AF Economic Management and Statistics Development for Policy Making

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The proposed project is structured into three components. They are: (i) Strengthening the capacity of the National Institute of Statistics of Djibouti (INSD) to produce and disseminate timely and reliable statistics. This component has two subcomponents: the Setting up of the National Institute of Statistics of Djibouti (INSD) and strengthening statistical production and dissemination. The first subcomponent will upgrade the working conditions in the INSD with the financing of the construction of a building with modern characteristics and information and communications technology (ICT) system, the upgrading of the HR policy and provision of training. The second subcomponent on statistics will support the new National Statistical Development Strategy (2018-2022) that aims was to develop a coherent statistical system, well organized, with the capacity to produce and disseminate reliable information that meets the growing needs of policy makers and public users. In general, statistical information is not readily available. The National Statistics System (SSN) produces limited data on an irregular basis, standard surveys are not conducted at regular intervals, and analytical capacity are weak making it difficult to discern major trends and their policy implications. This will include the financing of the third population census that is critical for data quality improvement, the Economic Census and household budget survey, among other activities. (ii) Modernizing the Recipient's selected economic and fiscal management tools and processes. This component has three subcomponents: macroeconomic modeling; budget preparation and investment planning, and debt management. The first subcomponent will develop macroeconomic modeling capacity for short, medium, and long-term forecasting, macroeconomic and microeconomic simulation, as well as debt sustainability analysis. The second subcomponent on budget preparation will support the Government's commitment to transition toward performance budgeting and Medium Term Expenditure Framework (MTEF). This component will building linkages between the country's medium-term development plan (SCAPE) and the budget, which is the country's main policy instrument. A new budget framework, with the revision of the existing legal and regulatory framework, with the revision of a new organic law, its adoption and implementation. The third subcomponent will support public investment planning and debt management. It will support the revision of the existing public investment framework and the development of a medium term debt strategy to finance it. A debt management action plan has already been developed with WBG support. The project will support its full implementation.(iii) Project Implementation. The Project will support the establishment and operation of a Project Management Unit (PMU) overseen by the Ministry of Finance to support coordination and manage project implementation.