CBP REGIONAL PARTNER INSTITUTIONS: WAIFEM

WAIFEM AND ITS MISSION

WAIFEM Mark I (1997-2000)
The West African Institute for Financial and Economic Management was established by the central banks of the five English speaking West African countries (The Gambia, Ghana, Liberia, Nigeria, and Sierra Leone) in June 1996. Its main objective was to strengthen capacity in macroeconomic and financial management through short term customized training courses for middle/senior level staff of Central Banks, Ministries of Finance and Planning, and other public sector agencies involved in macroeconomic policy formulation and implementation. Its mandate also included research, consultancy, networking and dissemination of best practices.

Training Activities
The Institute commenced training activities in April 1997. Until 2000, its core training programmes revolved around Macroeconomic Policy Analysis; Data Management and Techniques of Economic Analysis; Exchange Rate and Reserves Management; and Financial System Regulation and Supervision.

Particular emphasis was accorded to Debt Management in view of the barrier posed by a huge debt overhang to accelerating growth and development in Anglophone West Africa. The Institute offered regional courses on:

• External Debt Management, including data recording on the Commonwealth Secretariat's CS-DRMS and UNCTAD's DMFAS;
• Domestic Debt Management;
• Legal and Practical Aspects of Loan Negotiations and Agreements;
• Arbitration and Dispute Resolution in Financial Management;

WAIFEM's Expanded Mandate (2001-04)
During the first phase, WAIFEM built an international reputation as a centre of excellence, with the maintenance of a high standard in skills development, dedicated support from its owners, and high-level clientele from user institutions. This placed the Institute in a strong position to take bold steps to consolidate its achievements and reposition itself for the challenges of the new millennium. The Board of Governors authorised the Institute to execute a medium-term integrated capacity building programme for its members, spanning 2001-2004. The programme involves an expansion from organization of courses to a holistic and integrated approach to institutional, organizational and policy framework aspects of capacity building.

Capacity-Building Objectives
WAIFEM's Capacity-Building Programme is financed by member Central Banks with support from the African Capacity Building Foundation (ACBF), Debt Relief international (DRI) (under the HIPC-CBP) and the Government of Sweden. Its cardinal objectives are to strengthen capacity to:

• manage public external and domestic government debt, including contingent liabilities;
• develop, regulate and supervise the financial sector, including managing international reserves; and
• formulate and implement macroeconomic policy.

The above objectives are pursued by three programme departments: Debt Management, Financial Sector Development, and Macroeconomic Management.

Debt Management Programme Outputs
The outputs expected from the Debt Management Department are:

• National capacity-building plans for debt management;
• Reinforced legal, institutional and organizational arrangements;
• Improved operational external and domestic debt management, including recording, disbursement/issuance procedures and servicing;
• Better results in renegotiating debt and negotiating new external/domestic borrowing;
• Independent capacity to conduct debt sustainability analysis and implement national external and domestic debt strategies; and,
• Greater awareness of debt management policy, among senior government officials, legislators, the media and other opinion-leaders.

Activities
To produce the outputs, the Debt Management Programme applies a range of complementary tools, including:

• Highly intensive and hands-on regional and national courses and workshops;
• Demand assessment, advisory and follow-up missions to member countries;
• Study tours and/or national retreats;
• Fellowship schemes to train debt managers to world-class levels of expertise;
• Regional workshops to disseminate best practices to legislators and practitioners in the mass media;
• Regional senior policy seminars for government policymakers;
• Research, publication and dissemination of best practices; and
• Online information services provided through the WAIFEM website.

WAIFEM'S TRACK RECORD
Between April 1997 and February 2002, the Institute offered 60 customized courses and advisory missions, which benefited 1,650 middle/executive officials. The share of participants from central banks has declined from three quarters to half, reflecting the Institute's policy of broadening its capacity-building support to other public and private sector agencies. As a result, the share of finance ministries has been around 14%, and that of other public and private agencies including legislators and journalists has risen to 36%. Nigeria has provided 45% of participants, Ghana 24%, Sierra Leone 15%, The Gambia 12% and Liberia 3%. The remaining 1% is from non-member francophone or PALOP countries, reflecting the Institute's wish to exchange best practices with other regions.

The global outreach of the Institute has enabled it to access high calibre resource persons and the latest techniques in capacity building, resulting in high standards in programme design and delivery. It provides a highly cost-effective platform for international training institutes (those of the IMF, World Bank and UN) to access a regional audience. Finally, WAIFEM provides an opportunity for high-level dialogue among senior officials in West Africa, which augurs well for economic integration under the West African Monetary Zone (WAMZ) and the Economic Community of West African States (ECOWAS).

HIGHLIGHTS OF WAIFEM/DRI COLLABORATION

Past and Present Relationship
Under a Memorandum of Understanding (MOU) signed by the two parties in late 2000, the Institutions resolved to assist the four WAIFEM HIPCs - The Gambia, Ghana, Liberia, and Sierra Leone, (a) to gain debt relief under the HIPC facilities of the Bretton Woods Institutions, and (b) to devise and maintain a sustainable long-term debt strategy and portfolio. Both establishments are committed to enhancing capacity for debt sustainability analysis and strategy formulation and implementation in the sub-region, through cooperation based on a coordinated and complementary approach.

The two institutions have mapped out the following areas of cooperation:

1. Joint regional or country workshops on Debt Sustainability Analysis, Debt Strategy Design and Implementation, Capacity Building Planning, Debt Negotiations, Macroeconomic Forecasting for Debt Strategy, Links Between Debt Sustainability and Poverty Reduction, and Training for Trainers.
2. Joint demand assessment and/or follow-up missions: These evaluate country capacity-building needs and provide follow-up assistance to facilitate progress in implementing debt strategies.
3. Joint development of debt strategy and analysis training materials, to transfer DRI expertise to WAIFEM, refine regional and national training manuals, and develop and test training for trainers' manuals.
4. Attachment-based training. As part of the transfer process, WAIFEM debt management staff and fellows would go on attachments to DRI offices and elsewhere as appropriate, to be trained as trainers in specific technical areas.

Collaborative efforts with DRI under the HIPC CBP commenced in December 1999, with joint demand assessment missions to WAIFEM's member states, which culminated in the articulation of the debt management programme under WAIFEM's CBP. This allowed the two organisations to design a joint work programme, under the HIPC-CBP, which began in 2000 with two joint workshops - an Anglophone Workshop on Debt Negotiations and Renegotiations (which was also attended by Ethiopia and Malawi); and a national Debt Strategy Analysis workshop in The Gambia. DRI also supplied resource-persons to WAIFEM regional workshops on External and Domestic Debt Management.

Since the commencement of WAIFEM's CBP in 2001, the Institute and DRI have jointly organized a busy work programme in 2001 and 2002.

For more details on joint HIPC CBP events, see the Calendar of Events page on this site.

For more information on WAIFEM, please contact the Director General, Mr. Chris Itsede at citsede@linkserve.com.ng, or the Programme Officer of the Debt Management Department, Mr. Baba Musa at waifem@linkserve.com.ng. Alternatively, visit their website http://www.waifem.org.