Switzerland Deepens Partnership with IMF to Support Developing Countries
Bern, 13.09.2016 - The State Secretariat for Economic Affairs contributes CHF 7 Million to support macroeconomic management in resource-rich developing countries.
On September 13, the IMF’s Deputy Managing Director, Ms. Carla Grasso, met with the State Secretariat for Economic Affairs (SECO) and the State Secretariat for International Financial Matters (SIF) in Switzerland. At the heart of the discussion was Switzerland’s close cooperation with the International Monetary Fund (IMF), including in the area of capacity development in developing countries.
During the meeting, Deputy Managing Director, Ms. Grasso, and SECO’s Head of Economic Cooperation and Development, Mr. Raymund Furrer, signed an agreement to continue Switzerland’s support for the IMF’s Managing Natural Resource Wealth Programme for the period 2016-2022. The Swiss contribution for phase 2 of the programme amounts to CHF 7 Million.
The IMF and SECO have a close partnership in strengthening macroeconomic management in developing countries. The contribution to the MNRW Programme adds to SECO’s support to other IMF capacity development initiatives. SECO also supports the IMF’s Revenue Mobilization Programme, the Tax Diagnostic Assessment Tool (TADAT), the Regional Technical Assistance Centers (RTACs) and a bilateral subaccount to provided targeted support for SECO priority countries. The IMF and the Swiss representatives therefore discussed the approach to capacity development, commensurate results-based management and success factors for sustainability during the meeting.
The IMF launched the Managing Natural Resource Wealth Programme in 2011 with a budget of USD 25 Million. The objective of the programme is to assist low-income and lower-middle-income countries endowed with oil, gas, and minerals to craft appropriate economic policy responses. The programme is supported by Australia, the European Commission, Norway, the Netherlands, Oman, and Kuwait. During the first phase, the IMF implemented 34 projects in 19 countries, eight research projects, and five conferences/workshops. Amongst other results, the programme contributed to reforming extractive industry fiscal regimes in nine countries. Following a successful first phase, the IMF launched the second phase of the programme in June 2016 with a budget of USD 30 Million.
In 2013, the Federal Council adopted the Background Report on Commodities, which contains recommendations on how to ensure Switzerland’s attractiveness as a business location and at the same time reduce negative effects of natural resource extraction and trade on producer countries. The support of SECO for the MNRW Programme is an important contribution to the implementation of recommendation 13 of the Background Report, which calls for an intensification of Switzerland’s development cooperation to improve natural resource governance. In Switzerland’s development cooperation, at least 19 priority countries and all seven priority regions possess substantial reserves of oil, gas or minerals and are confronted with specific macroeconomic challenges related to the extraction of natural resources.
Address for enquiries
State Secretariat for Economic Affairs SECO
Holzikofenweg 36
CH-3003 Bern
Tel. +41 58 462 56 56
medien@seco.admin.ch
Publisher
State Secretariat for Economic Affairs
http://www.seco.admin.ch
