OREANDA-NEWS. The International Monetary Fund (IMF) and its development partners launched new phases of the Managing Natural Resource Wealth (MNRW-TF) and the Revenue Mobilization (RM-TF) trust funds during the annual steering committee meetings held in Washington from June 14–15, 2016. Subject to contributions from development partners, the MNRW-TF and RM-TF are expected to provide about US$30 million and US$60 million, respectively, over six years for technical assistance and training to help low- and lower middle-income countries strengthen tax capacity and mobilize natural resource wealth.

Partners expressed strong support for the new phase of RM-TF, which responds to the international call to raise domestic revenue mobilization. Most donors to the successful predecessor program “Tax Policy and Administration” expressed their eagerness to continue and most will increase their support to the new program. Japan was the first to confirm an initial contribution of US$5 million, while the European Commission (EC) expressed its readiness to substantially increase its support to the trust fund in line with its commitments made during the 2016 Spring Meetings. Discussions with new development partners on joining the RM-TF are also promising. The chair of the RM-TF steering committee, Mr. Hubert Perr of the EC, emphasized that the fund will be a key tool for the IMF and participating partners in supporting the implementation of the Addis Ababa Action Agenda and the 2030 Sustainable Development Goals. In addition, he stated that the fund fits well with the Commission’s own “Collect More, Spend Better” agenda.

The chair of the MNRW-TF steering committee, Mr. Trond Kvarsvik from the Norwegian Agency for Development Cooperation, explained that the fund’s second phase will significantly boost resources available to resource-rich low- and lower middle-income countries at a time when these countries face challenges in achieving their development goals in the face of the global commodity price slump. During the steering committee meeting, partners confirmed sustained support to the fund’s second phase.

At the steering committee meeting for the Tax Administration Diagnostic Assessment Tool (TADAT) on June 16, 2016, members discussed the successes and ongoing development of the tool’s implementation, and agreed on next year’s strategic work and operational program.

The MNRW-TF was launched in 2011 to help countries mobilize and manage their natural resource wealth effectively and sustainably, and to date has supported 34 projects in 19 countries. Current partners are Australia, the European Commission, Kuwait, the Netherlands, Norway, Oman, and Switzerland.