## Statement by the Managing Director on the Work Program of the Executive Board

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### I. Immediate priorities — Restoring stability, financial reform, growth, LICs, and the global safety net
- Restoring stability
  - Recent developments point to the continued fragility of the world economy and the risks of renewed stresses with potentially systemic implications.
  - Joint session of the World Economic Outlook, Global Financial Stability Report, and Fiscal Monitor ahead of the Annual Meetings, with an update in July.
  - Specific global vulnerabilities to be covered through the Early Warning Exercise; vulnerabilities in low-income countries (LICs) assessed through the Vulnerability Exercise for LICs.
  - The Consolidated Multilateral Surveillance Report will distill key messages and, as called for in the IMFC communiqué, report on progress on measures taken by the membership to restore confidence, rekindle growth, and create jobs.
  - Europe: formal scrutiny through upcoming Article IVs for the euro area consultation and almost all major European economies; regular informal briefings by staff.
  - Arab countries in transition: step up support through policy advice, technical assistance, and lending as appropriate; discussions ongoing on possible financing arrangements; upcoming Article IV consultations and regular informal Board briefings will provide discussion opportunities.
- Financial reform
  - Board briefings on Modalities for Cross-Border Resolution.
  - Macrofinancial Stress Testing: Practices and Principles to assess the role of stress tests and provide guidance on best practices.
  - Cross-Cutting Issues in FSAPs to identify issues germane to a broad group of countries.
  - Interrelationships of Sovereign and Financial Sector Risks: Debt Implications to be explored in November.
- Supporting growth
  - Fund to provide analysis and policy advice on achieving credible fiscal consolidation and government debt reduction while supporting growth.
  - Fiscal Monitor to ensure consistency of Fund’s approach to fiscal adjustment with analysis of fiscal multipliers and growth.
  - Fiscal Policy and Employment in Advanced and Emerging Economies to be discussed in July.
  - Discussion of Fiscal Transparency, Risk, and Accountability in the Post-Crisis Environment to follow.
  - Energy Subsidy Reform: Lessons and Implications to be discussed later in the year.
  - Jobs: analytical work on jobs and growth in Fund surveillance and programs (including social equality and inclusion); a Board paper being considered for later in FY2013; work to support development of a surveillance toolkit and outreach.
  - Emerging markets and developing countries: surveillance to confront downside risks, including elevated oil prices and volatile capital flows, and avoid over-stimulation; analysis on small states and Fund engagement underway.
- Low-Income Countries (LICs)
  - Policy advice, lending, and capacity building aimed at preserving macroeconomic stability and debt sustainability while facilitating growth and development objectives.
  - Review of LIC Facilities in August to assess experience since the comprehensive reform three years ago and consider refinements.
  - A paper before the Annual Meetings to review LICs’ exposure to global risks and related policy challenges.
  - Joint IMF-World Bank staff paper to explore challenges of debt management capacity in post-debt relief countries; followed soon after the Annual Meetings with the Review of the Debt Limits Policy.
  - Two inter-related papers in August on: Fiscal Regimes for Extractive Industries: Design and Implementation and Macroeconomic Policy Frameworks for Resource-Rich Developing Countries.
- Lending and the Global Safety Net
  - Effective programs: Review of Conditionality to assess Fund program experience and lessons for program design.
  - Informal briefing of the Crisis Programs Review to focus on European programs and issues concerning lending to members of currency unions; informal country and regional briefings to review developments across programs and regions.
  - Fund resources: membership committed to raise the Fund’s firewall by over $430 billion; a paper on Borrowing Modalities to finalize modalities to make these resources available and include proposals to safeguard the Fund’s balance sheet against concentrated and correlated risks.
  - PRGT financing: 2009 LIC financing package to enable concessional lending of $17 billion during 2009-14 remains incomplete; securing sufficient pledges to support concessional financing under the PRGT through 2014-15 is crucial; a bi-monthly report will track progress; longer-term sustainability of the PRGT to be taken up in the Review of LIC Facilities prior to the Annual Meetings and in Use of Windfall Gold Sale Profits—Further Considerations.

### II. Improving the framework — Surveillance and Governance
- Surveillance: strengthening analysis and institutionalizing integration of bilateral and multilateral perspectives
  - Continue improving analysis of spillovers and interconnectedness and ensure multilateral consistency in bilateral assessments.
  - External Sector Report to present a revamped analysis of external positions and vulnerabilities that are multilaterally consistent; timing to be determined pending consultations and use of External Balance Assessment and other methodologies in upcoming Article IV consultations.
  - Spillover Report in July to present spillover analysis of policies of the systemic-5 economies—China, the Euro Area, Japan, the United Kingdom, and the United States—as background to Article IV consultations.
  - Both reports prepared by interdepartmental task forces to bring together specialized skills across departments.
  - Executive Board to discuss a draft Integrated Surveillance Decision (date to be determined) following outreach and stakeholder engagement.
  - September review of Data Provision to the Fund for Surveillance Purposes to assess data usage and future data needs.
  - Strategic Plan for Financial Sector Surveillance to be taken up in September as follow-up to discussions on the financial sector work agenda.
  - Capital Flows: A Comprehensive, Balanced, and Flexible Approach to be discussed later in the year, bringing together four preceding papers on capital flows.
  - Next transparency policy review moved from end-2012 to the following calendar year to smooth the work program.
- Governance: quota and governance reform implementation and related outreach
  - Timely implementation of the 2010 reform to enhance legitimacy and effectiveness of the Fund; goal of implementation by the Annual Meetings.
  - IMFC Chairman and Managing Director sent letter to Governors soliciting efforts to spur implementation; progress tracked in real time on external website since early April.
  - Proposed monthly meeting through Tokyo to monitor progress, including progress in each constituency, and further outreach through staff engagement in the field.
  - Voluntary re-composition of the Executive Board to increase the number of emerging market and developing country chairs.
  - Next discussion of the Quota Formula Review to be taken up in July, including the latest data update; follow-up discussion scheduled thereafter; informal meeting in the first half of June.
  - Dedicated work stream of the IMFC Deputies to engage on this issue in August and in September.
  - Report on progress at the Annual Meetings based on these discussions.

### III. Management of the institution — Human resources, operations, Board practices
- Human resources and diversity
  - Actions outlined in the Managing Director’s Buff on the IEO report on surveillance to adapt institutional culture—bringing more accountability, candor, and collaboration.
  - Diversity Report to be presented in July.
  - Corporate Workforce Planning briefing planned for November as the next in a series of human resource briefings.
- Internal operations and risk management
  - Regular Briefing by the External Audit Committee in July.
  - 2012 Report on Risk Management in August.
  - Meeting on the Broadening of the Fund’s Investment Mandate—Additional Considerations scheduled for June; a follow-up paper on Strategic Implementation Issues prior to the Annual Meetings.
  - Directors to be briefed on results of ACES: Cost of Selected Fund Activities in an informal session in August.
  - Two IEO-related papers for the Evaluation Committee: Implementation Plan in response to the IEO report on evaluation of Fund research in July, and the Fifth Periodic Monitoring Report in September.
- Board practices
  - Progress made to improve Board functioning through agreement on new Board practices in November 2010.
  - Interdepartmental task force working to even out country items over the coming year, with focus on alleviating Board workload in July and ahead of the IMFC meeting.

### Calendar highlights and planned papers
- Fiscal and operational items with tentative dates (as presented in Box 1 and text)
  - Review of Conditionality: 11-Jun-2012
  - Review of LIC Facilities: 9-Jul-12
  - Fiscal Monitor / WEO / GFSR joint discussion ahead of Annual Meetings with update in July
  - Review of Data Provision to the Fund for Surveillance Purposes: September (timing stated)
  - Strategic Plan for Financial Sector Surveillance: September
  - Interrelationships of Sovereign and Financial Sector Risks: Debt Implications: November
  - Diversity Report: July
  - 2012 Report on Risk Management: August
  - Updates on Progress on Acceptance of the 2010 Quota and Governance Reforms: 29-Aug-12
  - Quota Formula Review: discussion in July (with latest data update) and further follow-up; dedicated IMFC Deputies engagement in August and September
  - Note: monthly updates on progress of acceptance of the 2010 governance reform package and bi-monthly reports on the PRGT financing packages.

*Revised: June 8, 2012 — Statement by the Managing Director on the Work Program of the Executive Board; Executive Board Meeting May 29, 2012.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2012/_052912.pdf_