## Managing Director’s Statement on the 2014 Triennial Surveillance Review

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**Canonical URL:** [Managing Director’s Statement on the 2014 Triennial Surveillance Review](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2014/_092514.pdf)

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### Context and objectives
- Date: September 26, 2014
- Since the last surveillance review in 2011, Fund staff, Management, and the Executive Board have worked to raise the bar on Fund surveillance, adapting to a highly interconnected global economy.
- Surveillance aims to provide timely and tailored advice to ensure economic and financial stability across the entire Fund membership, serving smallest and largest members alike.

### Overarching principles (Two)
- Consolidate major changes since 2011:
  - Refine and reinforce recent innovations.
  - Ensure recent innovations are effectively embedded in the practice of surveillance.
- Continue to adapt to emerging challenges and deliver “smarter” surveillance:
  - Analysis and expert advice based on a deeper understanding of country perspectives and experiences.

### Convergent proposals and three main pillars
- The TSR papers converge around three main pillars expected to position the Fund for greater value-added surveillance:

1. Integrate and deepen risk and spillover analysis
- Top priority to detect risks early and understand interlinkages and spillovers across sectors and economies to help prevent crises.
- Progress noted:
  - Risk assessment matrices now included in Article IV reports.
  - Spillover Reports as examples of more risk-based surveillance capturing economic and financial interconnections.
- Goal: advance work by focusing on how risks map across countries and how spillovers and spillbacks transmit across sectors.
- Two important refinements to the surveillance toolkit:
  - (i) reviving and modernizing balance sheet analysis;
  - (ii) taking steps to ensure that surveillance deepens the analysis of macro-financial relationships.

2. More tailored and cohesive policy advice
- Crisis triggered rethinking of policy frameworks; the Fund reshaped policy approaches including:
  - Being more cognizant of the growth implications of its fiscal advice.
  - Rethinking its institutional view on capital flows.
- Macroprudential policies are a growing area of importance due to financial sector fault-lines highlighted by the crisis.
- Post-crisis shared challenge: ensure more durable, job-rich growth while continuing to build resilience against shocks.
- “Smarter” surveillance entails:
  - Better country tailoring;
  - More attention to a mix of policies;
  - Greater recognition that many structural policies are germane to macroeconomic stability and growth.
- Opportunity: capitalize on cross-country knowledge within the Fund and better share policy experiences across countries.

3. More impact through engagement
- Improving analytical toolkit is necessary but insufficient; engagement and communication with member countries must improve to better inform analysis and policy advice.
- Deeper understanding of country perspectives and more client-focused, yet candid communication should:
  - Ensure evenhandedness;
  - Produce a richer policy dialogue.
- At the multilateral level, conveying a clear and streamlined set of key policy messages will strengthen the Fund’s influence on the global policy dialogue.
- Emphasis that there is a shared responsibility for taking action between policy makers and the Fund; achieving traction requires convincing global policymakers, accountable to domestic constituencies, to work together for global stability.

### Next steps
- Following the Board discussion, the Managing Director will reflect on the views of Executive Directors and return with a more detailed action plan to take forward the agenda laid out in the 2014 TSR.

*Source: Managing Director’s Statement on the 2014 Triennial Surveillance Review (September 26, 2014).*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2014/_092514.pdf_