IMF and Good Governance

Poor governance offers more incentives and opportunities for corruption—the abuse of public office for private gain. Corruption undermines the public’s trust in its government. It also threatens market integrity, distorts competition, and endangers economic development.

Because poor governance is so detrimental, the IMF adopted a policy in 1997 on The Role of the IMF in Governance Issues. In 2018, the IMF adopted a Framework for Enhanced Engagement on Governance. The framework aims to promote more systematic, effective, candid, and evenhanded engagement with member countries on governance matters, including corruption, that impact macroeconomic performance. In 2023, the IMF conducted an in-depth stocktaking of the Fund’s engagement on governance and corruption since the adoption of the 2018 framework. The review found that such Fund engagement has been in line with its objectives and provided concrete proposals to strengthen engagement in these areas.