## IMF Capacity Development

## Source details

**Canonical URL:** [IMF Capacity Development](https://www.imf.org/en/about/factsheets/imf-capacity-development)

## Other formats

- [Markdown version](/en/about/factsheets/imf-capacity-development/index.md)
- [Structured JSON version](/en/about/factsheets/imf-capacity-development/index.json)
- [Bundle manifest](/en/about/factsheets/imf-capacity-development/bundle-manifest.json)

## Bibliographic details
- Published: November 11, 2022
- Last updated: April 2025

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### Overview
- The IMF provides technical assistance and training—known as capacity development—as one of its core functions.
- Capacity development accounts for around a third of the IMF’s annual spending.
- It is available to all members upon their request and is tailored to a country’s specific needs.
- Capacity development can help countries improve tax collection and bolster public finances; modernize monetary and exchange rate policies; develop legal systems; strengthen governance; and collect and disseminate data to inform decision-making.
- The factsheet was last updated in April 2025.

### What is capacity development?
- Strengthening the capacity of institutions—including central banks, finance ministries, revenue administrations, statistical agencies, and financial sector supervisory agencies—results in more effective policies and greater economic stability.
- The IMF works with member countries to modernize their economic policies and make institutions more effective by providing demand-driven, tailored technical assistance and training focused on issues that are critical to economic stability and growth.
- Capacity development can help countries improve tax collection, modernize monetary and exchange rate policies, develop legal systems, strengthen governance, collect and disseminate data, and much more.

### Which countries benefit?
- Capacity development is available to all IMF members upon request and is tailored to each country’s specific needs.

### How the IMF provides capacity development and how it is funded
- Delivery modes:
  - IMF headquarters staff meet with country officials in person or remotely.
  - IMF staff may work in the country as resident advisers.
  - The IMF operates a global network of regional capacity development centers.
  - Classroom and online training are offered for officials in member countries.
- Funding:
  - Capacity development accounts for around a third of the IMF’s annual spending.
  - External partners finance more than half of the IMF’s capacity development activities through support to regional capacity development centers, thematic funds, and bilateral projects.

### Areas where capacity development helps countries
- Tax collection and public finance management.
- Monetary and exchange rate policy modernization.
- Legal system development.
- Governance strengthening.
- Collection and dissemination of economic and statistical data.
- Other institution-building activities across central banks, finance ministries, revenue administrations, statistical agencies, and financial sector supervisory agencies.

### How capacity development fits with IMF core functions
- The IMF’s policy advice and lending work help identify areas where capacity development can have the greatest impact.
- Capacity development work helps to increase member countries’ understanding and implementation of IMF policy advice.

### Monitoring, evaluation, and oversight
- The IMF Executive Board oversees capacity development to assess its impact and effectiveness.
- The Executive Board last reviewed the capacity development strategy in 2024.
- The IMF is working to improve how it plans and monitors capacity development.
- Evaluations measure technical assistance and training across the IMF to determine:
  - The degree to which technical assistance has improved macroeconomic stability, public finance management systems, financial governance, and the quality of economic statistics.
  - Whether training has improved job performance of government officials and enhanced their ability to analyze economic developments and assess policy effectiveness.

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## References

- [a
global network of regional capacity development centers](https://www.imf.org/en/Capacity-Development/how-we-work)
- [External partners](https://www.imf.org/en/Capacity-Development/Partners)
- [reviewed the capacity development strategy](https://www.imf.org/en/Capacity-Development/strategy-policies)

_Source: https://www.imf.org/en/about/factsheets/imf-capacity-development_