## EXECUTIVE SUMMARY

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---

### Overview and purpose
- Management Implementation Plan (MIP) focuses on strengthening Bank-Fund collaboration on macro-structural issues, building on best practices and addressing Board-endorsed IEO recommendations in the IEO assessment of the IMF’s Collaboration with the World Bank on Macro-Structural Issues.
- Bank provides structural and development-focused assessments and recommendations; Fund focuses on integrating macro relevant structural issues into macroeconomic frameworks and policies.
- Some collaboration modalities are well established (e.g., inequality, financial sector, and fiscal issues, including spending policies); in other areas (e.g., climate change, gender, and Fragile and Conflict-Affected States (FCS)) Fund staff are developing comprehensive strategies to step up engagement and collaboration with external partners.

### Key proposed actions (concrete steps)
- Develop concrete frameworks to ensure effective Bank-Fund collaboration on strategic macro-structural issues, with climate change as a critical workstream:
  - (i) Improve strategic coordination between Bank and Fund climate teams, including stepping up coordination on strategic priorities and policy messages through the Fund’s Climate Advisory Group and joint work in international fora.
  - (ii) Ensure information and knowledge sharing on ongoing work across the two institutions.
  - (iii) Deepen collaboration in areas of ongoing joint work (e.g., climate risks in FSAPs, carbon pricing).
- Improve internal incentives for collaboration:
  - HRD will revise the Guidance Note to include specific guidance on how the new HR performance management system could be used by Departments to encourage collaboration with external partners, including the Bank.
- Improve access to and exchange of information and knowledge:
  - Prepare a Joint Bank-Fund Staff Guidance Note summarizing best practices in information and document sharing processes.
  - Maintain rosters of managerial, technical and operational focal points in both institutions in select macro-structural areas.
  - Develop specific IT solutions for better access and information exchange between the institutions.

### Assessment, monitoring and timelines
- Staff will prepare an IMF Board Paper on the Effectiveness of Bank-Fund collaboration by FY2025.
  - The Board paper will: (i) review Bank-Fund collaboration in select macro-structural areas, the effectiveness of proposed guidance and progress on implementation of other actions outlined in this MIP; and (ii) assess the need for tailored institutional frameworks for collaboration.
- Staff will prepare a background paper in the context of the interim Comprehensive Surveillance Review (CSR) by FY2024.
  - The interim CSR background paper will take stock of how the Fund has integrated select macro-structural areas (notably climate) into its surveillance, including how it has collaborated with other institutions (such as the World Bank).

### Strategic approach and principles
- Overarching framework rooted in the 1989 Concordat, setting out principles for collaboration including primary responsibility delineation and expectations in areas of shared responsibility.
- IEO finds 1989 Concordat’s broad principles remain valid and suggests focusing on explicit frameworks tailored to specific priority issues rather than reopening umbrella agreements.
- Endorsed flexible approach to collaboration—guided by frequent exchanges, awareness of complementary expertise, cost-benefit consideration, and experimentation—for evolving high-priority macro-structural areas (climate change, inclusive growth, digitalization).

### Rationale for tailoring institutional frameworks
- Institutional frameworks most useful where Bank and Fund staff jointly produce a common product requiring clear delineation of responsibilities and joint decision making (example: debt vulnerabilities and financial sector assessments leading to integrated work programs and formalized products such as the FSAP).
- In other areas (e.g., social spending), collaboration has worked well without formal institutional frameworks when supported by clear guidance and information/knowledge sharing mechanisms.

### Resource implications
- Commitments in this MIP require additional resources.
  - Proposed actions in the climate workstream will be covered within the resource envelope outlined in the IMF’s climate strategy.
  - Additional resources required for producing the proposed guidance notes and the Board Paper on Bank-Fund collaboration.
  - Resource implications for country teams and other actions will be addressed in the context of the regular budget discussions.
  - It is envisaged that about 1 additional FTE will be required for preparing Guidance Notes and about 2 additional FTEs for the preparation of the IMF Board Paper on the Effectiveness of Bank-Fund collaboration.

### Implementation context and approvals
- All actions proposed in this MIP were discussed with Bank staff and are supported by Bank management.
- Actions are for Fund staff to carry out, but successful implementation depends on efforts of staff from both institutions.
- Approved by Uma Ramakrishnan and Kenneth Kang.
- Prepared by the Strategy, Policy, and Review Department; SPR staff team led by Anna Ilyina and comprising Nina Budina, Yehenew Endegnanew, Roland Kangni Kpodar, and Vimal Thakoor, under the guidance of Uma Ramakrishnan and, on climate-related issues, Kristina Kostial.

### IEO recommendations and MIP response (summary)
- IEO Rec 1—Develop and agree on concrete frameworks to ensure effective collaboration with the Bank on key macro-structural issues where collaboration brings greatest strategic returns (climate highlighted).
- IEO Rec 2—Improve internal incentives to collaborate with the Bank and other external partners and address cultural reluctance to engage externally.
- IEO Rec 3—Improve access to and exchange of information and knowledge with the Bank by identifying, prioritizing and implementing practical steps.
- IEO Rec 4—Strengthen IMF Board’s strategic role in facilitating external collaboration; Rec 4 is outside management’s purview and not covered in this MIP.

### Engagement strategy, modalities, and enabling conditions
- Engagement strategy: Fund senior management and the Executive Board identify high-priority areas and formulate engagement strategy.
- Modalities of engagement:
  - Cooperation: mutual support through information and knowledge exchange.
  - Coordination: agreed mechanisms to support common objectives.
  - Collaboration: deeper, structured frameworks for joint outputs based on common objectives.
- Enabling conditions: incentives for Fund staff to collaborate; effective mechanisms for information and knowledge sharing.

### Role of the Board and senior management
- IEO Rec 4 recommended enhancing the Board’s role (joint board presentations/meetings; inviting Bank staff to Article IV discussions; enhancing Liaison Committee). Rec 4 is outside management’s purview.
- Some Directors suggested creating a High-Level Joint Fund-Bank committee; management noted existing senior management coordination mechanisms and proposed the FY2025 Board Paper to review experience and need for additional mechanisms.

### Focus on climate change: current modalities and joint activities
- MIP focuses on climate change given macroeconomic and financial policy significance. Examples of joint activities and modalities:
  - FAD:
    - facilitate operational coordination of Climate Change Policy Assessments (CCPAs) and the IMF’s Climate Macroeconomic Assessment Program (CMAP) with the Bank’s Country Climate and Development Report (CCDR) program;
    - appoint point persons to coordinate strategic issues relating to CCDRs and CMAPs;
    - share planned country coverage and timelines via point persons;
    - share drafts of preparatory notes and reports at earliest stage possible; encourage mutual participation in CMAPs and CCDRs;
    - coordinate work on carbon pricing with the Bank.
    - Note: Pilots included Belize, Grenada, Micronesia, Seychelles, St. Lucia and Tonga.
  - MCM:
    - work with Bank staff on integrating climate risks in scenario design in FSAPs (examples: South Africa, the Philippines, and Norway), including for physical risks, while maintaining the Fund's primary role in providing stability assessments.
  - RES:
    - runs a monthly Bank/Fund seminar on the macroeconomics of climate change.
  - STA:
    - launched the climate change indicators dashboard in April 2021 and is working on refining and updating it, drawing on relevant Bank data and analytical work.
  - KMU, FAD:
    - set up a Climate Change Knowledge Hub on climate-related work, with references and links to Bank materials.
  - SPR:
    - involved in Bank-led work on linking debt and climate, including exploring the role of debt swaps.
- Joint international fora engagement includes: Coalition of Finance Ministers for Climate Action; NGFS; G20 Sustainable Finance Working Group; UN Committee on Environment Accounting; Venice Climate Conference (July 2021).

### Categorization of climate engagement modalities
- Cooperation:
  - Capacity building: climate-focused training courses for Fund staff drawing on Bank expertise.
  - Info/Knowledge management: IMF’s Climate Change Indicators Dashboard and KE site with links to WB data and analysis.
  - Info/Knowledge sharing: joint WB-IMF Seminar Series on Climate Macroeconomics.
  - Coordination of ongoing work: between the Fund’s Climate Advisory Group and WB counterparts.
  - Coordination in international fora: Coalition of Finance Ministers for Climate Action; NGFS; UN Committee on Environmental and Economic Accounting; High Level Advisory Group on Sustainable and Inclusive Recovery and Growth.
  - CCDR/CMAP: coordination of production to limit overlap and ensure consistent advice.
- Coordination:
  - Climate risks in FSAPs: joint Bank-Fund work on identification of material climate risks in FSAPs.
  - Climate risk modelling: Fund-led carbon pricing and mitigation work with Bank inputs.
  - Climate finance: Bank-led work on Platform for Debt, Climate, and Nature with Fund inputs.
- Collaboration:
  - Deeper, structured joint work where common objectives and outputs are agreed.
- Note: actions marked by (*) have not been implemented yet, but are currently in the pipeline.

### Implementation plan and specific near-term actions (selected)
- Semi-annual meetings:
  - Fund’s Climate Advisory Group to have semi-annual meetings with Bank counterparts; first such meeting planned for September 2021.
- Training and capacity building:
  - Climate-related training courses drawing on Bank resources; multiple offerings of a Climate Change Course and five seminars by April 2022.
- International fora and joint initiatives:
  - Co-chairing of the Coalition of Finance Ministers for Climate Action Secretariat by Fund and Bank staff; work to be formalized through an MoU (MoU signature is an MIP action).
  - High-Level Advisory Group (HLAG) on Sustainable and Inclusive Recovery and Growth launched in June 2021; HLAG inputs to processes in 2021 leading up to the G20 Summit in Rome (October) and COP26 in Glasgow (November) and deeper analyses for 2022.
- Ongoing joint work:
  - FSAPs:
    - Staff will brief the Board on early experience identifying material climate-related risks in FSAPs—especially physical risks—and joint Bank-Fund work on developing relevant climate scenarios by March 2022.
    - Data limitations on physical and transition risks continue to hinder assessment and mitigation.
  - Carbon pricing/mitigation models:
    - Joint work to link macroeconomic and distributional effects of carbon pricing across countries and inform policy design to protect vulnerable groups.
    - Regular collaboration to improve and update the Carbon Pricing Assessment Tool (CPAT) covering 150 countries.
    - Bank and Fund staff will meet quarterly to update each other; first meeting in September is an MIP action.
  - CMAP/CCDR:
    - Board will discuss the Review of Climate Change Policy Assessment Pilots in early 2022 to assess early collaboration experience on CCDR.
  - PIMA:
    - Board will discuss Integration of Climate Change in the Public Investment Management Assessment Framework later this year; collaboration includes the World Bank and the Asian Development Bank.

### Monitoring and review milestones
- Board Paper on the Effectiveness of Bank-Fund collaboration by FY2025 to review experience and progress in implementing MIP actions.
- Interim CSR background paper by FY2024 to take stock of integration of select macro-structural areas into surveillance and collaboration with other institutions.

### Recommendation 2 — Improve internal incentives for collaboration (implementation details)
- HR guidance to Fund managers:
  - By Q4, 2021, HRD will revise the Guidance Note to include specific guidance on how the new enhanced HR performance management system could be used by Departments to encourage Bank-Fund collaboration.
  - Guidance will address:
    - (i) use of the new performance management system tools to ensure collaboration is reflected in performance assessments;
    - (ii) cascading Bank-Fund collaboration goals from the B4 level to teams and/or individuals via the objective setting tool;
    - (iii) gathering feedback from Bank staff on Fund staff involved in close Bank-Fund collaboration projects;
    - (iv) use of check-ins to monitor progress on collaboration objectives.
  - HRD will conduct outreach as the FY2022 performance cycle is rolled out to explain system tools to departments.
  - Review of best practices and experience with HRD guidance will be conducted as part of the IMF Board Paper on the Effectiveness of Bank-Fund collaboration.
- Supporting staff exchanges:
  - HRD will explore how external assignments (including at the Bank) could become part of career development conversations; LIC/FCS experience requirement for A15 promotion noted as potentially attractive for secondments.
  - By end-FY2023, HRD will prepare a briefing note for managers on reintegrating staff returning from staff exchanges.
  - By April 2022, COM jointly with HRD will launch intranet feature(s) highlighting positive experiences of Fund staff returning after external assignments.

### Recommendation 3 — Information and knowledge sharing (implementation details)
- Joint Bank-Fund Staff Guidance Note on information sharing expected to be finalized by end-2021.
- Sharing rosters of experts:
  - Regular sharing of rosters of managerial, technical and operational focal points; provide access to up-to-date information in areas of tax administration and climate by end-2021.
  - Relevant departments responsible for regular updates.
  - Fund roster will consist of its staff and long-term experts.
- IT and platforms:
  - MS Teams rolled out internally and will become available for external collaboration by end-2021 after security accreditation; interim option: use BOX until planned replacement by OneDrive.
  - New intranet design (Integrated Digital Workplace modernization) to be completed by end-2021 design phase; interim solution: leverage Adobe Experience Manager (AEM) for external collaboration.
  - Explore different access levels in new intranet for non-Fund staff users, including privileged access for Bank staff (subject to agreement).

### Recommendation 4 — IMF Board’s strategic role (overview)
- Recommendation outside management’s purview.
- Executive Board Committee on Liaison with the World Bank and Other International Organizations (LC) is crafting measures to leverage the Board’s oversight role.
- Chair of LC initiated engagement with Chair of COGAM to set up a joint Liaison Committee–COGAM Forum (LCF); aim to agree terms of reference by the Fall of 2021.
- First meeting between IMF Liaison Committee (LC) and WB counterparts (COGAM) where Bank staff presented their climate work program took place on July 20, 2021.

### Annex highlights (selected)
- Annex I — Best practice examples: IMF country teams, particularly covering EMDEs, collaborate closely with the Bank in surveillance, lending, and capacity development; September 2020 survey showed good collaboration practices; collaboration intensified during COVID-19.
- Annex II — FSAP collaboration: FSAP introduced after late 1990s crises; Bank-Fund collaboration successful and crucial; institutional framework includes joint Financial Sector Liaison Committee (FSLC) and a Confidentiality Protocol on the Protection of Sensitive Information in the FSAP.
- Annex III — Follow-up plans and timelines for IEO recommendations summarized with accountabilities and specific deliverables (e.g., semi-annual Climate Advisory Group meetings [first meeting by end-September 2021]; Board briefing on FSAP climate risks [March 2022]; IMF Board Paper [by FY2025]; interim CSR background paper [by FY2024]).

*pp ea2021064 - EXECUTIVE SUMMARY (September 14, 2021)*

### EXECUTIVE SUMMARY

### EXECUTIVE SUMMARY

### Overview and purpose
- The Management Implementation Plan (MIP) focuses on further strengthening Bank-Fund collaboration on macro-structural issues, building on best practices and addressing Board-endorsed Independent Evaluation Office (IEO) recommendations in the IEO assessment of the IMF’s Collaboration with the World Bank on Macro-Structural Issues.
- The Bank provides structural and development-focused assessments and recommendations; the Fund focuses on integrating macro relevant structural issues into macroeconomic frameworks and policies.
- Some collaboration modalities are well established (e.g., inequality, financial sector, and fiscal issues, including spending policies); in other areas (e.g., climate change, gender, and Fragile and Conflict-Affected States (FCS)) Fund staff are developing comprehensive strategies to step up engagement and collaboration with external partners.

### Key proposed actions (concrete steps)
- Develop concrete frameworks to ensure effective Bank-Fund collaboration on strategic macro-structural issues, with climate change as a critical workstream:
  - (i) Improve strategic coordination between Bank and Fund climate teams, including stepping up coordination on strategic priorities and policy messages through the Fund’s Climate Advisory Group and joint work in international fora.
  - (ii) Ensure information and knowledge sharing on ongoing work across the two institutions.
  - (iii) Deepen collaboration in areas of ongoing joint work (e.g., climate risks in FSAPs, carbon pricing).
- Improve internal incentives for collaboration:
  - HRD will revise the Guidance Note to include specific guidance on how the new HR performance management system could be used by Departments to encourage collaboration with external partners, including the Bank.
- Improve access to and exchange of information and knowledge:
  - Prepare a Joint Bank-Fund Staff Guidance Note summarizing best practices in information and document sharing processes.
  - Maintain rosters of managerial, technical and operational focal points in both institutions in select macro-structural areas.
  - Develop specific IT solutions for better access and information exchange between the institutions.

### Assessment, monitoring and timelines
- Staff will prepare an IMF Board Paper on the Effectiveness of Bank-Fund collaboration by FY2025.
  - The Board paper will: (i) review Bank-Fund collaboration in select macro-structural areas, the effectiveness of proposed guidance and progress on implementation of other actions outlined in this MIP; and (ii) assess the need for tailored institutional frameworks for collaboration.
- Staff will prepare a background paper in the context of the interim Comprehensive Surveillance Review (CSR) by FY2024.
  - The interim CSR background paper will take stock of how the Fund has integrated select macro-structural areas (notably climate) into its surveillance, including how it has collaborated with other institutions (such as the World Bank).

### Strategic approach and principles
- The overarching framework is rooted in the 1989 Concordat, which sets out principles for collaboration including primary responsibility delineation and expectations in areas of shared responsibility (regular senior staff meetings; procedures to resolve differences; systematic exchange of information on future country work and mission plans; ad hoc study groups for analytical work).
- The IEO report finds the 1989 Concordat’s broad principles remain valid and suggests focusing on explicit frameworks tailored to specific priority issues rather than reopening umbrella agreements.
- A flexible approach to collaboration—guided by frequent exchanges, awareness of complementary expertise, cost-benefit consideration, and experimentation—is endorsed for evolving high-priority macro-structural areas (climate change, inclusive growth, digitalization).

### Rationale for tailoring institutional frameworks
- Institutional frameworks are most useful where Bank and Fund staff jointly produce a common product requiring clear delineation of responsibilities and joint decision making (e.g., debt vulnerabilities and financial sector assessments led to integrated Bank-Fund work programs and formalized products such as the FSAP).
- In other areas (e.g., social spending), collaboration has worked well without formal institutional frameworks when supported by clear guidance and information/knowledge sharing mechanisms.

### Resource implications
- The commitments in this MIP require additional resources.
  - Proposed actions in the climate workstream will be covered within the resource envelope outlined in the IMF’s climate strategy.
  - Additional resources are required for producing the proposed guidance notes and the Board Paper on Bank-Fund collaboration.
  - Resource implications for country teams and other actions will be addressed in the context of the regular budget discussions.

### Implementation context and approvals
- All actions proposed in this MIP were discussed with Bank staff and are supported by Bank management.
- The actions are for Fund staff to carry out, but successful implementation depends on efforts of staff from both institutions.
- Approved by Uma Ramakrishnan and Kenneth Kang.
- Prepared by the Strategy, Policy, and Review Department in collaboration with other Departments; SPR staff team led by Anna Ilyina and comprising Nina Budina, Yehenew Endegnanew, Roland Kangni Kpodar, and Vimal Thakoor, under the guidance of Uma Ramakrishnan and, on climate-related issues, Kristina Kostial.

*pp ea2021064 - EXECUTIVE SUMMARY (September 14, 2021)*

### 14.      The IEO put forward four recommendations aimed at further strengthening Bank-Fund

### 14.      The IEO put forward four recommendations aimed at further strengthening Bank-Fund

### IEO recommendations and focus areas
- IEO Rec 1—Develop and agree on concrete frameworks to ensure effective collaboration with the Bank (or other relevant partner organizations) on key macro-structural issues where collaboration is judged to bring the greatest strategic returns.
- IEO Rec 2—Improve internal incentives to collaborate with the Bank and other external partners and address the wider cultural reluctance to engage with external partners.
- IEO Rec 3—Improve access to and exchange of information and knowledge with the Bank by identifying prioritizing and implementing practical steps.
- IEO Rec 4—The IMF Board’s strategic role in facilitating and supporting external collaboration could be strengthened by leveraging its oversight role, its scope to influence staff behavior, and its direct engagement with the World Bank Board.

### Engagement strategy, modalities, and enabling conditions
- Engagement strategy:
  - Fund senior management and the Executive Board play a key role in identifying high-priority areas for Bank-Fund collaboration and in formulating the engagement strategy (Figure 2, IEO Rec 4).
  - Effective communication between Fund and Bank senior management on strategic priorities is emphasized by Executive Directors.
- Modalities of engagement (Figure 2, IEO Rec 1):
  - Cooperation: mutual support through information and knowledge exchange to help each institution achieve its own goals.
  - Coordination: agreed mechanisms to support common objectives.
  - Collaboration: deeper, structured frameworks for joint outputs based on common objectives.
- Enabling conditions:
  - Incentives for Fund staff to collaborate with Bank staff (IEO Rec 2).
  - Effective mechanisms for information and knowledge sharing (IEO Rec 3).

### Role of the Board and senior management
- IEO Rec 4 recommended enhancing the Board’s role to facilitate Bank-Fund collaboration, including:
  - holding more joint board presentations/meetings on issues of joint strategic importance;
  - inviting Bank staff to Article IV discussions;
  - enhancing the role of the Liaison Committee.
- Rec 4 is outside management’s purview and will not be covered in this MIP.
- Many Directors suggested creating a High-Level Joint Fund-Bank committee (ED Rec) to focus on longer-term strategic issues; several Directors cautioned that role, scope, and mandate must be carefully designed and prioritized.

### Management Implementation Plan (MIP) — scope and objectives
- The MIP builds on best practices and proposes concrete steps to strengthen Bank-Fund collaboration.
- The MIP aims to balance:
  - (a) the need to step up collaboration in key strategic areas; and
  - (b) the need to retain flexibility and capacity in both institutions to react to new demands,
    recognizing the pandemic is not over yet and that collaboration will need additional resources.
- The MIP puts forward “SMART” (specific, monitorable, achievable, realistic, and timebound) actions—some near term, others longer-term.
- Near-term focus: support ongoing Bank-Fund collaboration at the country team level and strengthen Bank-Fund engagement on climate issues.

### Monitoring and review milestones
- Fund staff will prepare a Board Paper on the Effectiveness of Bank-Fund collaboration by FY2025 to review experience and progress in implementing MIP actions.
- As part of the interim Comprehensive Surveillance Review (CSR), staff will prepare a background paper taking stock of how the Fund has integrated select macro-structural areas (notably related to climate) into surveillance and collaboration with other institutions by FY2024.
- These monitoring actions are intended to identify areas where more structured approaches to collaboration might make sense in the future (see Annex III).

### Recommendation 1: Frameworks for collaboration on key macro-structural issues
- Directors broadly supported tailored frameworks for collaboration in select macro-structural areas where Fund and Bank roles are complementary and strategic returns are highest, taking into account costs and resource availability.
- Activities in the climate workstream were highlighted as a strong candidate for a tailored framework.
- Effective frameworks should ensure adequate incentives to collaborate and have strong management and Board support in both institutions.

### Focus on climate change: current modalities and joint activities
- The MIP focuses on climate change given its macroeconomic and financial policy significance. Current modalities of Bank-Fund engagement on climate vary across workstreams. Examples of joint activities and modalities:
  - FAD:
    - facilitating operational coordination of Climate Change Policy Assessments (CCPAs) and the IMF’s Climate Macroeconomic Assessment Program (CMAP) with the Bank’s Country Climate and Development Report (CCDR) program to limit overlap and ensure consistent advice;
    - appointment of point persons to coordinate strategic issues relating to CCDRs and CMAPs;
    - sharing planned country coverage and timelines via point persons;
    - sharing drafts of preparatory notes and reports at earliest stage possible; encouraging mutual participation in CMAPs and CCDRs;
    - coordinating work on carbon pricing with the Bank.
    - Note: The pilots included Belize, Grenada, Micronesia, Seychelles, St. Lucia and Tonga (Link to CCPA reports).
  - MCM:
    - working with Bank staff on integrating climate risks in scenario design in FSAPs (examples: South Africa, the Philippines, and Norway), including for physical risks, while maintaining the Fund's primary role in providing stability assessments.
  - RES:
    - runs a monthly Bank/Fund seminar on the macroeconomics of climate change.
  - STA:
    - launched the climate change indicators dashboard in April 2021 and is working on refining and updating it, drawing on relevant Bank data and analytical work.
  - KMU, FAD:
    - set up a Climate Change Knowledge Hub on climate-related work, with references and links to Bank materials.
  - SPR:
    - involved in Bank-led work on linking debt and climate, including exploring the role of debt swaps.

- Joint international fora engagement:
  - Coalition of Finance Ministers for Climate Action;
  - Network of Central Banks and Supervisors for Greening the Financial System (NGFS);
  - G20 Sustainable Finance Working Group;
  - UN Committee on Environment Accounting.
  - Joint collaboration on the Venice Climate Conference in July 2021 for the Italian presidency of the G20.
  - Both institutions led working groups on climate mitigation and climate financing.

### Categorization of climate engagement modalities (Figure 3 summary)
- Cooperation:
  - Capacity building: climate-focused training courses for Fund staff drawing on Bank expertise*.
  - Info/Knowledge management: IMF’s Climate Change Indicators Dashboard and KE site with links to WB data and analysis.
  - Info/Knowledge sharing: joint WB-IMF Seminar Series on Climate Macroeconomics.
  - Coordination of ongoing work: between the Fund’s Climate Advisory Group and WB counterparts*.
  - Coordination in international fora: Coalition of Finance Ministers for Climate Action; NGFS; UN Committee on Environmental and Economic Accounting; High Level Advisory Group on Sustainable and Inclusive Recovery and Growth.
  - CCDR/CMAP: coordination of production to limit overlap and ensure consistent advice.
- Coordination:
  - Climate risks in FSAPs: joint Bank-Fund work on identification of material climate risks in FSAPs.
  - Climate risk modelling: Fund-led carbon pricing and mitigation work with Bank inputs.
  - Climate finance: Bank-led work on Platform for Debt, Climate, and Nature with Fund inputs.
- Collaboration:
  - Deeper, structured joint work where common objectives and outputs are agreed.

- Note: actions marked by (*) have not been implemented yet, but are currently in the pipeline.

### Implementation plan and specific near-term actions
- Semi-annual meetings:
  - The Fund’s Climate Advisory Group will have semi-annual meetings with Bank counterparts to stock-take ongoing work, improve information/knowledge sharing, discuss strategic directions, and disseminate information to country teams.
  - The first such meeting planned for September 2021 is included in the MIP action matrix (Annex III).
- Training and capacity building:
  - Fund’s climate-related training courses will draw on Bank resources; action evidenced by multiple offerings of a Climate Change Course and five seminars by April 2022.
- International fora and joint initiatives:
  - Co-chairing of the Coalition of Finance Ministers for Climate Action Secretariat by Fund staff and Bank staff; ongoing work to be formalized through an MoU (signature of the MoU is an MIP action—see Annex III).
  - High-Level Advisory Group (HLAG) on Sustainable and Inclusive Recovery and Growth launched in June 2021 to foster coordination of analytical efforts; implementation evidenced by HLAG analytical reports (Annex III). HLAG inputs to processes in 2021 leading up to the G20 Summit in Rome (October) and COP26 in Glasgow (November) and deeper analyses for 2022.
- Ongoing joint work to continue and expand:
  - FSAPs:
    - Staff will brief the Board on early experience identifying material climate-related risks in FSAPs—especially physical risks—and joint Bank-Fund work on developing relevant climate scenarios by March 2022 (Annex III).
    - Data limitations on physical and transition risks continue to hinder assessment and mitigation.
  - Carbon pricing/mitigation models:
    - Joint work to link macroeconomic and distributional effects of carbon pricing across countries and inform policy design to protect vulnerable groups.
    - Regular collaboration to improve and update the Carbon Pricing Assessment Tool (CPAT) covering 150 countries.
    - Bank and Fund staff will meet quarterly to update each other; the first meeting in September is an MIP action (Annex III).
  - CMAP/CCDR:
    - The Board will discuss the Review of Climate Change Policy Assessment Pilots in early 2022 to assess early collaboration experience on CCDR.
  - PIMA:
    - The Board will discuss Integration of Climate Change in the Public Investment Management Assessment Framework later this year; collaboration includes the World Bank and the Asian Development Bank.

### Forward-looking monitoring and assessment
- The MIP envisages continued monitoring of implemented actions and evolving collaboration modalities, with a view to identify where more structured collaboration frameworks could be warranted in the future.

*Source: ppea2021064 - 14.      The IEO put forward four recommendations aimed at further strengthening Bank-Fund*

### 28.      Directors broadly supported the idea of seeking to improve incentives and address the

### Directors broadly supported the idea of seeking to improve incentives and address the wider cultural reluctance to engage with external partners

### Directors' views
- Broad support for Recommendation 2 to seek to improve internal incentives for staff to collaborate.
- Stressed that management should:
  - Emphasize the importance of collaboration.
  - Provide guidance on when and how to engage with the Bank.
  - Give better recognition of successful collaboration.
- Noted the new performance management system is based on a competency-based assessment including clearly defined behavioral competencies in the Fund’s Integrated Competency Framework (ICF) that include elements related to collaboration.
- Several Directors encouraged enhancing incentives for collaborative behavior under the ICF.
- Some Directors saw merit in fostering staff exchanges at the senior level, to be discussed within the Fund and with the Bank.

### Implementation Plan — Improve internal incentives for collaboration (including with the Bank)
- HR guidance to Fund managers to be provided, focusing on:
  - Improving incentives for Fund staff to collaborate with Bank staff. By Q4, 2021, HRD will revise the Guidance note to include specific guidance on how the new enhanced HR performance management system could be used by Departments to encourage Bank-Fund collaboration. The Note will provide guidance on how:
    - (i) the new performance management system tools could be used to ensure that performance assessments, which include collaboration as one of the behavioral competencies, also reflect Bank-Fund collaboration, where appropriate;
    - (ii) if and once goals related to Bank-Fund collaboration have been included by departments in    their  accountability frameworks, the objective setting tool of the new performance management system could be used to cascade this objective down from the B4 level to teams and/or individuals;
    - (iii) feedback could be gathered from Bank staff on Fund staff involved in projects that require close Bank-Fund collaboration; and
    - (iv) check-ins could be used to monitor how Fund staff are progressing on their objectives, including any Bank-Fund collaboration objectives.
  - As part of regular outreach to departments as the FY2022 performance cycle is rolled out, HRD will reach out to departments to explain how the system’s tools could be used to support the implementation of any Bank-Fund collaboration goals that might be included in departments’ accountability frameworks.
  - A review of best practices and experience with the HRD guidance in this area will be conducted as part of the proposed IMF Board Paper on the Effectiveness of Bank-Fund collaboration (Annex III,   Rec 1).
- Supporting staff exchanges:
  - HRD will explore ways in which external assignments (including at the Bank) could become part of career development conversations with Fund managers. For example, the LIC/FCS experience requirement for A15 promotion may also make it more attractive for Fund staff to take on secondments on qualified assignments at the Bank.
  - By end-FY2023, HRD will prepare a briefing note for managers on reintegrating staff returning from staff exchanges, including for senior staff (Annex II, Rec 2).
  - Regular check-ins can help managers stay connected with staff on external assignments to keep track of their progress and facilitate effective reintegration into the Fund’s workstreams upon their return.
  - By April 2022, COM jointly with HRD will launch intranet feature(s) highlighting positive experiences of Fund staff returning to the Fund after external assignments, including at the Bank.

### Recommendation 3 — Improve access to and exchange of information and knowledge with the World Bank
- Directors broadly supported improving access to and exchange of information and knowledge across the two institutions.
- Noted the overarching framework: 1989 Concordat, 2007 Joint Management Action Plan (JMAP), and subsequent reviews and refinements remain adequate but called for further progress on information sharing initiatives.
- Emphasized importance of staff access to up-to-date and comprehensive information on appropriate contact persons and experts in the Bank.
- Noted actions already undertaken: establishing a list of first points of contact, strengthening exchanges of views between high-level staff, and planned regular sharing of rosters of technical experts.

### Implementation Plan — Information and knowledge sharing actions
- Prepare a joint Bank-Fund Staff Guidance Note on information sharing:
  - Will summarize best practices in information and document sharing processes, including in the context of mission work.
  - Will identify areas for improvement on sharing information on country matters, technical assistance, and policy papers.
  - Expected to be finalized by end-2021 (see Annex III).
- Sharing information on rosters of experts:
  - Both institutions to regularly share rosters of managerial, technical and operational focal points.
  - Provide staff access to up-to-date and comprehensive information on current rosters of managerial, technical and operational focal points in areas of tax administration and climate across institutions by end-2021 with the aim of expanding this practice to include other areas in due course.
  - Relevant departments will be responsible for updating information on a regular basis.
  - Footnote: The Fund roster will consist of its staff and long-term experts.
- Making Microsoft (MS) Teams available for external collaboration:
  - MS Teams recently rolled out internally within the Fund and will become available for external collaboration by end-2021, after security accreditation.
  - The Bank already uses MS Teams; both Fund and Bank staff can collaborate on documents and discussions.
  - Interim option: use BOX for external collaboration until planned replacement by OneDrive in the next few months.
- Exploring different access levels in the design of the new intranet:
  - Current intranet hosted on SharePoint 2013; will be replaced with a new platform in the next two years as part of the Fund’s Integrated Digital Workplace (iDW) modernization initiative.
  - New intranet could be designed with different access levels for different groups of non-Fund staff users, including privileged access for Bank staff (subject to agreement with the Bank).
  - Process of designing the new intranet should be completed by end-2021.
  - Interim solution: leverage Adobe Experience Manager (AEM) platform that is already security ready (as it is not connected to internal systems) and can be used for external collaboration on documents and discussions, subject to time and cost considerations.
  - Footnote: While Bank staff have never had direct access to the Fund’s intranet, Fund staff used to have access to the Bank’s intranet until the Bank curtailed access in 2014 following a data breach of the IMF’s website.

### ED Recommendation — High-Level Joint Fund-Bank Committee
- Directors suggested creating a High-Level Joint Fund-Bank committee to focus on longer-term strategic issues and help institutionalize collaboration.
- Management’s view: existing well-established communication channels at different hierarchy levels ensure effective identification of strategic priorities and appropriate modalities of Bank-Fund collaboration; engagement intensified during the pandemic (example: call to action on COVID vaccine access for developing countries by the top management of the World Bank and the IMF).
- Existing senior management coordination mechanisms include regular meetings:
  - (i) between the IMF’s Managing Director and the World Bank President, mainly focused on strategic policy issues;
  - (ii) between the FDMD and the MD of the World Bank’s operations to discuss complex country cases;
  - (iii) between the senior management teams of the IMF’s area departments and that of the World Bank Regional Vice Presidents to harmonize views on country policy issues, with unresolved issues escalated to the FDMD-MD of the World Bank’s operations’ level;
  - (iv) topic-specific meetings between Directors of Functional Departments and relevant Bank counterparts.
- The proposed IMF Board Paper on the Effectiveness of Bank-Fund collaboration (Annex III, Rec 1) will review experience with high-level strategic collaboration and the need for additional mechanisms.

### Recommendation 4 — IMF Board’s strategic role
- This recommendation is outside management’s purview.
- The Executive Board Committee on Liaison with the World Bank and Other International Organizations (LC) is crafting measures to leverage the Board’s oversight role.
- The Chair of the LC has initiated engagement with the Chair of the Committee on Governance and Executive Directors' Administrative Matters of the World Bank (COGAM) to set up a joint Liaison Committee–COGAM Forum (LCF).
- The LCF will address collaboration among the Boards of the IMF and the World Bank, including on macro-structural issues.
- The LC and the COGAM will work on the terms of reference for the LCF with the aim of agreeing on them by the Fall of 2021.
- Footnote: The first meeting between the IMF Liaison Committee (LC) and the WB counterparts (COGAM) where Bank staff presented their climate work program took place on July 20, 2021.

### Resource implications
- Commitments in this MIP will require resources.
- Climate workstream actions will be covered within the resource envelope outlined in the IMF’s climate strategy.
- It is envisaged that about 1 additional FTE will be required for preparing Guidance Notes and about 2 additional FTEs for the preparation of the IMF Board Paper on the Effectiveness of Bank-Fund collaboration.
- Resource implications for actions proposed in this MIP, including for country teams, will be addressed in the context of the regular budget discussions.

### Annex I — Best practice examples of Bank-Fund country team collaboration (key findings)
- IMF country teams, particularly covering Emerging and Developing Economies (EMDEs), collaborate closely with the Bank in surveillance, lending, and capacity development.
- A September 2020 survey of country teams revealed good Bank-Fund collaboration practices in Article IV missions, program engagements, and technical assistance.
- Collaboration intensified during the COVID-19 pandemic as country teams sought to share assessments of COVID-19 impact and coordinate support to country authorities, including financing needs.
- Examples of collaboration:
  - Bank staff participation in Fund missions (e.g., Tonga and Sao Tome & Principe).
  - Publication of joint policy papers (e.g., Sri Lanka).
  - Bank expertise informing reform design and implementation in poverty reduction, social safety nets, public procurement (e.g., Haiti, Senegal, Costa Rica).
  - Peru Article IV Staff Report collaboration: World Bank contributed an annex on poverty projections.
  - Program arrangements used Bank work on social protection, medium-term debt strategy, public expenditure review, financial sector and SOE reforms (Angola, Costa Rica, Ecuador, Egypt, Iraq, Sao Tome & Principe).
  - Regular country-level meetings to exchange views on outlook, policy recommendations, and disbursement plans (e.g., Jamaica, Barbados).
  - Coordination on technical assistance in revenue mobilization (Senegal, Tonga), fuel pricing and subsidies (Haiti), and climate change (Tonga).

### Annex II — Bank-Fund collaboration in FSAP (key elements)
- FSAP introduced after late 1990s crises to strengthen monitoring of financial systems in the Fund's bilateral surveillance and the Bank's financial sector development work.
- Bank-Fund collaboration in FSAP has generally been successful and crucial to the program's success; noted in various reviews, Board feedback, country authorities, and external evaluators.
- Key elements:
  - Institutional Framework: joint Fund-Bank Financial Sector Liaison Committee (FSLC), co-chaired by senior Fund and Bank staff, coordinates FSAP work and maintains rosters of certified external experts.
  - Joint Outputs: both teams produce a joint Aide Memoire presenting findings and prioritized recommendations; Fund mission chiefs share FSAP Approach and Staffing Note and FSAP Financial Stability Policy Note (FSPN).
  - Free exchange of information and cooperation: joint Confidentiality Protocol on the Protection of Sensitive Information in the FSAP; mutual participation in reviews and Board discussions; extended close contact over an 18 months or so FSAP cycle.

*Source: Excerpt from ppea2021064 - MIP in response to IEO evaluation — Bank-Fund Collaboration on Macro-Structural Issues*

### Annex III. IEO Evaluation of the IMF Collaboration with the World

### Annex III. IEO Evaluation of the IMF Collaboration with the World Bank on Macro-Structural Issues: Recommendations, Board Responses, and Proposed Follow-up

### Recommendation 1 — Develop and agree on concrete frameworks for effective collaboration (climate as a priority)
- IEO recommendation:
  - The Fund should seek to develop and agree on concrete frameworks to ensure effective collaboration with the World Bank (or other relevant partner organizations) on key macro-structural issues where collaboration is judged to bring the greatest strategic returns. Climate appears to be an issue particularly suited to such a framework at the current juncture, given the IMF’s growing attention in this area, and the Bank’s deep and complementary expertise.
- Executive Directors’ response (summary):
  - Directors broadly supported developing and agreeing on concrete frameworks for collaboration on select macro-structural issues where Fund and Bank roles are complementary and where collaboration brings the most strategic returns, taking into account costs and resource availability.
  - Frameworks should ensure adequate incentives to collaborate and have strong management and Board support in both institutions.
  - Directors agreed that activities in the climate workstream would be a strong candidate for a tailored framework.
  - Directors underlined the importance of ensuring adequate staff resources for collaboration, including identifying core Fund staff as focal points for external engagement and ensuring sufficient specialist expertise.
- Follow-up plan and timeline (Bank-Fund Strategic Coordination and Stock-Taking):
  - Semi-annual meetings between the Fund’s Climate Advisory Group and the World Bank counterparts to take stock of ongoing work, coordinate strategic priorities and policy messages, and explore avenues for further collaboration on climate related areas [first meeting by end-September 2021]. — Accountability: IMF’s Climate Advisory Group
  - Background paper in the context of the interim Comprehensive Surveillance Review (CSR) to take stock of how the Fund has integrated select macro-structural areas (notably climate) into its surveillance, including how it has collaborated with other institutions, such as the World Bank [by FY2024]. — Accountability: SPR, in collaboration with other departments
  - IMF Board Paper on the Effectiveness of Bank-Fund collaboration to review experience with Bank-Fund collaboration in select macro-structural areas (notably, climate) and assess the need for tailored institutional frameworks; the effectiveness of the high-level strategic collaboration and assess the need for additional mechanisms; the experience with HRD guidance on improving incentives for collaboration (see Rec 2); and the progress on information and knowledge sharing between the Bank and the Fund (see Rec 3) [by FY2025]. — Accountability: SPR, in collaboration with other departments
- Follow-up plan and timeline (Bank-Fund Capacity Building on Climate Issues):
  - Develop climate-focused training courses, including by inviting Bank staff to deliver seminars in the Bank’s areas of expertise, for delivery to IMF staff and other stakeholders [multiple offerings of a Climate Change course and five seminars by April 2022]. — Accountability: ICD
- Follow-up plan and timeline (Bank-Fund Coordination on Climate Issues):
  - Produce and sign an MoU delineating the respective roles of the Bank and the Fund in the context of the Coalition of Finance Ministers for Climate Action [H2:21]. — Accountability: FAD
  - Coordinate analytical efforts of Bank and Fund staff in the context of the High-Level Advisory Group on Sustainable and Inclusive Recovery and Growth (HLAG) aimed at developing policies to ensure a sustainable, green and inclusive recovery [April 2021- December 2022; policy and analytical notes]. — Accountability: SPR
- Follow-up plan and timeline (Bank-Fund Collaboration on Climate Issues):
  - Joint work on climate risks in FSAPs: Prepare a Board briefing based on the early experience with identifying relevant material climate-related risks in FSAPs [March 2022]. — Accountability: MCM
  - Joint work on climate modelling: Organize quarterly technical-level meetings between relevant Bank and Fund staff to discuss refinements and applications of the Carbon Pricing Assessment Tool (CPAT) [first meeting by end-September 2021]. — Accountability: FAD, RES

### Recommendation 2 — Improve internal incentives and address cultural reluctance to engage externally
- IEO recommendation:
  - The Fund should seek to improve internal incentives to collaborate and address the wider cultural reluctance to engage with external partners, given the inevitable limitations of top-down exhortations and structures in ensuring that collaboration happens at the right time in the right way.
- Executive Directors’ response (summary):
  - Directors broadly concurred with Recommendation 2 to improve internal incentives for staff to collaborate.
  - Management should emphasize the importance of collaboration, provide guidance on when and how to engage with the Bank, and give better recognition of successful collaboration.
  - Directors noted the new performance management system is competency-based and includes behavioral competencies in the Fund’s Integrated Competency Framework (ICF) that include elements related to collaboration.
  - Several Directors encouraged enhancing incentives for collaborative behavior under the ICF and considered fostering staff exchanges at senior level.
- Follow-up plan and timeline (Incentives for Bank-Fund Collaboration):
  - Prepare an updated version of the Guidance Note for Departments/SPMs on how the new HR performance management system could be used by Departments to incentivize Bank-Fund collaboration (including through objective setting and cascading down the objectives, seeking feedback from Bank staff on Fund staff involved in projects that required close Bank-Fund collaboration, and performance assessments). [Q4:2021]. — Accountability: HRD
  - Review the experience with the HRD guidance on improving incentives for collaboration as part of the IMF Board Paper on Effectiveness of Bank-Fund collaboration (see Rec 1) [by FY2025]. — Accountability: SPR and HRD
- Follow-up plan and timeline (Supporting Staff Exchanges):
  - Launch intranet feature(s) highlighting the positive experiences of Fund staff (both senior-level and otherwise) returning to the Fund after external assignments, including at the Bank [April 2022]. — Accountability: COM/HRD
  - Prepare a briefing note for managers on reintegrating staff returning from staff exchanges, including for senior staff [by end FY2023]. — Accountability: HRD

### Recommendation 3 — Improve access to and exchange of information and knowledge across institutions
- IEO recommendation:
  - The Fund should work with the World Bank to identify, prioritize, and implement practical steps to improve access to and exchange of information and knowledge across the two institutions.
- Executive Directors’ response (summary):
  - Directors broadly supported Recommendation 3 and called for further progress on the ongoing initiative to foster information sharing between the Fund and the Bank.
  - Emphasized importance of staff access to up-to-date and comprehensive information on appropriate contact persons and experts in the Bank.
  - Noted Managing Director’s concerns regarding information security risks related to cross-linking knowledge exchange sites and reciprocal intranet access; Directors suggested exploring practical solutions addressing security, confidentiality, accountability and cost considerations.
- Follow-up plan and timeline (Information- and Knowledge-sharing):
  - Prepare a joint Bank-Fund Staff Guidance Note summarizing best practices in information and document sharing processes in place, including in the context of mission work; and identifying areas/scope for improvement [by end-2021]. — Accountability: SPR, FAD, MCM, ADs, ITD, KMU
  - Provide staff with access to up-to-date and comprehensive information on current rosters of managerial, technical and operational focal points in both institutions in the areas of tax administration and climate [by end-2021]. — Accountability: SPR, FAD, MCM, ITD
  - Make Microsoft Teams platform available for external collaboration, including with Bank staff, after security accreditation [by end-2021]. — Accountability: SPR, ITD, KMU
  - In designing the new IMF Intranet, explore feasibility of having different access levels for non-Fund staff users, including a privileged access for Bank staff [by end-2021]. — Accountability: ITD, KMU

*Annex III. IEO Evaluation of the IMF Collaboration with the World Bank on Macro-Structural Issues: Recommendations, Board Responses, and Proposed Follow-up*

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_Source: https://www.imf.org/-/media/files/publications/pp/2021/english/ppea2021064.pdf_