Download Pacific High-level Policy Dialogue on

Pacific High-level Policy Dialogue on
“The Role of Macroeconomic Policy and Energy Security in supporting
Sustainable Development in the Pacific”
8-9 October 2012, Nadi, Fiji
Jointly organized by
UN ESCAP and Sustainable Development Working Group of the Council of Regional
Organizations in the Pacific (CROP)
Session 1 – Stimulating and Sustaining Growth, Building Resilience: the
Role of Macroeconomic Policies
Samoa’s Experiences from the Global Economic Crisis
by
Leiataua Henry Tamotu Ah Ching
Acting CEO, Economic Policy and Planning Division,
Ministry of Finance, Samoa
October 2012
The views expressed in the paper are those of the author(s) and should not necessarily be considered as reflecting
the views or carrying the endorsement of the United Nations. This paper has been issued without formal editing.
Stimulating and Sustaining
Growth and Building Resilience
Samoa’s Experiences from the Global
Economic Crisis
The Global Economic Crisis
Fiscal Overview (in Percent of GDP)
55%
50.0
45%
30.0
40%
20.0
35%
10.0
30%
0.0
2010/11
2009/10
2008/09
2007/08
2006/07
2005/06
10.0
25%
Overall Balance
Total Expenditure and Net Lending
Fiscal Strategy Deficit Target
Total Revenue and Grants
Revenue (Net Tax & Non-Tax Revenue)
Government Foreign Debt
20%
Debt-to-GDP Ratio in Percent
50%
40.0
Total Employment
108
6.0%
106
4.0%
104
2.0%
102
0.0%
100
-2.0%
98
-4.0%
96
Annual Change in Total Employment (in %; right axis)
Jun-11
Sep-11
Dec-10
Mar-11
Jun-10
Sep-10
Dec-09
Mar-10
Jun-09
Sep-09
Dec-08
Mar-09
Jun-08
Sep-08
Dec-07
Mar-08
Jun-07
Sep-07
Dec-06
Mar-07
Jun-06
Sep-06
Dec-05
Mar-06
Jun-05
-8.0%
Sep-05
92
Dec-04
-6.0%
Mar-05
94
Level of Total Employment (left axis)
Government Policy Initiatives
Key Priority Areas
1. Fiscal Targets
2. Monetary Policy
3. Sound External Position
• Budget balance
the range of ±
Fiscal within
Targets:
3.5;
• Aggregate current expenditure within
35 – 38% of GDP;
• Net Public Debt outstanding <50% of
GDP;
• Personnel costs 40 – 41% of Total Govt
Exp;
Key Strategies
“Development of a relevant, effective and sustainable
fiscal position”
•
•
•
•
•
•
•
•
•
•
•
Improve budget performance and processes;
Strengthen debt management and financing;
Improve accounting and reporting processes;
Improve data and statistics access;
Enhance procurement processes;
Improve human resource capacity;
Enhance public financial systems;
Strengthen revenue collection;
Strengthen monitoring of SOEs;
Strengthen auditing processes;
Improve planning and performance monitoring.
• Underlying
inflation
between 3.0 –
Monetary
Policy:
4.0% per annum;
• Maintain import cover at 4.0 – 6.0
months;
• Maintain real competitive exchange
rate;
• Improve enabling environment for
access credit of the private sector;
Key Strategies
“Development of relevant, effective and sustainable financial
institutions and supportive monetary policies”
• Maintain price stability and low inflation;
• Strengthen monetary policy implementation;
• Improve financial system supervision.
SoundBalance
External
Position:
• Improved
of Payments;
• Maintain
sufficient
level
of
international reserves;
• Promote investment of remittances;
• Increase Foreign Direct Investments;
• Establish “Safety Net” type insurance
facilities against external shocks and
natural disasters;
Key Strategies
“Development of relevant and effective institutional and policy
framework for maintaining a competitive and stable position in
international
traderate
and
reserves”
• Strengthen
exchange
policy
options;
• Improve country risk rating;
• Develop access to capital markets;
• Establish pre-requisites for an international
stock exchange;
• Strengthen access to emergency financing
facilities;
• Strengthen access to international commercial
banks.
National Development Plan
Strategy for the Development of Samoa
2012 - 2016
Economic
Sectors
Social
Sectors
Infrastructure
Sectors
1.
Macroeconomic Stability
2.
Re-invigorate Agriculture
3.
Revitalize Exports
4.
Sustainable Tourism
5.
Enabling Environment for Business Development
6.
A Healthy Samoa
7.
Improved focus on Access to Education, Training and Learning Outcomes
8.
Social Cohesion
9.
Sustainable Access to Safe Drinking Water and Basic Sanitation
10. Efficient, Safe and Sustainable Transport Systems and networks
11. Universal Access to Reliable and Affordable ICT Services
12. Sustainable Energy Supply
The
Environment
13. Environmental Sustainability
14. Climate and Disaster Resilience
Thank you for your attention