International Monetary Fund. Strategy, Policy, & Review Department
This management implementation plan (MIP) proposes actions in response to the Independent Evaluation Office (IEO)’s report on growth and adjustment in IMF-supported programs. The full implementation of the MIP package will help ensure that, at a time when many countries face strong headwinds, IMF-supported programs not only deliver necessary adjustment to address balance of payments needs but also pay greater attention to their growth effects. While the policy-related deliverables are already incorporated into current departmental work plans and budgets, the operational implementation of these recommendations may require mobilizing additional resources.
Albania is formulating a Medium-Term Revenue Strategy (MTRS) with IMF support. The decision to commit to the development of an MTRS was taken against the background of revenue persistently falling short of budget projections, revenue continuing to lag behind regional peers in tax to Gross Domestic Product (GDP) ratios and the Government’s assessment that an increase of revenue of 2.2 – 3.0 percent of GDP will be required to finance its additional spending needs over the next five years.
International Monetary Fund. External Relations Dept.
Providing technical advice and know-how to member countries is a vital role of the IMF in a globalized economy. The Fund is seeking to enhance its partnership with donors in its technical assistance program. The aim is to improve the effectiveness of IMF technical assistance and training by leveraging on the development assistance strategies of donors.
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Besides its policy advice and financing, the IMF provides technical assistance and training to its member countries in its areas of expertise—including revenue administration and expenditure management, central banking, financial sector sustainability, exchange rate systems, economic and financial statistics, and related legal fields. Technical assistance is an important benefit of IMF membership and is free in most cases, except when provided to countries that can afford to defray the costs incurred in dispensing the assistance. The IMF’s technical assistance aims at strengthening the design and implementation of sound macroeconomic and financial policies, and at transferring know-how in the process. By doing this, the IMF seeks to bolster the institutional capacity of its members and endeavors to deliver assistance that will have lasting benefits for the member’s economy, including on sustainable growth and on poverty alleviation in the case of poorer member countries. Technical assistance helps countries to adopt and implement effective reforms, benefiting from the IMF’s worldwide experience in addressing similar problems in other countries and from its high-caliber experts, drawn from the staff as well as from top public and private institutions, central banks, and economic agencies around the world.
besides offering policy advice to member countries in connection with its surveillance of their economies and its lending programs, the IMF provides technical assistance and training for officials, mostly free of charge, to developing countries upon request.
The IMF complements its surveillance operations and its lending in support of member countries’ policy programs with technical assistance and training. The goal is to help member countries strengthen their human and institutional capacity to design and implement and structural policies that promote macroeconomic and financial stability, economic growth, and poverty reduction.
Revenue administration clearly presents challenges to capacity. Natural resources are often found in developing economies, many of which struggle with routine clerical functions, let alone the difficult technical functions of mineral valuation and financial audit required for effective natural resource revenue administration. Multinational natural resource companies employ top lawyers, analysts, accountants, and tax specialists, some specifically tasked with reducing their tax bill. The imbalance in expertise between natural resource companies and revenue administrators can make effective fiscal control difficult.