Executive Summary

REGIONAL TECHNICAL ASSISTANCE CENTER FOR CENTRAL AMERICA, PANAMA AND THE DOMINICAN REPUBLIC (CAPTAC-DR)

Objectives and priorities: The Main objective of the Regional Technical Assistance Center for Central America, Panama and the Dominican Republic (CAPTAC-DR) is to increase technical assistance and high-quality training for the strengthening of the technical and institutional capacities of member countries. The technical assistance and training offered by CAPTAC-DR complements and reinforces capacity building activities for the IMF headquarters region. The Center seeks to provide its assistance in a focused, flexible and adjusted to the needs of member countries. It also seeks to reinforce the ownership of capacity building by its members. CAPTAC-DR provides assistance at the national and regional levels, in close coordination with other technical assistance providers in the region. Additionally, the Center seeks to support regional integration initiatives.

The Centre's activities focus on key areas that present common opportunities for institutional strengthening in member countries, including those that contribute to the region's economic integration: tax administration, customs administration, public financial management, financial regulation and supervision, central banking, real sector statistics and public finance statistics.

PHASE III OF CAPTAC-DR (MAY 2019 - APRIL 2024)

The Centre has become an effective tool for capacity building in Central America, Panama and the Dominican Republic. The capacity-building assistance provided by the Centre has contributed to improving macroeconomic frameworks in its member countries, strengthening their capacity for the formulation and implementation of macroeconomic policies that promote macroeconomic and financial stability and inclusive economic growth. CAPTAC-DR has also contributed to the improvement of macroeconomic statistics and their regional harmonization, based on international standards and best practices, supporting in this and other areas initiatives that promote greater regional integration.

The Centre's operations in the Third Phase (2019-24) have been based on the progress made in the previous phases. CaptaC-DR's work continues to focus on: modernizing tax and customs administrations to mobilize additional budgetary revenues and facilitate foreign trade; strengthen public financial management systems in order to strengthen the design and implementation of fiscal policies; strengthening the operational framework for monetary and exchange rate policy to support macroeconomic stability; strengthen the regulation and supervision of the region's financial systems in order to support financial stability; and improving the quality of macroeconomic statistics to facilitate economic policy decision-making.

During this Phase, the Center also seeks to contribute to capacity building to address cross-cutting policy issues (inequality, gender equity, climate change, governance and transparency, and technology and digitalization). Its implementation has been reflected through various regional and bilateral projects within the annual work plans and requires close collaboration with IMF country teams and partners. Capacity building on these issues seeks to contribute to the implementation of the Sustainable Development Goals.

The total number of resident advisers remains at seven: three in the tax area (tax administration, customs administration and public financial management), two in the monetary and financial sector (central banking and banking regulation and supervision); and two in macroeconomic statistics (real sector and public finances).

The strategy and objectives for Phase III of the Center were identified through extensive consultation with member countries, regional councils (the Central American Monetary Council, the Council of Ministers of Finance of Central America, Panama and the Dominican Republic, and the Central American Council of Superintendents of Banks, Insurance and Other Financial Institutions), external partners and other capacity development providers, and were raised in the Programme Document for Phase III.

The Centre's work during this phase will focus more on results, reflecting the recent adoption of results-based management. For each technical assistance project at the regional and national levels, indicators and milestones shall be defined in such a way as to serve as a simple and reliable means of measuring progress and facilitating the verification of progress throughout the project. Progress in the implementation of technical assistance recommendations and the achievement of results will serve, together with the criteria of relevance and urgency of technical assistance, to guide the allocation of resources of the Center. To the extent possible, the indicators will be linked to regional objectives and those of other donors to facilitate coordination. However, the implementation of the recommendations will remain the full responsibility of national authorities.

The total estimated cost for Phase III operation of CAPTAC-DR is approximately US$43 million. Of these, US$40 million corresponds to cash contributions from external partners and member countries.

Organizational and Operational Arrangements: The organization of CAPTAC-DR is similar to that of other IMF regional technical assistance centers:

1. the Steering Committee — composed of representatives of recipient countries, donors and IMF — provides the Center with strategic guidance;
2. the Coordinator of the Center— who is an IMF staff member— is responsible for the day-to-day management of the Center; and
3. the Center's staff, which is made up of resident advisers and short-term experts who are hired, supervised, and supported by the IMF.

CAPTAC-DR work plans are integrated into the IMF's regional technical assistance strategy for Central America, Panama, and the Dominican Republic.

Executive Summary

Phase III OF CAPTAC-DR (May 2019 - April 2024)

Provisions relating to organization and operations