## Enhancing the Value of IMF Capacity Development — 2024 Capacity Development Strategy Review (CDSR)

## Source details

**Canonical URL:** [Enhancing the Value of IMF Capacity Development — 2024 Capacity Development Strategy Review (CDSR)](https://www.imf.org/-/media/files/capacity-developement/d4d/june-2024/01-imf-capacity-development-state-of-play.pdf)

## Other formats

- [Markdown version](/-/media/files/capacity-developement/d4d/june-2024/01-imf-capacity-development-state-of-play.pdf.md)
- [Structured JSON version](/-/media/files/capacity-developement/d4d/june-2024/01-imf-capacity-development-state-of-play.pdf.json)

---

### External funding and capacity development financing
- External support has been a growing source of capacity development (CD) funding and has enabled the Fund to meet increased CD demand.
- FY24 CD Spending is presented by major thematic area and by income group (shares of total CD delivery spending, percent). Figures include CD delivery only; Management and Administration as well as Analytics and Development spending is excluded.
- D4D consolidated a large number of bespoke bilateral projects into a more flexible and responsive multi-donor delivery mechanism.
- External financing remains essential to helping meet growing demand.

### Thematic focus and beneficiaries
- CD in the Fund’s core thematic areas continues to dominate, benefiting mostly low and emerging market countries.
- CD topical priorities highlighted:
  - Gender mainstreaming:
    - Integration of gender into the IMF’s core activities of surveillance, lending, and capacity development.
    - CD in gender budgeting, a new course on macroeconomics and gender, a gender data hub, and promotion of gender-disaggregated data.
    - Collaboration/partnerships with traditional donors, UN Women, Gates Foundation, Hewlett Foundation.
  - Fragile and Conflict-Affected States (FCS):
    - Support to achieve macroeconomic stability, promote sustainable and inclusive growth, and strengthen resilience.
    - Build on the IMF's comparative advantage and integrate policy advice, CD, and lending.
    - Tailor IMF engagement to specific fragility and conflict contexts and leverage partners to amplify impact.
  - Mainstreaming climate action:
    - Climate-informed policy advice, CD, better information and data, lending, and scaled up climate finance work.
    - Climate CD spans all areas of the Fund's expertise.
    - RCDCs increasing delivery in climate-related CD.
    - Lending through the Resilience and Sustainability Trust aims to address longer-term structural challenges.

### Delivery modalities and field presence
- Delivery by modality globally is reported as percentage share of total outturn (in millions USD). Figures include CD delivery only; Management and Administration as well as Analytics and Development spending is excluded.
- Returning to CD delivery in the field is emphasized.
- Regional Capacity Development Centers (RCDCs) are recognized as an integral part of the Fund’s CD delivery model; proposals include strengthening their governance and financing structure and regularly reviewing their coverage.
- Continue to enhance field presence and consider broadening the scope of functions located in the field.
- D4D integrates CD with surveillance and lending and works in coordination with RCDCs with some flexibility to finance LTXs in the field.

### CDSR proposals to strengthen prioritization, funding, impact, modalities, field presence, and HR
- Strengthening Prioritization and Integration:
  - Broadly maintain current size of CD relative to surveillance and lending while allowing flexibility.
  - Integrate CD strategies for heavy users into staff reports; brief board on Regional Strategy Notes.
- Enhancing the Funding Model:
  - Continue seeking to broaden donor base and increase flexibility of funding vehicles.
  - Establish a stabilization mechanism to further mitigate risks of external funding.
  - Maintain and modify the charging policy for high-income countries.
- Enhancing Impact:
  - Seek explicit agreement on targeted results with country authorities.
  - Introduce a strategic results framework; enhance focus of evaluations on impact.
  - Introduce formal mechanisms for monitoring and evaluation to inform CD strategy and priorities.
- Modalities:
  - Modernize CD delivery by leveraging new technologies and effectively utilizing blended delivery tailored to country-specific circumstances.
  - Review external training curriculum.
- Field Presence:
  - Recognize and strengthen RCDCs; enhance field presence and consider broader field functions.
- HR Policies:
  - In the short term and within the existing policy framework take measures to bolster career paths for specialized economists and specialized career staff.
  - Modernize and harmonize expert recruitment and management practices.
  - Over the medium term, undertake a strategic review of CD HR structure and policies in HQ and field.

### Key takeaways
- The Fund remains agile; the CDSR provides a clear strategic roadmap to ensure Fund CD is F.I.T for purpose.
- D4D is operationalizing CDSR recommendations, including consolidation of bilateral projects into a multi-donor mechanism, integration of D4D CD with surveillance and lending, and coordination with RCDCs to finance LTXs in the field.
- External financing continues to be essential to meet growing demand for CD.

---


_Source: https://www.imf.org/-/media/files/capacity-developement/d4d/june-2024/01-imf-capacity-development-state-of-play.pdf_