## _061114 - 1.      Policy priorities. The Global Policy Agenda (GPA) presented to the IMFC in April

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---

### Overview and implementation
- Spring 2014 Global Policy Agenda (GPA) objectives:
  - transform a modest, uneven, and fragile recovery into more rapid, balanced, and sustainable growth by:
    - managing monetary normalization and associated policy spillovers and spillbacks;
    - reforms to ensure robust growth while reducing vulnerabilities;
    - steps to facilitate external rebalancing.
- Fund support modalities: assessments and policy advice in bilateral and multilateral surveillance, capacity building, and financial support (Figure 1).
- Executive Board’s work program (WP) of November 2013: implemented broadly as planned; most policy meetings concluded on schedule, but several administrative meetings experienced substantial delays due to need for more extensive consultations.
- Spring 2014 WP:
  - translates GPA and IMFC communiqué priorities into a 12-month Board agenda;
  - adds items on monetary normalization spillovers/spillbacks, fiscal consolidation and growth-friendly policies, and structural reforms;
  - tailors analytical and operational agendas to different country groups including low-income countries (LICs), Arab Countries in Transition (ACTs), and small states.

### Focus on LICs, Small States, and ACTs
- Low-income Countries (LICs):
  - Main challenge: sustain and deepen growth, trade, and investment to achieve frontier and emerging market economy status.
  - WP includes a reformulated report on prospects and vulnerabilities of LICs with a special focus on debt issues (see ¶4).
  - Staff intends to operationalize analytical work on structural transformation and diversification, macroeconomic management of natural resource wealth, financial deepening, revenue mobilization, and frontier economy challenges.
  - Capacity building emphasis: monetary policy frameworks, statistics, and financial assistance through the reformed LICs lending framework.
- Small states:
  - Engagement tailored to particular needs; possible steps: lessons from implementing the 2014 staff guidance note in pilot cases, exploring clustered Article IVs, clustering cross-regional Board meetings.
  - A paper on selected issues in small states will be presented in early-2015 (see ¶4).
  - Analytical focus: growth, fiscal and debt challenges, and financial interconnections; integrate capacity building into surveillance and enhance outreach and policy dialogue.
- Arab Countries in Transition (ACTs):
  - Face socio-political challenges and worsening public finances.
  - Continued engagement through surveillance, capacity building, and financial support.
  - Analytical agenda: lessons from Fund arrangements in ACTs, Islamic Finance, and linkages between revenue mobilization, growth, and equity.
  - Follow-up work from the Amman conference to develop country-specific reform priorities to increase employment and enhance medium-term growth prospects.

### I. Conjuncture and risks
- Global activity: strengthening but recovery remains uneven and too weak; more ambitious and tailored policies needed to create a dynamic, job-rich global economy.
- Planned Board discussions and products:
  - Joint Board session of WEO, GFSR, and Fiscal Monitor ahead of Annual and Spring Meetings in September 2014 and March 2015, respectively; WEMD Updates in July and January.
  - Briefing on Emerging Markets—Developments and Prospects ahead of the Annual Meetings; area department briefings on regional developments.
  - Early Warning Exercise discussion in run-up to Annual and Spring Meetings; Managing Director’s Global Policy Agenda review of policy implementation.
  - Clustered Article IV consultations to examine common policy issues facing select countries (see ¶10).
  - Low Income Developing Countries Report to be presented in late September 2014; will include discussion of debt dynamics in LICs following comprehensive debt relief and will replace LIC vulnerability reports.
  - Paper on Selected Issues in Small States to be discussed in early-2015.

### II. Addressing policy challenges

#### A. Monetary policy
- Managing monetary normalization:
  - Risks: asynchronous unwinding of monetary accommodation can cause excessive volatility in capital flows and major currencies, tighter financial conditions for emerging and developing countries, and spillbacks to source countries.
  - Fund will analyze unwinding of extraordinary monetary support and the need to internalize externalities in an interconnected world.
- Specific WP items and timings:
  - Exchange rates: Board briefing in January 2015 on The Role of Exchange Rate Intervention: Issues and Experiences.
  - Macroprudential policies: guidance note on macroprudential policies to be issued by end-June 2014.
  - Financial deepening: Board discussion in November (year implied 2014) on importance of financial deepening for enhancing resilience in emerging market economies (see ¶8).
  - Monetary policy frameworks: Board discussion in October 2014 on Monetary Policy: Its Role Now and in the Future; continued advice and capacity building for LICs.

#### B. Fiscal policy
- Core challenge: advance fiscal consolidation while safeguarding growth and employment, particularly for emerging and frontier market economies facing declining policy space and increased market volatility.
- Planned analytical work and Board items:
  - Fiscal Monitor: forthcoming deepening work on links between fiscal policy and employment outcomes.
  - Toward More Productive Public Investment in February 2015 to discuss improvements in public investment processes against declining public capital stocks in some regions.
  - May 2015 Board discussion on interplay between Fiscal Policy and Long-term Growth across advanced, emerging, and developing economies.
  - Current Challenges in Revenue Mobilization in November 2014 to discuss initiatives to help developing countries, particularly LICs, build effective and efficient revenue systems.
  - Analytical work on fiscal regimes for shale gas; deepen analysis of international corporate taxation spillovers.
- Public debt issues and timing:
  - June 2014 Board discussion on relationship between Fund’s lending framework and sovereign debt and possible reform directions.
  - September (year implied 2014) paper to examine potential contractual framework reforms to address collective action problems in debt restructuring; follow-up papers depending on Board discussion.
  - Staff re-examining scope for producing a reform proposal on Fund’s policy on debt limits and expects to return with a modified proposal before the Annual Meetings.
  - From Banking to Sovereign Stress: Implications for Public Debt to be presented in January 2015 to identify practices in measuring and monitoring banking-sector-related risks and contingent liabilities to sovereign balance sheets.
  - Other work on benefits and risks of sovereign bond issuance in frontier LICs.
- Other fiscal work:
  - Update on the Fiscal Transparency Initiative for information in June.
  - Update estimates of energy subsidies and deeper analysis of fiscal policy impacts on income distribution.
  - Cross-cutting fiscal work for small states: debt challenges in the Caribbean, underinsurance for natural disasters, assessing fiscal costs of climate change.

#### C. Financial sector policies
- Objective: bolster financial systems by supporting global regulatory reform implementation, addressing financial fragmentation, and guarding against financial stability risks.
- Key WP items:
  - Global regulatory reforms: Board briefings in June and December 2014 on progress; June briefing to cover banking reforms, implementation challenges, impact on infrastructure and SME financing, credit availability, market liquidity, consequences for emerging and developing economies, and spillovers from structural measures.
  - June 2014: staff to brief the Board on cross-border bank resolution issues and policy initiatives.
  - Consideration of experience with assessments of Key Attributes of Effective Resolution Regimes next year, timing dependent on progress with FSB and World Bank.
- Macro-financial analysis and data work:
  - Staff guidance note on macro-prudential policies planned for end-June 2014.
  - 2014 Triennial Surveillance Review (TSR) to consider mainstreaming macro-financial risks in bilateral surveillance.
  - Review of the Financial Sector Assessment Program (FSAP) to be discussed in September 2014.
  - Fall 2014 GFSR to feature shadow banking systems, their impact on financial stability, and risk-taking in financial institutions.
  - Analytical work on private capital flows and macro-financial linkages in LICs and global financial transmission into sub-Saharan Africa.
  - Fifth progress report on closing data and information gaps under the G-20 Data Gaps Initiative provided for information in September 2014.
  - January 2015 Board discussion on Ninth Review of the Fund’s Data Standards Initiatives, including reforms to modernize the GDDS.
- Financial deepening and inclusion:
  - Board examination in November 2014 of Enhancing Resilience and Supporting Growth in Emerging Markets: Role of Financial Deepening.
  - Work on future of Asia’s finance to be presented in late April 2015.
  - Examination of Islamic Finance and interplay between financial inclusion, growth, inequality, and financial stability.

#### D. Structural reforms
- Rationale: with narrowing space for supportive macroeconomic policies, structural reforms are increasingly needed to support sustainable, job-rich, and inclusive growth.
- Planned work:
  - 2014 TSR to analyze structural reforms and the role of the Fund (see ¶14).
  - Background paper by external experts to consider when the Fund should provide advice on macro-critical structural reforms and how to support this work via technical assistance and training.
  - Interaction between structural reforms, public finances, and growth to be examined in Toward More Productive Public Investment (February 2015) and Fiscal Policy and Long-Term Growth (March 2015).
  - WEO to examine importance of public infrastructure for boosting growth.
- Inequality, jobs, and growth:
  - Staff will expand work on inequality, update the Jobs and Growth toolkit, assess post-crisis growth performance in advanced economies, and contribute to multilateral policy dialogue on growth strategies.
  - Operationalize analytical work on inequality and jobs and growth, including in Article IV consultations.
  - Regional analytical focus:
    - Euro Area—SME restructuring and funding, youth unemployment, product and labor market reforms;
    - LICs—making growth more inclusive, structural transformation, financial inclusion.
  - Analysis of social protection floors with the ILO, focusing on Africa, ACTs, and Latin America.

#### E. Policy cooperation and coherence
- Importance of cooperation: subpar recovery and intermittent market jitters highlight global interconnectedness and need for policy cooperation to support growth and limit policy risks.
- Planned initiatives:
  - Multilateral surveillance and clusters:
    - Implement Integrated Surveillance Decision and clustered Article IV consultations to highlight real and financial interconnectedness and cooperation importance.
    - Following Baltics report in May 2014, future pilot clustered Article IV reports to examine housing bust responses in Europe, ASEAN-5 trade and financial linkages (late 2014), and financial interconnections between Colombia, Central America, Panama and Dominican Republic (early 2015).
    - 2014 TSR to examine implications of changes in international financial architecture for the Fund’s mandate and role.
  - Imbalances:
    - Forthcoming WEO to analyze recent experiences with global rebalancing.
    - Ongoing refinements to external sector assessment methodology, including extending EBA to a broader group of countries and adapting methodology to LICs where appropriate.
  - Spillovers and spillbacks:
    - 2014 TSR to recommend strengthening depth and analytical rigor of spillover analysis.
    - Spillover report in July to examine spillovers and spillbacks from asynchronous monetary normalization in advanced economies and slowdown in emerging economies; provide preliminary considerations on unintended consequences of global financial regulatory reforms (see ¶8).
    - Other work on spillovers from policies in advanced Europe and the United States on emerging Europe, China-euro area linkages, and financial sector interconnectedness in the Caribbean.
  - International monetary system:
    - Staff engagement with Board in mid-July on additional operational considerations for assessing reserve adequacy, examining how income levels, capital controls, and commodity-intensive trade affect reserve needs.
    - New guidance note on international reserves in early 2015.
    - May 2015 Board discussion on initial considerations for the quinquennial Review of Valuation of the SDR.

### III. Strengthening the Fund

#### Governance and resources
- Implementing quota and governance reforms and ensuring adequate resources for crisis prevention and resolution remain absolute priorities.
- 2010 Reforms:
  - July engagement on an update of the quota database through 2012 and implications for calculated quota.
  - If the 2010 Board Reform Amendment and the 14th Quota Review have not become effective by end-year, a Board meeting on alternative options for rebalancing quotas and increasing resources will be scheduled for January 2015.
  - Scheduling of Board meetings on the 15th General Quota Review and revisions to the quota formula will be kept under review, considering ratification progress of the 2010 reforms.
- Borrowing agreements:
  - With the first batch of the 2012 bilateral borrowing agreements approaching the end of their initial two year term, the Board will consider in September 2014 whether, given the Fund’s overall liquidity situation and actual and prospective borrowing requirements, these should be extended for one year following consultations with lenders as allowed under the agreements.

#### Lending and conditionality
- The lending framework will be kept under review to ensure it meets members’ needs.
- Follow-up to recent meeting on access limits and surcharges under the GRA: staff will return to the Board with specific proposed decisions in coming months.
- A Guidance Note on Conditionality to be issued in mid-2014.
- For LICs:
  - Focus on implementing modifications to the current conditionality framework for monetary policy.
  - Prepare the biennial review of PRGT eligibility for next spring.
  - Analytical work to investigate impact of concessionality requirements on LIC borrowing behavior and assess how IMF-supported programs catalyze donor assistance.

---

### _061114 - 13.      Capacity building. Following the April 2014 discussion of the statement of IMF Policies

### Capacity building
- Staff will submit to the Board a revised statement of IMF Policies and Practices on Capacity Development for approval on a LOT basis, following the April 2014 discussion.
- Staff will provide supplementary information on capacity development activities in Fund budget documents, starting with the FY 2014 budget outturn paper scheduled to be issued in late July (FY 2014 Administrative and Capital Expenses and Output Cost Estimates).

### Learning: reviews, evaluations, and knowledge
- Emphasis on continuous learning through policy and program reviews, ex post evaluations, and stakeholder dialogue.
- Reviews of surveillance:
  - 2014 TSR: recommendations on deepening Fund analysis of risks and spillovers, mainstreaming financial and macro-financial analysis, and leveraging cross-country knowledge and multilateral surveillance products.
  - Staff will engage the Board in discussing initial findings of the 2014 TSR in July, followed by a formal meeting in September.
  - Guidance Note for Surveillance under Article IV Consultations to be updated in early 2015.
  - Review of the Fund’s Framework for Addressing Excessive Delays in Article IV Consultations: staff will advance the review and engage the Board informally in November 2014.
- Other reviews and follow-ups:
  - Follow-up Crisis Program Review scheduled for Board discussion in May 2015.
  - Reviews covering the FSAP (in September 2014), operational engagement with states in fragile situations (in early 2015), and work on trade policy (in January 2015).
  - Analytical work on ACTs to distill lessons from Fund arrangements since the start of the Arab Spring.
- Independent Evaluation Office (IEO) items:
  - Board discussion of Analysis of Recurrent Findings and Lessons from IEO Evaluations in June 2014.
  - Review Learning from Experience at the IMF: An IEO Assessment of Self-Evaluation Systems scheduled for September 2014.
  - Formal Board meeting to discuss the IEO review on IMF Statistics planned for early November 2014.

### Strengthening internal operations
- Human resource management and diversity:
  - Review of Categories of Employment to be brought to the Board in the coming months; date to be determined after ongoing consultation process concludes.
  - Progress on diversity and inclusion to be discussed in November in the 2014 Diversity and Inclusion Annual Report.
  - Work underway to develop new diversity benchmarks.
- Budget, finances, risk, and audit:
  - Board discussion in August 2014 of the Investment Strategy for the Fixed Income Subaccount of the Investment Account, to be followed by another meeting in January.
  - Paper on Implementing the Investment Strategy for the Endowment to be discussed in November.
  - Formal meeting on the 2014 Report on Risk Management scheduled for mid-July.
  - Briefings of the External Audit Committee in July 2014 and February 2015.
  - Several meetings to discuss the FY2016 budget scheduled for early 2015.

### Communications
- Review of IMF’s Communication Strategy in July 2014 to take stock of implementation since 2007 and consider measures to strengthen it, building on the informal discussion in February 2014.

*Source: IMF document _061114 - 13. Capacity building. Following the April 2014 discussion of the statement of IMF Policies*

### 1.      Policy priorities. The Global Policy Agenda (GPA) presented to the IMFC in April

### _061114 - 1.      Policy priorities. The Global Policy Agenda (GPA) presented to the IMFC in April

### Overview and implementation
- The Spring 2014 Global Policy Agenda (GPA) identified actions to transform a modest, uneven, and fragile recovery into more rapid, balanced, and sustainable growth, including:
  - managing monetary normalization and associated policy spillovers and spillbacks;
  - reforms to ensure robust growth while reducing vulnerabilities;
  - steps to facilitate external rebalancing.
- The Fund’s support modalities outlined: assessments and policy advice in bilateral and multilateral surveillance, capacity building, and financial support (Figure 1).
- The Executive Board’s work program (WP) of November 2013 has been implemented broadly as planned; most policy meetings concluded on schedule, but several administrative meetings experienced substantial delays due to the need for more extensive consultations.
- The Spring 2014 WP translates GPA and IMFC communiqué priorities into a 12-month Board agenda and adds items on monetary normalization spillovers/spillbacks, fiscal consolidation and growth-friendly policies, and structural reforms. The WP tailors analytical and operational agendas to different country groups including low-income countries (LICs), Arab Countries in Transition (ACTs), and small states.

### Focus on LICs, Small States, and ACTs
- Low-income Countries (LICs):
  - Main challenge: sustain and deepen growth, trade, and investment to achieve frontier and emerging market economy status.
  - WP includes a reformulated report on prospects and vulnerabilities of LICs with a special focus on debt issues (see ¶4).
  - Staff intends to operationalize analytical work on structural transformation and diversification, macroeconomic management of natural resource wealth, financial deepening, revenue mobilization, and frontier economy challenges.
  - Capacity building emphasis: monetary policy frameworks, statistics, and financial assistance through the reformed LICs lending framework.
- Small states:
  - Engagement tailored to particular needs; possible steps: lessons from implementing the 2014 staff guidance note in pilot cases, exploring clustered Article IVs, clustering cross-regional Board meetings.
  - A paper on selected issues in small states will be presented in early-2015 (see ¶4).
  - Analytical focus: growth, fiscal and debt challenges, and financial interconnections; integrate capacity building into surveillance and enhance outreach and policy dialogue.
- Arab Countries in Transition (ACTs):
  - Face socio-political challenges and worsening public finances.
  - Continued engagement through surveillance, capacity building, and financial support.
  - Analytical agenda: lessons from Fund arrangements in ACTs, Islamic Finance, and linkages between revenue mobilization, growth, and equity.
  - Follow-up work from the Amman conference to develop country-specific reform priorities to increase employment and enhance medium-term growth prospects.

### I. Conjuncture and risks
- Global activity is strengthening but recovery remains uneven and too weak; more ambitious and tailored policies are needed to create a dynamic, job-rich global economy.
- Planned Board discussions and products:
  - Joint Board session of WEO, GFSR, and Fiscal Monitor ahead of Annual and Spring Meetings in September 2014 and March 2015, respectively; WEMD Updates in July and January.
  - Briefing on Emerging Markets—Developments and Prospects ahead of the Annual Meetings; area department briefings on regional developments.
  - Early Warning Exercise discussion in run-up to Annual and Spring Meetings; Managing Director’s Global Policy Agenda review of policy implementation.
  - Clustered Article IV consultations to examine common policy issues facing select countries (see ¶10).
  - Low Income Developing Countries Report to be presented in late September 2014; will include discussion of debt dynamics in LICs following comprehensive debt relief and will replace LIC vulnerability reports.
  - Paper on Selected Issues in Small States to be discussed in early-2015.

### II. Addressing policy challenges

#### A. Monetary policy
- Managing monetary normalization:
  - Risks: asynchronous unwinding of monetary accommodation can cause excessive volatility in capital flows and major currencies, tighter financial conditions for emerging and developing countries, and spillbacks to source countries.
  - The Fund will analyze unwinding of extraordinary monetary support and the need to internalize externalities in an interconnected world.
- Specific WP items and timings:
  - Exchange rates: Board briefing in January 2015 on The Role of Exchange Rate Intervention: Issues and Experiences, reviewing recent country experiences, country characteristics, external conditions, and capital flow impacts.
  - Macroprudential policies: guidance note on macroprudential policies to be issued by end-June 2014.
  - Financial deepening: Board discussion in November (year implied 2014) on importance of financial deepening for enhancing resilience in emerging market economies (see ¶8).
  - Monetary policy frameworks: Board discussion in October 2014 on Monetary Policy: Its Role Now and in the Future to outline conceptual issues and an analytical agenda for monetary policy frameworks post-normalization; continued advice and capacity building for LICs.

#### B. Fiscal policy
- Challenge: advance fiscal consolidation while safeguarding growth and employment, particularly for emerging and frontier market economies facing declining policy space and increased market volatility.
- Planned analytical work and Board items:
  - Fiscal Monitor forthcoming deepening work on links between fiscal policy and employment outcomes.
  - Toward More Productive Public Investment in February 2015 to discuss improvements in public investment processes against declining public capital stocks in some regions.
  - May 2015 Board discussion on interplay between Fiscal Policy and Long-term Growth across advanced, emerging, and developing economies.
  - Current Challenges in Revenue Mobilization in November 2014 to discuss initiatives to help developing countries, particularly LICs, build effective and efficient revenue systems; analytical work on fiscal regimes for shale gas; deepen analysis of international corporate taxation spillovers.
  - Public debt issues:
    - June 2014 Board discussion on relationship between Fund’s lending framework and sovereign debt and possible reform directions.
    - September (year implied 2014) paper to examine potential contractual framework reforms to address collective action problems in debt restructuring; follow-up papers depending on Board discussion.
    - Staff re-examining scope for producing a reform proposal on Fund’s policy on debt limits and expects to return with a modified proposal before the Annual Meetings.
    - From Banking to Sovereign Stress: Implications for Public Debt to be presented in January 2015 to identify practices in measuring and monitoring banking-sector-related risks and contingent liabilities to sovereign balance sheets.
    - Other work on benefits and risks of sovereign bond issuance in frontier LICs.
  - Other fiscal work:
    - Update on the Fiscal Transparency Initiative for information in June.
    - Update estimates of energy subsidies and deeper analysis of fiscal policy impacts on income distribution.
    - Cross-cutting fiscal work for small states: debt challenges in the Caribbean, underinsurance for natural disasters, assessing fiscal costs of climate change.

#### C. Financial sector policies
- Objective: bolster financial systems by supporting global regulatory reform implementation, addressing financial fragmentation, and guarding against financial stability risks.
- Key WP items:
  - Global regulatory reforms: Board briefings in June and December 2014 on progress; June briefing to cover banking reforms, implementation challenges, impact on infrastructure and SME financing, credit availability, market liquidity, consequences for emerging and developing economies, and spillovers from structural measures.
  - In June 2014, staff to brief the Board on cross-border bank resolution issues and policy initiatives.
  - Consideration of experience with assessments of Key Attributes of Effective Resolution Regimes next year, timing dependent on progress with FSB and World Bank.
  - Macro-financial analysis:
    - Staff guidance note on macro-prudential policies planned for end-June 2014 (see ¶5).
    - 2014 Triennial Surveillance Review (TSR) to consider mainstreaming macro-financial risks in bilateral surveillance.
    - Review of the Financial Sector Assessment Program (FSAP) to be discussed in September 2014.
    - Fall 2014 GFSR to feature shadow banking systems, their impact on financial stability, and risk-taking in financial institutions.
    - Analytical work on private capital flows and macro-financial linkages in LICs and global financial transmission into sub-Saharan Africa.
  - Financial deepening: Board examination in November 2014 of Enhancing Resilience and Supporting Growth in Emerging Markets: Role of Financial Deepening; work on future of Asia’s finance to be presented in late April 2015; examination of Islamic Finance and interplay between financial inclusion, growth, inequality, and financial stability.
  - Data gaps: fifth progress report on closing data and information gaps under the G-20 Data Gaps Initiative provided for information in September 2014; January 2015 Board discussion on Ninth Review of the Fund’s Data Standards Initiatives, including reforms to modernize the GDDS.

#### D. Structural reforms
- Rationale: with narrowing space for supportive macroeconomic policies, structural reforms are increasingly needed to support sustainable, job-rich, and inclusive growth.
- Planned work:
  - 2014 TSR to analyze structural reforms and the role of the Fund (see ¶14).
  - Background paper by external experts to consider when the Fund should provide advice on macro-critical structural reforms and how to support this work via technical assistance and training.
  - Interaction between structural reforms, public finances, and growth to be examined in Toward More Productive Public Investment (February 2015) and Fiscal Policy and Long-Term Growth (March 2015).
  - WEO to examine importance of public infrastructure for boosting growth.
  - Inequality, jobs, and growth:
    - Staff will expand work on inequality, update the Jobs and Growth toolkit, assess post-crisis growth performance in advanced economies, and contribute to multilateral policy dialogue on growth strategies.
    - Operationalize analytical work on inequality and jobs and growth, including in Article IV consultations.
    - Regional analytical focus: Euro Area—SME restructuring and funding, youth unemployment, product and labor market reforms; LICs—making growth more inclusive, structural transformation, financial inclusion.
    - Analysis of social protection floors with the ILO, focusing on Africa, ACTs, and Latin America.

#### E. Policy cooperation and coherence
- Importance of cooperation: subpar recovery and intermittent market jitters highlight global interconnectedness and need for policy cooperation to support growth and limit policy risks.
- Planned initiatives:
  - Multilateral surveillance and clusters:
    - Implement Integrated Surveillance Decision and clustered Article IV consultations to highlight real and financial interconnectedness and cooperation importance.
    - Following Baltics report in May 2014, future pilot clustered Article IV reports to examine housing bust responses in Europe, ASEAN-5 trade and financial linkages (late 2014), and financial interconnections between Colombia, Central America, Panama and Dominican Republic (early 2015).
    - 2014 TSR to examine implications of changes in international financial architecture for the Fund’s mandate and role.
  - Imbalances:
    - Forthcoming WEO to analyze recent experiences with global rebalancing.
    - Ongoing refinements to external sector assessment methodology, including extending EBA to a broader group of countries and adapting methodology to LICs where appropriate; better integrate annual Spillover and Pilot External Sector reports and vulnerability analyses with other surveillance outputs.
  - Spillovers and spillbacks:
    - 2014 TSR to recommend strengthening depth and analytical rigor of spillover analysis.
    - Spillover report in July to examine spillovers and spillbacks from asynchronous monetary normalization in advanced economies and slowdown in emerging economies; provide preliminary considerations on unintended consequences of global financial regulatory reforms (see ¶8).
    - Other work on spillovers from policies in advanced Europe and the United States on emerging Europe, China-euro area linkages, and financial sector interconnectedness in the Caribbean.
  - International monetary system:
    - Staff engagement with Board in mid-July on additional operational considerations for assessing reserve adequacy, examining how income levels, capital controls, and commodity-intensive trade affect reserve needs.
    - New guidance note on international reserves in early 2015.
    - May 2015 Board discussion on initial considerations for the quinquennial Review of Valuation of the SDR.

### III. Strengthening the Fund

#### Governance and resources
- Implementing quota and governance reforms and ensuring adequate resources for crisis prevention and resolution remain absolute priorities.
- 2010 Reforms:
  - July engagement on an update of the quota database through 2012 and implications for calculated quota.
  - If the 2010 Board Reform Amendment and the 14th Quota Review have not become effective by end-year, a Board meeting on alternative options for rebalancing quotas and increasing resources will be scheduled for January 2015.
  - Scheduling of Board meetings on the 15th General Quota Review and revisions to the quota formula will be kept under review, considering ratification progress of the 2010 reforms.
- Borrowing agreements:
  - With the first batch of the 2012 bilateral borrowing agreements approaching the end of their initial two year term, the Board will consider in September 2014 whether, given the Fund’s overall liquidity situation and actual and prospective borrowing requirements, these should be extended for one year following consultations with lenders as allowed under the agreements.

#### Lending and conditionality
- The lending framework will be kept under review to ensure it meets members’ needs.
- Follow-up to recent meeting on access limits and surcharges under the GRA: staff will return to the Board with specific proposed decisions in coming months.
- A Guidance Note on Conditionality to be issued in mid-2014.
- For LICs:
  - Focus on implementing modifications to the current conditionality framework for monetary policy.
  - Prepare the biennial review of PRGT eligibility for next spring.
  - Analytical work to investigate impact of concessionality requirements on LIC borrowing behavior and assess how IMF-supported programs catalyze donor assistance.

*Source: Spring 2014 Global Policy Agenda.*

### 13.      Capacity building. Following the April 2014 discussion of the statement of IMF Policies

### _061114 - 13.      Capacity building. Following the April 2014 discussion of the statement of IMF Policies

### Capacity building
- Staff will submit to the Board a revised statement of IMF Policies and Practices on Capacity Development for approval on a LOT basis, following the April 2014 discussion.
- Staff will provide supplementary information on capacity development activities in Fund budget documents, starting with the FY 2014 budget outturn paper scheduled to be issued in late July (FY 2014 Administrative and Capital Expenses and Output Cost Estimates).

### Learning: reviews, evaluations, and knowledge
- The Fund emphasizes continuous learning through policy and program reviews, ex post evaluations, and stakeholder dialogue to gain insights from policy experiences across the membership.
- Reviews of surveillance:
  - The forthcoming TSR will provide recommendations on deepening Fund analysis of risks and spillovers, mainstreaming financial and macro-financial analysis, and leveraging cross-country knowledge and multilateral surveillance products to bring a more holistic and evenhanded approach to policy advice.
  - Staff will engage the Board in discussing the initial findings of the 2014 TSR in July, followed by a formal meeting in September.
  - The Guidance Note for Surveillance under Article IV Consultations will be updated in early 2015.
  - Staff will advance the Review of the Fund’s Framework for Addressing Excessive Delays in Article IV Consultations and will engage the Board informally in November 2014 to discuss underlying reasons and the appropriateness of the current framework.
- Other reviews and follow-ups:
  - A follow-up Crisis Program Review, distilling lessons from the Fund’s engagement during the global financial crisis and building on some 20 ex-post evaluations, is scheduled for Board discussion in May 2015.
  - Reviews covering the FSAP (in September 2014), operational engagement with states in fragile situations (in early 2015), and work on trade policy (in January 2015). The trade policy review is a Board-endorsed recommendation by the Independent Evaluation Office (IEO).
  - Analytical work on ACTs will distill lessons from Fund arrangements since the start of the Arab Spring.
- Independent Evaluation Office (IEO) items:
  - The Board will discuss the review of Analysis of Recurrent Findings and Lessons from IEO Evaluations in June 2014.
  - The review Learning from Experience at the IMF: An IEO Assessment of Self-Evaluation Systems is scheduled for September 2014 (carried over from the 2013 Spring WP).
  - A formal Board meeting to discuss the IEO review on IMF Statistics is planned for early November 2014.

### Strengthening internal operations
- Objective: Maintain a qualified, flexible, and diverse workforce and prudent resource management to remain responsive to membership needs.
- Human resource management and diversity:
  - The Review of Categories of Employment, recommending amendments to the existing employment framework to align with the Fund’s forward-looking corporate workforce planning strategy (discussed in 2013), will be brought to the Board in the coming months; the date will be determined after the ongoing consultation process concludes.
  - Progress on diversity and inclusion will be discussed in November in the 2014 Diversity and Inclusion Annual Report.
  - Work is underway to develop new diversity benchmarks.
- Budget, finances, risk, and audit:
  - The Board will discuss in August 2014 the Investment Strategy for the Fixed Income Subaccount of the Investment Account, to be followed by another meeting in January.
  - A paper on Implementing the Investment Strategy for the Endowment will be discussed in November.
  - A formal meeting on the 2014 Report on Risk Management is scheduled for mid-July; this meeting will provide an opportunity to discuss the broader approach for the overall risk management architecture of the Fund.
  - Briefings of the External Audit Committee will be held in July 2014 and February 2015.
  - Several meetings to discuss the FY2016 budget have been scheduled for early 2015.

### Communications
- The Review of IMF’s Communication Strategy in July 2014 will take stock of implementation of the Fund’s communications strategy since 2007 and consider measures to strengthen it, building on the informal discussion in February 2014.

*Source: IMF document _061114 - 13. Capacity building. Following the April 2014 discussion of the statement of IMF Policies*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2014/_061114.pdf_