Key Messages • The Iraq Subaccount is a good example of donor coordination as expressed in the Paris Declaration. • Overall, the TAs funded from the Iraq TA Subaccount were successful, relevant, efficient and effective. • Ensuring long-term sustainability requires maintaining an adequate the level of TA activity in the future. • There were instances where more pro-active donor coordination was needed to build synergies to achieve development results. • While the offsite modality was fairly effective and cost efficient and delivered value for money, the limits of this model will be stretched as IMF moves from policy and operational advice and training to greater emphasis on supporting the implementation of policies and procedures. • The Fund’s internal monitoring needs to be strengthened, particularly the TA Information Management System. Reforms in this area are on track, supported by Fund management, and improvements are expected by 1 May 2008. • The Fund’s TA evaluation framework needs to be strengthened by instituting a system of self assessments of all completed TAs and developing guidelines for the ex-post evaluation of TAs. Work in these areas is planned. • The Fund delivered slightly more internally funded TA to Iraq than originally planned.

The vision of the New International Order emphasizes justice and equality. It also raises profound questions about the nature and future of the relationship between postindustrial and Third World countries. The counterpart system describes one aspect of this relationship: an expert from a postindustrial country teaches a special skill to a Third World national. In this collection contributors draw on political science, economics, education, sociology, history, and communications theory to illuminate the forces that shape the nature of the exchange of expertise between postindustrial and Third World countries. Each author raises theoretical points and offers practical observations about the future of this exchange—a critical point of contact--in the New International Order.

KEY ISSUES Context: The authorities continue to make progress on their far-reaching political and economic reform program. Key economic reform priorities are being realized. However, macroeconomic and financial risks are building, and capacity constraints are slowing institutional reform. Constitutional amendments are being considered ahead of the 2015 elections, and peace negotiations are continuing despite religious and ethnic tensions. Macroeconomic situation and outlook: Growth is accelerating, with average growth projected around 81⁄4 percent in the next few years, and inflation should remain broadly stable. After depreciating in 2013, the exchange rate has stabilized. The external current account has widened despite improved export performance but rising capital account inflows should enable Central Bank of Myanmar (CBM)’s international reserves to grow rapidly from their current low levels. Monetary aggregates are growing at double-digit rates. The underlying fiscal deficit in 2013/14 is estimated at 3 percent of GDP and is forecast to widen to around 51⁄2 percent of GDP in 2014/15, but should decline below 5 percent of GDP in the medium term. However, off budget operations could increase the deficit. Risks also arise from capacity constraints and thin fiscal and external buffers. Medium- and long-term prospects: Economic prospects remain strong. Myanmar’s long-run growth potential is estimated at around 7 percent, in line with peer countries’ experience, but sound institutional and policy frameworks need to be built to realize this. Key policy recommendations: Macroeconomic policy challenges are likely to intensify in the short term. Monetary policy tools need to be more aggressively deployed, and mechanisms established to transfer public sector foreign exchange earnings automatically to the CBM. The regulatory framework for the banking sector needs to be urgently upgraded and supervision strengthened, particularly as foreign banks will soon enter. Tax policy and administration should aim at simplifying the system and preparing for the introduction of a value-added tax (VAT). Technical assistance (TA): Capacity building will be crucial to achieve policy objectives. The IMF continues to provide intensive TA in key areas, including in a wide range of CBM operations, tax policy and administration, public financial management and statistics.

This book, edited by J.B. Zulu, Ian S. McCarthy, Susana Almuiña, and Gabriel Sensenbrenner, presents the proceedings of the special Joint Meetings on Central Banking Technical Assistance held in St. Petersburg, Russia in 1994, and provides detailed information on important issues in central banking, including a comparative sample of 31 countries. The arrangements concerning such issues as the size and composition of the policymaking board, the role of the central bank in monetary and exchange rate policy, resolution of conflict between the central bank and the government, public accountability, relations with the markets, and credit to the government are reviewed.