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Seminar on Policy Dialogue |
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International Organizations often communicate their understanding of international norms and standards through a process referred to as “policy dialogue.” Goal of Seminar The purpose of this seminar is to analyze the role of international financial institutions in promoting improvement in governance. The principal focus of efforts of the international financial institutions (IFIs) is typically on encouraging policy correctives where those are appropriate. But in recent decades the IFIs have gradually expanded the scope of their mandates to include the promotion of structural reforms within their subscriber states. Policy improvements refer to the specific procedures by which objectives are pursued. Structural reforms, in contrast, are broader in the sense that they encompass reorganization of the formal structures of government. While structural reforms are more enduring and have a more profound impact upon the host government, the link between structural reform and policy improvement is direct and continuous. The only legitimate purpose the IFIs have in promoting structural reform is to create a favorable policy environment. Structural reforms are typically targeted at improvements that will lead to more effective, equitable, and efficient governance. According to a conventional IFI
perspective, the chief functions of a contemporary system of governance
should include five key tasks: · Establishing and maintaining a foundation of
law · Maintaining a non-distortionary
economic policy environment · Investing in basic social services and
infrastructure · Protecting the vulnerable; and · Protecting the environment Structural reform programs usually consist of a package of inter-related administrative correctives designed to improve, simplify, and reduce conflicts within both the external and internal policy environments. Improvements in the external policy environment are designed to enhance the country’s ability to reap the gains of trade and enable access to foreign capital. Improvements in the internal policy environment are designed to improve the effectiveness, efficiency and equity of government functioning. The Policy
Dialogue Standard components of a structural reform program include an assessment of the country’s internal and external sectors. Macroeconomic functioning is considered to be at the core of the IFI package of proposed changes, but microeconomic, governance, and even non-economic factors that might impact substantially on the success of the proposed policies are also included. The IFI assessment teams, working in close collaboration with the government, draw up a draft memorandum based on the assessment and on proposed recommendations. This is discussed with both the government and the other members of the donor community. A memorandum is then prepared by the government and is submitted in the form of statement of intention of the government. The policy memorandum will typically reflect an assessment of the current situation, a set of priorities for policy reform, and requests with respect to IFI assistance. The government’s program will typically be stated in the form a policy matrix with timetable benchmarks. The priorities for the structural reform agenda will depend upon the country’s situation, but will typically include: improved governance, including strengthened state capacity, transparency, and competition policy; improved balancing of public and private sectors through privatization; bank and financial sector restructuring; land reform, and energy sector reform. Governance measures often also include reform of the treasury system, the establishment of a single independent auditing agency to control the efficiency of public finances and eliminate redundant inspection rights, control over quasi-fiscal operations of the central bank, prevention of unjustified intervention by public officials in the operation of private enterprises, and public procurement reform. The goal of privatization is to raise productivity and support growth targets, as well as aid in the achievement of fiscal goals by bolstering revenues and lowering direct or indirect subsidies. The goal of bank restructuring is to increase the stability of the banking system. In post communist structural reform programs particular emphasis is placed on measures that lead to a greater reliance on monetarized commercial transactions and a reduction in inefficient and non-transparent barter relations Conduct of Seminar This seminar will involve
specialists in public policy from transition countries and from the For further information contact Gregory Gleason gleasong@unm.edu |
