Review of Conditionality and the Design of Fund-Supported programs
Last Updated: February 21, 2014
The IMF thanks all NGOs, academia, think tanks, private sector, governments and individuals who have provided written comments during the Conditionality Review on-line consultation period. The on-line process has officially ended at the end of May 2011. Tthe comments are posted below. If you have any questions, please send an e-mail to IMFconsultation@imf.org.
Fund-supported program is a package of policy measures which, combined with approved financing, is intended to accomplish specific economic objectives such as achieving orderly external adjustment, promoting growth and poverty reduction, and containing inflation. Agreed policies are monitored by conditionality to give the country confidence that it will continue to receive financing from the Fund as long as it implements the policies envisaged under the program, while providing safeguards for the Fund's resources.
Conditionality is reviewed regularly by the Fund as part of its effort to assess its policies and adapt them to a changing environment. The last review took place in 2004-05. At that time, the Executive Board agreed that the implementation of the 2002 Conditionality Guidelines had delivered positive results overall in terms of a more streamlined and clearer conditionality, but noted that there remained room for progress in terms of program implementation. The next review of conditionality is scheduled by the end of 2011. The IMF plans to examine not only the content and application of conditionality, but also broader issues such as design, implementation, and outcomes of programs. The general approach is described in the Concept note that has been discussed informally by the Executive Board on February 14, 2011.
The overall objective of the public consultation process is to conduct a productive and participative process in a suitable time. The public consultation process is intended to provide the IMF with additional inputs for the 2011 Review of Conditionality and the Design of Fund-Supported Programs.
The IMF seeks insights on conditionality through a consultative process. The process will involve IMF staff interaction with academics, labor unions, donors, and civil society. Along with these meetings, the IMF is issuing a call for written comments.
Comments are sought on the different aspects of the project, as described in the concept note. In particular, comments could cover the following issues:
• Views on the application of the five principles on conditionality: ownership of reform programs, parsimony in the application of program-related conditions, tailoring of programs to the country circumstances, effective coordination with other multilateral institutions, and clarity in the specification of conditions.
• Views on the recent reforms to conditionality, notably the discontinuation of structural performance criteria and the use of ex-ante conditionality in instruments such as the FCL and the PCL.
• Views on the effectiveness and implementation of conditionality.
• Views on the design and implementation of Fund-supported programs, in particular since the global financial crisis.
• Views on outcomes of Fund programs.
The IMF Civil Society Team will receive the comments and post a summary of the comments received (some editing might be needed).
You need to provide your contact information before submitting comments. The Fund will not review comments without proper information of the sender. The IMF cannot respond to individual comments or communications. In the case that questions arise during the public consultation period, the IMF will endeavor to provide periodic updates on this website, addressing common questions that may arise.
How to send comments?
1. On-line: send your comments to the following address IMFConsultation@imf.org
2. Fax: +1 202 623 6220
If you are sending a fax, please include the following information so that your comments may be duly registered: name of sender; organization and address; country; phone number; and e-mail address.
The public consultation process for the Conditionality review will comprise a first round of consultations starting on March 15, 2011. We request that comments be submitted by May 31, 2011, to allow their consideration for the review. We expect to make comments available on the IMF website after May 1 in order to stimulate debate on the issue.
The second round of consultations would take place after the initial IMF review is released.