be disseminated to other EDs and donors sixty days after transmittal to the authorities, unless the TA recipient explicitly objects or provides explicit permission for faster dissemination.
- Knowledge management and accessibility gaps:
  - CD departments expected to provide reports to the IR, but reviews show significant historical gaps due to ad hoc practices, cumbersome procedures, and inadequate incentives for knowledge sharing.
  - No system to alert staff and ED offices when a TA report is uploaded.
  - Reports classified as strictly confidential are not maintained in the IR; no Fund-wide framework for their maintenance.
  - Declassification of TA reports (automatic after two years under Fund policy) depends too much on action by the report’s author.
- Current initiatives and measures:
  - KMU, together with ITD and COM, started text mining projects by creating a common, text-analytics ready database of all Article IV reports and published TA reports to allow departments to mine content.
  - FAD is experimenting with text mining and text extraction on TA report content.
  - Next phase: move to a broad institutional text mining strategy, which would include TA reports; digitize and incorporate TA reports into the text-mining database.
  - KMU working to improve internal discoverability and dissemination of TA reports within the Fund; plan to work with LEG and ICD to strengthen guidelines on TA report declassification; reviewing systems to prompt reminders for required actions.
  - KMU collaborating with ITD to simplify the process of storing TA reports in the IR.
  - As of mid-March 2018, there were 8,434 TA reports on the KE site, including 2,151 reports from FY2015–17.
  - A Fund-wide initiative to replace the current DM System is underway to improve metadata and make it easier to find TA reports.
  - A database of TA recommendations is also being developed by KMU and ITD.

*Source: Fund staff (excerpt from pp1002182018reviewfunds-cdstrategybackgroundshortnotes).*

### 4.      Accessibility to donors and other CD providers. Currently, TA reports from an

### 4.      Accessibility to donors and other CD providers. Currently, TA reports from an

### Accessibility to donors and other CD providers
- An increasing number of RTAC TA reports are available to donors through a secured website; other reports linked to donor-financed activities are available by request.
- Donors want more timely and easier access to TA reports on CD activities that they help finance.
- ICD, working with KMU, will look at adding TA reports to its new platform for sharing CD information with donors, Partners Connect, in FY2019.
- Dissemination of TA reports to the public:
  - Affords more opportunity to acknowledge donor contributions.
  - Highlights CD as a major Fund work stream.
  - Encourages investment in and engagement with countries through the sharing of data.
  - Enhanced dissemination can improve donor relations.

### Accessibility to the public
- Current policy: staff are expected to proactively encourage the TA recipient to consent to publish TA reports.
- Rationale: publication increases accountability of TA provision and supports information sharing among recipient countries, development partners, and civil society.
- Procedures:
  - Publication requires explicit consent of the TA recipient and approval by the authoring department, in consultation with the relevant area department.
  - Departments generally send TA reports to authorities under a transmittal letter that explicitly seeks agreement to publish the report; some teams also request consent when on mission.
  - Where members have agreed to publication, the report is circulated to the Executive Board for information.
  - Deletions may be proposed if material is not in the public domain and is highly market sensitive, or if it reveals policy intentions whose premature disclosure would undermine implementation.
  - Factual corrections and corrections to ensure accurate characterization of the views of the TA recipient and Fund staff may be introduced prior to final publication.
- Publication statistics and visibility:
  - Only 82 TA reports have been published during the period 2015–17, versus some 2,500 final TA reports deposited in the IR during the same period.
  - FAD has published the greatest number of reports, followed by STA.
  - Published reports have not been easy to find on the Fund’s external website because there is no dedicated section for TA reports; COM is working to introduce such a section on the Fund’s CD page, along with other relevant CD documents, including Technical Notes and CD evaluations.
- Benefits of wider publication:
  - Creates a publicly accessible, online repository improving coordination with donors and other TA providers.
  - Raises the visibility of CD activities.
  - Permits staff to use country cases in advising other countries and to spread best practices.
  - Enables countries facing specific challenges to use published reports for similar-country policy resource material.
- Efforts and impediments:
  - AFR has worked with CD departments to encourage publication; STA introduced a new TA report template to facilitate publication.
  - An interdepartmental working group is examining ways to boost publication, consistent with the Fund’s voluntary framework, which recognizes circumstances where confidentiality is appropriate.
  - Language and translation:
    - Many reports are produced in languages other than English (23 percent in 2017 by STA).
    - Current policy requires translation of all non-English TA reports going to the Board, creating translation costs for publication (e.g., translating a 25-page document costs some $4,000–6,000).
  - Other publication considerations:
    - Publication may require higher editorial quality, especially for reports written by short-term experts.
    - Future considerations include publication of CD evaluations and follow-up action plans and, as it becomes available, results information.
- Interdepartmental working group focus:
  - Considering how best to address impediments to publication with available resources.

### Box 1 — Statistics Department’s New TA Report Template (summary)
- STA revamped its TA report template to:
  - Aim reports at a broad audience and improve usefulness for primary users.
  - Make TA reports more understandable to senior policy makers to enhance buy-in.
  - Clarify and streamline analysis and recommendations.
  - Reflect RBM with reference to objectives and outcomes.
  - Introduce flexibility on length and format.
  - Facilitate publication through improved transparency and marketing; for example, be consistent with the Fund style for Board documents.
- Early results:
  - STA published 18 reports in 2017 and 21 reports in the first quarter of 2018.
- Template structure:
  - Contains a summary of mission outcomes and priority recommendations, optional analytical sections, and a detailed technical assessment and recommendations.
  - Summary section: written in nontechnical language, links to surveillance activities, aimed at senior officials, area departments, and the general public.
  - Technical part: includes detailed technical assessment, action plan and recommendations, audience includes technical counterparts and desk economists.

### New public products support dissemination of key CD findings
- 2016 introductions:
  - FAD’s ‘How-To Notes’ series.
  - LEG’s ‘Tax Law Technical Notes’ series.
- These augment existing IMF ‘Manuals and Guides’ produced by STA (e.g., Government Finance Statistics Manual).
- Broader efforts:
  - MCM published 50 country case studies over the past three years in the TA Strategy Update 2017–20, and in the FY15 and FY16 MCM TA Annual Reports.

### Dissemination of TA Information — practical points (from Table 1 highlights)
- The fact of and subject-matter of TA: not considered confidential unless TA recipient requests otherwise; may be made publicly available; ordinarily available to donors and other TA providers.
- Information forming the basis of TA advice: considered confidential and generally not made available beyond Fund staff; may be made available to donors and other TA providers with prior consent of the TA recipient and approval of the authoring TA department.
- Final TA advice: considered confidential and may be made available only with the consent of the TA recipient; ex ante irrevocable consent may be required in some externally financed TA cases to share all TA reports from that project with relevant donor(s).
- Staff guidance: staff should proactively encourage the TA recipient to explicitly consent to publication on its own website and/or on the Fund’s external websites, pending approval by the authoring TA department.
- Notes on donors and other TA providers:
  - The term “donor” includes members of a steering committee, such as for regional technical assistance centers or topical trust funds funded through multi-donor accounts.
  - The term “other TA provider” means any official bilateral or multilateral agency or instrumentality of the public sector that provides TA.
- Procedural footnotes:
  - Consent may be withdrawn any time prior to dissemination (except where ex-ante irrevocable consent was granted).
  - Availability to donors and other TA providers may be via request orally, in writing, or by electronic means (e.g., a click on a secured website).
  - Where third-party confidential information is involved, availability requires prior consent of the third party.

### Notes from the Field — Overview (introductory excerpts)
- Purpose: short “notes from the field,” authored by teams in RCDCs to provide examples of field-based office innovations with HQ support to better meet member needs; not comprehensive.
- Key issues covered in the series include:
  - Increasing flexibility in delivery to meet member needs, including through greater integration of TA and training and customization.
  - Strengthening linkages between surveillance and CD.
  - Addressing special challenges in support for fragile and small states.
  - Enhancing coordination with other CD partners.
  - Using RBM and evaluation techniques.
  - Leveraging peer-to-peer learning.
- Two “spotlights” complement the notes: one from a former mission chief of Myanmar on CD in a fragile state; a second on IMF collaboration with the Center of Excellence in Finance, Slovenia.

### I. AFRITAC EAST: RESPONDING FLEXIBLY TO MEMBER COUNTRIES’ TRAINING NEEDS (selected points)
- Training share of human resources at East AFRITAC:
  - Increased from about a quarter in FY 2016 to about a third in FY 2017 and reached about 40 percent in FY 2018.
  - Note: these numbers do not include training embedded in TA delivery.
- East AFRITAC training modalities:
  - Stand-alone national training events (1–2 weeks), hands-on, closely related to TA areas; some courses tailored and delivered with ATI.
  - Traditional courses hosted by ICD to complement online/ATI/HQ offerings; example: regional training on exchange rate policy combined with external balance assessment using member country data.
  - Customized training partnerships with other IMF parts (e.g., FPAS program financed by East AFRITAC and delivered by ICD for central banks in Malawi, Rwanda, Tanzania, and Uganda).
  - Regional workshops (1–2 weeks, circa 30 officials) for peer learning and networking; some organized jointly with other AFRITACs or regional organizations.
  - Attachment/mentoring events for knowledge transfer (officials participate in missions or are placed temporarily in another administration).
- Training embedded in TA missions:
  - Often informal, hands-on, and evolves from discussions on authorities’ progress.
  - Examples by TA area:
    - Revenue administration: practical training via regional case studies.
    - Monetary operations: informal training on liquidity forecasting or repo market roles.
    - FMIs: training on CPSS-IOSCO Principles for FMIs.
    - Real sector statistics: workshop mode assisting officials with processing work files.
    - Public financial management: joint working sessions for drafting documents (on-the-job training).
    - Macro-fiscal TA: mix of general training on financial programming concepts and hands-on training on customized financial programming tools (example: Malawi mission).

_Italic line: 2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES_

### 4.      East AFRITAC demonstrates that training and TA are highly complementary. The topics

### 4. East AFRITAC demonstrates that training and TA are highly complementary

### Complementarity of training and TA
- Country-level training events and regional workshops cover topics closely related to, and overlapping with, areas of TA provision.
- Example: Persistent problems with the accuracy/reliability of taxpayer registers were identified via TADAT assessments in several East AFRITAC member countries.
  - East AFRITAC fielded 16 TA missions to its member countries over the past three years on taxpayer register issues.
  - A regional workshop on this topic was held in December 2017; delegates designed country action plans at the workshop and East AFRITAC agreed to monitor and support implementation through further TA and training as needed.
- Workshops can respond to needs identified during TA missions and can seed subsequent TA requests (example: February 2017 workshop on designing PFM reform strategies led Ethiopia to request TA).
- Country-level training is expected to build capacity for implementing TA recommendations.

### Collaboration with other institutions
- Partnering enables better coordination of CD offerings and leveraging East AFRITAC’s resources.
- Joint activities and partners mentioned:
  - Joint regional workshops with the East African Community (EAC) Secretariat in support of EAC regional integration.
  - Long-standing partnership with MEFMI delivering joint workshops (example: real sector statistics).
  - Collaboration with the Toronto Centre in financial sector supervision (insurance sector expertise).
  - Increased collaboration with the Common Market for Eastern and Southern Africa (COMESA) Monetary Institute, including a joint workshop on financial sector supervision (together with AFRITAC South).

### Assessing the effectiveness of training
- East AFRITAC has increased assessment in line with the IMF’s Common Evaluation Framework:
  - End-of-workshop surveys measure participant satisfaction with course content, modalities, facilitators and facilities.
  - Knowledge transfer evaluation with pre- and post-course tests for more formal training; first evaluations suggested significant proficiency gains in selected workshops.
  - Impact evaluation surveys (anonymous, online) assess long-term on-the-job changes after training.
    - The latest impact survey targeted 440 participants in regional workshops held in FY 2017 and their 179 sponsors.
    - Most participants (87 percent) reported using the content of the training in their day-to-day work.
    - Sponsors who responded reported significant improvements in participants’ capacity.
- Participation caveats and institutional collaboration needs:
  - Participation in East AFRITAC’s annual impact evaluation survey increased from 15 percent of contacted workshop participants and their sponsors in 2016 to 35 percent in the 2017 survey.
  - Comprehensive assessment requires closer collaboration with beneficiary institutions because HR policies and institutional attitudes affect training effectiveness.
  - Example: A central bank requested East AFRITAC’s help to assess how to increase training impact; advice included developing a structured training curriculum covering technical and managerial issues to align training demand with institutional needs.

*Source: pp1002182018reviewfunds-cdstrategybackgroundshortnotes — 4. East AFRITAC demonstrates that training and TA are highly complementary (excerpt)*

### 7.      Collaboration with other partners has strengthened CD delivery. Taking advantage of

### 7.      Collaboration with other partners has strengthened CD delivery. Taking advantage of

### Collaboration with other partners
- CAPTAC-DR as a regional resource: intensified consultation with other institutions has reinforced synergies, reduced duplication, and improved capacity absorption by countries.
- Guatemala:
  - CAPTAC-DR actively supported the government’s strategy to revitalize tax administration after the 2015 political crisis.
  - Facilitated a clear division of tasks among CD partners, including the World Bank, IDB, EU, the U.S. Treasury (OTA), and USAID.
- Regional customs work:
  - CAPTAC-DR facilitated adoption of a customs strategy for integrated risk management.
  - Extensive customs training delivered with collaboration from IDB, U.S. Customs and Border Protection (US-CBP), World Customs Organization (WCO), and tax/customs offices of Argentina, Bolivia, Mexico, Uruguay, and Spain.
- Internal synergies:
  - In the Center itself, synergies among workstreams contribute to effective CD delivery (example: joint training in government finance statistics and public financial management).
  - Further collaboration with CD partners will require greater efforts to share information on CD delivery plans and execution.

### Results-Based Management: Clarifying Goals
- Outreach and consultation:
  - Early consultation with member countries clarified key goals:
    - (i) the authorities’ most important CD needs guide the Center’s interventions;
    - (ii) a careful sequencing of outcomes and milestones designed with the authorities is a more effective and efficient tool to deliver results; and,
    - (iii) clarifying CD strategic objectives help unify stakeholders’ efforts.
- Response and perception:
  - Quoted: “The focus on verifiable results provides a clear course of action for official technical teams and helps them coordinate with other CD providers.” (Honduras’ Finance Minister)
  - Member countries are steadily embracing the focus on results, facilitating adoption of CAPTAC-DR’s advice.
  - Reversal of initial misperception that the RBM framework was “hidden” conditionality from the Fund; outreach was essential to resolve this misperception.
- Monitoring and reporting:
  - Costa Rica and El Salvador proposed CAPTAC-DR report quarterly on progress and resource execution.
  - Quarterly monitoring supports sharing success stories, identification of lags and obstacles, and guides authorities in advancing capacity-building projects.
- Forward expectations:
  - The RBM system is expected to further strengthen capacity building performance and guide allocation of CAPTAC-DR’s resources to projects with greater CD results, oriented to regional policy priorities.

### Box 1. CAPTAC-DR Training Strategy — Key focus areas and collaborations
- General objective: increased focus on facilitating implementation of TA advice and sharing best practice in policy frameworks.

- Public Finances
  - Tax administration:
    - Training upgraded core tax collection capacity and VAT controls; addressed adoption of electronic invoicing.
    - Collaboration examples: USAID and tax offices of Chile, Mexico, Peru, Spain, and the United States.
  - Customs:
    - Training on integrated risk management approach and closing regulatory gaps relative to WTO standards as region signed trade facilitation agreements with the WTO.
    - Collaborating partners: IDB, World Bank, USAID, WCO, and customs representatives from Argentina, Bolivia, Uruguay, Mexico, Spain.
  - Public financial management:
    - Training facilitated establishment of a treasury single account and management of financial assets and liabilities.
    - Regional seminar on gender budgeting in Costa Rica; customized training in Guatemala leading to agenda for fiscal transparency.

- Financial Sector
  - Central banking:
    - Training assisted in refining monetary operations, systemic risk monitoring, and financial stability analysis.
    - Support from ICD for courses on economic modelling for policy-making.
  - Financial supervision:
    - Seminars on Basel standards, AML initiatives, and financial inclusion (regional seminar linked to national strategies).

- Macroeconomic Statistics
  - Real sector:
    - Training improved national accounts compilation and harmonization across statistical series.
  - Public finances:
    - Workshops guided gradual strengthening of government finance and debt statistics compilation and dissemination.

### IV. METAC: Support to fragile states—Challenges and solutions
- Context:
  - METAC has considerable experience providing CD to fragile states; half of the Center’s 14 member countries are fragile states, and 5 are among the highest risk locations in the world.
  - CD needs particularly high in METAC fragile states, calling for continued multifaceted support to build self-sustaining institutions.
- Impact of conflicts
  - Since 2011, Middle East conflicts significantly affected METAC’s CD delivery to fragile states, forcing drastic reductions in Iraq, Libya, Syria, and Afghanistan.
  - CD to fragile states bottomed out in FY14 following conflicts in Yemen; focus shifted to regional workshops.
  - METAC activities in fragile states (in person weeks) show variation across FY10–FY18* with categories including Afghanistan, Iraq, Libya, Syria, Yemen, Sudan, WBG, Regional, New members, Other. (Figure present in source.)
- Adaptations to maintain CD
  - Shifted CD to off-site locations with remote follow-up and intensified hands-on training.
  - Expanded services and membership in May 2016 to include Algeria, Djibouti, Morocco, and Tunisia.
  - Procedures for off-site missions agreed by steering committee:
    - METAC covers costs of travel and accommodation of up to six officials; authorities cover costs if more than six.
    - A mission can occur only after authorities confirm previous mission’s sequenced operational recommendations have been implemented.
    - Missions should not exceed one week.
- Effectiveness and outcomes
  - METAC’s support to conflict-affected countries tripled between FY15 and FY18.
  - Support to Afghanistan and Iraq increased with tangible results:
    - Both countries started strengthening large taxpayer offices.
    - Afghanistan developing a risk-based customs clearance process usable at all border crossings and inland depots.
    - Iraq developed a commitment control to ensure funds are available for critical public services and advanced financial regulatory reform to bolster prudential standards and bank supervision.
- Challenges in coordination and implementation
  - Coordination with development partners is challenging when missions occur in third-country locations; remote coordination imperfect.
  - Confirming implementation of previous mission recommendations is hampered by communications logistics.
- Absorptive capacity constraints
  - Two main factors reduced absorptive capacity:
    - High turnover of country officials—particularly at junior levels—due to political instability/security problems, leading to institutional memory loss and difficulty following up.
    - Thinly stretched human capital dealing with multiple development partners, complicating timely mission organization.
  - METAC adaptations:
    - Intensified hands-on training and national workshops to build capacity of new officials.
    - Organized study tours for officials in other MENA countries.
    - Prioritized and paced missions while collaborating with development partners.
    - Helped authorities develop specific reform strategies/action plans for partner support.
    - Greater use of technology (e.g., videoconferencing) was not successful in some connectivity-challenged countries.
- Outcomes in fragile states
  - Sudan and West Bank and Gaza examples:
    - Both built modern credit registries to allow small enterprises access to credit.
    - Sudan established a Treasury Single Account and improved risk management at Khartoum International Airport, reducing cargo clearance times and boosting revenues.
    - West Bank and Gaza improved national accounts and price statistics quality in line with international methodological requirements.
- Lessons learned
  - Flexibility in content and modalities of CD is necessary.
  - Quick results should not be expected; patience and sustained support critical to build self-sustaining capacity; continued long-term support may be needed.
  - Hands-on, focused, subject-specific, practical training is key for reform implementation.
  - Regional experts who understand local constraints and speak the language are critical to tailor assistance.
  - Close coordination with development partners is even more important than in other countries to avoid stretching officials’ capacity; remote engagement is a viable approach for conflict-affected countries though more challenging.

### V. PFTAC and CARTAC: helping small states address challenges
- Pacific challenges and PFTAC role:
  - Pacific Islands are small, geographically dispersed, limited in economic resources, vulnerable to natural disasters (droughts, cyclones, seismic events—volcanoes, earthquakes, tsunamis), and climate change; such shocks can be particularly destructive (sometimes approaching 100 percent of GDP).
  - PFTAC established in 1993 to provide CD to 16 Pacific countries; CD tailored to PFM, revenue administration, financial sector supervision, macroeconomic statistics, and macroeconomic programming and analysis.
  - Close integration between PFTAC-delivered CD and surveillance helps strengthen resilience to natural disasters and climate change while pursuing inclusive growth.
- Role of CD in disaster resilience and climate change:
  - Shift from crisis response to preparedness; APD and Government of Fiji convened a High-Level dialogue and workshop in April 2017 on Building Resilience to Natural Disasters and Climate Change.
  - Hands-on modeling helped ten countries develop/expand medium-term macroeconomic frameworks and provided forum to exchange views among senior policy makers.
  - Climate resilience requires adequate fiscal buffers and sound PFM institutions; PFTAC supports budget planning and execution, deployment of tools such as PIMA (completed in Timor Leste and recently in Kiribati), and collaboration with partners and member countries on asset registers for innovative insurance instruments.
- CARTAC (Caribbean) parallels:
  - Caribbean highly prone to natural disasters; Hurricane Maria caused damage of over 200 percent of GDP in Dominica in 2017; Hurricane Ivan caused similar damage to Grenada in 2005.
  - CARTAC assists with resilience-building initiatives: fiscal rules with hurricane escape clauses, growth and resilience funds (GRF), training materials for fiscal rules committees, financial institution resilience assessments, workshops on inclusive insurance, and planned workshop in FY19 on resilient macroeconomic frameworks.

*Source: 2018 CD STRATEGY REVIEW—STAFF BACKGROUND STUDIES AND SHORT NOTES*

### 5.      Robust PFM systems are a prerequisite for Pacific nations to tap increasing climate

### pp1002182018reviewfunds-cdstrategybackgroundshortnotes - 5.      Robust PFM systems are a prerequisite for Pacific nations to tap increasing climate

### PFM systems and climate financing
- Robust PFM systems are a prerequisite for Pacific nations to tap increasing climate financing.
- The CD that PFTAC provides in the PFM domain plays a key role in donor coordination and constitutes a core component of the PFTAC program.
- PFTAC is viewed as the authority on assessing the state of PFM systems through PEFA assessments that are either led or facilitated by PFTAC.
- Donors coalesce around ensuing PFM reform roadmaps and decide on a division of labor in assisting country reforms.
- In many cases, these PFM reform roadmaps provide the foundation for budget support.

### Domestic revenue mobilization
- Domestic revenue mobilization is crucial to building buffers and ensuring fiscal sustainability.
- The region has made progress over the last decade, much of it with PFTAC support at the country level, and through the formation of the Pacific Islands Tax Administration Association (PITAA).
- An FAD review of revenue reforms in 2017, focused on five Pacific case studies, revealed:
  - increases in tax-to-GDP outcomes,
  - modernized tax policies and legislation,
  - strengthened administrative capacity, and
  - better taxpayer compliance.
- Reforms are yet to be launched in several countries, including in some facing a loss of trade taxes given recently agreed regional trade agreements.
- PFTAC and FAD deployment examples:
  - A TADAT assessment contributed to the transformation of Fiji’s revenue administration.
  - Development of a Medium-Term Revenue Strategy to underpin reform in Papua New Guinea.
- Given large unmet demand, PFTAC donors are looking to provide additional funding to scale-up the revenue program.

### Other revenue sources and resource management
- Several Pacific countries are endowed with rich resources: immense mineral reserves in Papua New Guinea; oil and gas reserves in Timor Leste; renewable resources such as timber in the Solomon Islands; and rich migratory fishing resources across much of the Pacific.
- February 2018: PFTAC organized a sub-regional workshop in the Republic of the Marshall Islands (RMI) on Fishing Revenue Forecasting and Management for analysts and senior management from fisheries agencies, ministries of finance, statistics offices, and central banks from:
  - Federated States of Micronesia, Kiribati, Palau, Papua New Guinea, RMI, Solomon Islands, Tuvalu, plus Cook Islands and Tokelau.
- The event was a joint effort between the PFTAC Macroeconomics and PFM programs, in partnership with the Government of RMI and with co-financing from the AsDB.
- Findings and consensus from the workshop:
  - Fishing revenues are a significant but volatile revenue source for several Pacific nations.
  - Transparency and reliable data are crucial to effective fishery sector management and ensuring optimal contributions for national budgets.
  - The workshop facilitated a common understanding of how to exploit natural resource bases sustainably while optimizing benefits to citizens in the short and long run.

### Financial stability, supervision, and remittances
- Inclusive growth requires a stable and well-supervised financial environment.
- Only seven PFTAC countries have central banks; the remainder use the Australian, New Zealand, or U.S. currency with small financial sector regulators.
- The PFTAC financial sector supervision program builds supervisory frameworks and capacity and integrates work with CD provided on AML/CFT.
- Key macro-critical issue: challenges to Correspondent Banking Relationships (CBR) are putting pressure on remittances channels—particularly for countries like Samoa and Tonga.
- Early 2018: roundtable meetings in Australia, New Zealand, and Fiji on CBR brought banks, money transfer operators, and regulators together to explore solutions to CBR challenges.

### Other CD challenges and solutions for small states
- Small institutions in small states require innovative approaches for effective CD.
  - Microstate statistical offices commonly have just two or three statisticians, often stretched to provide core macroeconomic indicators and SDG-related statistics.
  - Capacity supplementation (outsourcing of certain functions) is used by some countries to ensure crucial data is produced.
  - In the Northern Pacific (Marshall Islands, Micronesia, and Palau), supplementation is provided by the U.S. Graduate School in the context of compact agreements with the U.S. government.
- Reform principles and strategies in larger economies can be applied in small states if calibrated and customized:
  - Structuring small tax administrations around functions (e.g., taxpayer services and audit) rather than tax types is imperative given limited resources.
  - For small state PFM systems, prioritize performance areas measured by a PEFA to emphasize ‘core PFM’ and set realistic reform objectives.
- Absorptive capacity considerations:
  - Beneficiaries can be overwhelmed by excessive or uncoordinated CD; institutions with only a few staff cannot afford frequent training absences.
  - Online learning offers opportunities to extend the reach of Fund CD and strengthen integration of surveillance and traditional CD delivery methods.
  - The recently launched PFMx online course is of great interest in the Pacific and could extend the reach and depth of PFTAC’s PFM program.
  - Regional CD Centers like PFTAC and CARTAC have facilitated reforms: VAT implementation, adoption of International Public-Sector Accounting Standards (IPSAS), overhaul of government charts of account, and moving to the latest statistical standards.
  - Internships, attachments, and young professional programs can help build a pipeline of analysts, forecasters, financial regulators, statisticians, tax officials, and policy makers.

### SARTTAC: customizing CD delivery — key points relevant to small-state approaches
- SARTTAC opened in February 2017 as the Fund’s first fully integrated CD center; it experiments with CD delivery modalities and customizes packages combining training and TA.
- Customization builds capacity tailored to local needs and absorptive capacity and creates a virtuous feedback loop between training and TA.
- Strong demand for customization purposes:
  - Linkage with institutional reforms (e.g., developing macro-fiscal units; capability for monetary policy formulation through FPAS).
  - In-country training using case studies to train larger cohorts.
  - Support for surveillance or programs in collaboration with HQ-based staff.
- Examples (Box 1) show country-specific customizations and attachments used to transfer practical skills and tools.
- Requirements for effective customization:
  - Availability of data and information, requiring member country collaboration.
  - Understanding the institutional context to ensure applicability.
  - Tailoring standard templates when data gaps exist by developing skeletal frameworks for local officials to build upon.
- Mitigating resource challenges:
  - Classroom and online training as precursors to CT.
  - Collaboration with other IMF centers to leverage professional staff pools and participant bases.
- Challenges and lessons learned:
  - Challenges include balancing value versus resource implications, avoiding pure replication of country conditions, ensuring high-quality data and country examples, sustaining engagement through cohort groups, and managing high turnover.
  - Lessons: customization must be linked to institutional changes to ensure sustainable capacity use; flexibility is required from the Fund; selection of customization efforts should be careful given resource intensity; mechanisms such as attachments, involving regional experts, and using RCDC synergies are effective; excessive customization risks losing insights from international experience and peer learning.

*International Monetary Fund — 2018 CD STRATEGY REVIEW — STAFF BACKGROUND STUDIES AND SHORT NOTES*

### 1.      CDOT has been supporting the development of macroeconomic frameworks in

### pp1002182018reviewfunds-cdstrategybackgroundshortnotes - 1.      CDOT has been supporting the development of macroeconomic frameworks in

### CDOT support for macroeconomic frameworks
- Activities implemented under two Japan-supported projects on strengthening macroeconomic management.
- A “core group” of officials in each country formed to construct macroeconomic frameworks with assistance from a CDOT-based macroeconomic advisor, using the IMF’s financial programming framework as a broad blueprint.
- Core groups generally comprise 20–40 officials in each country from central banks, ministries of finance and planning, statistical agencies, and government research bodies, who have policy or technical responsibilities in macroeconomic management and who contribute their time voluntarily.
- CDOT was previously known as Technical Assistance Office for Lao PDR and Myanmar (TAOLAM). Its member countries are Cambodia, Lao PDR, Myanmar, and Vietnam (core beneficiary countries), plus other countries in the Southeast Asia and the Pacific Islands region under select projects. Its external partners are Japan and Thailand.

### Core group activities, training, and operational practice
- Core groups are learning to update and employ the macro-framework, including:
  - incorporating global and regional outlooks;
  - using frameworks for forecasting and scenario analyses;
  - beginning to link outputs to other country frameworks and forecasts, notably medium-term fiscal frameworks, debt sustainability analyses, and monetary forecasts.
- Typical delivery mode: two- to three-day meetings, led by CDOT’s macroeconomic advisor and convened roughly quarterly in each country.
- Meetings are highly participatory, involving sharing data (and dealing with gaps), checking consistency of internal forecasts, and ensuring a well-reasoned narrative for outputs.
- The advisor also reviews recent CDOT-STI training under the project or provides topical training to expand core group members’ knowledge and motivation to refine the framework.

### Institutional and cross-agency effects
- Demand-driven activities and high-level support helped build traction; Cambodia’s group success is underpinned by support from an array of officials charged with macroeconomic management.
- Groups foster dialogue among agencies, notably between central banks and ministries of finance, where formal coordination mechanisms may be weak or nascent.
- Agencies have been compelled to exchange data, work toward better understanding internal forecasts and analysis, and interact with other providers of CD (CDOT, IMF, external partners).
- Local knowledge from CDOT in government finance and external sector statistics, PFM, and monetary operations has improved core group interaction and output.
- Groups will need to leverage support from both inside and outside the IMF to adapt frameworks to incorporate areas such as credit cycles given rapid financial sector growth and rising debt levels.

### Uses, pedagogical benefits, and peer learning
- Country frameworks have been used in tailored courses on FPP provided by CDOT and STI in Myanmar, Lao P.D.R., and Cambodia; Vietnam has provided its framework for this purpose.
- Joint FPP courses foster peer-to-peer learning; customization requires extra course preparation time but provides immediate relevancy to participants’ responsibilities.
- Use of frameworks in FPP courses and other training allows CDOT to test robustness and identify areas for improvement.
- In Myanmar, core group members who received FPP training are used as mentors in future FPP offerings, reinforcing knowledge, bridging language barriers on technical issues, and building self-confidence as future policy makers.

### Integration with IMF surveillance
- Core group activities have helped integrate IMF CD and surveillance—important in transition economies where reform needs center on policy frameworks, data availability, and internal coordination mechanisms.
- Core groups convened during recent IMF surveillance missions in Myanmar and Lao P.D.R. to exchange views informally on macro frameworks and near-term outlooks and risks.
- In Myanmar, presentations by the group have become a regular feature of the Article IV consultation and other surveillance missions, providing the IMF with a local perspective on the macroeconomic outlook.

### Sustainability and future directions
- Efforts needed to ensure groups become self-sustaining and improve policy dialogue and coordination.
- CDOT engagement expected to evolve from teaching fundamentals to coaching groups to better empower officials to impart their own knowledge, reaching junior staff and senior officials.
- In Myanmar, roughly three-quarters of the group is female, adding inclusiveness to decision-making.
- Continued support from CDOT and complementary TA and training from others in the IMF and elsewhere is expected to help sustain growth and enhance resiliency in the region.

*Authored by David Cowen (APD).*

### Spotlight: Capacity Development in Myanmar — objectives and context
- Fund CD in Myanmar scaled up rapidly starting in 2011 when the country embarked on far-reaching economic reforms and opening up; Myanmar became the largest recipient of Fund CD.
- Overarching objective: strengthen capacity in policy analysis, formulation and implementation, supported by better data, increased automation (or IT infrastructure), and greater intra- and inter-agency ownership and coordination.
- Integration of CD with surveillance is essential as strong CD support is critical to policy progress.

### Early priorities, achievements, and calibration of CD to surveillance
- Early integration anchored by surveillance priorities and a Fund-supported program. Key policy challenges included:
  - revamping exchange rate regime due to emerging balance of payments pressures as Myanmar reduced restrictions on foreign trade and investment;
  - need for effective monetary operations to control high inflation that was running at 21 percent on average in the decade prior to 2011;
  - rapid expansion of the private banking sector with foreign bank entry in an outdated regulatory environment;
  - need for increased government revenue to finance public investment and social spending.
- With Fund assistance, Myanmar:
  - set up a foreign exchange auction system to determine the official exchange rate;
  - established an autonomous central bank;
  - assembled and trained a core bank supervision team (including in the area of AML/CFT);
  - established a treasury department and a large taxpayer office;
  - improved major macroeconomic statistics.

### Strategic CD planning and interdepartmental coordination
- In 2017, the country team with CD departments, CDOT, STI and OAP prepared a Fund CD strategy note for Myanmar, mapping medium-term CD priorities; the note was discussed in a PCM-style meeting with SPR, CD departments, CDOT and STI.
- The final CD strategy note was circulated to all CD departments with plans for annual updates and midyear reviews; it guided integration of CD and surveillance and interdepartmental coordination.

### Operational cooperation and mission practices
- Face-to-face interactions between surveillance and CD teams in HQ before and after CD missions are a key feature; post-mission debriefings inform surveillance teams of implementation challenges and follow-up needs.
- Example: APD and STA cooperation on TA for compilation of financial soundness indicators (FSIs) included pre-mission discussion and informative debriefing to clarify FSI limitations for surveillance.
- Overlapping CD and surveillance missions have been encouraged to lend mutual support; FAD revenue CD teams have consistently overlapped with surveillance missions to engage senior officials.
- Coordination with CDOT missions is routine so CDOT experts and surveillance teams can support each other during missions.

### Prioritization, sequencing, and absorptive capacity
- Given low absorptive capacity, CD prioritization and sequencing were emphasized; CD departments (FAD, LEG, MCM, STA) established roadmaps through stocktaking exercises.
- Example in domestic revenue mobilization: phased approach to reap early benefits via tax administration improvements while preparing for tax policy reform.
- Myanmar hosted the largest donor-funded Revenue Mobilization Trust Fund (RMTF) project and included resident experts to provide critical support in a low capacity environment; the IMF acted as lead advisor on revenue administration and coordinated donor support.
- Initial PFM reform focused on institution building (establishing a treasury department, improving cash flow management).
- Initial financial sector TA targeted establishing a market-based exchange rate regime, a monetary policy framework, basic bank regulation and supervision, and an AML/CFT regime.
- Initial Fund TA targeted improvement in a core set of macroeconomic statistics.

### Blending training with technical assistance (TA)
- In low-capacity environments, the line between TA and training is blurry; counterparts often need prior training to understand TA findings due to decades of isolation, language barriers, and lack of formal economic education.
- TA experts often blend training with TA and take a hands-on approach (e.g., explaining fundamentals and working through spreadsheets step by step on liquidity forecasting).
- Example: a TA mission on central bank accounting started with a test of officials on concepts before discussing TA findings and recommendations.
- APD and CDOT cooperated in training during surveillance missions; surveillance teams met with a newly established interagency core macroeconomic group trained by a CDOT expert to discuss macroeconomic forecasts, increasing capacity and understanding of macro TA.

### Parliamentary engagement and integrated CD delivery
- A CD seminar for the Myanmar parliament in late 2016 brought together APD, Resident Representative Office, CDOT, OAP, COM, FAD, MCM, STA, and STI; attracted some 60 parliamentarians and government officials.
- The seminar leveraged surveillance dialogue with parliamentarians and provided an integrated platform to discuss technical and policy issues consistent with Fund policies on parliamentary engagement.

### Long-term engagement, resident advisors, and communication
- Effective CD in fragile states depends on continuous engagement and long-term relationships; mission reports are often only a first step.
- Long-term resident advisors play an instrumental role; daily assistance and combined training and TA help foster trust and sustainability.
- Continuous resident advisor support has been vital to progress in bank supervision and revenue administration.
- CDOT’s timely responses and frequent visits to Myanmar strengthened relations and flexibly addressed CD needs.
- Frequent CD missions and a large presence of resident advisors necessitate a communication network among Fund staff, often with the resident representative as interlocutor, to coordinate activities and provide feedback.

### Cooperation with development partners
- Cooperation with other development partners increased Fund CD effectiveness and helped achieve CD objectives.
- Approaches vary by sector; in the financial sector, a formal coordination mechanism exists—the Committee for the Coordination of Financial Sector Technical Assistance to Myanmar (COFTAM), co-chaired by the Fund (MCM) and the Central Bank of Myanmar—to share information and devise a division of labor annually.
- In the revenue area, FAD has led coordination without a formal mechanism, which has worked well given fewer development partners and proactive cooperation.

*Authored by Yongzheng Yang (APD).*

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_Source: https://www.imf.org/-/media/files/publications/pp/2018/pp1002182018reviewfunds-cdstrategybackgroundshortnotes.pdf_