USAID Indo-Pacific Opportunity Program Public Financial Management (IPOP)

Status: Ongoing

Awarded in Spring 2021 under the PFM II IDIQ, IDG is creating targeted activities that improve the macroeconomic policy environment to promote sustainable economic growth and prosperity, improved regional economic cooperation, sound management of institutions, and good governance while also leveling the playing field for businesses in the Asia region. We are working to provide the Asia Bureau and Missions with a flexible, on-demand mechanism to facilitate rapid, sustainable, and equitable economic growth by enabling USAID to bring a systems approach to addressing Public Financial Management (PFM) objectives under the Indo-Pacific Strategy.

IDG supports the Asia Bureau and missions in an on-demand basis to improve policy climates for investment that generates more productive employment and inclusive growth, including consideration of issues specific to women and other disadvantaged and marginalized populations. We also support the Asia Bureau in advancing the capacity of host-countries to:

  • Manage fiscal policy (public revenue, budget, expenditure, and debt)
  • Identify, design, advocate, and implement better economic policies to enhance inclusive growth that is distributed fairly across society and creates opportunities for poorer or traditionally marginalized segments of society and that promotes gender equality
  • Mitigate constraints in infrastructure investment, prepare bankable projects, and mitigate risks
  • Build capacity for trade
  • Implement sound macroeconomic planning and policies, and other governance priorities, such as regulatory reform

Region

  • Asia

Country / Countries

  • Bangladesh
  • Sri Lanka
  • Philippines
  • India
  • Timor Leste
  • Nepal
  • Maldives
  • Myanmar (Burma)
  • Cambodia
  • Vietnam
  • Laos
  • Thailand
  • Indonesia
  • Federated States of Micronesia
  • Fiji
  • Kiribati
  • Nauru
  • Palau
  • Papua New Guinea
  • Republic of the Marshall Islands
  • Samoa
  • Solomon Islands
  • Tonga
  • Tuvalu
  • Vanuatu
Asia

Areas of Expertise

Public Financial Management

IDG develops PFM tools and best practices for the Asia Bureau. The websites and e-tools we are creating ensures PFM, DRM, and trade/regulatory practitioners can utilize these tools to improve PFM practices. We also develop gender responsive budgets, macroeconomic policy, and trade activities that strategically incorporate gender issues into PFM.

Domestic Resource Mobilization

This project maximizes DRM to lower the economic susceptibility of Indo-Pacific countries of generating excessive debt in infrastructure deals that lack transparency on terms, conditions, procurement policies, and restrictive contract clauses.

Cost-benefit Analysis (CBA)

IDG is working to make regulatory frameworks more conducive to private sector investment in the Indo-Pacific region. We develop the private sector by providing training and coaching of counterparts of various technical subjects including taxpayer education, compliance management, debt management, using diagnostic toolkits, drafting technical manuals, advising on updates to official policies and procedures, preparing case studies, and case studies on what works.

PPPs/SEZs/Industrial Estates

We support Indo-Pacific economies to leverage PPPs in increasing investment for large infrastructure projects contributing to sustainable development that include improved roads, power generation, transmission and distribution, and transport facilities.

Enabling Environment

We improve business enabling environments of the Indo-Pacific economies to bolster sustainable economic growth by establishing better procurement processes and promote public private partnerships that minimize reliance on infrastructure projects that would yield excessive debt. To create a better enabling environment, we also maximize fiscal resources, implement DRM activities, and establish protocol that keeps the environment safe in infrastructure development.

International Trade

We identify best practices in the space of trade reforms and trade implications for investment linkages. We also incorporate crosscutting issues of gender into trade activities. By identifying barriers to trade for Indo-Pacific economies, we also bring attention to the significance of leveling the trade landscape.

Trade Facilitation

IDG minimizes barriers to trade including loosening border restrictions and utilizing technology to conduct more efficient trade. We provide technical expertise on border regulatory issues including safety, public health, service sector competitiveness, and the environment to Indo Pacific economies. We also actively engage with small businesses to conduct cross-border trade and engage with regional and global supply chains.

Sanitary and Phyto-Sanitary (SPS) Standards/ Technical Barriers to Trade (TBT)

We work in SPS with the Indo-Pacific region to conduct better regulatory reform and trade facilitation.

Monitoring, Evaluation, and Learning

Our MEL system examines and evaluates how effective our interventions in the Indo-Pacific region are and what best practices we can keep moving forward. Our system is developed from the Theory of Change (TOC) and accounts for project timeline, roles, responsibilities, and goals.

Governance

We work with Indo-Pacific countries to advance good governance by promoting independent media sources and the availability of information to the general public.

Economic Governance

We build institutional capacity to improve their democratic systems so that their development decisions are aligned with international standards and increase transparency. We leverage the Indo-Pacific Transparency Initiative (IPTI) to achieve this.

Capacity Building

We integrate capacity building into all of our projects to strive towards self-reliance of Indo-Pacific economies and local institutions.

Financial Sector

We assist Indo-Pacific countries in achieving financial management objectives listed under the Indo-Pacific strategy. We also improve BEE and the investment enabling environment to strengthen the financial sector.