## 1. Turning the page. Our work on restructuring the Fund is now well advanced, but our

## Source details

**Canonical URL:** [1. Turning the page. Our work on restructuring the Fund is now well advanced, but our](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2008/_061808.pdf)

## Other formats

- [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2008/_061808.pdf.md)
- [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2008/_061808.pdf.json)

---

### Overview and strategic priorities
- Shift emphasis from internal concerns (size and governance structure) toward actions to help members meet global challenges, guided by responsiveness to members' needs and the Fund’s comparative advantage.
- Four priorities for the period ahead:
  - Help members deal with imminent crises and urgent tasks, including rising food and fuel prices, implementing Financial Stability Forum recommendations, and advancing key surveillance issues.
  - Re-examine lending instruments and access policies to better meet evolving needs of emerging and low-income economies.
  - Put in place new organizational tools and working practices to ensure effective implementation of strategic priorities while adapting to a substantially downsized Fund.
  - Advance reform of governance, income, and the budget.

### Key economic and financial issues (June–October period)
- Containing risks from higher food and fuel prices:
  - Urgent task in developing countries: ensure poorest people can buy food, provide incentives for future food production, and preserve macroeconomic stability.
  - A first broad assessment of the impact of the surge in food and fuel prices on balance of payments, budgets, prices, and poverty for a cross section of the membership was presented at the end of June.
  - Staff will continue to extend work—in close coordination with national authorities and international agencies—on analysis of the real and financial factors underlying the recent surge in oil and commodity prices and the effects on the global economy.
  - The main vehicle for financial support from the Fund is likely to be the PRGF: a few requests for augmentation of PRGF arrangements have already been sent to the Board for consideration and a number of addition requests are likely. All requests will be dealt with on an expedited timetable.
  - Urgent consideration of changes to the Exogenous Shocks Facility (see paragraph 7).
- Emerging and advanced economies:
  - Central banks and governments must balance risks of a growth slowdown with risks from inflation fed by high commodity prices.
  - Policymakers need to be cognizant of macro-financial linkages within and across countries; these issues should be a key focus of bilateral and multilateral surveillance, including staff reports, the WEO, and Regional Economic Outlook papers.
- Drawing lessons from the financial market crisis:
  - IMFC welcomed Fund’s work on managing and drawing lessons from financial turmoil and emphasized strengthening the Fund's financial surveillance role.
  - Fund collaboration with the Financial Stability Forum (FSF) to develop policy recommendations; country-focused financial sector work (Article IV, FSAP, technical assistance) will examine implementation issues for FSF recommendations across membership.
  - Contributions to the follow-up FSF report planned for the fall.
- Surveillance improvements:
  - Global spillovers: conduct Article IV consultations with a number of systemically important member countries; bring to the Board a presentation on cross-cutting issues/themes emerging from these consultations.
  - Regional dimensions: offer informal presentations on economic and financial developments with a regional approach, informed by area departments’ Regional Economic Outlooks.
  - Multilateral surveillance: WEO will center on challenges for monetary and fiscal policy where both low growth and high inflation are risks; chapters will cover commodity prices and inflation, fiscal policy in downturns, recoveries after financial crises, and causes/sustainability of divergent current account balances in emerging market economies. GFSR will cover accounting standards, procyclicality, emerging market spillovers, and money markets and monetary policy in times of financial stress.
  - Early warning: extend staff work on the vulnerability exercise to advanced countries as requested by the IMFC; consider, in the longer term, developing a set of tools for global appraisal covering members’ macro-financial vulnerabilities.
  - 2007 Surveillance Decision: have an exchange of views with Directors to clarify methodologies for assessing external stability and fundamental misalignment; use discussion material to update staff guidance note on surveillance, to be issued following Triennial Surveillance Review.
  - Surveillance review: Triennial Surveillance Review and a medium-term Statement on Surveillance Priorities; propose 6-monthly Board briefings and exchanges on key policy and strategic issues; first semi-annual briefing folded into Triennial Surveillance Review discussion.
  - Sovereign Wealth Funds: Board discussions (informal and formal) on generally accepted principles and practices; Fund helping members develop principles to serve funds’ interests and reassure recipients of capital flows; representatives of sovereign wealth funds aim to have a draft document available for consideration before the Annual Meetings.

### Fund lending instruments and policy review
- Rationale:
  - Need to remain a source of confidence to members per the Articles of Agreement and adapt to a changed world to serve emerging economies and low-income countries facing volatile capital flows or limited private capital access.
  - Fall-off in demand for Fund resources reflects increased resilience in many countries, good global performance over last five years, and possibly misalignment of Fund supply with changed environment.
  - Begin a review of Fund lending instruments and related policies, including access, before the Annual Meetings.
- Broader review objectives (paragraph 6):
  - Better understanding of global capital flows, macro-financial and cross-border risks for emerging market economies, and how Fund facilities can help members respond to these risks.
  - Re-examination of the case for increasing access limits under the GRA, for aligning surcharges and for eliminating time-based repurchase expectations.
  - Consideration of how policies affecting low-income members and the range of facilities available to them might be rationalized.
  - Discuss modification of the Joint Staff Advisory Note, review experience under the PSI, and follow up on March 2008 discussion of Fund engagement in fragile states and post-conflict countries.
- Key priorities and specific facility issues:
  - Exogenous Shocks Facility (ESF):
    - Despite unprecedented increases in food and fuel prices, there has been no demand for the ESF.
    - Consider whether to modify the facility to make it more accessible and timely.
    - Propose that access to the ESF be based on policy commitments in key areas rather than a broad array of conditions, and allow it to run in parallel with Policy Support Instruments.
    - Suggest simplifying the structure of subsidy financing for concessional facilities to make it more flexible while preserving donors’ objectives for resources already contributed.
  - Insurance / rapid access liquidity instrument:
    - Ongoing discussion on need and demand for a new liquidity instrument for emerging markets; answer still unclear but calls from a number of members have emerged.
    - If political consensus appears, bring options for a rapid access instrument to the Board, including Executive Directors’ proposals for use to support countries integrating into global capital markets and pursuing financial sector reforms.

### Organizational tools, new units, and working practices
- New organizational tools:
  - Low-Income Country Unit:
    - Located in PDR and led by a senior staff member.
    - Responsibilities: foster spread of good practice and cross-country learning across country teams; identify issues where Fund policy or operational practice raise substantive or reputational concerns; develop and ensure implementation of a strengthened program of contacts with existing and new donors; bring policy initiatives to a revived Fund-wide and Management-led Committee on Low-Income Countries to better coordinate low-income work.
  - Macro-Financial Unit:
    - Located in RES and headed by a senior staff member.
    - Focus on research and developing an analytical framework to better understand macro-financial linkages; take the lead on tracing links between financial markets and real activity within and between countries; advise the Surveillance Committee on macro-financial linkages; work with MCM, PDR, and area departments.
  - Strategy, Policy, and Review department (SPR):
    - PDR charged with guiding the modernization effort; PDR will develop detailed proposals for implementing the Strategic Directions paper, monitor implementation, and proactively review strategies to ensure Fund adapts to members’ changing needs.
    - PDR will be renamed Strategy, Policy, and Review department (SPR).
- New practices:
  - Article IV consultation reports:
    - Discuss options for new formats; goals: make completion of Article IV consultations more timely, provide scope for innovation to move away from pro-forma reporting, make papers more accessible to outside audiences.
    - Reduce time between mission completion and Board consideration of Article IVs.
    - Instruct staff to restrict most departmental review of Article IV papers to the briefing paper stage with a more streamlined clearance process for Board papers.
    - Cut back on paper flow to save resources and enhance effectiveness.
  - Capacity building:
    - Introduce charges for technical assistance for non-program cases, with charges graduated by members’ income; introduce a charging system for training.
    - Continue Board consultations to find an effective, institutionally sound, and acceptable modality for charging.
    - Mobilize additional donor financing to support capacity-building: develop a menu of topical trust funds tailored to Fund priorities, TA recipients’ needs, and donor development strategies.
    - Expand Fund capacity building through Regional Technical Assistance Centers, including opening new centers; reinvigorate external fundraising for training activities.
  - Human resources policies:
    - Take forward task force work on career development, step up efforts to promote diversity, and address staff concerns about erosion of compensation and benefits.
    - HRD asked to review the new Medical Benefits Plan; look at implementation of the new travel policy.

### Continuing reform of governance, income, and the budget
- Governance (paragraph 14):
  - Quota and voice reform is in members’ hands following Board of Governors approval of Resolution 63-2 on Quota and Voice Reform on April 28, 2008.
  - Await acceptance by members of related Articles of Agreement amendment, which will trigger second-round quota increases, triple basic votes, establish in the Articles a fixed ratio of basic votes to total voting power, and entitle the two largest constituencies to appoint a second Alternate Executive Director.
  - Initiate next wave of governance reform using the IEO Review of the Fund’s Governance Arrangements as a starting point.
- Fund income model (paragraph 15):
  - Board of Governors approved a proposed amendment to expand the Fund’s investment authority.
  - Once amendment enters into force and the Fund decides to conduct limited gold sales, a critical element for sustainable financing will be established.
  - Remaining implementation issues include design of investment policies to implement expanded investment authority, and role/adequacy of precautionary balances under the new income model, including establishment of a transparent framework for reserve accumulation.
  - Aim to bring proposals to the Board on these issues shortly after the recess.
- Reform of the Budget (paragraph 16):
  - Committee on the Budget to address budgetary reform in the context of the medium-term budget approved by the Board in April.
  - Areas include review of departmental business plans and performance indicators in light of refocusing; options for an integrated income and expenditure budget including proposals for measuring real spending; proposals for further deepening budget reforms including costs and benefits of carry-forward; options, costs, and possible timeline for adoption of a comprehensive costing of all Fund activities.

### Spring 2008 Work Program Statement (selected items)
- I.1 Recent Rises in Fuel Prices and Member Policy Responses — Type: IB — Description: Assesses the impact of the recent rises in fuel and food prices on members and evaluates members’ policy responses — Dept.: Task Force — Date: June
- I.2 Guidance on Operational Aspects of the 2007 Surveillance Decision — Type: IB — Description: Addresses concepts and methodologies for assessing external stability, analyzing exchange rates and current account positions, and assessing exchange rate policies under the 2007 Surveillance Decision — Dept.: SPR/LEG — Date: July
- I.3 Financial Stability Forum Recommendations — Type: DIS — Description: Examines issues in the implementation of the Financial Stability Forum’s recommendations for enhancing the resilience of markets and financial institutions, taking into account country-specific circumstances — Dept.: MCM — Date: July
- I.4 Triennial Surveillance Review and Statement of Surveillance Priorities — Type: DIS — Description: Takes stock of experience with the new surveillance framework and approaches; identifies key medium-term surveillance priorities; includes review of implementation of Financial Sector Task Force recommendations — Dept.: SPR — Date: TB2
- I.5 Sovereign Wealth Funds: A Progress Report on Generally Accepted Principles and Practices — Type: IB — Description: Updates progress on drafting generally accepted principles and practices (GAPP) for sovereign wealth funds — Dept.: MCM/SPR — Date: TB1
- I.6 Sovereign Wealth Funds: A Discussion on the Generally Accepted Principles and Practices — Type: DIS — Description: Presents the GAPP for sovereign wealth funds prepared by the SWF International Working Group; describes structures, purposes, role, and issues going forward — Dept.: MCM/SPR — Date: TB2
- I.7 Common Themes in Systemic Consultations — Type: IB — Description: Draws cross-cutting issues or common themes of systemic importance from recently completed surveillance Article IV discussions — Dept.: SPR/RES — Date: TB2

_Source: Spring 2008 Work Program Statement (contained in the provided document)._

### 1.8 Policy Issues Arising from Article IVs
- Aim of the briefing:
  - The aim of the briefing is to review implementation of surveillance policy and practices in recent article IVs.
  - The first such briefing will be folded into the Triennial Surveillance Review.
- Connected analytical outputs (selected items listed in source):
  - I.9 World Economic Outlook — Type: DIS — Description: Examines the challenges for monetary and fiscal policy makers of high inflation and low growth risks — Dept.: RES — Date/Time band: TB2
  - I.10 Global Financial Stability Report — Type: DIS — Description: Follows up on issues raised in the Spring 2008 GFSR and delves more deeply into lessons learned from the ongoing financial turmoil — Dept.: MCM — Date/Time band: TB2
  - I.11 GFSR Market Update/WEMD/WEO Quarterly Update — Type: ISEM — Description: Presents evolution of risks to global financial stability; the WEO Quarterly update will also update growth forecasts for key countries — Dept.: MCM/RES — Date/Time band: TB1
  - I.12 Structural Reforms and Economic Performance in Advanced and Developing Countries — Type: ISEM — Description: Studies how financial sector reforms and other market-oriented reforms complement each other and enhance growth and resilience. Analysis based on a new database of reforms covering both advanced and developing economies — Dept.: RES — Date/Time band: June
  - I.13 Report on the Pilot Studies Using the GFSM 2001 as a Statistical Framework for Fiscal Analysis — Type: SEM — Description: Examines the experience with presenting fiscal data in the GFSM 2001 framework in selected issues papers for 10 pilot studies that accompanied staff reports for Article IV consultations — Dept.: STA/FAD — Date/Time band: TB3
  - I.14 Fiscal Risks: Sources, Disclosure, and Management — Type: SEM — Description: Analyzes the sources of fiscal risk and seeks to identify best practices in disclosing and managing fiscal risks, with a view to developing guidelines on fiscal risk reporting and management — Dept.: FAD — Date/Time band: June
  - I.15 Government Subsidies: Agenda for Future Reforms — Type: SEM — Description: Discusses issues and emerging challenges in subsidy reform and their implications for the work of the Fund — Dept.: FAD — Date/Time band: TB1
  - I.16 Seventh Review of Data Standards Initiative — Type: DIS — Description: Reviews developments in the Fund’s data standards initiatives since the Sixth Review and propose medium-term work programs for the SDDS and GDDS — Dept.: STA — Date/Time band: TB3
  - I.17 The Role for the Exchange Rate in Inflation Targeting — Type: IB — Description: Addresses the policy and operational role of the exchange rate for inflation targeting countries — Dept.: MCM — Date/Time band: TB2
  - II.1 The Fund’s Lending Instruments and Facilities and Policies — Type: DIS — Description: Looks at how the range of Fund facilities and policies might be rationalized — Dept.: SPR — Date/Time band: TB1
  - II.2 Modifications to the Exogenous Shocks Facility — Type: DIS — Description: Proposes modifications to the Exogenous Shocks Facility — Dept.: SPR/FIN/LEG — Date/Time band: TB1
  - II.3 Consideration of a New Liquidity Instrument — Type: DIS — Description: Proposes options for a rapid access instrument, including for countries integrating into global capital markets and pursing financial sector reforms — Dept.: SPR — Date/Time band: TB1
  - II.4 Macro-financial and Cross-Border Risks for Emerging Market Economies — Type: DIS — Description: Examines the implications of macro-financial and cross-border risks for emerging market economies and how the Fund might help countries address these risks — Dept.: SPR/RES/MCM — Date/Time band: TB1
  - II.5 Review of Charges and Maturities under the New Income Model — Type: DIS — Description: Completes the review of charges and maturities, including proposals to align surcharges and eliminate time based repurchase expectations — Dept.: SPR/FIN — Date/Time band: TB1
  - II.6 Limits on Access for Use of Fund Resources — Type: DIS — Description: Examines the case for increasing access limits — Dept.: SPR/FIN — Date/Time band: TB1
  - II.7 Review of the Policy Support Instrument — Type: DIS — Description: Assesses the Policy Support Instrument — Dept.: SPR — Date/Time band: TB2
  - II.8 The Role of the Fund in Low-Income Countries — Type: DIS — Description: Takes stock of recent policy developments and sets the framework for the strategic orientation of work with low-income members — Dept.: SPR — Date/Time band: TB1
  - III.1 New Formats for Staff Reports — Type: SEM — Description: The paper will offer a basis for a discussion of examples of staff reports that would be more concise and timely to enhance their impact. It will also reflect the lessons of experimentation with Streamlined Article IV consultations — Dept.: SPR — Date/Time band: July
  - III.2 Macro Policy Lessons for a Sound Design of Fiscal Decentralization — Type: SEM — Description: Examines Fund guidance on fiscal decentralization, focusing on the macroeconomic implications of intergovernmental fiscal reforms — Dept.: FAD — Date/Time band: TB2
  - IV.1 Country Contributions Policy for Capacity Building — Type: DIS — Description: Sets out a strengthened framework — Dept.: OTM/INS/LEG — Date/Time band: TB1
  - V.1 The New Income Model—Implementation Issues — Type: DIS — Description: Follows up on the implementation of the new income model, including the design of investment policies under a broadened investment mandate — Dept.: FIN/LEG — Date/Time band: TB1
  - V.2 The Fund’s Precautionary Balances under the New Income Model — Type: DIS — Description: Reviews the role and adequacy of precautionary balances under the new income model — Dept.: FIN — Date/Time band: TB1
  - V.3 Departmental Business Plans, Key Output Activities, and Performance Indicators — Type: COB — Description: Reviews departmental business plans and key output activities, as well as performance indicators, in light of Fund refocusing; and the FY 2008 outturn — Dept.: OBP — Date/Time band: TB3
  - V.4 An Integrated Income and Expenditure Framework — Type: COB — Description: Discusses options for an integrated income and expenditure budget, including proposals for measuring real spending — Dept.: OBP/FIN — Date/Time band: TB3
  - V.5 Budget Reforms: Fungibility, Carry-Forward, and Standard Costs — Type: COB — Description: Proposes steps to deepen ongoing budget reforms — Dept.: OBP — Date/Time band: TB3
  - V.6 Activity Based Costing: Considerations Implementation Issues — Type: COB — Description: Reviews costing of Fund activities, taking into account its critical importance for budgetary reforms, including PRGF reimbursement and technical assistance charging — Dept.: OBP — Date/Time band: TB3
  - V.7 The Internal Audit Function in the Fund — Type: IB — Description: Briefs on the internal audit function in the Fund — Dept.: OIA — Date/Time band: May
  - V.8 Interim Update on Risk Management — Type: IB — Description: Provides and interim update on risk management — Dept.: OIA — Date/Time band: June
  - V.9 Report of the External Audit Committee to the Executive Board — Type: DIS — Description: Presents the report of the External Audit Committee — Dept.: EAC — Date/Time band: July
  - V.10 Review of the Fund’s De-escalation Policy — Type: DIS — Description: Considers modifications to the de-escalation policy — Dept.: FIN/LEG — Date/Time band: TB3
  - VI.1 IEO’s Review of the IMF’s Governance Arrangements — Type: DIS — Description: Evaluated the institutional structure of the Fund and the formal and informal relationships that govern its activities and decision making — Dept.: IEO — Date/Time band: May
  - VI.2 Annual Periodic Monitoring Report on Board-endorsed IEO Recommendations — Type: DIS — Description: Provides an update on progress in the implementation of Board-endorsed IEO recommendations. Would allow, in particular, a discussion of progress with the actions proposed in the first three management implementation plans, including the Board’s views on the revised operational guidance note and on the annual report on conditionality — Dept.: SPR — Date/Time band: TB2
  - VI.3 2009 Staff Compensation Review: Progress Report — Type: IB — Description: Provides an update on progress and next steps in completing the 2009 compensation review for A1–A8 and A9–B5 staff — Dept.: HRD — Date/Time band: TB3
  - VI.4 Medical Benefits Plan (MBP) — Type: DIS — Description: Reviews experience with recent changes to the Medical Benefits Plan, and proposes needed modifications — Dept.: HRD — Date/Time band: July

_Source: Spring 2008 Work Program Statement (excerpt)._

### 1. Turning the page. Our work on restructuring the Fund is now well advanced, but our

### 1. Turning the page. Our work on restructuring the Fund is now well advanced, but our

### Overview and strategic priorities
- Shift emphasis from internal concerns (size and governance structure) toward actions to help members meet global challenges, guided by responsiveness to members' needs and the Fund’s comparative advantage.
- Four priorities for the period ahead:
  - Help members deal with imminent crises and urgent tasks, including rising food and fuel prices, implementing Financial Stability Forum recommendations, and advancing key surveillance issues.
  - Re-examine lending instruments and access policies to better meet evolving needs of emerging and low-income economies.
  - Put in place new organizational tools and working practices to ensure effective implementation of strategic priorities while adapting to a substantially downsized Fund.
  - Advance reform of governance, income, and the budget.

### Key economic and financial issues (June–October period)
- Containing risks from higher food and fuel prices:
  - Urgent task in developing countries: ensure poorest people can buy food, provide incentives for future food production, and preserve macroeconomic stability.
  - A first broad assessment of the impact of the surge in food and fuel prices on balance of payments, budgets, prices, and poverty for a cross section of the membership was presented at the end of June.
  - Staff will continue to extend work—in close coordination with national authorities and international agencies—on analysis of the real and financial factors underlying the recent surge in oil and commodity prices and the effects on the global economy.
  - The main vehicle for financial support from the Fund is likely to be the PRGF: a few requests for augmentation of PRGF arrangements have already been sent to the Board for consideration and a number of addition requests are likely. All requests will be dealt with on an expedited timetable.
  - Urgent consideration of changes to the Exogenous Shocks Facility (see paragraph 7).
- Emerging and advanced economies:
  - Central banks and governments must balance risks of a growth slowdown with risks from inflation fed by high commodity prices.
  - Policymakers need to be cognizant of macro-financial linkages within and across countries; these issues should be a key focus of bilateral and multilateral surveillance, including staff reports, the WEO, and Regional Economic Outlook papers.
- Drawing lessons from the financial market crisis:
  - IMFC welcomed Fund’s work on managing and drawing lessons from financial turmoil and emphasized strengthening the Fund's financial surveillance role.
  - Fund collaboration with the Financial Stability Forum (FSF) to develop policy recommendations; country-focused financial sector work (Article IV, FSAP, technical assistance) will examine implementation issues for FSF recommendations across membership.
  - Contributions to the follow-up FSF report planned for the fall.
- Surveillance improvements:
  - Global spillovers: conduct Article IV consultations with a number of systemically important member countries; bring to the Board a presentation on cross-cutting issues/themes emerging from these consultations.
  - Regional dimensions: offer informal presentations on economic and financial developments with a regional approach, informed by area departments’ Regional Economic Outlooks.
  - Multilateral surveillance: WEO will center on challenges for monetary and fiscal policy where both low growth and high inflation are risks; chapters will cover commodity prices and inflation, fiscal policy in downturns, recoveries after financial crises, and causes/sustainability of divergent current account balances in emerging market economies. GFSR will cover accounting standards, procyclicality, emerging market spillovers, and money markets and monetary policy in times of financial stress.
  - Early warning: extend staff work on the vulnerability exercise to advanced countries as requested by the IMFC; consider, in the longer term, developing a set of tools for global appraisal covering members’ macro-financial vulnerabilities.
  - 2007 Surveillance Decision: have an exchange of views with Directors to clarify methodologies for assessing external stability and fundamental misalignment; use discussion material to update staff guidance note on surveillance, to be issued following Triennial Surveillance Review.
  - Surveillance review: Triennial Surveillance Review and a medium-term Statement on Surveillance Priorities; propose 6-monthly Board briefings and exchanges on key policy and strategic issues; first semi-annual briefing folded into Triennial Surveillance Review discussion.
  - Sovereign Wealth Funds: Board discussions (informal and formal) on generally accepted principles and practices; Fund helping members develop principles to serve funds’ interests and reassure recipients of capital flows; representatives of sovereign wealth funds aim to have a draft document available for consideration before the Annual Meetings.

### Fund lending instruments and policy review
- Rationale:
  - Need to remain a source of confidence to members per the Articles of Agreement and adapt to a changed world to serve emerging economies and low-income countries facing volatile capital flows or limited private capital access.
  - Fall-off in demand for Fund resources reflects increased resilience in many countries, good global performance over last five years, and possibly misalignment of Fund supply with changed environment.
  - Begin a review of Fund lending instruments and related policies, including access, before the Annual Meetings.
- Broader review objectives (paragraph 6):
  - Better understanding of global capital flows, macro-financial and cross-border risks for emerging market economies, and how Fund facilities can help members respond to these risks.
  - Re-examination of the case for increasing access limits under the GRA, for aligning surcharges and for eliminating time-based repurchase expectations.
  - Consideration of how policies affecting low-income members and the range of facilities available to them might be rationalized.
  - Discuss modification of the Joint Staff Advisory Note, review experience under the PSI, and follow up on March 2008 discussion of Fund engagement in fragile states and post-conflict countries.
- Key priorities and specific facility issues:
  - Exogenous Shocks Facility (ESF):
    - Despite unprecedented increases in food and fuel prices, there has been no demand for the ESF.
    - Consider whether to modify the facility to make it more accessible and timely.
    - Propose that access to the ESF be based on policy commitments in key areas rather than a broad array of conditions, and allow it to run in parallel with Policy Support Instruments.
    - Suggest simplifying the structure of subsidy financing for concessional facilities to make it more flexible while preserving donors’ objectives for resources already contributed.
  - Insurance / rapid access liquidity instrument:
    - Ongoing discussion on need and demand for a new liquidity instrument for emerging markets; answer still unclear but calls from a number of members have emerged.
    - If political consensus appears, bring options for a rapid access instrument to the Board, including Executive Directors’ proposals for use to support countries integrating into global capital markets and pursuing financial sector reforms.

### Organizational tools, new units, and working practices
- New organizational tools:
  - Low-Income Country Unit:
    - Located in PDR and led by a senior staff member.
    - Responsibilities: foster spread of good practice and cross-country learning across country teams; identify issues where Fund policy or operational practice raise substantive or reputational concerns; develop and ensure implementation of a strengthened program of contacts with existing and new donors; bring policy initiatives to a revived Fund-wide and Management-led Committee on Low-Income Countries to better coordinate low-income work.
  - Macro-Financial Unit:
    - Located in RES and headed by a senior staff member.
    - Focus on research and developing an analytical framework to better understand macro-financial linkages; take the lead on tracing links between financial markets and real activity within and between countries; advise the Surveillance Committee on macro-financial linkages; work with MCM, PDR, and area departments.
  - Strategy, Policy, and Review department (SPR):
    - PDR charged with guiding the modernization effort; PDR will develop detailed proposals for implementing the Strategic Directions paper, monitor implementation, and proactively review strategies to ensure Fund adapts to members’ changing needs.
    - PDR will be renamed Strategy, Policy, and Review department (SPR).
- New practices:
  - Article IV consultation reports:
    - Discuss options for new formats; goals: make completion of Article IV consultations more timely, provide scope for innovation to move away from pro-forma reporting, make papers more accessible to outside audiences.
    - Reduce time between mission completion and Board consideration of Article IVs.
    - Instruct staff to restrict most departmental review of Article IV papers to the briefing paper stage with a more streamlined clearance process for Board papers.
    - Cut back on paper flow to save resources and enhance effectiveness.
  - Capacity building:
    - Introduce charges for technical assistance for non-program cases, with charges graduated by members’ income; introduce a charging system for training.
    - Continue Board consultations to find an effective, institutionally sound, and acceptable modality for charging.
    - Mobilize additional donor financing to support capacity-building: develop a menu of topical trust funds tailored to Fund priorities, TA recipients’ needs, and donor development strategies.
    - Expand Fund capacity building through Regional Technical Assistance Centers, including opening new centers; reinvigorate external fundraising for training activities.
  - Human resources policies:
    - Take forward task force work on career development, step up efforts to promote diversity, and address staff concerns about erosion of compensation and benefits.
    - HRD asked to review the new Medical Benefits Plan; look at implementation of the new travel policy.

### Continuing reform of governance, income, and the budget
- Governance (paragraph 14):
  - Quota and voice reform is in members’ hands following Board of Governors approval of Resolution 63-2 on Quota and Voice Reform on April 28, 2008.
  - Await acceptance by members of related Articles of Agreement amendment, which will trigger second-round quota increases, triple basic votes, establish in the Articles a fixed ratio of basic votes to total voting power, and entitle the two largest constituencies to appoint a second Alternate Executive Director.
  - Initiate next wave of governance reform using the IEO Review of the Fund’s Governance Arrangements as a starting point.
- Fund income model (paragraph 15):
  - Board of Governors approved a proposed amendment to expand the Fund’s investment authority.
  - Once amendment enters into force and the Fund decides to conduct limited gold sales, a critical element for sustainable financing will be established.
  - Remaining implementation issues include design of investment policies to implement expanded investment authority, and role/adequacy of precautionary balances under the new income model, including establishment of a transparent framework for reserve accumulation.
  - Aim to bring proposals to the Board on these issues shortly after the recess.
- Reform of the Budget (paragraph 16):
  - Committee on the Budget to address budgetary reform in the context of the medium-term budget approved by the Board in April.
  - Areas include review of departmental business plans and performance indicators in light of refocusing; options for an integrated income and expenditure budget including proposals for measuring real spending; proposals for further deepening budget reforms including costs and benefits of carry-forward; options, costs, and possible timeline for adoption of a comprehensive costing of all Fund activities.

### Spring 2008 Work Program Statement (selected items)
- I.1 Recent Rises in Fuel Prices and Member Policy Responses — Type: IB — Description: Assesses the impact of the recent rises in fuel and food prices on members and evaluates members’ policy responses — Dept.: Task Force — Date: June
- I.2 Guidance on Operational Aspects of the 2007 Surveillance Decision — Type: IB — Description: Addresses concepts and methodologies for assessing external stability, analyzing exchange rates and current account positions, and assessing exchange rate policies under the 2007 Surveillance Decision — Dept.: SPR/LEG — Date: July
- I.3 Financial Stability Forum Recommendations — Type: DIS — Description: Examines issues in the implementation of the Financial Stability Forum’s recommendations for enhancing the resilience of markets and financial institutions, taking into account country-specific circumstances — Dept.: MCM — Date: July
- I.4 Triennial Surveillance Review and Statement of Surveillance Priorities — Type: DIS — Description: Takes stock of experience with the new surveillance framework and approaches; identifies key medium-term surveillance priorities; includes review of implementation of Financial Sector Task Force recommendations — Dept.: SPR — Date: TB2
- I.5 Sovereign Wealth Funds: A Progress Report on Generally Accepted Principles and Practices — Type: IB — Description: Updates progress on drafting generally accepted principles and practices (GAPP) for sovereign wealth funds — Dept.: MCM/SPR — Date: TB1
- I.6 Sovereign Wealth Funds: A Discussion on the Generally Accepted Principles and Practices — Type: DIS — Description: Presents the GAPP for sovereign wealth funds prepared by the SWF International Working Group; describes structures, purposes, role, and issues going forward — Dept.: MCM/SPR — Date: TB2
- I.7 Common Themes in Systemic Consultations — Type: IB — Description: Draws cross-cutting issues or common themes of systemic importance from recently completed surveillance Article IV discussions — Dept.: SPR/RES — Date: TB2

*Source: Spring 2008 Work Program Statement (contained in the provided document).*

### 1.8 Policy Issues Arising

### 1.8 Policy Issues Arising from Article IVs

### Aim of the briefing
- The aim of the briefing is to review implementation of surveillance policy and practices in recent article IVs.
- The first such briefing will be folded into the Triennial Surveillance Review.

### Connected analytical outputs (selected items listed in source)
- I.9 World Economic Outlook — Type: DIS  
  - Description: Examines the challenges for monetary and fiscal policy makers of high inflation and low growth risks  
  - Dept.: RES  
  - Date/Time band: TB2

- I.10 Global Financial Stability Report — Type: DIS  
  - Description: Follows up on issues raised in the Spring 2008 GFSR and delves more deeply into lessons learned from the ongoing financial turmoil  
  - Dept.: MCM  
  - Date/Time band: TB2

- I.11 GFSR Market Update/WEMD/WEO Quarterly Update — Type: ISEM  
  - Description: Presents evolution of risks to global financial stability; the WEO Quarterly update will also update growth forecasts for key countries  
  - Dept.: MCM/RES  
  - Date/Time band: TB1

- I.12 Structural Reforms and Economic Performance in Advanced and Developing Countries — Type: ISEM  
  - Description: Studies how financial sector reforms and other market-oriented reforms complement each other and enhance growth and resilience. Analysis based on a new database of reforms covering both advanced and developing economies  
  - Dept.: RES  
  - Date/Time band: June

- I.13 Report on the Pilot Studies Using the GFSM 2001 as a Statistical Framework for Fiscal Analysis — Type: SEM  
  - Description: Examines the experience with presenting fiscal data in the GFSM 2001 framework in selected issues papers for 10 pilot studies that accompanied staff reports for Article IV consultations  
  - Dept.: STA/FAD  
  - Date/Time band: TB3

- I.14 Fiscal Risks: Sources, Disclosure, and Management — Type: SEM  
  - Description: Analyzes the sources of fiscal risk and seeks to identify best practices in disclosing and managing fiscal risks, with a view to developing guidelines on fiscal risk reporting and management  
  - Dept.: FAD  
  - Date/Time band: June

- I.15 Government Subsidies: Agenda for Future Reforms — Type: SEM  
  - Description: Discusses issues and emerging challenges in subsidy reform and their implications for the work of the Fund  
  - Dept.: FAD  
  - Date/Time band: TB1

- I.16 Seventh Review of Data Standards Initiative — Type: DIS  
  - Description: Reviews developments in the Fund’s data standards initiatives since the Sixth Review and propose medium-term work programs for the SDDS and GDDS  
  - Dept.: STA  
  - Date/Time band: TB3

- I.17 The Role for the Exchange Rate in Inflation Targeting — Type: IB  
  - Description: Addresses the policy and operational role of the exchange rate for inflation targeting countries  
  - Dept.: MCM  
  - Date/Time band: TB2

- II.1 The Fund’s Lending Instruments and Facilities and Policies — Type: DIS  
  - Description: Looks at how the range of Fund facilities and policies might be rationalized  
  - Dept.: SPR  
  - Date/Time band: TB1

- II.2 Modifications to the Exogenous Shocks Facility — Type: DIS  
  - Description: Proposes modifications to the Exogenous Shocks Facility  
  - Dept.: SPR/FIN/LEG  
  - Date/Time band: TB1

- II.3 Consideration of a New Liquidity Instrument — Type: DIS  
  - Description: Proposes options for a rapid access instrument, including for countries integrating into global capital markets and pursing financial sector reforms  
  - Dept.: SPR  
  - Date/Time band: TB1

- II.4 Macro-financial and Cross-Border Risks for Emerging Market Economies — Type: DIS  
  - Description: Examines the implications of macro-financial and cross-border risks for emerging market economies and how the Fund might help countries address these risks  
  - Dept.: SPR/RES/MCM  
  - Date/Time band: TB1

- II.5 Review of Charges and Maturities under the New Income Model — Type: DIS  
  - Description: Completes the review of charges and maturities, including proposals to align surcharges and eliminate time based repurchase expectations  
  - Dept.: SPR/FIN  
  - Date/Time band: TB1

- II.6 Limits on Access for Use of Fund Resources — Type: DIS  
  - Description: Examines the case for increasing access limits  
  - Dept.: SPR/FIN  
  - Date/Time band: TB1

- II.7 Review of the Policy Support Instrument — Type: DIS  
  - Description: Assesses the Policy Support Instrument  
  - Dept.: SPR  
  - Date/Time band: TB2

- II.8 The Role of the Fund in Low-Income Countries — Type: DIS  
  - Description: Takes stock of recent policy developments and sets the framework for the strategic orientation of work with low-income members  
  - Dept.: SPR  
  - Date/Time band: TB1

- III.1 New Formats for Staff Reports — Type: SEM  
  - Description: The paper will offer a basis for a discussion of examples of staff reports that would be more concise and timely to enhance their impact. It will also reflect the lessons of experimentation with Streamlined Article IV consultations  
  - Dept.: SPR  
  - Date/Time band: July

- III.2 Macro Policy Lessons for a Sound Design of Fiscal Decentralization — Type: SEM  
  - Description: Examines Fund guidance on fiscal decentralization, focusing on the macroeconomic implications of intergovernmental fiscal reforms  
  - Dept.: FAD  
  - Date/Time band: TB2

- IV.1 Country Contributions Policy for Capacity Building — Type: DIS  
  - Description: Sets out a strengthened framework  
  - Dept.: OTM/INS/LEG  
  - Date/Time band: TB1

- V.1 The New Income Model—Implementation Issues — Type: DIS  
  - Description: Follows up on the implementation of the new income model, including the design of investment policies under a broadened investment mandate  
  - Dept.: FIN/LEG  
  - Date/Time band: TB1

- V.2 The Fund’s Precautionary Balances under the New Income Model — Type: DIS  
  - Description: Reviews the role and adequacy of precautionary balances under the new income model  
  - Dept.: FIN  
  - Date/Time band: TB1

- V.3 Departmental Business Plans, Key Output Activities, and Performance Indicators — Type: COB  
  - Description: Reviews departmental business plans and key output activities, as well as performance indicators, in light of Fund refocusing; and the FY 2008 outturn  
  - Dept.: OBP  
  - Date/Time band: TB3

- V.4 An Integrated Income and Expenditure Framework — Type: COB  
  - Description: Discusses options for an integrated income and expenditure budget, including proposals for measuring real spending  
  - Dept.: OBP/FIN  
  - Date/Time band: TB3

- V.5 Budget Reforms: Fungibility, Carry-Forward, and Standard Costs — Type: COB  
  - Description: Proposes steps to deepen ongoing budget reforms  
  - Dept.: OBP  
  - Date/Time band: TB3

- V.6 Activity Based Costing: Considerations Implementation Issues — Type: COB  
  - Description: Reviews costing of Fund activities, taking into account its critical importance for budgetary reforms, including PRGF reimbursement and technical assistance charging  
  - Dept.: OBP  
  - Date/Time band: TB3

- V.7 The Internal Audit Function in the Fund — Type: IB  
  - Description: Briefs on the internal audit function in the Fund  
  - Dept.: OIA  
  - Date/Time band: May

- V.8 Interim Update on Risk Management — Type: IB  
  - Description: Provides and interim update on risk management  
  - Dept.: OIA  
  - Date/Time band: June

- V.9 Report of the External Audit Committee to the Executive Board — Type: DIS  
  - Description: Presents the report of the External Audit Committee  
  - Dept.: EAC  
  - Date/Time band: July

- V.10 Review of the Fund’s De-escalation Policy — Type: DIS  
  - Description: Considers modifications to the de-escalation policy  
  - Dept.: FIN/LEG  
  - Date/Time band: TB3

- VI.1 IEO’s Review of the IMF’s Governance Arrangements — Type: DIS  
  - Description: Evaluated the institutional structure of the Fund and the formal and informal relationships that govern its activities and decision making  
  - Dept.: IEO  
  - Date/Time band: May

- VI.2 Annual Periodic Monitoring Report on Board-endorsed IEO Recommendations — Type: DIS  
  - Description: Provides an update on progress in the implementation of Board-endorsed IEO recommendations. Would allow, in particular, a discussion of progress with the actions proposed in the first three management implementation plans, including the Board’s views on the revised operational guidance note and on the annual report on conditionality  
  - Dept.: SPR  
  - Date/Time band: TB2

- VI.3 2009 Staff Compensation Review: Progress Report — Type: IB  
  - Description: Provides an update on progress and next steps in completing the 2009 compensation review for A1–A8 and A9–B5 staff  
  - Dept.: HRD  
  - Date/Time band: TB3

- VI.4 Medical Benefits Plan (MBP) — Type: DIS  
  - Description: Reviews experience with recent changes to the Medical Benefits Plan, and proposes needed modifications  
  - Dept.: HRD  
  - Date/Time band: July

*Source: Spring 2008 Work Program Statement (excerpt).*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2008/_061808.pdf_