{
  "title": "West African Economic and Monetary Union: Selected Issues",
  "publication": "IMF Staff Country Reports, May 19, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2025/05/19/west-african-economic-and-monetary-union-selected-issues-567035",
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  "summary": "This Selected Issues paper analyzes domestic revenue mobilization (DRM) in the West African Economic and Monetary Union (WAEMU).",
  "sections": [
    {
      "heading": "Overview",
      "content": "- This Selected Issues paper analyzes domestic revenue mobilization (DRM) in the West African Economic and Monetary Union (WAEMU).\n- DRM is identified as critical for financing economic and social development and ensuring debt sustainability in WAEMU, given rising interest, high security spending, and the prospective reduction in foreign aid.\n- DRM is a cornerstone of the authorities’ reform programs and one of the most pressing policy challenges."
    },
    {
      "heading": "Key findings",
      "content": "- Over the last two decades, DRM in WAEMU has improved overall, but there is persistently large heterogeneity in revenue performance across countries.\n- The secondary criterion of the suspended Convergence Pact sets a \"20 percent floor on the tax to gross domestic product ratio\" and remains a high bar for most WAEMU countries.\n- Constraints cited include a generally narrow tax base, weak enforcement capacity, and high informality, among other factors."
    },
    {
      "heading": "Drivers and challenges",
      "content": "- Structural and administrative factors limiting DRM:\n  - Narrow tax base.\n  - Weak enforcement capacity.\n  - High informality.\n  - Rising interest and high security spending increasing fiscal pressures.\n  - Prospective reduction in foreign aid affecting external financing availability."
    },
    {
      "heading": "Policy recommendations and priorities",
      "content": "- Renewed commitment to:\n  - Streamline tax systems.\n  - Rationalize exemptions.\n  - Improve compliance.\n  - These measures would durably support revenue mobilization.\n- Strengthen regional surveillance mechanisms to:\n  - Ensure effective implementation and enforcement of regional DRM commitments.\n  - Enhance regional cooperation on revenue administration.\n  - Support collaboration and knowledge transfer within the union."
    },
    {
      "heading": "Subject areas and keywords (as reported)",
      "content": "- Subject: Countercyclical capital buffers, Economic integration, Education, Financial regulation and supervision, Food security, Poverty, Revenue administration, Trade integration\n- Keywords: AfCFTA trade integration, Countercyclical capital buffers, Food security, Global, policy effort, Sub-Saharan Africa, Trade integration, WAEMU country, WAEMU member, WAEMU trade integration agreement, West Africa\n\n---\n\n Content in this bundle\n\n- 1wauea2025002-print-pdf\n  - 1wauea2025002-print-pdf (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1wauea2025002-print-pdf (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: May 19, 2025",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798229010603.002",
    "This Selected Issues paper analyzes domestic revenue mobilization (DRM) in the West African Economic and Monetary Union (WAEMU).",
    "DRM is identified as critical for financing economic and social development and ensuring debt sustainability in WAEMU, given rising interest, high security spending, and the prospective reduction in foreign aid.",
    "DRM is a cornerstone of the authorities’ reform programs and one of the most pressing policy challenges.",
    "Over the last two decades, DRM in WAEMU has improved overall, but there is persistently large heterogeneity in revenue performance across countries.",
    "The secondary criterion of the suspended Convergence Pact sets a \"20 percent floor on the tax to gross domestic product ratio\" and remains a high bar for most WAEMU countries.",
    "Constraints cited include a generally narrow tax base, weak enforcement capacity, and high informality, among other factors.",
    "Structural and administrative factors limiting DRM:",
    "Renewed commitment to:",
    "Strengthen regional surveillance mechanisms to:",
    "Subject: Countercyclical capital buffers, Economic integration, Education, Financial regulation and supervision, Food security, Poverty, Revenue administration, Trade integration",
    "Keywords: AfCFTA trade integration, Countercyclical capital buffers, Food security, Global, policy effort, Sub-Saharan Africa, Trade integration, WAEMU country, WAEMU member, WAEMU trade integration agreement, West Africa",
    "**1wauea2025002-print-pdf**"
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