Factsheet
The G-20 Mutual Assessment Process (MAP)
March 20, 2013
Leaders of the Group of Twentyindustrialized and emerging market economies (G20) pledged at their2009 Pittsburgh Summit to work together to ensure a lasting recovery and strong and sustainable growth over the medium term. To meet this goal, they launched the Framework for Strong, Sustainable, and Balanced Growth. The backbone of this framework is a multilateral process through which G20countries identify objectives for the global economy, the policies needed to reach them, and the progress toward meeting these shared objectives—the so-called Mutual Assessment Process (MAP). On the request of the G20, the IMF provides technical analysis to evaluate key imbalances and how members' policies fit together—and whether, collectively, they can achieve the G20's goals. This factsheet focuses on the key procedural steps of the MAP. Information on the findings and recommendations of the MAP and IMF staff analysis can be found at http://www.imf.org/external/np/g20/index.htm
A Guide to Navigate the Global Recovery
The MAP is an approach to policy collaboration that was conceived by the members of the G20 at the 2009 Pittsburgh Summit. The G20 Leaders have set the tone and substance of the initiative, with the goal of ensuring that collective policy action benefits all. The IMF, in turn, has been asked by the G20 to provide technical analysis for the MAP.
IMF staff was tasked with analyzing—in collaboration with other international institutions—whether policies pursued by individual G20 countries were collectively consistent with the G20’s growth objectives. Additionally, in recent years, IMF staff was asked to help the membership develop indicative guidelines and to use them to identify and evaluate large imbalances among members every two years.
In the runup to the St. Petersburg Summitin 2013, the G20 has reiterated its commitment to ensuring sustainable public finances in advanced economies by developing credible medium-term fiscal strategies and taking into account near-term economic and budgetary conditions. Also, the G20 committed to monitor and minimize the negative spillovers of policies implemented for domestic purposes and reaffirmed its pledge to cooperate to achieve a lasting reduction in global imbalances.
For the latest information on the G20: http://www.g20.org
Building Blocks to the Framework
Summit |
Key steps |
Description |
Pittsburgh |
Policy and macroeconomic frameworks |
All G20 members would share information—with each other and the IMF—about their policy plans and expected performance over the next 3–5 years. IMF to examine global implications. |
Toronto |
Assessment of members’ policies |
The IMF assessed the consistency of G20 members’ policies with growth objectives. The IMF analyzed and envisaged an “upside scenario” in which well-designed, collective action would produce better outcomes for all countries, contributing significantly to global rebalancing. |
Seoul |
Enhanced MAP with indicative guidelines |
Leaders would gauge progress toward Framework goals through the use of indicative guidelines to identify and assess imbalances. G20 agreed that IMF staff would conduct in-depth assessment of members identified with large imbalances. |
Policy commitments. |
Each G20 member identified the policy actions it would take to help achieve the common growth objectives. |
|
Cannes |
Near-term actions |
G20 Leaders reiterated the importance of expeditiously implementing measures announced by euro area Leaders just before the G20 Summit. The G20 also committed to take significant strides toward a more stable and resilient international monetary system. |
Medium-term policy imperatives |
G20 Leaders endorsed policy actions that aim to correct imbalances over the medium term and ensure progress toward strong, sustainable, and balanced growth. They also committed to working with greater resolve on social issues, including high unemployment and inadequate social safety nets. |
|
Analysis of large imbalances |
For seven countries identified as having large imbalances, sustainability reports by IMF staff provided in-depth analysis of the nature of countries’ imbalances, root causes, and impediments to adjustment. |
|
Los Cabos |
Policy actions |
G20 Leaders committed to adopting all necessary policy measures to strengthen demand, support global growth, and restore confidence, address short- and medium-term risks, enhance job creation, and reduce unemployment. |
Accountability framework |
G20 Leaders agreed on enhancing an Accountability Assessment Framework to assess progress in meeting commitments toward the shared goal of strong, sustainable. and balanced growth, and conducted the first assessment under this framework. |