Posted on April 7, 2016 by iMFdirect

By Carla Grasso

If there’s one thing all economists can agree on, it’s the importance of numbers. Without good data, it is difficult to assess how an economy is performing and formulate smart policies that help improve lives.

In little over twenty years, the southern African country of Mozambique has gone from having no national accounts or consumer price index to creating one of the leading statistical agencies in Sub-Saharan Africa.

I saw firsthand Mozambique’s progress in collecting data on my recent trip to Africa. It was my first trip there as an official representative of the IMF. I met with Isaltina Lucas, the then-President of Mozambique’s Institute of Statistics (and now Vice-Minister of Economy and Finance), who told me about the government’s impressive strides in compiling key economic statistics—thanks, in part, to the IMF.

Over the course of my 10-day visit in early March, I saw many more instances of how IMF technical assistance and training—which together we call “capacity development”—is helping policymakers in sub-Saharan Africa take charge of their own economic future.

Tapping the experience of peers

In Tanzania, for example, I witnessed a workshop organized jointly by the IMF and the central bank, where officials from across the region discussed their own countries’ experiences with expanding access to finance and exchanged views on how to deal with financial vulnerabilities that are emerging as a result. Many participants emphasized the importance of this type of experience-sharing—known as “peer-to-peer learning”—in building capacity.

We are hearing more and more that the knowledge-sharing that takes place outside formal courses is important for capacity development. So we have been exploring ways to cultivate peer learning and support, both in person and online. Through such platforms, policymakers facing similar challenges can not only learn from each other but also set common policy goals.

Such efforts are beginning to bear fruit.  Take, for example, Senegal, which is successfully using peer learning to implement its new development strategy with the goal of becoming an emerging market economy within the next two decades. Senegal is drawing on the experience of policymakers in Cape Verde, Mauritius, and Seychelles to introduce tax identification numbers, set up credit information bureaus, and develop tourism and special economic zones.

Click to read full article “Capacity Development in Africa: the Faces behind the Numbers”

Culled—— iMFdirect

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By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Commonwealth ministers are expected to meet the International Monetary Fund (IMF), the World Bank and Inter-American Development Bank to discuss issues bordering on debt and financing challenges of small states.

This is contained in a Statement from Julius Mucunguzi Acting Communications Adviser Communications and Public Affairs Commonwealth Secretariat and made available to InvestAdvocate.

According to the Statement, the group will be led by Denzil Douglas, St Kitts and Nevis Prime Minister and will be joined by Peter Philips, the Minister of Finance of Jamaica, Pierre Laporte, Minister of Finance of Seychelles, Lisiate ‘Aloveita ‘Akolo, Minister of Finance of Tonga and Faumuina Luiga, the Minister of Finance of Samoa.

According to Kamalesh Sharma, Commonwealth Secretary-General, the group’s objective is to raise awareness of the unique challenges faced by small states in accessing affordable finance, and managing and reducing their debt. “They will also propose practical ways to address their concerns,” Sharma said.

“Small States face many challenges when it comes to managing and servicing debt, and there are particular obstacles that prevent them from accessing concessionary finance,” he said.

Sharma affirmed that poor nations tend to be vulnerable to crises and natural disasters and the Commonwealth is acutely conscious of the need for practical action to address these issues, particularly by the international financial community.

“We seek renewed resolve and innovative approaches to build the economic resilience of small and vulnerable states, with attention paid to global inclusion and development,” he said.

He further affirmed that international financial institutions need to review the criteria used to determine the wellbeing of small states.

“The current yard sticks do not take into account the unique vulnerabilities of small states such as remoteness, exposure to shocks, small population size and limited options for economic diversification. All of these factors result in disproportionately large challenges for these countries in accessing financial resources,” Sharma said.

The Commonwealth Secretary-General said studies have shown that many small and vulnerable states are unable to meet their debt obligations, even to international lenders.

He noted that the situation is particularly acute in the Caribbean, where several public debt ratios are in excess of 90 percent (90%) of gross national income (GNI).

“As a result such countries are finding it difficult to meet obligations such as reducing poverty and providing basic and necessary public goods,” Sharma affirmed.

Following the meetings in Washington, the Commonwealth ministers are expected to produce a report that will be submitted to its Heads of Government Meeting in Colombo, Sri Lanka in November 2013.

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