Quarterly Report: Fiscal Accountability and Sustainable Trade (FAST) Project

It enables USAID to bring a systems approach to addressing public financial management (PFM), trade capacity building (TCB), macroeconomic planning and policies, and other economic governance issues, such as regulatory reform. The project focuses on improving host-country capacity to mobilize revenue and provide public services, policy climate for investment that generates more productive employment and inclusive growth, host-country ability to recover from, prevent, and mitigate the impact of conflict, natural disasters, or fiscal crises, and host-country institutional capacity to identify, design, advocate for, and implement better economic policies to enhance inclusive growth and gender equity. During the third quarter of FY 2021, FAST made progress on several tasks. The Public Financial Management for Payment for Ecosystem Services (PFM for PES) tasks were implemented in the Dominican Republic and Peru. Support was provided for PFM and Domestic Resource Mobilization (DRM) programming in Sudan. Procurement reform was initiated in Kyrgyzstan, and a TCB study was conducted in Kenya. The PES tracker and repository were updated, and work was completed on the tax policy reform primer, the debt primer, fiscal reform in fragile states, the public debt transparency index, and the COVID-19 macroeconomic resilience model. The COVID-19 macroeconomic resilience model was updated to reflect the impact of the pandemic on the global economy. The model provides a framework for understanding the economic implications of the pandemic and identifying potential policy responses. The tax policy reform primer was completed, providing guidance on the design and implementation of tax policies that promote economic growth and development. The debt primer was also completed, providing an overview of debt management and the implications of debt for economic development. Procurement reform was initiated in Kyrgyzstan, with a focus on improving the efficiency and effectiveness of public procurement systems. The TCB study in Kenya examined the country's trade capacity and identified areas for improvement. The PES tracker and repository were updated to reflect the latest data on payment for ecosystem services. Work was completed on fiscal reform in fragile states, with a focus on improving the fiscal sustainability of countries in fragile situations. The public debt transparency index was also completed, providing a framework for assessing the transparency of public debt management. The FAST team provided on-call analysis and expertise to the Bureau for Development, Democracy, and Innovation (DDI) and the Center for Economics and Market Development (EMD). The team rapidly mobilized to provide constructive technical assistance in PFM and trade to USAID missions and partner countries, served as a training resource, and provided communication support. Throughout the reporting period, the team faced challenges and opportunities in implementing the project's objectives.