The first set of Country Profiles has been uploaded for countries participating in the FPC CBP. These are presently available for Bolivia, Burkina Faso, The Gambia, Ghana, Nicaragua, Tanzania, Uganda, and Zambia, with more countries to follow. Each Profile summarises institutional arrangements and cooperating partners; latest FPC, investor perception and CSR data and analysis; FPC CBP support and country achievements; progress made and future priorities in building capacity; and a list of further reading. They may be downloaded via the Where We Work page, and the FPC Assessing Country Capacity pages. Profiles will be updated on an ad hoc basis, subject to developments in each country, and announced on this page.

The Global Forum on Transparency and Exchange of Information for Tax Purposes has published phase 1 reviews on legal and regulatory frameworks in 8 countries including Bermuda, Botswana, Cayman Islands, Jamaica and Panama. Common deficiencies relate to access to information on nominees, trusts and the need to maintain good accounting records. Phase 2 reviews examining exchange of information practices will take place by 2012. Botswana and Panama will have to address phase 1 recommendations before proceeding to a phase 2 review. More than 100 jurisdictions and observers are now part of the Global Forum.

The Central Bank of The Gambia has published quarterly BOP data online, covering Q2 2009 - Q2 2010. This is within the IMF GDDS timeliness guidelines of 6-9 months. Items covered include FDI liabilities (split into equity and reinvested earnings), other investment liabilities (distinguishing trade credits), other investment assets (distinguishing currency and deposits), and investment income on direct equity and portfolio investment.

Bank of Zambia analysis shows that banks generally determine lending rates based on cost of funds, economic and market conditions and political risks. Factors vary among banks according to their impact on the cost of funds and the bottom line. Decisions made in setting and adjusting base lending rates are largely decided qualitatively. Factors contributing to high rates include default risk, information asymmetries, operational inefficiencies and the need for high returns on shareholders equity. The interbank rate is not a significant factor. The report identifies conditions for an effective interest rate targeting framework, and makes recommendations covering efficiency, consistent use of macroeconomic factors in determining lending rates, development of formal frameworks for the interest rate decision making process, and more competition among banks.

The 2010 Ibrahim Index, published today, shows that overall governance performance in Africa is being driven by gains in economic and human development but undermined by democratic recession. The Index measures the delivery of public goods and services to citizens by governments and non-state actors across 88 indicators related to sustainable economic opportunity (covering private sector, infrastructure, environment, and public management), safety and rule of law, participation and human rights, and human development.

New analysis finds that while current reforms are moving in the right direction, many difficult decisions lie ahead. It identifies five key priorities in the reform agenda: 1) A level playing field in regulation; 2) Improve the effectiveness of supervision; 3) Develop coherent resolution mechanisms at the national level and for cross-border financial institutions; 4) Establish a comprehensive macro prudential framework that will require indentifying, monitoring, and addressing systemic risks generated by individual firms and collective behavior; and 5) Reforms must address emerging exposures and risks in the entire financial system, not just banks.

Many small vulnerable economies (SVEs) continue to face debt solvency and liquidity problems as only a few of these countries have benefitted from international debt relief initiatives, such as HIPC and MDRI. This is one of the issues that Commonwealth Finance Ministers will be addressing at their forthcoming October 2010 meetings. DFI was commissioned to prepare a background study on options for reducing the existing debt burden of SVEs which forms the basis for Section 2 of the FMM discussion document, which is available here

Credit ratings have inadvertently contributed to financial instability. This paper recommends that ratings of governments or companies should be seen as one of several tools to measure risk, and not as the sole and dominant one. Over-reliance leading particularly to abrupt downgrades, can lead to deleterious selloffs of securities with the potential for broader spillovers, triggering further sell-offs. Actions by ratings agencies to make changes in ratings less abrupt have been counter-productive: much market reaction occurs when warnings are released rather than when the actual rating changes. And sovereign ratings could have taken better account of debt composition and contingent liabilities. Investors must also be weaned off credit ratings too, and perform their own risk assessments according to their size, sophistication, and the instruments being rated. The main ratings agencies should be subjected to increased oversight

This new initiative compares FDI regulation around the world. It presents quantitative indicators on laws, regulations, and practices affecting how foreign companies invest across sectors, start businesses, access industrial land, and arbitrate commercial disputes. Data by country or topic, reports and other information are available here.

The 42 governments adhering to the Guidelines for Multinational Enterprises have started work on an update. Background information is available here.