Guidelines for Constructing Consumption Aggregates for Welfare Analysis

Book excerpt: In September 2001, staff from the World Bank and the International Monetary Fund met with the objective of strengthening collaboration between the two organizations in projects of civil service reform. This strengthened collaboration will have key benefits in ensuring consistency between the conflicting goals of the two organizations, establishing realistic objectives within the reform process, and maintaining a core set of wage and employment data. The principal conclusion arrived at was that World Bank and IMF staff should be engaging in collaboration earlier in the reform process. To guide the collaboration, six foundations were identified. These include: develop a medium-term fiscal framework; foster national ownership by making reforms politically feasible; focus and streamline conditionality; agree on sequencing and timing of reforms; and strengthen data collection. These principals will be tested for effectiveness in several focus countries.