Statement by an IMF Staff Mission to Namibia;
"Against this background, a counter-cyclical fiscal stance is appropriate in the fiscal year 2008/09 (ending March 31), and sound fiscal management in recent years provides scope for some fiscal easing to allow for increased outlays in priority areas such as rural infrastructure, education, and poverty reduction. However, the magnitude of the easing implied by the 2008/09 budget-the fiscal balance would swing by some 6.5 percentage points of GDP-seems considerably larger, even given counter-cyclical considerations. Moreover, the projected large increase in expenditures raises concerns about the ability to ensure high quality of spending. It will be important to integrate the annual fiscal programs into sustainable multi-year budget expenditure plans.
"The mission shares the view that further development of the domestic financial sector would facilitate broad-based economic growth, but is concerned that the new pension fund and insurance company regulations would be difficult to implement and risk distorting capital flows at the expense of lower returns and higher risk to domestic savings. Consideration could be given to a greater focus on market-based alternatives to financial market development, including a broadening of the range of available domestic assets. More broadly, it is important to preserve the stability of the financial sector and the mission welcomes the Bank of Namibia's prompt steps to curb and control non-licensed deposit taking operations and pyramid schemes.
"The National Development Plan 3 provides a helpful framework to achieve high sustainable growth, and to reduce poverty and inequality. Continued improvement in labor productivity and private sector competitiveness will be critical in order to facilitate economic diversification and lower the high unemployment rate.
Working Papers from the Central Bank;
•Central Government Debt Sustainability
•Public Exp Management in Namibia
•Monetary Policy Transmission Mechanism in Namibia
Private Equity - Lesson for Namibia
Namibia's social safety net : issues and options for reform
Namibia - Public expenditure review
Namibia: Selected Issues and Statistical Appendix
Namibia: Report on Observance of Standards and Codes - Fiscal Transparency Module
For Discussion:What do you think of their MTEF? With 500 pages it appears too detailed to be effective? See the Fiscal ROSC for a summary of the current features of the MTEF.