## Policy priorities (Fall 2014 Global Policy Agenda excerpt)

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---

### GPA core priorities and Fund support
- Actions needed to prevent growth settling into a “new mediocre” with unacceptably low job creation and inclusion, including:
  - managing eventual monetary normalization in advanced economies and its effects on other economies
  - growth-friendly fiscal policies to enhance the quality of public expenditure and reduce distortions in revenue collection
  - policies to safeguard financial stability while strengthening credit transmission
  - structural reforms to buttress productivity and strengthen growth
  - increasing investment in infrastructure
- The GPA outlined how the Fund would support the membership through:
  - assessments and policy advice provided in the context of multilateral and bilateral surveillance
  - capacity building
  - financial support

### Fall 2014 work program (translation of GPA into Board agenda)
- Purpose: translate GPA and IMFC communiqué into a work agenda for the Executive Board over the next 12 months.
- New Board items added to reflect emerging concerns, including:
  - use of the balance sheet approach in surveillance
  - monetary policy frameworks in low-income developing countries (LIDCs)
  - changes in the mode of Fund engagement to support poverty reduction in low-income countries
- Additional program elements:
  - follow-up Board meeting to advance work on assessing reserve adequacy
  - staff to carry forward analytical work related to several GPA priorities
  - Managing Director’s Action Plan for Strengthening Surveillance to be circulated to the Board for information in November 2014
- Note: implementation builds on work completed in the past year and complements the recently completed 2014 Triennial Surveillance Review (TSR)

### Implementation of the Spring 2014 work program
- The Executive Board’s work program of Spring 2014 was implemented broadly as planned.
- Process notes:
  - Additional informal meetings were scheduled ahead of formal discussions for some key items
  - Most policy meetings concluded on schedule
  - A few meetings encountered delays due to need for more consultations and competing work pressures

### I. Conjuncture and risks — assessment and planned discussion schedule
- Overall assessment:
  - recovery in economic activity remained uneven and sluggish
  - downside risks to the outlook increased
  - many members face the challenge of escaping a brittle, mediocre recovery while addressing vulnerabilities from the global financial crisis
- Planned Board engagement and products:
  - joint Board sessions of the WEO, GFSR, and Fiscal Monitor ahead of the Spring and Annual Meetings in March and September 2015
  - World Economic and Market Developments (WEMD) Updates in January and July
  - Early Warning Exercise discussion in the run-up to the Spring and Annual Meetings
  - December 2014 briefing on the role of the Vulnerability Exercise in the Fund’s risk assessment and surveillance work
  - formal discussion on the Low-Income Developing Countries Report (September 2015)
  - paper on Selected Issues in Small States (February 2015)
  - briefings on Fund operational engagement in fragile states
  - cluster reports examining common policy issues for country groups; area departments to brief regularly on regional developments

### II. Addressing policy challenges

#### A. Structural Reforms
- Objective: raise the priority of reform to boost labor demand and supply, and spur trade and investment, alongside well-calibrated macroeconomic policies.
- Key work streams and planned deliverables:
  - Identifying macro-critical structural reform priorities; Board discussion on Fiscal Policy and Long-Term Growth in May 2015
  - Staff Discussion Note (SDN) on sectoral policies to boost growth in advanced economies
  - SDN analyzing potential growth and productivity drivers in the Middle East and Central Asia; additional analytical work for Europe
  - expansion and wider implementation of a diversification toolkit for structural transformation and quality upgrading
  - TSR action plan to recommend how to address structural reform issues in Fund surveillance
  - Investing for growth: Board briefing in May 2015 on Making Public Investment More Efficient
  - SDN on public investment efficiency in oil exporting countries of the Middle East
  - Review of the Role of Trade in the Work of the Fund scheduled for Board discussion in February 2015
  - Ongoing work with OECD, United Nations, and World Bank on tax incentives and international taxation schemes
  - SDN on structural transformation and diversification in Gulf Cooperation Council countries
  - Analytical work on financial inclusion, financial deepening, and inequality; a book on the role of fiscal policy in inequality following up on earlier board discussion
  - Operationalizing recent analytical work on inequality and jobs and growth in Article IV consultations with first-round reports to be issued in the coming year

#### B. Fiscal Policy
- Policy stance:
  - fiscal policy should be growth friendly, with pace and composition of adjustment supporting recovery while balancing fiscal sustainability within credible medium-term plans
- Support mechanisms:
  - advice, technical assistance, and training to develop and calibrate fiscal packages that support long-term growth, reduce public debt overhangs, and strengthen fiscal institutional frameworks
- Planned analytical work and Board items:
  - forthcoming Fiscal Monitor to focus on short-term macroeconomic stabilization and analyze automatic stabilizers
  - Board briefing: Fiscal Policy and Long-Term Growth (May 2015); Making Public Investment More Efficient (see ¶5)
  - Current Challenges in Revenue Mobilization: Improving Tax Compliance now planned for February 2015
  - further analytical work on linkages between fiscal policy and productivity, and on how public debt restructuring and fiscal reform episodes affect growth
  - Board briefing in January 2015: From Banking to Sovereign Stress: Implications for Public Debt
  - Board discussion in December 2014 on proposals to revise the Fund’s debt limits policy in Fund-supported programs
  - continued work on possible modifications of the Fund's lending framework in the context of sovereign debt vulnerabilities
  - institutional framework work: investment frameworks (Making Public Investment More Efficient), broader fiscal framework analysis in the European Union and Sub-Saharan Africa, and trends in fiscal transparency
  - revenue administration institutional issues to be addressed in Current Challenges in Revenue Mobilization: Improving Tax Compliance

#### C. Monetary and macroprudential policy
- Context:
  - subdued growth and ongoing fiscal consolidation; divergent country needs for monetary policy
- Priorities by country group:
  - advanced economies: monetary policy generally supportive of demand where appropriate; policy normalization emerging in some countries
  - emerging market and frontier economies: guard against spillovers via capital flows and exchange rate volatility
  - LIDCs: strengthen policy frameworks while growth remains robust to shield against adverse external shocks
- Planned Board items and deliverables:
  - informal session: The Role of Exchange Rate Intervention: Issues and Experiences (February 2015)
  - follow-up paper: Assessing Reserve Adequacy – Proposals (January 2015) with a guidance note planned for the first quarter of 2015
  - comprehensive guidance note on macroprudential policies to be issued by end-November
  - embedding macroprudential policy advice in bilateral surveillance
  - informal session: New Aspects of Monetary Policy planned for September 2015
  - informal briefing: Evolving Monetary Policy Frameworks in Low-Income Developing Countries (August 2015)
  - continued advice and capacity building to help LIDCs strengthen monetary policy frameworks

#### D. Financial Sector Policies
- Goal: safeguard financial stability while strengthening credit transmission; support completion and implementation of global financial regulatory reforms; advise on macro-financial risks and policy responses; promote financial deepening and inclusion.
- Planned work and briefings:
  - Board briefings in December and June on progress with the global regulatory reform agenda
    - December briefing to cover progress on too-big-to-fail, FSAP context, changes in global banks’ business models, updates on lists of G-SIBs and G-SIIs, new Basic Capital Requirement for G-SIIs, and policies addressing other systemically-important infrastructures and institutions
  - Fund-wide effort to strengthen coverage of macro-financial issues in bilateral surveillance, with focused efforts for countries in each region
  - informal briefing: Balance Sheets in Surveillance (May 2015)
  - Board briefing in May 2015: Macro-Financial Implications of Financial Integration in Central America, Panama, the Dominican Republic, and Colombia
  - cluster report on housing recoveries in Europe (December 2014)
  - analytical work on developing securitization markets in Europe and SDN on linkages between housing finance systems and real estate booms
- Financial inclusion and deepening specific items:
  - Board briefing in January 2015: Pan-African Banks: Opportunities and Challenges for Cross-Border Oversight
  - informal briefing in February 2015: Rethinking Financial Deepening: Stability and Growth in Emerging Markets
  - Board briefing in April 2015: Future of Asia’s Finance
- Islamic Finance (IF):
  - Board briefing in March 2015; SDN reviewing IF implications for macro-financial stability, financial regulation and supervision, monetary policy, and access to finance; co-hosting a global conference on IF in mid-2015
- Data gaps and data standards:
  - Board discussion in May 2015: Ninth Review of the Fund’s Data Standards Initiatives, including reforms to modernize the General Data Dissemination System
  - sixth progress report on the G-20 Data Gaps Initiative to the Board for information in September 2015, including a proposal for a second phase as called for in the G-20 Communiqué of September 2014

#### E. Policy Cooperation and Coherence
- Rationale: dialogue and cooperation needed to improve policy implementation and avoid unintended distortions and spillovers, especially in financial stability and global imbalances.
- Fund roles and planned multilateral surveillance:
  - provide financial support, including on a precautionary basis, for appropriate adjustments and reforms
  - help catalyze assistance from donors and other institutions
  - actively participate in shaping the post-2015 Development Agenda, particularly options to finance the Sustainable Development Goals (SDGs)
  - Spillover Report and External Sector Report scheduled for June and July 2015, respectively, to discuss spillovers from systemic economies and multilateral consistency of policies
  - integrate key messages from these reports into flagship products and the GPA
  - expand use of the External Balance Assessment (EBA) to more countries and discuss domestic policy contributions to imbalances
  - quinquennial Review of Valuation of the SDR to be conducted in October 2015, with an informal briefing to engage in May; review to update indicators used for assessing SDR currency basket composition, evaluate weighting methodology, and discuss SDR interest rate basket issues
- Global challenges and cross-cutting analysis:
  - readiness to provide further financial assistance to countries affected by the Ebola crisis and help catalyze assistance from donors and other institutions
  - mainstream climate change and gender issues in countries where such issues are macro-critical
  - conduct analysis on macroeconomic implications of water challenges and demographics

*Source: Fall 2014 Global Policy Agenda (excerpt provided).*

### Financing for Development

### Financing for Development (SDG-focused work)
- The Fund will make a key contribution to the discourse as the international community formulates SDGs to guide international development efforts through 2030.
- A paper exploring the key issues relating to mobilizing resources for development will be brought to the Board for formal discussion in May.
- The paper will serve as the Fund’s core analytical contribution to the work of the July 2015 Conference on Financing for Development, at which issues relating to financing the SDGs are to be taken up.

*Source: Excerpt from Fall 2014 work program and priorities (IMF).*

### Strengthening the Fund — Overview and implementation priorities

### Governance and resources
- Objectives:
  - ensure governance structures keep pace with the makeup of the world economy
  - maintain sufficient availability of resources within a sound and even-handed lending framework
  - learn from past experience and outside evaluations
  - shift internal resources to emerging priorities
- Specific guidance and timing:
  - Prompt entry into force of the 2010 Quota and Governance reforms is emphasized as of utmost importance
  - If the 2010 Board Reform Amendment and the 14th General Review of Quotas have not become effective by the end of 2014, a Board meeting on alternative options for rebalancing quotas and increasing Fund resources will be scheduled for January 2015
  - The Board will discuss a draft report to the Board of Governors on the 15th General Review of Quotas before the end-January deadline for the completion of the Review
  - The timing of Board meetings on the 15th General Review and on revisions to the quota formula will be determined, taking into account progress made in ratifying the 2010 reforms

### Lending framework
- Board considerations and scheduled items:
  - Guidance notes on the Flexible Credit Line and Precautionary Liquidity Line will be finalized in December 2014
  - The Crisis Program Review (May 2015) will distill lessons from Fund arrangements during the global financial crisis
  - For low-income countries, Reframing the Treatment of PRS in Fund Engagement with LICs (February 2015) will propose adjustments to the requirements for Poverty Reduction Strategy Papers in the Fund’s engagement with LIDCs
  - A biennial review of Eligibility to Use the Fund's Facilities for Concessional Financing (May 2015) will be conducted
  - The timing of a follow-up Board meeting on access limits and surcharges will be determined, taking into account progress in making effective the 14th General Review of Quotas

### Learning (policy and program reviews; outreach)
- TSR follow-up and Action Plan:
  - The Managing Director will outline an Action Plan for Strengthening Surveillance, to be circulated to the Board for information in November 2014
  - The Action Plan identifies specific proposals in the five priority areas agreed in the 2014 TSR:
    - (i) second-generation reforms to risk and spillover analysis;
    - (ii) mainstreaming macro-financial analysis;
    - (iii) delivering more tailored policy advice;
    - (iv) more cohesive and expert policy advice; and
    - (v) strengthening dialogue and communication
  - The TSR and its recommendations will inform the update of the Guidance Note for Surveillance under Article IV Consultations, planned for early 2015
- Other policy and operational reviews (timing):
  - Review of the Role of Trade in the Work of the Fund (February 2015)
  - Review of Fund Operational Engagement with States in Fragile Situations (February 2015)
  - January 2015 briefing: Review of the Fund’s Framework for Addressing Excessive Delays of Article IV Consultations
  - Quinquennial review Safeguards Assessments—Review of Experience (October 2015)
- IEO agenda and management responses:
  - Self-Evaluation at the IMF: Learning from Experience (now planned for May 2015)
  - Statistics for Global Economic and Financial Stability: The Role of the IMF (now planned for June 2015)
  - Next study to revisit past evaluations and update the 2005 evaluation on The IMF’s Approach to Capital Account Liberalization
  - Management implementation plans will be prepared on recent IEO reviews on:
    - IMF Forecasts: Process, Quality, and Country Perspectives;
    - IMF Response to the Financial and Economic Crisis; and
    - Recurring Issues from a Decade of Evaluation: Lessons for the IMF

### Strengthening internal operations
- Employment framework and workforce management:
  - With the employment framework approved by the Board, implementation will begin in May 2015, alongside strengthening leadership culture and managerial capabilities
  - Aspects of compensation and benefits will be analyzed to ensure recruitment and retention of a qualified, flexible, and diverse workforce
  - Changing needs and new demands will be met mainly through reallocations and efficiencies
- Diversity and inclusion:
  - The 2014 Diversity and Inclusion Annual Report, to be discussed in November, reviews progress toward the 2014 benchmarks, suggests steps toward reaching the new 2020 benchmarks, and discusses inclusion issues in the work environment
- Budget, finances, risk, and audit timelines:
  - Discussions on the FY2016-2018 Medium-Term Budget will begin in February 2015 with a committee session and culminate with a formal Board meeting in April 2015
  - The Board will review the Fund’s Income Position for FY2015 and FY2016-17 in April 2015
  - A paper on An Investment Approach for the Active Component of the Endowment will be discussed in November 2014
  - The Board will discuss the Review of the Fixed Income Subaccount of the Fund’s Investment Account in March 2015
  - The External Audit Committee will provide audit oversight through regular briefings (January and July 2015)
  - Under the Fund’s current Risk Management Framework, the new Risk Management Unit will present the 2015 Report on Risk Management (June 2015)
- Compensation, benefits, recruitment and retention actions:
  - In April 2015, a comprehensive review of compensation and benefits, along with a study of the recruitment and retention experience in 2014, will be presented via three separate papers for Board discussion
  - Two informal briefings on staff compensation and benefits are planned before the issuance of the papers to provide background on approach and results
  - The Review of Recruitment and Retention for CY2014 will evaluate the Fund’s hiring experience and update on implementation of the Externally-Financed Appointee program

*Source: Excerpt from Fall 2014 work program and priorities (IMF).*

### 1.      Policy priorities. The Managing Director’s Global Policy Agenda (GPA) presented

### 1.      Policy priorities. The Managing Director’s Global Policy Agenda (GPA) presented

### GPA core priorities and Fund support
- Actions needed to prevent growth settling into a “new mediocre” with unacceptably low job creation and inclusion, including:
  - managing eventual monetary normalization in advanced economies and its effects on other economies
  - growth-friendly fiscal policies to enhance the quality of public expenditure and reduce distortions in revenue collection
  - policies to safeguard financial stability while strengthening credit transmission
  - structural reforms to buttress productivity and strengthen growth
  - increasing investment in infrastructure
- The GPA outlined how the Fund would support the membership through:
  - assessments and policy advice provided in the context of multilateral and bilateral surveillance
  - capacity building
  - financial support

### Fall 2014 work program (translation of GPA into Board agenda)
- Purpose: translate GPA and IMFC communiqué into a work agenda for the Executive Board over the next 12 months.
- New Board items added to reflect emerging concerns, including:
  - use of the balance sheet approach in surveillance
  - monetary policy frameworks in low-income developing countries (LIDCs)
  - changes in the mode of Fund engagement to support poverty reduction in low-income countries
- Additional program elements:
  - follow-up Board meeting to advance work on assessing reserve adequacy
  - staff to carry forward analytical work related to several GPA priorities
  - Managing Director’s Action Plan for Strengthening Surveillance to be circulated to the Board for information in November 2014
- Note: implementation builds on work completed in the past year and complements the recently completed 2014 Triennial Surveillance Review (TSR)

### Implementation of the Spring 2014 work program
- The Executive Board’s work program of Spring 2014 was implemented broadly as planned.
- Process notes:
  - Additional informal meetings were scheduled ahead of formal discussions for some key items
  - Most policy meetings concluded on schedule
  - A few meetings encountered delays due to need for more consultations and competing work pressures

### I. Conjuncture and risks — assessment and planned discussion schedule
- Overall assessment:
  - recovery in economic activity remained uneven and sluggish
  - downside risks to the outlook increased
  - many members face the challenge of escaping a brittle, mediocre recovery while addressing vulnerabilities from the global financial crisis
- Planned Board engagement and products:
  - joint Board sessions of the WEO, GFSR, and Fiscal Monitor ahead of the Spring and Annual Meetings in March and September 2015
  - World Economic and Market Developments (WEMD) Updates in January and July
  - Early Warning Exercise discussion in the run-up to the Spring and Annual Meetings
  - December 2014 briefing on the role of the Vulnerability Exercise in the Fund’s risk assessment and surveillance work
  - formal discussion on the Low-Income Developing Countries Report (September 2015)
  - paper on Selected Issues in Small States (February 2015)
  - briefings on Fund operational engagement in fragile states
  - cluster reports examining common policy issues for country groups; area departments to brief regularly on regional developments

### II. Addressing policy challenges

#### A. Structural Reforms
- Objective: raise the priority of reform to boost labor demand and supply, and spur trade and investment, alongside well-calibrated macroeconomic policies.
- Key work streams:
  - Identifying macro-critical structural reform priorities; Board discussion on Fiscal Policy and Long-Term Growth in May 2015
  - Staff Discussion Note (SDN) on sectoral policies to boost growth in advanced economies
  - SDN analyzing potential growth and productivity drivers in the Middle East and Central Asia; additional analytical work for Europe
  - expansion and wider implementation of a diversification toolkit for structural transformation and quality upgrading
  - TSR action plan to recommend how to address structural reform issues in Fund surveillance
  - Investing for growth: Board briefing in May 2015 on Making Public Investment More Efficient
  - SDN on public investment efficiency in oil exporting countries of the Middle East
  - Review of the Role of Trade in the Work of the Fund scheduled for Board discussion in February 2015
  - Ongoing work with OECD, United Nations, and World Bank on tax incentives and international taxation schemes
  - SDN on structural transformation and diversification in Gulf Cooperation Council countries
  - Analytical work on financial inclusion, financial deepening, and inequality; a book on the role of fiscal policy in inequality following up on earlier board discussion
  - Operationalizing recent analytical work on inequality and jobs and growth in Article IV consultations with first-round reports to be issued in the coming year

#### B. Fiscal Policy
- Policy stance: fiscal policy should be growth friendly, with pace and composition of adjustment supporting recovery while balancing fiscal sustainability within credible medium-term plans.
- Support mechanisms: advice, technical assistance, and training to develop and calibrate fiscal packages that support long-term growth, reduce public debt overhangs, and strengthen fiscal institutional frameworks.
- Planned analytical and Board items:
  - forthcoming Fiscal Monitor to focus on short-term macroeconomic stabilization and analyze automatic stabilizers
  - Board briefing: Fiscal Policy and Long-Term Growth (May 2015); Making Public Investment More Efficient (see ¶5)
  - Current Challenges in Revenue Mobilization: Improving Tax Compliance now planned for February 2015
  - further analytical work on linkages between fiscal policy and productivity, and on how public debt restructuring and fiscal reform episodes affect growth
  - Board briefing in January 2015: From Banking to Sovereign Stress: Implications for Public Debt
  - Board discussion in December 2014 on proposals to revise the Fund’s debt limits policy in Fund-supported programs
  - continued work on possible modifications of the Fund's lending framework in the context of sovereign debt vulnerabilities
  - institutional framework work: investment frameworks (Making Public Investment More Efficient), broader fiscal framework analysis in the European Union and Sub-Saharan Africa, and trends in fiscal transparency
  - revenue administration institutional issues to be addressed in Current Challenges in Revenue Mobilization: Improving Tax Compliance

#### C. Monetary and macroprudential policy
- Context: subdued growth and ongoing fiscal consolidation; divergent country needs for monetary policy.
- Priorities:
  - advanced economies: monetary policy generally supportive of demand where appropriate; policy normalization emerging in some countries
  - emerging market and frontier economies: guard against spillovers via capital flows and exchange rate volatility
  - LIDCs: strengthen policy frameworks while growth remains robust to shield against adverse external shocks
- Planned Board items and deliverables:
  - informal session: The Role of Exchange Rate Intervention: Issues and Experiences (February 2015)
  - follow-up paper: Assessing Reserve Adequacy – Proposals (January 2015) with a guidance note planned for the first quarter of 2015
  - comprehensive guidance note on macroprudential policies to be issued by end-November
  - embedding macroprudential policy advice in bilateral surveillance
  - informal session: New Aspects of Monetary Policy planned for September 2015
  - informal briefing: Evolving Monetary Policy Frameworks in Low-Income Developing Countries (August 2015)
  - continued advice and capacity building to help LIDCs strengthen monetary policy frameworks

#### D. Financial Sector Policies
- Goal: safeguard financial stability while strengthening credit transmission; support completion and implementation of global financial regulatory reforms; advise on macro-financial risks and policy responses; promote financial deepening and inclusion.
- Planned work:
  - Board briefings in December and June on progress with the global regulatory reform agenda
    - December briefing to cover progress on too-big-to-fail, FSAP context, changes in global banks’ business models, updates on lists of G-SIBs and G-SIIs, new Basic Capital Requirement for G-SIIs, and policies addressing other systemically-important infrastructures and institutions
  - Fund-wide effort to strengthen coverage of macro-financial issues in bilateral surveillance, with focused efforts for countries in each region
  - informal briefing: Balance Sheets in Surveillance (May 2015)
  - Board briefing in May 2015: Macro-Financial Implications of Financial Integration in Central America, Panama, the Dominican Republic, and Colombia
  - cluster report on housing recoveries in Europe (December 2014)
  - analytical work on developing securitization markets in Europe and SDN on linkages between housing finance systems and real estate booms
  - Financial inclusion and deepening:
    - Board briefing in January 2015: Pan-African Banks: Opportunities and Challenges for Cross-Border Oversight
    - informal briefing in February 2015: Rethinking Financial Deepening: Stability and Growth in Emerging Markets
    - Board briefing in April 2015: Future of Asia’s Finance
  - Islamic Finance (IF): Board briefing in March 2015; SDN reviewing IF implications for macro-financial stability, financial regulation and supervision, monetary policy, and access to finance; co-hosting a global conference on IF in mid-2015
  - Data gaps:
    - Board discussion in May 2015: Ninth Review of the Fund’s Data Standards Initiatives, including reforms to modernize the General Data Dissemination System
    - sixth progress report on the G-20 Data Gaps Initiative to the Board for information in September 2015, including a proposal for a second phase as called for in the G-20 Communiqué of September 2014

#### E. Policy Cooperation and Coherence
- Rationale: dialogue and cooperation needed to improve policy implementation and avoid unintended distortions and spillovers, especially in financial stability and global imbalances.
- Fund roles:
  - provide financial support, including on a precautionary basis, for appropriate adjustments and reforms
  - help catalyze assistance from donors and other institutions
  - actively participate in shaping the post-2015 Development Agenda, particularly options to finance the Sustainable Development Goals (SDGs)
- Planned multilateral surveillance and related work:
  - Spillover Report and External Sector Report scheduled for June and July 2015, respectively, to discuss spillovers from systemic economies and multilateral consistency of policies
  - integrate key messages from these reports into flagship products and the GPA
  - expand use of the External Balance Assessment (EBA) to more countries and discuss domestic policy contributions to imbalances
  - quinquennial Review of Valuation of the SDR to be conducted in October 2015, with an informal briefing to engage in May; review to update indicators used for assessing SDR currency basket composition, evaluate weighting methodology, and discuss SDR interest rate basket issues
- Global challenges and cross-cutting analysis:
  - readiness to provide further financial assistance to countries affected by the Ebola crisis and help catalyze assistance from donors and other institutions
  - mainstream climate change and gender issues in countries where such issues are macro-critical
  - conduct analysis on macroeconomic implications of water challenges and demographics

*Source: Fall 2014 Global Policy Agenda (excerpt provided).*

### 10.      Financing for Development. As the international community formulates SDGs to

### 10.      Financing for Development. As the international community formulates SDGs to

### Financing for Development
- The Fund will make a key contribution to the discourse as the international community formulates SDGs to guide international development efforts through 2030.
- A paper exploring the key issues relating to mobilizing resources for development will be brought to the Board for formal discussion in May.
- The paper will serve as the Fund’s core analytical contribution to the work of the July 2015 Conference on Financing for Development, at which issues relating to financing the SDGs are to be taken up.

### III. STRENGTHENING THE FUND — Overview
- The Fund will evolve to meet changing global economic challenges by:
  - ensuring governance structures keep pace with the makeup of the world economy;
  - maintaining sufficient availability of resources within a sound and even-handed lending framework;
  - learning from past experience and outside evaluations; and
  - shifting internal resources to emerging priorities.

### Governance and resources
- Prompt entry into force of the 2010 Quota and Governance reforms is emphasized as of utmost importance to preserve the quota-based nature of the IMF, and strengthen its legitimacy, effectiveness and relevance.
- In line with the IMFC’s commitment to maintaining a strong and adequately-resourced IMF, steps will be taken to ensure availability of sufficient Fund resources for crisis prevention and resolution.
- As flagged in the Spring WP:
  - If the 2010 Board Reform Amendment and the 14th General Review of Quotas have not become effective by the end of 2014, a Board meeting on alternative options for rebalancing quotas and increasing Fund resources will be scheduled for January 2015.
  - The Board will discuss a draft report to the Board of Governors on the 15th General Review of Quotas before the end-January deadline for the completion of the Review.
  - The timing of Board meetings on the 15th General Review and on revisions to the quota formula will be determined, taking into account progress made in ratifying the 2010 reforms.

### Lending framework
- The Board will consider several items to ensure the Fund’s lending framework aligns with member needs:
  - Guidance notes on the Flexible Credit Line and Precautionary Liquidity Line will be finalized in December 2014.
  - The Crisis Program Review (May 2015) will distill lessons from Fund arrangements during the global financial crisis.
  - For low-income countries, Reframing the Treatment of PRS in Fund Engagement with LICs (February 2015) will propose adjustments to the requirements for Poverty Reduction Strategy Papers in the Fund’s engagement with LIDCs.
  - A biennial review of Eligibility to Use the Fund's Facilities for Concessional Financing (May 2015) will be conducted.
  - The timing of a follow-up Board meeting on access limits and surcharges will be determined, taking into account progress in making effective the 14th General Review of Quotas.

### Learning (policy and program reviews; outreach)
- Triennial Surveillance Review (TSR) follow-up:
  - The Managing Director will outline an Action Plan for Strengthening Surveillance, to be circulated to the Board for information in November 2014.
  - The Action Plan identifies specific proposals in the five priority areas agreed in the 2014 TSR:
    - (i) second-generation reforms to risk and spillover analysis;
    - (ii) mainstreaming macro-financial analysis;
    - (iii) delivering more tailored policy advice;
    - (iv) more cohesive and expert policy advice; and
    - (v) strengthening dialogue and communication.
  - The TSR and its recommendations will inform the update of the Guidance Note for Surveillance under Article IV Consultations, planned for early 2015.
- Other policy reviews (carried over from the Spring WP):
  - Review of the Role of Trade in the Work of the Fund (February 2015), a Board-endorsed recommendation by the Independent Evaluation Office (IEO).
  - Review of Fund Operational Engagement with States in Fragile Situations (February 2015), examining programs, surveillance, and capacity building with members in fragile situations.
  - In January 2015, the Board will be briefed on Review of the Fund’s Framework for Addressing Excessive Delays of Article IV Consultations.
  - The Board will discuss the quinquennial review Safeguards Assessments—Review of Experience (October 2015), reviewing recent experience with assessments of central bank financial safeguards.
- Independent Evaluation Office (IEO) agenda:
  - Self-Evaluation at the IMF: Learning from Experience (now planned for May 2015) and Statistics for Global Economic and Financial Stability: The Role of the IMF (now planned for June 2015) carried over from the Spring WP.
  - The next study will revisit past evaluations and update the 2005 evaluation on The IMF’s Approach to Capital Account Liberalization.
  - Management implementation plans will be prepared on recent IEO reviews on:
    - IMF Forecasts: Process, Quality, and Country Perspectives;
    - IMF Response to the Financial and Economic Crisis; and
    - Recurring Issues from a Decade of Evaluation: Lessons for the IMF.

### Strengthening internal operations
- Employment framework:
  - With the employment framework approved by the Board, implementation will begin in May 2015, alongside strengthening leadership culture and managerial capabilities.
  - Aspects of compensation and benefits will be analyzed to ensure recruitment and retention of a qualified, flexible, and diverse workforce.
  - Changing needs and new demands will be met mainly through reallocations and efficiencies.
- Diversity and inclusion:
  - The 2014 Diversity and Inclusion Annual Report, to be discussed in November, reviews progress toward the 2014 benchmarks, suggests steps toward reaching the new 2020 benchmarks, and discusses inclusion issues in the work environment.
- Budget, finances, risk, and audit:
  - Discussions on the FY2016-2018 Medium-Term Budget will begin in February 2015 with a committee session and culminate with a formal Board meeting in April 2015.
  - The Board will review the Fund’s Income Position for FY2015 and FY2016-17 in April 2015.
  - A paper on An Investment Approach for the Active Component of the Endowment will be discussed in November 2014.
  - The Board will discuss the Review of the Fixed Income Subaccount of the Fund’s Investment Account in March 2015.
  - The External Audit Committee will provide audit oversight through regular briefings (January and July 2015).
  - Under the Fund’s current Risk Management Framework, the new Risk Management Unit will present the 2015 Report on Risk Management (June 2015).
- Compensation, benefits, recruitment and retention:
  - In April 2015, a comprehensive review of compensation and benefits, along with a study of the recruitment and retention experience in 2014, will be presented via three separate papers for Board discussion.
  - Two informal briefings on staff compensation and benefits are planned before the issuance of the papers to provide background on approach and results.
  - The Review of Recruitment and Retention for CY2014 will evaluate the Fund’s hiring experience and update on implementation of the Externally-Financed Appointee program, designed to build capacity among mid-level officials from Fund member countries.

*Source: Excerpt from Fall 2014 work program and priorities (IMF).*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2014/_112414.pdf_