AG.

Strengthening the technical capacity of public finance

managers in select Caribbean Small Island Developing States to
manage their public finances
ECLAC (!"#$%%%&
'ac(ground
1. The recent global economic crisis was particularly severe on the
economies of the Caribbean, especially those that depend heavily on services for
their economic growth. The aggregate cost of the crisis for the region has been
estimated at 13.5 per cent of Gross Domestic roduct !GD" in #$$% and for many
economies, positive growth only occurred in #$11. &nli'e many countries in (atin
and Central )merica, governments of the region could not employ significant fiscal
stimuli because they are constrained by limited fiscal space.
#. *t is important to note, however, that the reduced fiscal space has been
a long standing problem that has only been aggravated by recent economic
conditions. Chronic fiscal deficit leading to high public debt is one of the most
important development challenges facing Caribbean +mall *sland Developing
+tates !+*D+". ,or instance, the average fiscal deficit and public debt levels were
3.- per cent and .-.- per cent of GD, respectively from #$$$ to #$$/. 0oreover
four countries had debt levels in e1cess of 1$$ per cent of GD.
3. ) variety of strategies have been employed to address the challenges
but with little success because of the limited capacity of public sector technocrats to
manage and forecast public e1penditure and revenue, two essentials for controlling
fiscal imbalances and high debt. ,urthermore, improved e1penditure and revenue
management are crucial for maintaining or improving systems of social protection.
-. 0oreover, the ongoing fiscal crisis in the Caribbean has forced some
countries to adopt either *nternational 0onetary ,und !*0," or home2grown
stabilisation programmes. This has led to marginal improvements in the fiscal
deficit and debt in some countries in #$11. 3evertheless, the average deficit and
debt remain elevated at 3.. per cent and 4% per cent of GD, respectively. The
counterpart of high debt is increasing debt service payments, which absorbs scarce
resources that could have been used for public investment.
5. The persistent fiscal and debt problem in the region is partly a
reflection of pro2cyclical fiscal policy, where governments spend e1cessively
during booms and are forced to retrench during downturns. 5owever, they also
reflect institutional wea'nesses related to limited capacity for effectively managing
public e1penditure and matching this with revenues. *n addition, systems for
revenue and e1penditure forecasting and debt management remain wea' and
ineffective in a number of countries, particularly as they relate to containing
contingent liabilities.
4. Given the number of countries and e1tent of the problems the region
re6uires a broad regional program of capacity building to strengthen public finance
management to control fiscal deficits and debt. *t is within this conte1t that this
pro7ect would see' to strengthen the capacity of the small island developing states
of the Caribbean to effectively manage their public e1penditure, revenue and debt
to reduce the challenge that they present to achievement of the *nternationally
)greed Development Goals !*)DGs". )t the last two Caribbean Development and
Cooperation Committees !CDCC" intergovernmental meetings and Caribbean
Development 8oundtable !CD8", a number of ministers re6uested 9C()C:s
assistance in dealing with challenge of fiscal imbalance and large debt burdens. +i1
countries were chosen as beneficiaries of the pro7ect !)ntigua and ;arbuda,
;arbados, ;eli<e, Guyana, =amaica and +t. >itts and 3evis", based on the
seriousness of their fiscal imbalances and debt, and limitations in their fiscal
management capacity.
)b*ective of the )rgani+ation, To increase the capacity of
policy2ma'ers and public finance managers of select Caribbean
+*D+ to apply methods and procedures for better management
and forecasting of public e1penditure and revenue
Summary budget
!Thousands of &nited +tates dollars"
General temporary
assistance 15.$
Consultants 15$.$
Travel 4-.$
Contractual services #4.$
?or'shops@training #3/.$
-otal !"#.%
.elationship to the strategic frame/or( for the period #%0!1
#%02 and the 3illennium Development GoalsA 9C()C
subprogramme 13 !+ubregional )ctivities in the Caribbean"B
0illennium Development Goal 1.
E4pected accomplishments of the Secretariat Indicators of achievement
!9)1" *ncreased 'nowledge and s'ills of public
finance managers in managing and forecasting
public e1penditure and revenue
!*)1.1" *ncreased number of public finance
practitioners applying the s'ills and techni6ues
ac6uired from the wor'shops in day to day fiscal
management, including the use of the reference
guide
!*)1.#" )t least /5 per cent of wor'shop
participants ac'nowledging their capacity to
manage and forecast government e1penditure
and revenue
!9)#" *mproved administrative systems and
infrastructure in selected countries to ensure
sustainable revenue and e1penditure
management operations
!*)#.1" )t least si1 pilot countries !)ntigua
and ;arbuda, ;arbados, ;eli<e, Guyana,
=amaica and +t. >itts and 3evis" have
implemented a framewor' for including the
programmes and techni6ues of the training in
their public finance management systems
3ain activities
/. The main activities of the pro7ect will includeA
!)1.1" &nderta'e a study and assessment of the s'ills and 'nowledge of the
selected public finance managers and the processes and procedures that they
employ in their wor'B
!)1.#" Develop a training manual !informed by the findings of the assessment"
that contains specific guidelines and techni6ues on cash management, e1penditure
control, revenue and e1penditure forecasting for use during the wor'shop, and
develop a comprehensive reference guide for future use by trainees in their daily
operational activitiesB
!)1.3" Conduct si1 regional training wor'shops in different areas of managing
and forecasting public e1penditure and revenue, such as budget e1ecution and
procurement, ta1 and revenue administration, financial programming and
forecasting and e1penditure control and cash management. 9ach wor'shop will
address a different aspect of e1penditure and revenue managementB
!)1.-" Crgani<e technical advisory missions to the countries to provide more
specific assistance and capacity development to foster sustainabilityB
!)#.1" Conduct national seminars to enhance policy ma'ers: understanding of
the need to commit financial and technical resources to strengthen their institutional
systems, and provide guidelines for public finance policy ma'ers on how to
incorporate methods and techni6ues of training in their public finance management
systemsB
!)#.#" Crgani<e technical advisory missions to the countries, and provide
more specific assistance on strengthening their institutional systems
Detailed budget !&+ dollars"
General -emporary Assistance
Temporary assistance to perform clerical, research and administrative
tas's, in support of activities )1.3 and )#.1 !4 wor' months 1 D#,5$$ per
wor' month" E D15,$$$
Consultants
*nternational consultants
,or the tas's of using the assessment information received from the
national consultants to aid the preparation of training materials, including
reference guide and training manual, and also for conducting the
wor'shops, in support of activities )1.1, )1.#, )1.3 and )#.1. !4 wor'
months 1 D5,$$$ per month" E D3$,$$$
Travel of consultant to conduct the wor'shops in support of activity )1.3
!D3,5$$ average per wor'shop travel cost 1 4 wor'shops" E D#1,$$$
3ational @ 8egional consultants
8egional consultant to support the international consultant in the tas's of
using the assessment information received from the national consultants
to aid the preparation of training materials, including reference guide and
training manual, in support of activities )1.1, )1.#. !- wor' months 1
D5,$$$ per month" E D#$,$$$
3ational consultants for tas' of auditing the fiscal systems of their home
country and provide audit information to the international consultants, in
support of activities )1.1 and )1.#. !# wor' months per country 1 D-,5$$
per wor' month 1 4 countries" E D5-,$$$
,inal evaluation of pro7ect E D #5,$$$
-ravel of staff
&nited 3ations staff members from the implementing entity
+i1 missions for the purpose of substantively contributing to the
wor'shops in support of activity )1.3. !D3,5$$ average mission cost 1 4
missions" E D#1,$$$
+taff from *(9+
,or the tas' of additional technical assistance to the practitioners in
support of activities )1.- and )#.#. !D-,3$$ average mission cost 1 1$
missions" E D-3,$$$
Contractual Services
*n support of activities ) 1.# and )1.3 for printing of wor'shop manual
and reference guide E D#4,$$$
Seminars$ 5or(shops and Study -ours
?or'shops
+i1 wor'shops, in support of activity )1.# !D3,5$$ per participant
!includes D+) D#,3$$" and !travel D1,#$$"" 1 1$ participants per
wor'shop 1 4 wor'shops" E D#1$,$$$
Conference2related e1penditures !D3,$$$ per wor'shop 1 4 wor'shops" E
D1.,$$$
+eminars
+i1 national seminars in support of activity ) #.1 !D1,5$$ per seminar
1 4 seminars" E D%,$$$
15 $$$
15$ $$$
4- $$$
#4 $$$
#3/ $$$
-otal -%# $$$