Economic Management in the Caribbean

This project aims to enhance economic management in the Caribbean region by improving revenue generation (tax and customs); implementing sustainable medium-term fiscal and budgetary policies; and reorienting budget expenditure towards more effective and efficient programs. In addition improved cash and debt management would help to reduce both financing costs and risks. The project is designed to achieve these objectives through the provision of policy advice technical assistance and selected information technology (IT) investments by the World Bank with support from the International Monetary Fund (IMF). Regional cooperation is expected to result in better opportunities to develop flexible and sustainable IT systems that support modern responsive tax and customs departments and public financial management (budget preparation and treasury execution) that ensures stewardship over revenues and control over expenditures. Following the devastating hurricanes that hit the Caribbean in 2017 the Strengthening Economic Management in the Caribbean (SEMCAR) initiative pivoted to address climate resilience as related to PFM. In June 2018 Jamaica requested Canadian assistance in strengthening the internal capacity of the Ministry of Finance and Accountable Budget Officers across government to better respond to climate change-driven natural disasters. Canada agreed to use the SEMCAR Externally-Funded Output to conduct a climate-resilient budgeting exercise for the identification and prioritization of critical PFM practices and procedures which often pose challenges for ministries of finance when responding to natural disasters and the identifications of weakness across the PFM cycle. The resulting tool—the post-disaster financial management review and engagement framework—is an analytical instrument that seeks to help countries pinpoint critical PFM policies practices and procedures that can be strengthened to improve a government’s capability to respond more efficie

The expected outcomes for this project include: 1) increased ability of tax administration institutions and staff to manage processes and ICT systems in at least five countries; 2) increased ability of customs administration institutions and staff to manage processes and information communication technology (ICT) systems in at least four countries; 3) increased ability of ministries of finance line ministries and their staff to manage public financial management (PFM) processes and ICT systems in at least five countries; and 4) improved access to regional training and ICT technical support for tax customs and PFM administrations.