Press Release: IMF and Partners Launch New Phases of the Managing Natural Resource Wealth and Revenue Mobilization Trust Funds

IMF News, June 16, 2016

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Canonical URL: Press Release: IMF and Partners Launch New Phases of the Managing Natural Resource Wealth and Revenue Mobilization Trust Funds

The International Monetary Fund (IMF) and development partners launched new phases of:
- the Managing Natural Resource Wealth Trust Fund (MNRW-TF), and
- the Revenue Mobilization Trust Fund (RM-TF).
Steering committee meetings were held in Washington from June 14–15, 2016.
Subject to contributions from development partners, the funds are expected to provide:
- about US$30 million for the MNRW-TF over six years, and
- about US$60 million for the RM-TF over six years.
Purpose: provide technical assistance and training to help low- and lower middle-income countries strengthen tax capacity and mobilize natural resource wealth.

RM-TF:
- Received strong support from partners and donors to the predecessor “Tax Policy and Administration” program.
- Japan confirmed an initial contribution of US$5 million.
- The European Commission (EC) expressed readiness to substantially increase its support in line with commitments made during the 2016 Spring Meetings.
- Discussions with new development partners on joining the RM-TF are promising.
- RM-TF chair Mr. Hubert Perr (EC) stated the fund will be a key tool for supporting the implementation of the Addis Ababa Action Agenda and the 2030 Sustainable Development Goals, and aligns with the Commission’s “Collect More, Spend Better” agenda.
MNRW-TF:
- Chair Mr. Trond Kvarsvik (Norwegian Agency for Development Cooperation) noted the fund’s second phase will significantly boost resources for resource-rich low- and lower middle-income countries amid the global commodity price slump.
- Partners confirmed sustained support to the fund’s second phase.

Date: June 16, 2016.
Topics discussed:
- successes and ongoing development of the Tax Administration Diagnostic Assessment Tool (TADAT),
- agreement on next year’s strategic work and operational program.

MNRW-TF:
- Launched in 2011 to help countries mobilize and manage natural resource wealth effectively and sustainably.
- To date has supported 34 projects in 19 countries.
- Current partners: Australia, the European Commission, Kuwait, the Netherlands, Norway, Oman, and Switzerland.
RM-TF (originally Tax Policy and Administration Trust Fund, TPA-TF):
- Launched in April 2011.
- Main objective: help low-income and lower middle-income countries establish well-designed and administered tax systems that generate sustainable revenue for essential public services.
- Partnering donors: Belgium, the European Commission, Germany, the Republic of Korea, Kuwait, Luxembourg, the Netherlands, Norway, and Switzerland.
- Currently supports 20 programs, the majority in Sub-Saharan Africa.
TADAT:
- An internationally-supported tool providing an objective and standardized performance assessment of a country’s tax administration system.
- Collaborative partners: the European Commission, Germany, Japan, the Netherlands, Norway, Switzerland, the United Kingdom, the World Bank and the IMF.
- The G20 Development Working Group on domestic resource mobilization supports continued development of TADAT and reports on progress with the tool as part of its monitoring framework.

Global thematic funds support IMF capacity development activities (technical assistance and training) in specialized thematic areas that complement regional technical assistance and training centers.
The RM-TF is intended to respond to the international call to raise domestic revenue mobilization and to scale up support to beneficiary countries.

Source: IMF Press Release No. 16/288 (June 16, 2016).