paraguay: country strategy with the idb (2004-2008) by IDB

paraguay: country strategy with the idb (2004-2008)

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MATRIX OF THE BANK’S COUNTRY STRATEGY WITH PARAGUAY FOR 2004-2008 Government strategy 1.

IDB action IDB strategy In progress

Proposed

Action by other agencies

Monitoring indicators Strategy

Country

Strengthening governance. Country goal: Doubling Paraguay’s government effectiveness indicator, from 7 in 2004 to 14 in 2008 (World Bank, “Governance Matters III”)

Fiscal sustainability

Restoration of trust in State institutions and their representatives

Fiscal Management Strengthening and Modernization Program (1253/OC)

TC: Strengthening of Office of the Under Secretary for Economic Affairs and Integration/Ministry of Finance Strengthening of the Central Public Investment Unit / Ministry of Finance

ATN/SF-7216 Integrated Accounting and Administrative Systems Projects

Promotion of active citizen participation in building democratic institutions Combating corruption and lack of public safety

Preinvestment Program (1143/OC)

Consensus-building mechanisms for the branches of government

Strengthening of technicalcooperation coordination mechanisms for the Legislative and Executive Branches

TC: Strengthening of Office of the Attorney General TC: Strengthening of Auditing Office, Executive Branch TC: Strengthening of Legislative Branch

IMF: Stand-by arrangement

World Bank: Economic recovery loan, pension system reform

OAS: TA elections, 2003

Reform and modernization of the customs and tax administrations, implementation by 2007, with operating costs of no more than 4.5% of tax receipts (5.5% in 2002) Evaluation findings indicate that coordination of international cooperation and public investment has been implemented and strengthened by 2007 Evaluation findings indicate that monitoring agencies have been strengthened by 2007

Phase-in of increased tax collections, rising from 10% of GDP in 2003 to 13% by 2008, with a 2% primary surplus in 2008 (IMF) Improvement in Transparency International’s corruption index, rising from fifth quintile in 2002 to fourth quintile by 2008 (World Bank, “Governance Matters III”)