MACRO II - Fiscal analysis for development projects, budget support and debt sustainability

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Practical Information

The course is intended for Commission staff, notably for DG Devco in HQ and Delegation. The course is also open to colleagues from the European Institutions, notably DG ECFIN, ELARG, TRADE, ECHO and the EEAS.

This course lasts two days and can take place both in Brussels (HQ) and Delegation. As pre-requisite for enrolment, participants are expected to have attended the course MACRO I - Macroeconomic Assessment of a Budget Support Operation, or equivalent academic background or/ experience in macro and development economics.

For further information, please contact the DEVCO Training Team.

Training Objectives

To provide the participants with the relevant empirical and theoretical references to assess the determinants of growth and inclusiveness of a country’s economy and to hold a policy dialogue on the macroeconomic aspects of the development strategy, in particular in the context of budget support operations
To provide the participants with an understanding of the drivers of growth and inequalities, with a special focus on the notion of ‘inclusive growth’
To help the participants assess the outcomes of various sets of policies in terms of growth, development, inequalities and poverty reduction
To help the participants take a more active role in the dialogue with partner countries on the definition of policy objectives and implementation
To familiarise participants with the relevant sources of macroeconomic data and information

Content

The course will address most, if not all, of the following notions. The general question is that of the drivers of economic growth and development, with a focus on their inclusiveness. The course will be articulated in four half-days

Main indicators of development and redistribution

Economic, social and political measures and decompositions of development. Proximate and underlying causes of growth
Measures of poverty and inequalities, macroeconomics and political economy of growth and redistribution

Main growth disruptions and their distributional impacts

Domestic/endogenous causes of growth disruption: Civil conflict, financial crises, debt crises, hyperinflation
Vulnerability and resilience to exogenous shocks
The special case of resource-rich countries

Short-term, countercyclical policies and their distributional impact

Introduction to the economic functions of the state, and its shortcomings, especially in DCs
Redistributive impact of fiscal, monetary and exchange rate (exchange rate adjustment) policies