Jan – Mar 2017 Volume 35 CARTAC NEWS · Page 5 of 10 CARTAC NEWS Credit unions1 are largely...
Transcript of Jan – Mar 2017 Volume 35 CARTAC NEWS · Page 5 of 10 CARTAC NEWS Credit unions1 are largely...
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Jan – Mar 2017
Volume 35 CARTAC NEWS CARTAC-ICD Course on Inclusive Growth By Andrew Ceber, CARTAC Macroeconomics Adviser
Inside This Issue
Building Capacity of Price
Statistics Compilers
3-4
Capacity Building in the
Credit Union Sector
5
Strengthening Customs Risk
Management in Belize
6
Data Analytics in Revenue
Administration
7
CARTAC Welcomes New
Financial Stability Adviser
8
CARTAC Workshop
Calendar
9
Notices 10
CARTAC in conjunction with the IMFInstitute for Capacity Development(ICD) facilitated a training course onInclusive Growth,fromMarch20‐24,inGeorgetown,Guyana. The coursewashostedbytheCentralBankofGuyanaandwasopenedbyBankGovernor,Dr.GobindGanga,whoisalsothechairoftheCARTACSteeringCommittee.Thecourse was led by Mr. DmitriyRozhkov, who was joined byinstructors, Mr. Rodrigo Cubero andMs.IrinaYakadina.Allinstructorshadextensive experience teaching andwere IMF staff members from theWashington based ICD. The courseconsisted of thirty participants, withrepresentationfromalmosttheentireCARTACmembership.
The course touched on the mostpressing social and economic issuesfacing the region, including: therelationship and potential trade‐offsbetween poverty, inequality andgrowth, aswell as the importance oftheir measurement; diagnosing theconstraints to sustainable economicgrowth; fiscal policy, inequality, andhow to achieve a more potent andefficient fiscal redistribution; theimpact of human capital on growth,poverty, and inequality;demographictrends and gender inequality. On thesubject of gender inequality in theCaribbean region, lectures alsodiscussedpotentialpolicymeasurestoimprove female participation in thelaborforce.Thecoursealsofeatureda
CARTAC NEWS Page 2 of 10
video‐linkpresentationfromMs.JoyceWong,anEconomistbasedinIMFheadquartersinWashington,whopresentedherextensiveresearchonfinancialinclusionintheCaribbeanregion.The encouragement of peer learning was especially promoted during the course, as there was anexcellent mix of interactive lectures and group discussions. A notable point of debate during thediscussionphaseofthecoursefocusedonbindingconstraintstoinclusiveeconomicgrowthpertinentintheCaribbeanregion.Constraintstogrowthidentifiedbytheparticipantsincluded:thelackoffiscalspace; skillsmiss‐matches; crime; access to credit; electricity costs; and poor infrastructure. Policysolutionsweresuggestedincluding:fiscalrules;apprenticeprograms;andrenewableformsofenergy.LeadinstructorMr.Rozhkovwasveryimpressedwiththelevelofgroupdiscussionduringthecourse:“ItwasagreatpleasuretobringthiscoursetotheCaribbeanregion.Iwasstruckbytheveryhighlevelofengagementofparticipants,whoareeagertobothlearnfromtheexperienceofothercountriesandapplythatknowledgetofindsolutionstotheissuestheyarefacingathome”.ThecourseconcludedwitharoundtablediscussionondemographicandgenderissuesintheCaribbean.ThediscussionfoundthatgenderissuesintheCaribbeantendtoimpactmenandwomendifferently,andalsovaryamongcountries.Somemembercountriesreportedtheyhavedifficultiesfindingmentoentercertaintypesofprofessionaljobs,whileontheotherhandparticipantsreportedthateventhoughwomentendtodominateemploymentinprofessions,payratesarestilllowerthanthoseformen,andseniorpositionsarestilloccupiedbymen.Feedback from theparticipantswas very positive,with one participate reporting: “This coursewasparticularlyrelevantformebecauseitprovidedmetheframeworksthatcouldbeusedtodraftpolicysuggestionsandproduceconcreteactionplans”.
CARTAC NEWSPage 3 of 10
TheCaribbeanRegionalTechnicalAssistanceCenter(CARTAC) conducted a regional prices statisticsworkshop in Castries, St. Lucia duringMarch 6–10,2017. The workshop discussed ways to implementthe latest internationalstandardsandbestpracticesregardingthecompilationanddisseminationofpricestatistics. Specific compilation issues were alsoaddressed, including improving and rebasing theconsumer price index (CPI); and developing theproducer, exports and imports price indices giventhatseveralmemberstatesareplanningtoconductahouseholdbudget survey (HBS)andcompile supplyandusetables.A total of 39 price index compilers from 20 statesparticipated in the workshop. Messrs. PaulArmknecht andMick Silver (IMF Experts)were the
mainpresenters;withadditionalpresentationsbyMr.EdwinSt.Catherine(Director,CentralStatisticsOfficeofSt.Lucia)andMr.ZiaAbbasi,theCARTACRealSectorStatisticsAdviser.TheprogressmadebymemberstatesinimprovingtheCPIandotherpricesstatistics,andtowardimplementingtherecommendationsofthelatestpricesstatisticsmanuals,theEnhancedGeneralDataDisseminationSystem,andtherequirementsoftheSpecialDataDisseminationStandard,asrelevant,wasdiscussedattheworkshop.Theworkshopincludedpresentationsonconcepts,datasourcesandmethodologicalissues.Topicscoveredincludedindexnumber formulae,compilationofelementaryandhigher levelaggregates,and linkingof indices;price indexweightsandtheirsources,includingtheHBS,theestablishmentcensusandinternationaltradedata;modernizingandimprovingSurveysofLivingConditionsandHBS;pricescollection;sampledesign,selectionandmaintenance;productspecifications;qualitychangeandimputation;andthepriceindexcompilationmethodsandsystems.Theworkshopincludedgroupdiscussionsandexerciseswhereparticipantsworkedincountryteams.Theseexerciseswereseenbyparticipantsasbeingparticularlyusefulinreinforcingtheconceptsandmethodspresentedduringthelectures.Participantsareexpectedtoapplytheadditionalknowledgeandskillsacquiredduringthetrainingwhentheyreturntowork,especiallyinrelationtorebasingandimprovingthequalityoftheCPI.
Building Capacity of Price Statistics Compilers in CARTAC Countries By Zia Abbasi, Real Sector Statistics Adviser
CARTAC NEWS Page 4 of 10
L-R: Paul Armknecht (STX); Mick Silver (STX) and Edwin St. Catherine (Presenter)
Workshop Participants in Session
Zia Abbasi, CARTAC’s Real Sector Statistics Adviser making a presentation.
CARTAC NEWSPage 5 of 10
Creditunions1arelargelyfinancialco‐operativesthatprovidesavings,creditandotherfinancialservicestotheirmembershiponthebasisofa“commonbond.2”IntheCaribbeanregion,theyplayanimportantrole in the financial intermediation process, especially for a largeunderservedsegmentofthepopulation.Thelatestfigurespublishedin the Regional Financial Stability Report (2015) issued by theCaribbeanCentreforMoneyandFinanceandtheCARICOMGroupofCentral BankGovernors indicate that, at end‐2014, therewere justunder 400 credit unions in the CARICOM region with an overallfinancialassetbaseofaround7percentofregionalGDP3.Thus,creditunions are not insignificant players in the Caribbean financiallandscape. Increasing competition for financial business especiallyfrombanksand,insomecasesmutualfundscompanies,haveforced
manycreditunionswithclosedbonds(linkedtoeitherparticularorganizations,communitiesorregions)toadoptmore commercially‐oriented financial strategies involving greater risk, and to open their “bonds” to their widernationalpopulations.ThesestrategicmovesbymanycreditunionsintheCaribbeantoremaincompetitivenecessitateamorefocusedapproachtofinancialriskmanagement,governance,andsupervision.ThefinancialstabilityandfinancialsectorsupervisionprogramsatCARTACareemphasizingstrengtheningrisk‐basedsupervisionandriskassessmentinthecreditunionsectorregion‐wide.Onthe financialstability front,CARTACisassistingseveraloftheregulatorsintheregiontodevelopacommonsetoffinancialhealthandstabilityindicatorsforthecreditunionsector.ForthefirsttimeintheCaribbean,CARTACtechnicalmissionsaimedatintroducingstress‐testsincreditunionshavebeenundertakeninBarbados,St.VincentandtheGrenadines,andDominica,withfurthermissionsplannedforotherECCUmembercountriesin2017and2018.Effortsarealsounderwaytoenhancefinancialcrisismanagement frameworks in the credit union sector inGrenada and St. Vincent and theGrenadines.On thefinancialsupervisionfront,steadyprogressisbeingmadewithhelpingregulatorsraisetheirstandardsinrisk‐basedsupervision,operationalriskassessmentsandriskbased‐capitaladequacystandards.
1SeveraloftheseintheCaribbeanthathaveclosedbondsoperateasnot‐for‐profitfinancialco‐operatives.2Thisreferstothesocialconnectionsamongthemembersofacreditunion(e.g.occupation,grouporassociation,communityorregiontonameafew).3InjurisdictionssuchasBarbados,BelizeandtheECCUregion,thisassetbaseisupwardsof15%oftheGDPoftheserespectiveterritories.
CARTAC’s Financial Sector Efforts at Capacity Building in the Credit Union Sector in the Caribbean By Shelton Nicholls (Former CARTAC Adviser on Financial Stability)
CARTAC NEWS Page 6 of 10InJanuary2017,theCARTACResidentCustomsAdministrationAdviser and a Short‐Term expert provided TA to the CustomsDepartment of Belize. The Customs Comptroller requestedCARTAC’s help to strengthen controls along the very porousborderswithMexicoandGuatemala.Theadviserswentwith thecustomsriskmanagementandenforcementteamstotheborders,andadvisedondifferentwaystopreventanddetectsmuggling.ThecustomsjobinBelizeismadedifficultbythemanylandingplacesalongtheRioHondowhichformstheborderwithMexico.Manyofthearea’sresidentshavefriendsandrelativesonbothsidesoftheriverand,quitenaturally, find iteasier tocrossbysmallboatorcanoeondirectroutesratherthantravellingfardistancestoofficialbordercrossings.Unfortunately,theseunofficialcrossingpointsarealso frequentlyusedby smugglersbringingacross revenuegoods
such as beer and cigarettes (and even furniture!) orprohibited goods such as drugs and guns. The adviserswitnessedsmugglingacrosstheriveratfirsthandandwereevenapproachedbysomeofthesmugglerswhostressedthata combinationof economicnecessityandconvenience (theofficialcrossingsarejusttoofaraway)hadturnedthemintosmugglers.TheadvisersalsovisitedtheeconomiczonesatCorozalandBenqueborderswhereexportorientedbusinessesoperate.Customsstressedthedifficultyofcontrollingthesefreezones
and believe them to be the source of significant smuggling toBelize,MexicoandGuatemala.
At each of the borders visited, the advisers held interactive workshop sessions with customs officers on riskmanagement – including practical advice on developing information and skill sets to enable them to distinguishbetweenthosetraderswhocanbetrustedandthosewhoneedtobesupervisedandhelpingmanagementtodevelopmoreflexibleworkingarrangementstodeployscarceresourcesmoreeffectivelytomeetidentifiedrisks.CARTACwillcontinuetoprovidetechnicalassistanceinriskmanagementandenforcementtoBelizecustoms.
Stengthening Customs Risk Management in Belize By Stephen Mendes, CARTAC Customs Administration Adviser
Stephen Mendes at the Belize-Mexico Border
Blue Creek Crossing between Belize and Mexico
CARTAC NEWSPage 7 of 10
Data analysis involves inspecting, cleaning, transforming, and modeling data with the goal of discovering usefulinformation, suggesting conclusions, and ultimately supporting decision‐making. The use of data analytics hasthereforeemergedasanessentialtoolintheplanningandmanagementoftaxadministrationoperations.Overthepastyear,CARTAChasdesignedadataanalyticsprogramtoassistmembercounties tobetterutilize internalandexternaldatasourcestoimprovetaxpayercomplianceinthecoreareasofregistration,filing,paymentandaccuracyofdeclarations.Usingdataanalyticswillimprovedataquality,allowtaxadministrationstoplanmoreeffectively,andultimatelytoimprovetheirperformancemanagementandimprovedecision‐making.AfterthelaunchofthedataanalyticsprogramattheCARTACLeadershipSymposiuminSeptember2016,worktorolloutthebasicleveloftheprogrambegan.Atpresent,morethan50personsinfivecountries(St.KittsandNevis,St.Lucia,Dominica,Grenada,andGuyana)havebeentrained.FeedbackfromtrainingparticipantshighlightedtheneedtouseeasilyavailabletoolssuchasExcelandAccesstoanalyzethelargetaxpayersegmenttomorespecificallytargettaxpayerswhocontributeovereightypercentofthetaxrevenues.Asageneral‘ruleofthumb’intaxadministration,international practice and practical experience indicates that approximately eighty percent of tax revenues arecontributedbytwentypercentofthetaxpayerpopulation.Jamaica,whosedataanalyticsprogramismostadvancedintheregion,benefittedfroma1‐weekCARTACassessment,whichledtopracticalrecommendationsforsettingupamoreeffectiveframeworkfortheirdataanalyticsactivities.Thiswouldallowtheoutputstofeedmoredirectlyintotheirspecificinstitutionalpriorities,forexamplematchingVATpaidatcustomsfromcustomsdata,toinputtaxclaimedbytaxpayersonVATpaidatcustoms,aswellasexpandingtheregistrationdatabasewithpersonsimportinglargeamountsbutnotregisteredforVATandincometax.Overthecomingyear,itisplannedtorolloutthe‘basic’analyticsprogramtoatleastsixadditionalmembercountries,andtheprogramwillcontinuetoincludestafffromplanning,intelligenceandriskmanagement,audit,registration,debtmanagementandIT.Countrieshavealsobeenkeentoincludeatleastonestafffromcustomsgiventheimportantsynergiesbetweenthetwooperations,whichinseveraljurisdictionsoperateunderasinglemanagementstructure.Lookingevenfurtherintothefuture,amoreadvanceddataanalyticsmodulewillbelaunchedtoincreasethecapacityof teams in the large taxpayer management units to carry out more complex audit cases, and to support moresophisticatedriskmanagementfunctions.Overall,thedataanalyticsprogramisexpectedtoresultinimprovementsindataquality,auditcaseselection,andthedevelopmentandinstitutionalizationofanintegratedcompliancemanagementprogramwithinmembercountries,thatisinformedbyeffectiveanalysisofinternalandexternaldata.
Institutionalizing Data Analytics in Revenue Administration in CARTAC Member Countries By Vinette Keene, CARTAC Tax Administration Adviser
CARTAC NEWS Page 8 of 10
Brian Langrin is the new Resident Adviser in Financial Stability at CARTAC. Hebringswithhimawealthof technical experience andpractical know‐howhavingestablishedthefirstFinancialStabilityDepartmentamongCaribbeancentralbanksatBankof Jamaica (BOJ).Healso led theprocess to formallyestablish theBank’smacro‐prudential framework. On the regional front, he has provided technicalassistance on macro‐prudential surveillance, financial stability reporting, stress‐testingandfinancialriskmanagementtoseveralcountriesintheCaribbean.HeisnostrangertoBarbadosashefirstworkedhereinthesummerof1995asanM.Sc.EconomicsinternattheCentralBankofBarbados.Followinga16‐yearcareerat the central bank in Jamaica, earning a Ph.D. in Economics from Penn State
University,awifeandthreechildrenlater,BrianisnowbackinBarbadoswherehisworkingcareerfirststarted.Beingthefocusedindividualthatheis,Brianreminiscesthatinmanywayshis‘Bajan’lifeisthesametodayasitwasasan internwritinghis firstpaperon 'Measuring Efficiency in the Barbadian Commercial Banking Industry using a Translog Cost Function'…12‐hourworkdaysandunfortunatelyverylittletimeforindulginghisloveforthegourmetdiningandbeautifulbeacheswhichtheislandoffers.Heishopeful,thatamidstthisverybusyanddemandingscheduleandashesettlesintohisnewpositionatCARTAC,thathewillbeabletofindsometimeforthesethings.Meanwhile,BrianisexcitedbythisopportunitytocontributetofulfillingthevisionofCARTACtosupporttheeconomicperformanceofitsmembersbystrengtheningcapacityandheverymuchlooksforwardtomeetingandworkingwithmanyofyouintheweeksandmonthstocome.
CARTAC Welcomes Brian Langrin – New Resident Adviser in Financial Stability
CARTAC NEWSPage 9 of 10
IMPORTANT NOTE: Workshops marked with (*) are planned and subject to endorsement of the FY18 Work Plan by the Steering Committee.
Workshop Calendar April - June 2017
CUSTOMS ADMINISTRATION
Seminar on Advanced Rulings in Tariff Classification and Evaluation
April3‐7,2017DominicanRepublic
FINANCIAL STABILITY Workshop on Financial Market Infrastructure (Payments)
in the Caribbean Region April10‐13,2017St.Kitts&Nevis
CARTAC/CGSR Workshop
April24‐26,2017TheBahamas
CAPS/CAIR Conference*
June19‐23,2017St.Lucia
PUBLIC FINANCIAL MANAGEMENT & MACROECONOMICS
PIMA Workshop* May29–June2,2017
St.Lucia
PUBLIC FINANCIAL MANAGEMENT Regional Internal Audit Workshop*
June26–30,2017Barbados
CARTAC NEWS Page 10 of 10
FirstFloor,TheBusinessCentreUpton,St.Michael,BB11103
Barbados
PHONE:(246)434‐2840
FAX:(246)437‐3159
E‐MAIL:[email protected]
CARTAC’s 20 Member Countries
Anguilla Antigua&Barbuda
TheBahamas
Barbados Belize
Bermuda BritishVirginIslands
CaymanIslands
Dominica Grenada
Guyana Haiti Jamaica Montserrat St.Kitts&Nevis
St.Lucia St.Vincent&the
Grenadines
Suriname Trinidad&Tobago
Turks&CaicosIslands
CARTAC Mission Schedule CARTACMissionSchedule(April–June2017)
We’reontheWeb!See us at:
www.cartac.org
www.facebook.com/cartacbarbados
Meeting of CARTAC Steering Committee April 28, 2017
Paramaribo, Suriname
“Supporting Economic Performance in the Caribbean by Strengthening Capacity”