MEFMI Celebrating 20 Years of Strong Leadership and Success in Capacity Building

The year 2014 marks 20 years since the establishment of ESAIDARM whose mandate was broadened and renamed MEFMI in 1997.  After the three year pilot period under ESAIDARM, the first MEFMI Project Phase was from 1997–2001, followed by Phase II from 2002 to 2006. Phase III ran from 2007 to 2011 and the current Phase IV covers 2012 to 2016.  

The anniversary theme is “Celebrating 20 Years of Strong Leadership & Success in Capacity Building”, and the event to commemorate this milestone will be along-side the annual Combined Forum on Monday 6 October 2014 at the Hamilton Crowne Plaza, 1001 14th Street, NW, Washington DC, 20005 in the United States of America.

In celebrating the 20 years, the Institute is also reaffirming its goal of being actively involved in activities that should stimulate growth and lead to poverty reduction in member states. MEFMI’s collaborative efforts with stakeholders are aimed at accelerating achievement of the region’s goal of poverty reduction. Pursuant to this, MEFMI has designed flexible instruments, tools and frameworks aimed at increasing the effectiveness of economic policies. MEFMI programs are designed to develop capacity, benchmarking its activities to international standards and best practice.

At the beginning of 2014, MEFMI conducted an Impact and Needs Assessment which revealed that the Institute is regarded by its client institutions as an important player in the provision of capacity building. Several such impact and needs assessment exercises carried out in the past three phases provided guidance and helped in determining the type of capacity building activities delivered by MEFMI.

In the 20 years that the Institute has been in existence, the hands-on nature of the regional courses has tremendously improved analytical skills in the areas of macroeconomic management, debt management, and financial sector management. The Fellows Development Programme has also been an effective intervention strategy for building sustainable capacity in client institutions.   In the post global financial crisis era, MEFMI has been inundated with demand from both member and non-member states for specific capacity interventions particularly in public expenditure management, fiscal policy and public financial management issues, gender based budgeting, financial inclusion, risk based supervision, modernisation of national payment systems, production of statistics, debt sustainability analysis, sovereign liability risk analysis, economic modelling and forecasting, monitoring private capital flows and financial markets deepening.

The above capacity interventions are expected to help in consolidating the gains from the crisis mitigation measures and to ensure long-term economic growth and development in the region. Countries also need capacity to formulate and implement effective trade and regional integration policies. The Institute is also cognisant of the enormous capacity gaps that continue to be found in its client institutions.  Because of the dynamic character of the issues that MEFMI handles, there exists scope for the Institute to continue supporting member countries in their endeavour to improve macroeconomic, financial and debt management and hence contribute to poverty reduction. The capacity gaps and the changing dynamics in client institutions will continue to be addressed by the Institute through planned activities that are arranged in phases of five year cycles. 

While it is not easy to attribute the impact of capacity building activities in the region to MEFMI only, there are specific achievements that have clearly come as a result of MEFMI interventions. These are spread in all the areas of MEFMI programmes Macroeconomic, Debt and Financial Sector Management.

Over the last 20 years the Institute has been receiving unwavering support from MEFMI member states. The income contributed by member states has gradually increased from 19% in 1997 to 72% of the total budget by 2013.  In addition, member countries make in-kind contributions by providing logistical support during activities. The Institute is very grateful to member states who have committed themselves to continue providing financial resources. The commendable support from member states has resulted in MEFMI acquiring the MEFMI Headquarters Building through financial contributions by each member state.

MEFMI has been able to sustain its activities due to long-term financing arrangements. While member states have played an important role in ensuring smooth operations of MEFMI, the role of financial cooperating partners such as Sweden, Norway, The Netherlands and the ACBF that have supported MEFMI over the years has also been critical and is laudable. Their support has enabled MEFMI to deliver programmes that have spurred economic reforms enhanced human capital formation and improved institutional capacity in member countries.

Value-adding strategic alliances with the private sector also continue to be created by the Secretariat which enables the Institute to tap onto both their expertise and financial resources.  With time MEFMI’s alliances with private sector players are expected to deepen for the mutual benefit of all parties.