Managing the Legal Defense of the State Against Patrimonial Claims: A Government Function to Improve Fiscal Sustainability

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The objective of this TC is to support the borrowing member countries in their efforts to strengthen the effectiveness of their systems of government legal defense against patrimonial claims, in order to control and manage potential fiscal risks and improve efficiency in the management of legal affairs. This objective will be achieved through: (a) deepening the analysis of governments' patrimonial contingencies originated in legal claims, in order to control and manage potential fiscal risks, as well as about good international practices on this topic, to provide solid evidence about the risks that the current institutional arrangements pose to fiscal sustainability; (b) strengthening the capacities of the Legal Defense of the State (LDoS) agencies to put in place methodologies to identify, assess and manage potential patrimonial risks originated in legal claims against the State, as well as to set prevention, alternative dispute resolution and judicial defense mechanisms; and (c) strengthening the organizational, functional and operation design of LDoS agencies.