IMF and African, Caribbean and Pacific Group of States Intensify Cooperation

The International Monetary Fund (IMF) and the African, Caribbean and Pacific (ACP) Group of States agreed on December 7 to strengthen their cooperation in the field of capacity building to bolster members’ economic institutions and policy making expertise. IMF Deputy Managing Director Nemat Shafik and ACP Secretary General Mohamed Ibn Chambas signed a memorandum in Brussels acknowledging their common interest in fostering sustainable capacity building initiatives in the ACP States and in establishing and maintaining effective consultation, cooperation, and exchange of views and information.

Before the signing ceremony, in a presentation to the ACP Ministerial Committee on Development Finance Cooperation, Ms. Shafik discussed how the global economic crisis has affected low-income countries as well as the IMF’s response. “Though low-income countries have been affected significantly by the crisis, many were able to mitigate the impact of the shock with a countercyclical policy response. Now it is critical that ACP and other low-income countries strengthen buffers against future shocks by mobilizing domestic revenues, increasing domestic savings, further developing local financial markets, and expenditure prioritization,” Ms. Shafik said.

In addition to its policy advice and lending, the IMF actively assists countries in building capacity in its areas of expertise. Half of IMF technical assistance already benefits ACP countries, most of it delivered through six Regional Technical Assistance Centers. The global financial crisis and continued vulnerabilities of ACP countries make the advice and technical assistance provided through these centers even more relevant. The planned expansion of the centers serving ACP regions, including the opening of a new Center in West Africa as soon as funding has been secured, would permit virtually full coverage of the ACP zone.

“The network of regional technical assistance centers serving ACP countries is a project that benefits all your members and help them better address the growing volatility of the economic environment. It greatly contributes to reinforce coordination between the national, the regional and the supra-regional level in the ACP zone. The IMF is determined to further develop its cooperation with the ACP Group,” Ms. Shafik stressed during the signing ceremony.

Mr. Chambas noted: “There are substantial synergies between the regional technical assistance centers and the core work of the ACP group. The areas in which the technical assistance centers are providing assistance, such as debt and revenue management, are critical in helping ACP countries to navigate through these challenging times.”