COVID-19 Crisis Capacity Development Initiative

September 24, 2021

The IMF's COVID-19 Crisis Capacity Development Initiative (CCCDI) supports countries as they steer their economies through the crisis and prepare for an inclusive recovery. It complements the IMF’s emergency lending programs by improving capacity in critical economic institutions and delivers hands-on capacity development.

Thanks to the generous support of our partners, the CCCDI supports low income and emerging market countries where IMF experts are working in close consultation with policymakers to design tailored programs. The IMF’s targeted and timely capacity development support adapts to evolving priorities on the ground and seeks to ensure progress toward the SDGs.

The CCCDI responds to urgent capacity development needs in core and emerging areas of IMF expertise. These remain of critical importance as countries strive for a strong and sustained economic recovery. In addressing urgent needs, the work of the Initiative is also linked to important global themes, notably: tax policy and inclusive growth; supporting a green recovery; digitalization and financial access; debt management and revenue mobilization; and transparency and accountability in emergency response.

The IMF’s support aims to be flexible, innovative, and effective. The Initiative is agile and adapts to countries’ shifting priorities. This will also be an opportunity to continue to make positive changes for citizens through crosscutting reforms like tackling inequality, climate change, and the growing digital divide. Delivery draws on the IMF’s  strengthened virtual delivery platforms, including an expanded online learning program. 

In support of these capacity development needs, implementation under the CCCDI is underway, and the scope of the work program is being extended to address critical needs. Funds have been allocated to 41 CD activities of which 23 are in start-up phases. Highlights include:

  • In August, ICD’s Forecasting Policy and Analysis (FPAS) project assisted the Moroccan Central Bank to improve economic forecasting. Jordan will follow in the next phase.
  • With respect to macroeconomic frameworks and debt dynamics, a training and partial scoping missions was completed in Mongolia and discussions are underway on the development of a public debt and dynamics tool (DDT) for the Ministry of Finance. In Chad, a DDT training and re-scoping mission was completed, and a DDT is planned with the Ministry of Finance. ICD is also developing a framework that will look at the effects of climate mitigation and adaption policies on growth, debt, and inequality.
  • The IMF’s Legal Department is supporting the Mozambican Supreme Audit Agency to identify legal and institutional constraints that hinder the conduct, publication, and follow-up on audits of COVID-19 emergency spending. A peer learning event in April 2021 brought together officials from audit agencies in Kenya, Sierra Leone, and South Africa.
  • The Fund’s Strategy, Policy and Review Department (SPR) is supporting policymakers to understand the macroeconomics of pandemics. A team focused on epidemics, gender and human capital is drawing lessons from previous health crises and will quantify their impact on school completion rates in low-income countries, particularly for girls. Preliminary results will be presented during the Annual Meetings.
  • A team within our Research Department (RES) is studying the distributional impact of COVID-19 in developing countries. They are working with a longitudinal household survey in India to see how the pandemic has affected income and consumption inequality.

Declared financial support from partners currently totals $38.9 million. The IMF continues to reach out to potential partners and looks forward to welcoming new partners.

Partners

Partners