OREANDA-NEWS. The Government of Belgium and the International Monetary Fund (IMF) today signed a Framework Arrangement on capacity development. This agreement will lay the basis for an enhanced partnership aimed at strengthening economic institutions and improving economic outcomes of developing countries, in line with achieving sustainable economic growth and poverty reduction objectives.

IMF Deputy Managing Director Carla Grasso made the following statement: “We thank Belgium for its strong support to the IMF’s capacity development work. Our joint efforts have already produced important results in Belgium’s partner countries in Africa and elsewhere. We also appreciate Belgium’s role as a lead partner in the IMF’s online learning initiative, which has now benefited more than ten thousand people across the globe. With this framework arrangement, we look forward to further strengthening our partnership with Belgium on capacity development. In this context, we welcome Belgium’s participation in the Revenue Mobilization Trust Fund (RMTF), which further deepens its long-standing commitment to supporting better tax policy and administration.”

“The Government of Belgium is a proud partner of the IMF and looks forward to continuing our cooperation on capacity development, focusing on sustainable, inclusive economic growth and the rights-based approach to development. In line with the Addis Ababa Action Agenda that provides the financing framework for implementing the Agenda 2030 on Sustainable Development, Belgium believes that an equitable and efficient mobilization of domestic revenue is key and essential for especially the least developed countries and countries in fragile situations, since this reduces their aid dependency and helps financing their recovery and human development. Hence our participation in the RMTF,” Honorable Alexander De Croo, Deputy Prime Minister and Minister for Development Cooperation, Digital Agenda, Telecommunication and Post, said.

Since 2007, Belgium has supported Fund capacity development initiatives on a broad range of topics, including face-to-face and online training, as well as many projects aimed at economic institution building in its partner countries. Belgium was also one of the early contributors to the Tax Policy and Administration trust fund that supports resource mobilization in low-income countries, which will start a new five-year phase of operations in 2017 under the new RMTF label.

The IMF provides capacity development assistance to its member countries through technical assistance and training, in addition to conducting economic and financial surveillance and lending operations. The IMF’s technical assistance helps member countries develop more effective economic institutions, legal frameworks and policies to promote economic stability and growth; while training strengthens the capacity of member countries’ officials to analyze economic developments and formulate and implement effective policies.