Project Detail |
Project Name
Macroeconomic Policy for Debt Sustainability and Climate Resilience
Project Number
58278-001
Country / Economy
Regional
Bangladesh
Bhutan
Cambodia
Cook Islands
Fiji
Micronesia, Federated States of
Kyrgyz Republic
Kiribati
Lao Peoples Democratic Republic
Maldives
Mongolia
Nepal
Niue
Pakistan
Palau
Papua New Guinea
Marshall Islands
Solomon Islands
Sri Lanka
Tajikistan
Timor-Leste
Tonga
Tuvalu
Uzbekistan
Vanuatu
Project Status
Proposed
The proposed multiregional technical assistance (TA) aims to address significant challenges affecting macroeconomic growth and fiscal sustainability in the Asia-Pacific region, including high public debt levels, elevated interest rates, slow revenue growth and increasing exposure to the impacts of climate change. These macroeconomic challenges are exacerbated by the following development constraints: (i) persistent debt vulnerability and low domestic resource mobilization; (ii) poorly regulated quasi-public institutions, such as state-owned enterprises (SOEs), that increase the governments fiscal exposure; (iii) subnational entities that lack the necessary regulatory, legal, and investment frameworks and institutional capacities for effective public debt management and climate action; (iv) lack of robust and well-developed capital markets which impedes increased use of sovereign bonds and transition finance; and (v) limited regional cooperation to promote policy dialogue and knowledge exchange. |