Managing Public Debt From Diagnostics to Reform Implementation [...]... and settlement, and debt market regulation Following this introductory chapter, chapter 2 begins by describing and drawing insights from the experiences to date of the countries moving from diagnostics to reform implementation, with a focus on the processes and factors that have helped countries move toward addressing weaknesses in public debt management Chapter 3 addresses debt management strategy... the pilot program and wished to take stock and receive advice on the next steps This publication documents the insights from the 12 pilot countries It is based on input from the individual country diagnostics, reform plans, and ongoing work to support the implementation of the reform process The implementation of reforms is at an early stage in the 12 pilotprogram countries Given the comprehensive... analysis They also need controls similar to those in financial institutions 6 2 Designing and Implementing Reforms: An Overview A key objective of the pilot program was to develop a better understanding of the process of reform, specifically, how to move from a set of principles to the implementation of an explicit program of reforms and capacity building in public debt management We approached this... Managing Public Debt Expenditure Management and Financial Accountability Reform program.11 Reforms in Zambia’s public debt management were also incorporated into the conditions for a World Bank structural adjustment loan Other donors have also joined to support the implementation of reform programs in pilot countries For example, in Croatia, the European Union (EU) funded the implementation phase of the reform. .. and implement public debt management reforms? Several observations have emerged from engagements with the countries: 14 Designing and Implementing Reforms: An Overview Ⅵ Ⅵ Ⅵ Ⅵ Public debt management, and to a lesser extent domestic government debt market development, does not fit neatly into traditional sectoral categories.15 Thus, diagnostics with a principal focus on the financial sector, such as the... beginning in others To continue to 15 Managing Public Debt support these efforts, and to build knowledge about the relative effectiveness of the various approaches being implemented, future activities are planned The first is to develop more-effective indicators of performance for public debt management to permit an assessment of progress over the medium term.16 Second, efforts will continue to help countries... were some of the critical factors that helped the 12 pilot countries sustain the reform process? As with reform in many areas, the most important factor has been the government’s commitment to the reform. 9 Indeed, a commitment to reform was a condition for participation in the pilot program and confirmation of commitment was sought at the outset The stated motivations for reform varied: In Costa Rica... “Guidelines for Public Debt Management” (World Bank and IMF 2001b) and Developing Government Bond Markets: A Handbook (World Bank and IMF 2001a) However, moving from a set of general principles to a program of concrete reform is not easy The World Bank and the IMF thus sought to extend their assistance by setting up, in 2002, a joint pilot program to help countries design the relevant reform and capacity-building... neatly into traditional sectoral categories Thus, diagnostics that have a principal focus on the financial sector, for example, might examine debt management from the perspective of its relation to financial sector vulnerability rather than examining the issues that a comprehensive diagnostic would cover In addition, diagnostics should be routinely followed up by helping countries initiate the reforms... assistance to a wide range of World Bank clients Participation in the program was open to governments fully committed to building capacity and to adopting reforms in the areas of public debt management and domestic government debt market development In some countries, reform was already under way, but the authorities were attracted by the broad scope of the pilot program and wished to take stock and . Managing Public Debt From Diagnostics to Reform Implementation