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MONEY MATTERS

World Bank and IMF to Help Developing Countries Strengthen Tax Systems

Enhancements in ECCU Debt Management Units to Improve Regional Debt Management

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he Eastern Caribbean Currency Union (ECCU) countries will develop new organisational structures along functional lines to increase the effectiveness of their debt management units in implementing governments’ debt management strategies.

This was one of the main decisions of the Canada Eastern Caribbean Debt Management Advisory Service (CANEC-DMAS) Project Steering Committee (PSC) when it met for its annual review meeting on 28 April at the Eastern Caribbean Central Bank (ECCB) Headquarters in St Kitts. As part of ongoing work of the CANEC-DMAS Project, ECCU countries will seek to ensure that core responsibilities of the debt management units such as: evaluating potential sources of funding; and actively managing the costs and risks associated with the composition of countries’ public debt, are undertaken more adequately. This process may require reorganisation of the units in some of the countries. The debt management units’ core responsibilities also include, active monitoring and maintenance of quality public debt data which is used to feed into the decision making process for the governments. This will therefore see the ECCU countries moving towards full utilisation of Version 2.0 of the Commonwealth Secretariat Debt Recording and Management System (CSDRMS), which was released in August 2014. Countries have been working towards implementation of the new version with assistance from the ECCB’s CANEC-DMAS Project. The CANEC-DMAS Project is financially supported by the government of Canada through the Department of Foreign Affairs, Trade and Development and assists member countries in enhancing their debt management practices through ongoing technical support in the fundamental areas of debt management. ¤ BusinessFocus July / Aug

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he World Bank and International Monetary Fund (IMF) are launching a new initiative to help developing countries strengthen their tax systems.

“A strong revenue base is imperative if developing countries are to be able to finance the spending they need on public services, social support and infrastructure,” said IMF Managing Director Christine Lagarde. “But experience shows that with well-targeted external technical support and sufficient political will, it can be done.” Responding to country demands, the IMF/World Bank initiative has two pillars: deepening the dialogue with developing countries on international tax issues, aiming to help increase their weight and voice in the international debate on tax rules and cooperation; and developing improved diagnostic tools to help member countries evaluate and strengthen their tax policies. By further leveraging their collective expertise, the Bank and Fund aim to play a fuller role in helping all of their member countries achieve the ambitious goals that the world will be setting for itself later this year in New York. “We very much want to help developing countries raise more revenues through taxes because this can lead to more children receiving a good education and more families having access to quality health care,” said World Bank Group President Jim Yong Kim. “If everyone pays their fair share – even while challenging the status quo– developing countries can close their financing gaps and promote inclusive growth.” The initiative will deepen the institutions’ ongoing collaboration with developing countries to identify key international tax policy concerns and potential solutions, both at the country level and in the context of the continuing international dialogue. The institutions also plan to strengthen their diagnostic tools, developing new methodologies where needed, to enable member countries to identify priority tax reforms and design the requisite support for their implementation. This effort would complement the launch of the Tax Administration Diagnostic Assessment Tool (TADAT) in November. ¤

St. Lucia Business Focus 82  

Our special feature in this issue is the 10th Anniversary of First Citizens Investment Services Ltd. which has grown into a regional powerho...

St. Lucia Business Focus 82  

Our special feature in this issue is the 10th Anniversary of First Citizens Investment Services Ltd. which has grown into a regional powerho...

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