The Government of Canada announced funding toward the Enhancing Public Financial Management in the Caribbean initiative, which will improve the capacity of national institutions to better manage public finances in the face of rising financial vulnerabilities. The initiative, valued at $15 million over four fiscal years (2014–2017) is being implemented through the International Monetary Fund (IMF). This initiative will allocate respectively $5 million to Jamaica and $10 million to Eastern Caribbean countries for IMF training, advice and coaching to improve their capacity to address difficult economic situations, such as recessions.

This initiative will assist Caribbean countries in improving their financial situation through a fiscal reform program supported by the IMF. The IMF is tasked with monitoring the financial and economic policies of its members and providing them with macroeconomic and financial policy advice and technical assistance to help them restore macroeconomic stability and relaunch growth. The ongoing recession in tourism-dependent Caribbean states limits their economic growth potential.

Key results – Macroeconomic and public financial management will be improved in the context of rising financial vulnerabilities, while regional cooperation and integration will be enhanced to foster economic growth in the Caribbean region.

Key components/activities – A number of Caribbean Community (CARICOM) countries will access IMF advice, training and coaching to:

improve cash planning and cash-management systems, techniques, strategy and operations, and the treasury single account;

develop efficient debt management and improve macro-fiscal management;

modernize the legal and institutional framework for budget and treasury management;

improve revenue administration and strengthen audit capacity;

implement harmonized customs procedures;

adopt modernized tax laws to enhance the efficiency of the tax and customs administration operations;

implement mechanisms to address the costs and risks of public-private partnerships and enhance financial management of statutory bodies;

modernize tax laws improve fiscal incentives and widen their tax base; and

strengthen supervision of the financial sector and non-bank financial institutions.

Canada is a key development partner with considerable economic ties in the Caribbean region. Canada’s services exports to CARICOM countries, totalling $1.1 billion, are in line with some of our largest trading partners. Canadian direct investment in the region is also large, totalling some $75.5 billion.

Through capacity-building work, Canada is improving the professionalism and accountability of public institutions and helping them to be responsive to the needs of their citizens.

For more information on Canada’s programming in the Caribbean, visit Foreign Affairs, Trade and Development Canada’s website at: http://www.international.gc.ca/development-developpement/countries-pays/index.aspx?lang=eng