6. SOUND & STABLE MACROECONOMIC POLICY

FISCAL & BUDGETARY POLICES

1. Stable public finances and price stability contribute to lower real interest rates and in turn this stimulates investment and economic growth. Are public finances in excessive deficit (i.e. rising debt will result in an increase in interest charges, in turn feeding the deficit and debt)?

2. How active is the EO in its own policy submissions in calling for sound budgetary policies?

3. Is fiscal policy transparent? Is there a well-informed public debate about the design and results of fiscal policy?

4. Has the EO placed an emphasis on improving efficiency in government spending so as to drive improvements in the fiscal situation?

5. Have investors signalled to you that macroeconomic instability has been a chief reason for deferment of investment decisions?

6. Is there a public political commitment to reign in excessive debt (if this is the case)?

7. Are there independent bodies to monitor fiscal spending?

8. Do they play an effective role in assessing fiscal policies and providing sound analysis?

9. Is there a coherent framework for an analysis of the country's fiscal and budgetary situation?

10. Is the IMF's "Code of Good Practices on Fiscal Transparency," utilized as a framework by Government?

11. Is there sufficient provision of impartial information concerning national budgetary processes?

12. Does the Auditor General have a more or less independent role vis-a-vis the executive branch?

INFLATION & INTEREST RATES

13. Has inflation been a negative or positive contributing factor to confidence in the business community in terms of expansion plans?

14. What measures have been taken to ensure price stability?

15. Are interest rates enablers or obstacles to business expansion?

16. How stable have interest rates been?

17. Have wage policies impacted negatively on inflation?

ECONOMIC INSTITUTIONS

18. Are there independent economic institutions (e.g. A Central Bank)?

19. Are there independent economic research institutes that provide useful independent input on macroeconomic policies?

EXCHANGE RATE POLICES

20. Is the exchange rate facilitative to business operations?

21. How stable or volatile on financial markets is the national currency?

22. Is the currency pegged to another currency?

  • If not, should it be?
  • Would this have favourable implications for enterprises?

REMITTANCES

23. How important are remittances by migrants living outside the country to the State's economy?

24. How stable have they been during the most recent period?

COMMODITY PRICES

25. How dependent is the economy on sales of specific commodities?

26. What impact have changes in commodity prices had on broader economic activity?

OFFICIAL DEVELOPMENT ASSISTANCE (ODA)

27. What percentage of the national budget is reliant on ODA?

28. Have ODA flows remained stable in recent times?

29. What are the immediate expectations for this revenue stream?