Good Governance and Institutional Capacity for the State of Palestine

Developing stronger institutions for better governance

In cooperation with the Indonesian Embassy in Amman, Jordan, the Directorate of Technical Cooperation and the Directorate General of Multilateral Cooperation of the Ministry of Foreign Affairs of Indonesia conducted a capacity-building programme on macroeconomic management and fiscal policy to support economic growth for Palestine. It was held in Amman from 26 to 28 March 2019. The programme was undertaken to fulfil a commitment made by Indonesia in its role as a non-permanent member of United Nations Security Council from 2019 to 2020. It was aligned with the three-year activity plan agreed upon during the Third Conference on Cooperation among East Asian Countries for Palestinian Development, as well the country’s commitment to strengthen South-South cooperation within the framework of the New Asian-African Strategic Partnership. 

Participants of the programme included 21 officials from the Palestinian Ministry of Finance and Planning and 3 officials from the Jordanian Ministry of Finance. The ultimate goal of the training was to improve development in their respective countries, as the ability to manage and plan macroeconomic policy impacts economic growth. The training sought to provide participants with the knowledge necessary for effective planning in macroeconomic management and fiscal policy, which are essential for developing countries. 

The three-day training was conducted by experts from the Ministry of Finance of Indonesia and relied on an interactive and participative approach, with focus group discussions and audio-visual learning methods. 

The training was divided into three sessions. In the first session, the participants attended a lecture on macroeconomic management and sectoral analysis, using Indonesia’s latest economic development approach as an example. In this portion of the training, participants learned about the importance of identifying and promoting key sectors that are vital to economic growth. They were also introduced to the Government’s spending policy, particularly social spending that aligns with development.  

In the second session, participants learned about Indonesia’s strategy of managing procurement financing, particularly foreign procurement. The session also focused on fiscal risk management, particularly how to anticipate the impact of governing activities on State expenditure dynamics. 

In the final session, participants were equipped with the various analytical tools and models required to measure the impacts of fiscal policies. The Government Spending Review was also introduced in this session as a framework to evaluate various types of spending, including social, capital and employee expenditures. 

A questionnaire was filled out by the participants at the end of the training, and most responded positively. The topic of financing through public-private partnerships gained the most traction, as it aligned with current economic and fiscal policy in Palestine. 

At the closing ceremony, the participants conveyed their appreciation and requested additional follow-up trainings to further improve their capabilities, particularly regarding capacity-building in official development assistance management. The broad range of possibilities for follow-up programmes is indicative of the programme’s sustainability and replicability, as additional programmes could be implemented upon request from the Government of Palestine. 

This training is part of a series of capacity-building programmes organized by the Government of Indonesia to provide continuous support for the independence of the sovereign State of Palestine. As a follow-up, in February 2020, the Government of Indonesia organized a capacity-building programme for Palestinian police authorities to continue to develop the Government’s institutional capacity. This initiative contributed to Sustainable Development Goal (SDG) 8, on Decent Work and economic growth and SDG 10 on Reducing Inequalities, as it emphasizes good governance through strong policy management and training to foster economic growth.