The Country Policy and Institutional Assessment (CPIA) measures the extent to which a country’s policy and institutional framework supports sustainable growth and poverty reduction, and consequently the effective use of development assistance. The outcome of the exercise yields both an overall score and scores for sixteen criteria that compose the CPIA. These criteria include: A. Economic Management (1. Monetary and Exchange Rate Policies; 2. Fiscal Policy; 3. Debt Policy and Management), B. Structural Policies (4. Trade; 5. Financial Sector; 6. Business Regulatory Environment), C. Policies for Social Inclusion/Equity (7. Gender equality; 8. Equity of public resource use; 9. Building human resources; 10. Social protection and labor; 11. Policies and institutions for environmental sustainability), D. Public Sector Management and Institutions (12. Property rights and rule-based governance; 13. Quality of budgetary and financial management; 14. Efficiency of revenue mobilization; 15. Quality of public administration; 16. Transparency, accountability, and corruption in the public sector).
The Debt Policy and Management criterion assesses whether the country’s debt management strategy is conducive to ensure medium-term debt sustainability and minimize budgetary risks. The criterion covers: (a) the extent to which external and domestic debt is contracted with a view to achieving/maintaining debt sustainability; and (b) the effectiveness of debt management functions (including the degree of coordination between debt management and other macroeconomic policies, the effectiveness of the debt management unit, and the existence of a debt management strategy and of a legal framework for borrowing).