“Country Responses to the Financial Crisis” Behxhet Brajshori, Deputy Minister, Ministry of the Economy and Finance, Republic of Kosovo Lulzim Ismajli, Director of Treasury, Ministry of the Economy and Finance, Republic of Kosovo Naomi Ngwira, Director, Department of Debt and Aid, Ministry of Finance, Malawi Obadiah Mailafia, Chariman, Center for Policy and Economic Research, Nigeria During this panel, participants will share observations of the effects of the crisis on their economies and future plans. They will also share existing tools to safeguard their investments. The session will include a discussion on how they are mitigating the impacts and how they expect to cover the cost. Panelists and the audience will be asked to address the following questions. Registration Immediate Actions Being Taken to Manage the Impact Is the situation different for middle vs. lower income countries? How does the current financial crisis affect a country’s ability to borrow? Is the situation different for resource rich countries? Can we learn anything from previous financial crises (e.g. Asia and Latin America)? How are recipient countries more efficiently managing their donor aid? What is the role of the government in solving financial sector issues?

5. Financial Economic Sustainability 2005 2006 2007 2008 Real Sector Real GDP growth(%) 3.9 4.0 3.9 5.4 Prices (annual aver.%) -1.4 0.6 4.4 9.3 Prices (Year/year%) 0.7 1.1 10.5 0.5 Fiscal Sector ( mil. euro) Revenues 638.4 712.0 896.4 941.5 Expenditures 696.1 635.5 662.7 943.8 Budget Balance -57.7 76.5 233.7 -2.3 Financial Sector (mil.euro) Net claims on ext. sect. 827.3 1,173.6 1,621.7 1,593.1 Net claims on fisc.sect. -230.2 -480.3 -856.8 -877.2 Net claims on real sect. -429.1 -429.3 -445.0 -343.6 Ext. sector (in mil. euro) Current Balance -410.3 -444.2 -558.9 -727.8(p) Goods -1,043.7 -1,142.1-1.341.1 -1,648.0(p)

6. Remittances (inflow) 418.0 467.1 521.7 535.8(p) Foreign Dire.Inve. (inflow ) 80.0 248.7 421.2 357.4(p) Registered unemployment - - 334.595 335.697 Registered unemployment Jan. 2009 337.017 Source: Central Bank of the Republic of Kosovo, Monthly Statistics Report, Table 1.February 2009 Burimi: MFE, Departamenti I Makroekonomisë

29. Public Expenditure and Financial Accountability Main Indicators based on PEFA assesment report 2008 1 Aggregate Expenditure Outturn compared to approved budget (C) 2 Composition of expend. outturn compared to approved budget (A) 3 Aggregate revenue outturn compared to approved budget A 4 Stock and monitoring of expenditure payment arrears B INDICATOR Budget Credibility

30. PEFA Indicators 5 Classification of the budget A 6 Comprehensiveness of information in budget documentation B 7 Extent of unreported government operations incl. donor funds A 8 Transparency of Intergovernmental Fiscal Relations B+ 9 Oversight of aggregate fiscal risk C+ 10 Public access to key fiscal information B 11 Orderliness and participation in the annual budget process B+ 12 Multi-year perspective in fiscal policy, planning, & budgeting B Transparency and Comprehensiveness Policy-based Budgeting

31. PEFA Indicators 13 Transparency of taxpayer obligations and liabilities B+ 14 Effectiveness of taxpayer registration and tax assessment D+ 15 Effectiveness in collection of tax payments B 16 Effectiveness of cash floë planning, mgt. & monitoring. A 17 Recording & management of cash balances, debt and guarantees (A) 18 Effectiveness of payroll controls D 19 Competition, value for money and controls in procurement B 20 Effectiveness of internal controls. B 21 Effectiveness of internal audit C+ Predictability and Control in Budget execution

32. PEFA Indicators 22 Timeliness and regularity of accounts reconciliation B+ 23 Availability of resource info received by service delivery units D 24 Timeliness, quality and dissemination of in-year exec. reports. A 25 Timeliness of audited financial statements submitted to the legislature. A 26 The scope, nature and folloë up of external audit reports. B 27 Legislative scrutiny of the annual budget laë B+ 28 Legislative scrutiny of external audit reports. C+ Accounting, Recording and Reporting External Scrutiny and Audit