The Education for All – Fast Track Initiative (EFA-FTI)

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Presentation transcript:

The Education for All – Fast Track Initiative (EFA-FTI) Fiscal Space and Capacity Issues: A Case Study of Selected Developing Countries of the EFA/FTI Fast-Track Initiative April 2009 Presentation by Kouassi Soman Senior Operations Officer and CF Trust Fund Manager, FTI Secretariat Pacific Regional Conference. July 2008. Presentation by Desmond Bermingham, Head of FTI Secretariat

Fiscal Space—Definitions: IMF: Fiscal space is the room in a government’s budget that allows it to provide resources for a desired purpose (i.e. Education Sector Plan) without jeopardizing the sustainability of its financial position, or the stability of its economy. UNDP: Fiscal space is the financing that is available to government as a result of concrete policy actions for enhancing resource mobilization, and the reforms necessary to secure the enabling governance, institutional and economic environment for these policy actions to be effective, for a specific set of development objectives.

Fiscal Space Analysis tool:The Diamond I. Domestic Revenues Mobilisation IV. Reprioritisation & Efficiency of Expenditures (%of GDP) II. External Grants (incl. FTI funds) III. Deficit Financing

Fiscal Space Analysis Tool: The Diamond I. Domestic Resource Mobilization: Includes taxes, royalties, other nontax revenues, and privatization receipts. Key indicators are ratios to GDP, progressivity, and impacts on growth and poverty alleviation. II. External Support: Includes grant aid such as FTI funds, and debt relief and cancellations. Key indicators are aid predictability and dependence, modality, coordination and effectiveness. III. Deficit Financing: Includes net domestic finance (arrears and impacts on private sector development), and net foreign finance (indebtedness and long-term sustainability). IV. Re-prioritization & Efficiency of Public Expenditures: Includes difficult and politically-sensitive trade-offs across sector (health, education, social protection, security and public order, and infrastructures, etc.), investment versus recurrent expenditures, luxury versus pro-poor expenditures, procurement and financial management, minimizing corruptive practices, etc... The 22 selected FTI developing country partners are: Benin, Burkina Faso, Cambodia, Cameroon, Ethiopia, Ghana, Guinea, Kenya, Lesotho, Madagascar, Mali, Mauritania, Moldova, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tajikistan, The Gambia, Yemen, and Zambia.

Table . Summary of Macroeconomic and Sector Data Sample of 22 FTI Country Partners

Thank you For more information, visit the FTI website: www Thank you For more information, visit the FTI website: www.education-fast-track.org Contact us at: fti@education-fast-track.org