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International Monetary Fund
This supplement provides background information on various aspects of capacity development (CD) for the main Board paper, The Fund’s Capacity Development Strategy—Better Policies through Stronger Institutions. It is divided into nine notes or sections, each focused on a different topic covered in the main paper. Section A explores the importance of institutions for growth, and the role the Fund can play in building institutions. Section B presents stylized facts about how the landscape for CD has changed since the late 1990s. Section C discusses the difficulties of analyzing CD data because of measurement issues. Section D provides a longer-term perspective on how Fund CD has responded to member needs. Section E contains information on previous efforts to prioritize CD, assesses Regional Strategy Notes (RSNs) and country pages, and suggests ways to strengthen RSNs, including by using the Fund’s surveillance products. Section F compares the technical assistance (TA) funding model proposed in the 2011
International Monetary Fund

Front Matter Page THE FUND’S CAPACITY DEVELOPMENT STRATEGY—BETTER POLICIES THROUGH STRONGER INSTITUTIONS—BACKGROUND PAPER May 21, 2013 Approved By Sharmini Coorey Prepared by the Institute for Capacity Development (in consultation with other departments) Contents ACRONYMS BACKGROUND A. Institutions, Economic Development, and Growth B. Stylized Facts C. Measurement Issues D. Historical Perspective of Fund TA, 1964–Present E. Review of Prioritization F. Funding Model Comparison G. Monitoring and Evaluation H. TA-Training

International Monetary Fund

achieved. Standardization across TA departments will assist with measurement of performance and not just capture outputs. For example, STA has conducted a TA evaluation on Peru, which contains elements of RBM. RSNs . Updated guidance on preparing the RSNs was introduced in FY 2013, in part to improve the discussion of progress in implementing past TA. H. TA-Training Synergies 30 This note, based in part on the results of a survey of area and TA departments, provides recommendations to achieve greater synergies between TA, external and internal training

International Monetary Fund. Institute for Capacity Development

counselors’ assessment of participants during the in-person sessions. The course targeted participants from institutions benefiting from customized TA, improving TA sustainability. Course participants comprised technical staff from central banks and ministries of finance in 16 countries. To maximize TA-training synergy, participants were chosen with inputs from TA project managers and 85 percent of them are directly engaged with Fund TA on either Forecasting and Policy Analysis Systems (FPAS) (central banks) or macro frameworks or have recently completed implementation