The Macro-Economic Surveillance and Performance Unit of the Southern African Development Community (SADC) Secretariat was created to support inplementation of the Regional Indicative Strategic Development Plan (RISDP).
The main purpose of the Macro-economic surveillance and performance unit is to provide policy guidance and advice to Member States in the macro-economic policy; plan, facilitate, coordinate and monitor macro-economic policies, including monetary and fiscal policies and programmes with a view to promoting economic liberalisation and development, trade and investment; and to achieving macro-economic convergence in the SADC Region.
The Unit prepares, coordinates, reviews and consolidates inputs and information from Member States, CCBG Secretariat and Strategic Partners as well as from other regional financial and/or economic organisations for presentation to the SADC Macroeconomic Sub Committee and the SADC Macroeconomic Peer Review Panel (PRP) meetings.
Macro-economic convergence ultimately means the balancing of Member State economies across SADC. Without such convergence, the integration milestones of Free Trade, Customs Union, a Common Market, Monetary Union and a Single Currency cannot take place.
In order to assist with the measurement of progress in this important area, SADC has identified the following macro-economic convergence indicators:
- The rate of inflation in Member States;
- The ratio of the budget deficit to Gross Domestic Product (GDP) in Member State;
- The ratio of public and publicly-guaranteed debt in relation to GDP in Member States, taking into account the sustainability of such debt; and
- The balance and structure of the 'current account' of a Member State.
The Macro-Economic Convergence Surveillance Unit reports directly to the Executive Secretary.
Functions and Responsibilities
The Functions and Responsibilities of the Macro-Economic Convergence Surveillance Unit include the following:
- To perform secretariat and administrative functions for the SADC Macroeconomic Sub Committee, the Senior Treasury and Central Bank Officers Committee and the SADC Peer Review Panel meetings. These shall include the following:
- prepare the agenda and relevant documents after due consultation with the Chairpersons;
- collect relevant available information and papers and synthesise them for discussion by the SADC Macroeconomic Sub Committee and the SADC Peer Review Panel meetings;
- provide secretariat services including preparing minutes or summary notes of discussions;
- draft any press statements or communiqués that the SADC Peer Review Panel meeting may wish to issue; and
- Follow-up on the decisions of the SADC Macroeconomic Sub Committee and the SADC Peer Review Panel meetings.
- To assist Member States in drawing up Country Assessments and National Macroeconomic Convergence Programmes;
To maintain a macroeconomic convergence statistics database to measure progress in member states adherence to convergence targets.