IMF Executive Board Concludes 2018 Review of the Fund’s Capacity Development Strategy
IMF News, November 20, 2018
Source details
- Canonical URL
- IMF Executive Board Concludes 2018 Review of the Fund’s Capacity Development Strategy
Other formats
Bibliographic details
- Published: November 20, 2018
Background
- The IMF undertakes a comprehensive review of its capacity development (CD) efforts every five years.
- CD accounts for more than 30 percent of IMF’s budget.
- Updated CD Policies and Practices based on the 2013 review were endorsed by the Executive Board on September 4, 2014.
- The current review builds on previous staff and Independent Evaluation Office CD reviews, policy reviews on related topics, and ongoing work on operational strategies relevant to CD.
- The review was informed by stakeholder surveys, interviews, public consultation, background studies and commentaries by Fund staff and external experts, and an External Advisory Group.
- The Executive Board concluded the 2018 Review on November 14, 2018; press materials dated November 20, 2018 (Press Release No. 18/434).
Executive Board assessment — overarching conclusions
- Executive Directors broadly supported the main conclusions and recommendations of the 2018 Review.
- Directors commended substantial progress in implementing the 2013 CD Strategy and noted widespread appreciation for the Fund’s CD.
- Directors endorsed a continued focus on two mutually reinforcing objectives: enhancing the impact of CD and increasing the efficiency of CD.
Findings on impact and efficiency
- Impact:
- Need to strengthen integration of CD with the Fund’s policy advice and lending operations.
- Need to tailor strategies to each country’s institutional capacity and specific needs, with a focus on implementation and outcomes.
- Inclusion of risk considerations in the strategy was welcomed.
- Efficiency:
- Improve processes and systems to enhance transparency and accountability.
- Strengthen the basis for strategic decision‑making, including by the Board.
- With CD spending projected to stabilize, effective prioritization is critical.
Five specific areas of recommendations supported by Directors
- Roles and responsibilities
- Country authorities should play a leading role throughout the CD process, accounting for institutional and capacity constraints.
- Area departments should lead overall country engagement, including establishing country strategies and CD priorities, and collaborate with CD departments.
- Directors encouraged systematic learning from best practices in integrating CD and surveillance and further exploration of integration following the review and the 2020 Comprehensive Surveillance Review.
- Prioritization and monitoring
- Move to a medium‑term orientation of CD planning to increase flexibility of resource allocation across departments and topics.
- Further strengthen overall monitoring of activities and narrow the list of priorities, building on better information systems.
- Operationalize Results‑Based Management and the Common Evaluation Framework.
- Country‑tailored delivery focused on implementation
- Move toward greater modernization and agility in CD delivery; continue experimentation with innovative technologies.
- Encourage cost‑efficiency evaluation of different delivery modalities.
- Strengthen operational support for Regional Capacity Development Centers (RCDCs).
- Emphasize Fund CD activities in Fragile States; some Directors called for further prioritization for these countries.
- Interest in improving CD delivery in the Caucasus and Central Asia, including through a possible RCDC in the region.
- Internal consultation and information sharing
- Strengthen information sharing on CD activities within the Fund.
- Capital investments cited: establishing the Digital Workplace, investment in Knowledge Management, and the CD Management and Administration Program (CDMAP) to address gaps and harmonize CD processes.
- Coordination, communication, and dissemination
- Systematize coordination with other CD providers, notably the World Bank.
- Pursue innovative approaches to raise awareness of the Fund’s CD work.
- Improve presentation of recommendations in TA reports and publish more topical notes and TA reports while preserving confidentiality and client trust.
Funding, HR, and governance implications
- Directors emphasized need to strengthen the sustainability and fungibility of external financing and to closely monitor and manage related risks in light of significant CD growth.
- Requested more comprehensive information about the funding model; a few Directors noted need to discuss funding in future updates.
- Acknowledged the review occurs in a resource‑constrained environment; many recommendations will require reprioritization within departments and rigorous targeting of CD to focus on impact.
- Directors noted importance of strengthening HR practices and better incentivizing CD work.
- In accordance with the 2014 CD policy statement, the Board should provide strategic direction and oversight through regular reviews and the budget process.
- Directors encouraged continued informal Board briefings on CD activities and more regular engagement on strategic direction and priority‑setting.
Timing and follow‑up
- It is expected that the next review of the Fund’s CD strategy will be completed no later than November 2023.
- Reference note: an explanation of qualifiers used in summings up is provided by the Fund (see press material).
Source: Press Release No. 18/434, IMF Communications Department, November 20, 2018.
Content in this bundle
- 1. CD and Surveillance Interactions in the Policy-Making Cycle
References
- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg
- The Executive Board
- 2018 Review of the Fund's Capacity Development Strategy - Overview Paper
- IMF Capacity Development Strategy and Policies
- IMF Surveillance -- A Factsheet
- Press Releases
- PRESS CENTER
- endorsed
- CD Policies and Practices
- http://www.imf.org/external/np/sec/misc/qualifiers.htm
- https://www.imf.org/en/home
