Economic Management and Governance Reform Grant 2

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This program document presents a Second Economic Management and Governance Reform Grant Project (EMGRG II) for the Central African Republic (CAR). This is the third development policy operation (DPO) supporting the Government of the CAR, after its successful reengagement with the donor community in 2006. The grant is a single-tranche operation supporting the 2009 budget. The grant supports the second and third pillars of the PRSP. Promoting good governance and the rule of law will be supported by efforts to improve public sector and economic governance through enhanced accountability of the executive and transparent management of public resources. Public finance efforts aim to align the budget with the PRSP, produce comprehensive fiscal reports, increase the role of external oversight bodies, and strengthen Government's revenue mobilization capacity. Structural reforms directed at rebuilding the economy aim to establish a legal and regulatory framework conducive to the development of a competitive mining and environmentally sustainable forestry sector, the two sectors being the main sources of foreign exchange earnings and growth for CAR.