Abstract

The purpose of JSA joint Japan-IMF field visits is to provide the Japanese authorities with a firsthand view of how JSA funding is used in the field. These visits are designed to assess (1) how the local authorities value the work of the JSA-funded experts; (2) whether the local authorities are making effective use of the assistance; and (3) whether the TA is making a contribution to the reform process. Discussions may also touch on topical issues related to TA policy and operations.

Annexes

Annex 1: JSA Technical Assistance Projects Approved In Fy2009

article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image
article image

Annex 2: JSA Joint Japan-Imf Field Visits

Purpose

The purpose of JSA joint Japan-IMF field visits is to provide the Japanese authorities with a firsthand view of how JSA funding is used in the field. These visits are designed to assess (1) how the local authorities value the work of the JSA-funded experts; (2) whether the local authorities are making effective use of the assistance; and (3) whether the TA is making a contribution to the reform process. Discussions may also touch on topical issues related to TA policy and operations.

Format

A joint mission usually includes two Japanese officials (a representative of the Ministry of Finance and a representative of the Japanese Executive Director’s Office) and an IMF staff member. Countries and projects are selected for review by the Japanese authorities based on a number of considerations to reflect different levels of economic development and structural reform and variation between regions and subject areas.

Once mission members receive briefing notes or are briefed at IMF headquarters, they visit recipient countries where TA is provided and, when possible, meet separately with the senior representatives of the host institution (usually the minister of finance, governor of the central bank, or chairman of the central statistical organization), the immediate counterparts to the expert (usually department heads), and the expert in question. In the case of seminars or training courses, meetings are also held with participants in the respective sessions or courses, as well as with officials in charge of human resources development at the relevant training institutions. Meetings are typically also held with any other concerned donor partners to seek their views.

Findings

To date, 15 missions have been carried out (covering 21 countries, two regional training institutes, the Pacific Financial Technical Assistance Center, the East Africa Regional Technical Assistance Center, and the Middle East Technical Assistance Center) since this practice was introduced in FY1996. The field visits have found that JSA funding is well administered and effectively used. In all the visits, the local authorities were well aware of, fully recognized the importance of, and expressed their appreciation for Japan’s financial support for the IMF TA program. The positive firsthand view gained by the Japanese authorities has contributed to Japan’s continued strong support, through its financing of the JSA, for the IMF TA program. A list of all field visits and a summary report of the field visit that took place in FY2009 are provided below. Reports on earlier field visits can be found in previous JSA Annual Reports.

Joint Field Visits in FY1996-FY20091

1. Fiji (Pacific Financial Technical Assistance Center) and Western Samoa, March 1996

2. Kazakhstan and the Kyrgyz Republic, June 1996

3. Zambia and Zimbabwe, December 1996

4. Russian Federation, July 1997

5. Bulgaria and Lithuania, June 1998

6. Indonesia, IMF-Singapore Regional Training Institute, and Thailand, June/July 1999

7. Belarus and Slovenia, June 2000

8. Azerbaijan and the Joint Vienna Institute, June 2001

9. Cambodia and the IMF-Singapore Regional Training Institute, June 2002

10. Mongolia and Timor-Leste, September 2002

11. Indonesia and Fiji, December 2003

12. Botswana and the East Africa Regional Technical Assistance Center, December 2005

13. Cambodia, the IMF-Singapore Regional Training Institute, and the Philippines, March 2007

14. Middle East Regional Technical Assistance Center, May 2008

15. Cambodia, and the IMF-Singapore Regional Training Institute, January 2009

Joint Field Visits in FY2009

In FY2009, two projects were selected by the Japanese government to be visited by the joint mission:2 a long-term resident advisor at the National Bank of Cambodia (NBC); and support for macroeconomic training at the IMF-Singapore Regional Training Institute (STI). Overall, the mission was satisfied with the outcome of the visits, and impressed with the work of the Fund’s TA program as demonstrated by the two projects. It was pleased with the projects’ (1) significance to the country/region, (2) ownership by the authorities, and (3) progress. The mission heard strong statements of support from the authorities on the work of the banking supervision advisor in Cambodia, and was given an opportunity to assess the quality of the two consultants at the STI. In both projects, there was a clear acknowledgement of Japan’s contribution to the country or the region through its JSA funding, and a call for extended support of the two specific projects, as well as more broadly for Fund TA. The Japan team acknowledged the value of the Fund’s JSA-financed TA work, but noted the difficulties in conveying the value of the projects to the public at large. Questions from the Japan team to the experts and the authorities were technical in nature. Some of the discussions reflected the team’s interest in disseminating Japan’s historical experience and expertise to recipient countries.

Cambodia, January 12-14, 2009

In Cambodia, the JSA has since 1994 supported TA activities at the NBC in banking supervision, restructuring the banking system, balance of payments and monetary statistics, foreign exchange operations, international reserves management, and information and computerization systems; at the Ministry of Finance in fiscal policy and macrofiscal management; at the Customs and Excise Department in strengthening customs administration; at the Ministries of Justice and Commerce in the preparatic of bankruptcy laws; and at the Ministry of Planning and National Statistics Institute in national accounts, price, and government finance statistics. As of this date, almost $6.4 million in JSA financing had been provided for IMF TA in Cambodia, which has contributed significantly to the overall IMF TA, for that country.

The FY2009 field visit to Phnom Penh (January 12-14, 2009) was to inspect the work of the JSA-financed resident advisor on banking supervision based in the NBC. The team met with the resident advisor; the Fund Resident Representative in Cambodia; and senior staff of the NBC, including the Governor, the Deputy Governor, and the Director for banking supervision. The team also met with the Ambassador and other senior staff from the Japanese embassy in Phnom Penh, as well as the Director of the Japan International Cooperation Agency (JICA) office in Phnom Penh.

The Governor noted the importance of the continuous banking reforms made possible by multiple long-term advisors funded by the JSA and IMF. The authorities at all levels were familiar with the substance of the advisor’s work and appreciative of the roles of Japan and the IMF in making the TA possible. The authorities praised the quality of the advisor’s work, as well as his ability to integrate with the staff in the central bank. Recognizing the low human-resource capacity at the bank, the authorities were grateful for the weekly training conducted by the advisor for bank supervisors. The Governor and the Deputy Governor made a strong call for continued support from the JSA and the Fund for banking supervision work in Cambodia.

The team reviewed recent written work of the advisor. The Japan team’s technical focus included a discussion of bank supervision in Japan, particularly during the Japanese financial crisis in the 1990s. The team noted some of the similarities between the challenges faced by Japan in rebuilding its economy after World War II, and the rebuilding necessary in Cambodia. The team noted that the authorities may benefit by a close liaison with the Bank of Japan.

The team meetings with JICA and the Japanese embassy focused on the extensive involvement of Japan in Cambodian development programs, as well as a confirmation that these entities were familiar with and supported the TA work of the Fund.

The IMF-Singapore Regional Training Institute, January 15-16, 2009

The IMF-Singapore Regional Training Institute, established in Singapore in May 1998 as a joint venture of the IMF and Singapore, provides training on macroeconomic and financial management and related legal and statistical issues to government officials from countries in the Asia and Pacific region to enhance the economic and policymaking capacities of these countries.

From its establishment in 1998 through end-FY2009, the STI has trained about 6,900 officials. Participants are drawn mainly from central banks, ministries of finance, and national statistical agencies. Since its first year, when the STI offered 15 courses to about 450 participants (about 620 participant-weeks), its training has expanded considerably. In FY2009, 20 training events for almost 600 officials were held (about 1,045 participant-weeks). The JSA has contributed some $5.7 million in financing for experts and participant costs since the STI’s inception.

During its visit, the mission team reviewed the work of two JSA-financed consultants who conduct STI courses. The team also held discussions with the STI Director and other IMF staff, participated as observers in a lecture and a tutorial session of the Financial Programming and Policies course, and interacted with participants during the breaks.

The team was interested in the process of selecting course participants and the basis for course design. The STI Director responded that the STI works closely with the training managers of the agencies seeking training, IMF Resident Representative offices, and IMF area departments to ensure qualified candidates. Selection factors include the relevance of the course to the candidate’s job, the candidate’s readiness to take advantage of the course (based on experience and qualifications), and geographical balance to ensure cross-country perspectives. The training program consists of courses addressing the key facets of macroeconomic management, including training in associated areas such as data collection and statistical systems, public finance, financial regulation and supervision, and developing sound legal frameworks for macroeconomic and financial policy. The curriculum is anchored firmly in the IMF’s expertise and continually updated to address the key analytic and policy issues facing the region. Drawing on a range of feedback and evaluation mechanisms, it reflects input from national agencies, course participants, and other stakeholders in the region. The delivery model is quite different from the typical graduate school, balancing rigorous analytical lectures with practical workshops for hands-on training.

Some other aspects of the STI’s work were also discussed, in response to questions from the team. STI staff noted that training was a way of strengthening the basis for communication and dialogue between the IMF and national authorities, and they also observed that case studies reflect the important economic links between Japan and other countries in the region, given that Japan is a key player in trade and capital markets of the region.

The Japan team members indicated that they were impressed with the work of the STI, recognized the additional demand for training, and urged STI staff to explore possible ways by which Japan could contribute intellectually to STI, including through guest lecturers from the Bank of Japan.

Annex 3: Administered Accounts–Japan Financial Statement Fy2009

article image
Note: The IMF arranges for an annual audit of the JSA to be undertaken by its external auditors, in connection with their annual audit of the IMF’s own accounts, and for a separate certificate of completion to be provided to the Japanese authorities.
1

In this report, unless a distinction is made, the term “JSA” also includes its predecessor, the JAA (lapan Administered Technical Assistance Account).

2

The reference to fiscal year in this report is to the IMF fiscal year, which runs from May 1 through April 30. This report thus covers the period May 1, 2008-April 30, 2009. Reports on FY2000-FY2008 can be found on the IMF website, under www.imf.org/external/pubs/ft/ta/index.asp.

3

As of the end of the period covered by this report, there were 185 member countries. Kosovo, the IMF’s 186th member, joined in June 2009.

4

For further information on the IMF financial assistance programs, see www.imf.org/external/np/exr/facts/howlend. htm.

5

Additional information on the IMF technical assistance activities can be found under www.imf.org/external/np/ exr/facts/tech.htm.

6

The IMF currently cosponsors seven regional training institutes/programs with other donors and host governments: the Joint Vienna Institute in Austria; the IMF-Singapore Regional Training Institute in Singapore; the IMF-Arab Monetary Fund Regional Training Program in Abu Dhabi, United Arab Emirates; the Joint Africa Institute in Tunis, Tunisia; the Joint China-IMF Training Program in Dalian, China; the Joint Regional Training Center for Latin America in Brasilia, Brazil; and the Joint India-IMF Training Program in Pune, India.

7

The seven IMF regional technical assistance centers comprise three Africa Regional Technical Assistance Centers (Central AFRITAC, based in Libreville, Gabon; East AFRI-TAC, based in Dar es Salaam, Tanzania; and West AFRITAC, based in Bamako, Mali); the Central America, Panama and Dominican Republic Regional Technical Assistance Center (CAPTAC-DR), based in Guatemala City, Guatemala; the Caribbean Regional Technical Assistance Center (CARTAC), based in Bridgetown, Barbados; the Middle East Regional Technical Assistance Center (METAC), based in Beirut, Lebanon; and the Pacific Financial Technical Assistance Center (PFTAC), based in Suva, Fiji.

8

IMF headquarters-based activities related to technical assistance, such as headquarters-based TA, policy and research, evaluation, management, and administration, were financed internally.

9

RSNs were introduced in FY2008 as part of the IMF’s efforts to enhance its TA prioritization process.

10

Because of the time required for the contracting and fielding ot experts, and for payment of invoices, there is a time lag between commitment and disbursement. The duration of a ISA-funded TA project is typically 6 to 12 months.

11

This represents an 11 percent increase in the amount approved and a 22 percent increase in the number of projects funded compared with FY2008 (see Table 2).

12

The IMF arranges for an annual audit of the JSA to be undertaken by its external auditors in connection with the annual audit of the IMF’s own accounts, and for a separate certificate of completion to be provided to the Japanese authorities. See Annex 3 for the audited financial statements of the JSA and the Japan Advanced Scholarship Program for FY2009.

13

As of the end of FY2009, there were seven regional training centers and six RTACs. A seventh RTAC was established in June 2009.

14

This reflects the priority given to the countries of this region under JSA financing guidelines.

15

Multiregional projects are those with beneficiaries from more than one region. Annex 1 includes descriptions of such projects.

16

Starting with the FY2008 report, JSA commitments for countries in Central Asia (Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan) are included with countries in the Middle East to better align recorded data with the reconfiguration of the IMF’s former two European departments and Middle East department into a single European department and a Middle East and Central Asia department.

17

One way the IMF measures its technical assistance is by recording the time spent by IMF staff and experts on such activities. A person-year is equivalent to about 260 working days.

18

ln FY2003, as part of a larger effort to strengthen monitoring and evaluation of IMF technical assistance, a multiyear program of TA evaluations was introduced under which the results of three to four evaluations covering a mix of topics are presented each year to the IMF Executive Board.

19

See “Technical Assistance Evaluation Program: Findings of Evaluations and Updated Program,” available at www.imf.org/external/np/pp/eng/2008/040408.pdf, for a list of completed evaluations, with links to the reports.

20

The scholarship program targets candidates from Cambodia, China, Indonesia, Kazakhstan, the Kyrgyz Republic, Lao People’s Democratic Republic, Mongolia, Myanmar, the Philippines, Tajikistan, Thailand, Turkmenistan, Uzbekistan, and Vietnam, as well as the Pacific Island countries.

21

Under the Japan-IMF Scholarship Program for Asia, an academic year refers to the period October 1-September 30. Thus, academic year 2008 refers to the period October 1, 2008-September 30, 2009.

22

Graduate Institute for Policy Studies, Hitotsubashi University, International University of Japan, and Yokohama National University.

23

Under the Japan-IMF Advanced Scholarship Program, an academic year refers to the period August 1-July 31 (e.g., the academic year 2007 refers to the period August 1, 2007-July 31,2008).

1

Because of scheduling difficulties, joint field visits were not carried out in FY2005.

2

The joint Japan-IMF review team consisted of Mr. Hiromi Yamaoka, IMF Alternate Executive Director for Japan; Mr. Hironori Shouji, International Organizational Division, Ministry of Finance; and Mr. Harish Mendis, Senior Technical Assistance Officer, IMF Office of Technical Assistance Management.

  • Collapse
  • Expand