DFI, the ITUC, New Rules for Global Finance and Oxfam co-sponsored a seminar in the Civil Society Policy Forum of the IMF and World Bank Meetings, analysing whether governments are taking the right measures to fight inequality, and whether the IFIs are supporting them in this effort. Held in Bali, Indonesia, the seminar launched two new policy reports: the DFI/Oxfam Commitment to Reducing Inequality Index 2018, which looks at policy measures being taken by governments and the  New Rules DFI Report on Financial Impact and World Bank efforts to fight inequality.

The GFII report concludes that the IMF is making slow but inconsistent progress towards helping countries fight inequality more effectively, with its score rising from 2.7 to 2.85 out of 5. Since the last report, it has mainstreamed inequality in its country analysis and policy recommendations, but needs to apply this to all countries; scaled up its technical assistance to countries to help collect more (especially corporate and personal income) tax; and broadened its definition of key social spending beyond education and health.

DFI provided technical and logistical assistance to OIF in convening the meeting of Francophone Finance Ministers in Bali, in the margins of the decentralised Annual Meetings of the IMF and the World Bank. Chaired by Mrs Vonintsalama Andriambololona, Madagascar’s Minister of Finance and Budget, the meeting enabled all OIF member countries to hear the results of the work on development financing issues carried out by the Network of Finance Ministers from Francophone LICs.

Today, DFI and Oxfam launched the new Commitment to Reducing Inequality Index (CRI) at the Annual Meetings of the IMF and the World Bank held in Bali, Indonesia. It was pre-launched at an Asia-focused event in Jakarta on 8th October.

Based on extensive data research and collection from DFI and input from Oxfam offices, the Index ranks 157 countries on their policies on social spending, tax, and labour rights - three areas critical to reducing inequality. This new edition boasts new sub-indicators focusing on the extent countries enable tax evasion, and on sexual

DFI supported OIF in organising the fourth technical workshop of the Francophone LIC Finance Ministers’ Network. Held in Madagascar, the current chair of the Network, this four-day event focussed on the theme of tax treaties. Tax treaties (which are meant to help tax authorities collect tax without overtaxing companies and individuals) have too often become a means of diverting developing country tax revenues away to be paid in OECD countries, or of facilitating tax dodging.

DFI has been contracted by UNICEF-Chad to conduct a study on Fiscal Space for Spending on Children. The study will examine the spending needed to reach the most closely child-related Sustainable Development Goals on education, health, social protection and water; and the potential sources of fiscal space and financing for such spending.

Chad faces a very difficult context for increasing spending on children given the collapse in oil prices and increased oil-related debt, which have led to major recent cuts in government spending. The first mission will take place in October and the study is expected to be finished by December.

A UNDP-sponsored Development Finance Assessment (DFA) mission commissioned by the Benin government was held in Cotonou on 10-21 September 2018. Following an introductory mission in June 2018 which launched the study, this mission prepared for the third and fourth ones scheduled to be completed by the end of the year. 

DFI supported OIF in preparing the participation of the Madagascar government at the Caucus meeting of African Governors of the IMF and World Bank, held in Sharm-el- Sheikh. Madagascar spoke on behalf of the OIF network and presented the recommendations of the 28 governments in that network to reduce costs and risks, increase budget revenue mobilisation, and improve transparency and accountability of public-private partnerships. The recommendations of the network were included in the final memorandum of the Caucus which will be discussed with the heads of the Bretton Woods Institutions at the African Governors’ meetings with them at the BWI Annual Meetings in Bali in October.

DFI and the Commonwealth Secretariat signed an agreement making DFI the sole authorised distributor of the CS-DRMS debt recording and monitoring system for non-Commonwealth countries. There are currently 18 countries using the system, 11 in English and 7 in French versions. The contract will allow DFI to provide all the support needed by these countries in ensuring CS-DRMS supports their debt management effectively, as well as being open to supporting additional non-Commonwealth countries which apply to use the system.

This support will include an annual hotline support contract and end-user license agreement, as well as any additional support needed in installation, maintenance or training by individual countries. DFI also aims to reinforce feedback mechanisms between the non-Commonwealth user group and the Commonwealth Secretariat, so that their needs and priorities can be systematically taken into account. Finally, DFI will assist the countries in transitioning to the new Meridian system which will replace the CS-DRMS from April 2019, and contains major improvements in recording guarantees, contingent liabilities and domestic debt, as well as linking debt management to broader work cycles in Ministries of Finance and Treasuries, and more user-friendly interfaces and reports.

The Friends of Monterrey, through their co-chairs the Governments of Germany and Mexico, have contracted DFI to review the impact of the Financing for Development process, following on from the Addis Ababa Conference of 2015. The study will suggest ways to enhance its impact on and coherence with other UN processes and agencies, and especially on progress in finding sustainable financing solutions for the SDGs at country level.

The study began in July, and has involved interviews with 20 key institutional stakeholders and global analysts of financing for development. At a side-event at the High-Level Political Forum on 18 July in New York, DFI presented the key issues to be examined in the study, which is being finalised by September.

DFI assisted OIF to organise and support the participation of Francophone policymakers at the World Bank infrastructure governance roundtable in Abidjan. Officials and parliamentarians transmitted the concerns of the OIF Finance Ministers’ Network about the need to reduce the costs and risks of public-private partnerships for infrastructure, and to maximise their transparency and accountability to citizens and parliaments.