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International Monetary Fund

definition of actions to be taken by the Union and island governments. In addition, the elections held for the island assemblies in March and the national assembly in April 2004 diverted attention from the task of implementing coherent budget policies, including actions on the contentious issue of revenue sharing. Economic developments during 2003 were adversely affected by the difficult relationship between the Union and island governments. The related disputes about competencies and resources prevented the design and implementation of coherent economic policies