The IMF and Legislators
The legislative branch of government is essential to economic policy-making in most countries. Legislatures approve budgets and pass tax, banking, and trade laws. They oversee their government's economic policies, and provide forums for public information and debate. IMF outreach to legislators aims to explain IMF advice, discuss policy trade-offs, learn wider views and concerns, and ultimately contribute to greater transparency, ownership, and accountability of economic policy choices. |
Why does the IMF engage with legislators?
The IMF is committed to transparency in its work, to explaining itself, and to listening to the people whom it affects. As part of these efforts, the IMF has broadened its engagement with the media, civil society, and increasingly, legislators. Outreach to legislators is growing because they are the elected representatives of their citizenry and have a legitimate role to play in economic policy making in their countries.
Legislatures are responsible for passing laws in areas that are central to national economic and financial policies such as the budget, taxes, trade, and the financial sector. They play an important oversight role in monitoring government economic policies, development programs, and budget implementation. As a forum for public information and debate, legislatures play a pivotal role ensuring that the voices of the voters are heard in major policy debates. Both the IMF and its member governments have realized that policies and reforms will be more effective if they command broad support in society. In low-income countries, the importance of country ownership and the promotion of poverty reduction through a participatory approach make dialogue with legislators particularly important, given their role in discussing and developing national poverty reduction strategies.
Moreover, engaging legislators is useful to provide them with accurate, up-to-date information about the IMF, its operations, and policy advice.
How does the IMF engage with legislators?
The IMF is governed by and accountable to the governments of its 184 member countries. According to the IMF charter, the Articles of Agreement, its main interlocutors are the financial authorities—in most cases the Finance Ministry or Central Bank of the member countries. Recognizing that the principal responsibility for communication to legislators rests with the national authorities, the IMF’s interaction with legislators is tailored to the specific country circumstances, and closely coordinated with each country’s respective financial authorities and representative on the IMF Executive Board.
The IMF understands its outreach to legislators is a two-way dialogue. The objective is to familiarize legislators with the rationale for IMF advice. The IMF also values the opportunity to listen to legislators’ concerns and learn from their views. The IMF interacts with legislators at the national, regional, and international level:
- At the national level, IMF management, Executive Directors, and staff meet with legislators frequently during visits to member countries and when legislators visit IMF headquarters in Washington, D.C.
- The IMF organizes an increasing number of country and regional seminars for legislators; for example South Africa in March 2007, in The Kyrgyz Republic in June 2006, in Tanzania in October 2004, Cambodia and Timor Leste in March 2005, and seven Central American countries in May 2005.
- The IMF has offered courses in economic analysis and policy making at the Joint Vienna Institute for legislators from the former transition economies of Eastern and Central Europe (since 1995) and Central Asia.
- The IMF has been providing technical training at the Joint Vienna Institute for legislators from the former transition economies of Eastern and Central Europe (since 1995) and Central Asia, to build their capacity to analyze and implement economic policies.
- At the international level, the IMF cooperates with various parliamentary organizations, including the Global Organization of Parliamentarians Against Corruption (GOPAC); Parliamentarians for Global Action (PGA); the Parliamentary Centre; the Commonwealth Parliamentary Association (CPA); and the Inter-Parliamentary Union (IPU).
- The IMF has a well-established relationship with the Parliamentary Network on the World Bank; IMF management and staff participate in its annual conference, regional events, and field visits.
- The Independent Evaluation Office (IEO) of the IMF also maintains regular contacts with legislators, who provide feedback, comments, and suggestions to its evaluations.
A growing relationship
The IMF has been expanding its contacts with legislators in accordance with the high priority placed by both the IMF Executive Board and IMF management. A January 2004 report of an Executive Board working group stresses that the IMF “should expand its outreach efforts and listen to legislators particularly in order to improve the understanding of the political and social context in which economic decisions are being taken” and to “help build understanding of the IMF.”
In line with those recommendations, the IMF has developed a guide for staff on outreach to legislators. Following a consultative process with the public and legislators, the guide was published in July 2005. The guide encourages IMF staff to continue to expand its dialogue with legislators, and provides practical advice on interacting with legislators.