Good Governance for Economic Resilience
Twenty Years of METAC Capacity Development in the Middle East and North Africa
December 4, 2024
For the past two decades, the IMF's Middle East Regional Technical Assistance Center (METAC) has been instrumental in promoting good governance and supporting its member countries in building strong macroeconomic institutions and implementing sound economic policies that promote inclusive growth and resilience. METAC’s 20th Anniversary Conference in Cairo, Egypt, brought together representatives from member countries, development partners, and the IMF to discuss the role of capacity development, country ownership, and development partner support.
Egypt reinforces its long-term cooperation with METAC.
In his opening remarks, H.E. Finance Minister of Egypt Ahmed Kouchouk noted that METAC’s anniversary is a testimony for how important and vital multilateral support and partnerships are in advancing economic reform. Expressing a strong commitment to the crucial role METAC plays in enhancing the macroeconomic foundations of its member countries, H.E. Ahmed Kouchouk signed a contribution agreement with METAC, enforcing Egypt’s ownership and commitment as a contributing member of METAC.
METAC is instrumental in supporting fragile and conflict-affected states.
Looking back at METAC’s inauguration in 2004, the Director of the IMF’s Middle East and Central Asia Department Mr. Jihad Azour highlighted that METAC was designed to be a key reform partner and a bridge between member countries and IMF Headquarters. Over the past two decades, METAC has become a critical partner in helping governments address fiscal pressures, combat corruption, and implement reforms essential for restoring trust in institutions. He highlighted that METAC’s most profound contribution has been in fragile and conflict-affected states, whose need for technical expertise and institutional capacity-building is most urgent, and where METAC has been instrumental in supporting governments as they rebuild, stabilize, and restore essential state functions. He added that “through METAC, the IMF is today making a long-term commitment of resources and expertise to the whole region”, significantly scaling up its support to fragile and conflict-affected states.
Supporting good governance practices through partnerships, dialogue, and knowledge sharing.
Through various panel sessions, the conference highlighted capacity development successes, challenges, and partnerships over the past two decades, as well as priorities going forward. Representatives from member countries, development partners, and the IMF discussed the role of capacity development in building strong economic and financial institutions for more resilient and inclusive economies in region. Under the conference theme “Good Governance for Economic Resilience”, panelists shared valuable insights and practical strategies from their experiences in overcoming governance challenges, underscoring the importance of collaboration and knowledge exchange for achieving sustainable progress. Some key takeaways include:
- Long-term partnerships and cooperation between institutions yield substantial benefits. Many panelists recalled their personal journey with METAC over the past two decades, referencing METAC’s anniversary booklet that “capacity building is as much about people and relationships as it is about institutions”.
- Several sessions and panelists pointed out the critical role of digitalization and technologies as tool to strengthen governance, accountability, and open new opportunities for policy analysis. Developing skills is a crucial component for fully utilizing the benefits of digital systems. Leveraging big data can be a powerful tool for macroeconomic policymaking. The panel sessions showcased concrete examples of how the IMF is helping member states in this regard.
- Long-term follow up and programmatic support are important factors for successful reforms.
- Discussions emphasized the importance of a country-tailored approach for achieving meaningful reforms. Experience shows that pragmatic solutions—with focus on what is possible and implementable—work better in fragile states.
- Good governance is macro-critical for improving economic performance, even more so as fiscal and monetary policy space is limited.
Panelists agreed that there is a strong appetite for reform. Zeine Zeidane, Deputy Director of the IMF Middle East and Central Asia Department emphasized the continuous commitment from member countries, which offers fertile ground for scaling up technical assistance.
High-Level Seminar on Building Robust Governance Frameworks
Session 1 - Governance - The IMF’s Framework for Enhanced Engagement
Session 2 - Strengthening Governance Throughout the PFM Cycle
Session 3 - Promoting Fiscal Transparency for Accountability and Effective PFM
Session 4 - Corruption as a Macro-Critical Challenge
Session 5 - Strengthening governance by confronting corruption
