Capacity Development Work
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Introduction to Capacity Development
- The IMF serves as a global hub for knowledge on economic and financial issues, with world-leading expertise and a repository of experience on which policies work, why they unleash growth, and how best to implement them.
- The IMF shares knowledge with member countries through hands-on advice, training and peer-to-peer learning to help governments modernize institutions and devise economic policies that support growth, stability, and jobs creation.
- Capacity development is part of the IMF’s core mandate — along with tracking economic developments and lending to countries that experience crises.
Public Finances
- Purpose: Advise governments on raising revenues and effectively managing expenditure to enable better public services such as schools, transport, or hospitals.
- Illustrative outcomes:
- In Mongolia, the Ministry of Finance boosted the tax-to-GDP ratio by 5 percent from 2020 to 2024, resulting in a $1 billion increase in revenue.
- In the Republic of Congo, capacity development is helping phase out costly and regressive fuel subsidies.
- Cabo Verde increased tax compliance through digitalization, third-party data collection and cross-matching.
- IMF areas of expertise in fiscal management:
- Tax policy
- Tax and customs administration
- Expenditure policy
- Budget formulation
- Public financial management
- Fiscal policy and institutional frameworks
- Cash and Forecasting Analysis Tool (CFAT) | User Guide on CFAT for Fragile and Low-Income Countries
- Global Public Finance Partnership
- Tax Administration Diagnostic Assessment Tool (TADAT)
Monetary Policy and Financial Stability
- Purpose: Work with central banks to modernize financial systems—such as exchange rate, inflation and debt policy—and banking supervision to improve financial stability and support domestic growth and international trade.
- Illustrative outcomes:
- Review of Sierra Leone’s financial stability framework provided the central bank with a toolbox to build banking supervision and systemic risk monitoring.
- Nepal has enhanced its data availability and quality for monitoring financial stability.
- In Uzbekistan, the central bank pushed an ambitious reform agenda, developing instruments to assess and monitor systemic risks and increasing the effectiveness of the central bank’s financial stability decisions.
- IMF areas of expertise in monetary policy and financial stability:
- Monetary and exchange rate policy
- Central bank operations, governance, accounting or communications
- Financial supervision and regulation
- Systemic risk analysis
- Financial crisis management
- Debt management
- Financial Sector Stability Fund (FSSF)
- Debt Management Facility (DMF)
Legal Frameworks
- Purpose: Help countries align legal and governance frameworks to international standards to enable sound financial reforms, fight corruption and combat money laundering and terrorism financing.
- Illustrative outcomes:
- The IMF supported Jamaica’s overhaul of governance, leading to the country’s removal from the Financial Action Task Force’s grey list.
- In Namibia, IMF assistance led to significant legal and institutional reforms.
- Benin, Chad, Comoros, Costa Rica, Equatorial Guinea, Gabon, Guinea-Bissau, Haiti, Mali, Mauritania, and Uganda were supported in enhancing transparency and accountability, preventing conflicts of interest and corruption.
- IMF areas of expertise in legal frameworks:
- Financial institutions and market infrastructures
- Central banking and macro prudential oversight
- Tax, fiscal, and exchange systems' laws
- Insolvency and creditor rights
- Anti-money-laundering/combating the financing of terrorism
- Anti-Money Laundering/Combating the Financing of Terrorism
Statistics
- Purpose: Assist countries with compilation, management and reporting of macroeconomic and financial statistics to improve understanding of economies, identify vulnerabilities and risks, and attract international investors.
- IMF areas of expertise in statistics:
- Multisector statistical issues
- National accounts and price statistics
- Government finance statistics
- Balance of payments, external debt, foreign direct investment, and international investment position
- Monetary and financial statistics and financial soundness indicators
- Data dissemination standards
- Notable materials referenced:
- 2026 Statistics Capacity Development at a Glance — Main Report
- Data for Decisions (D4D) Phase II Program Brochure
- Japan-IMF Bilateral Statistics Program (JSA) Brochure
- Data for Decisions Fund (D4D)
Macroeconomic Frameworks
- Purpose: Strengthen authorities’ ability to forecast, analyze, design, and implement sound economic policies, deepen policy dialogue, and facilitate peer-to-peer learning.
- Illustrative training and tools:
- The Financial Programming and Policies course covers features of the main sectors of the economy, linkages between them, diagnosing macroeconomic imbalances and designing adjustment policies.
- Macroeconomic frameworks training areas:
- Financial sector policies
- General macroeconomy and fiscal policy
- Monetary, exchange rate, and capital accounts policies
- Structural policies
- Technical assistance and tools available on request:
- Financial programming frameworks and model-augmented financial programming frameworks
- Semi-structural and structural models
- Public debt dynamics
- Nowcasting and near-term forecasting
- Potential output analysis
- Natural disaster-related risks and adaptive investment effect
- Brochure: “Forecasts in Action: Building Capacity in Macroeconomic Policy Analysis” (AR | EN | FR | ES)
Content in this bundle
- User Guide on CFAT for Fragile and Low-Income Countries
- Main Report
- Data for Decisions
- Japan-IMF Bilateral Statistics Program
- إعداد التنبؤات في الممارسة العملية
- English Forecasts Into Action
- French Forecasts Into Action
- Spanish Forecasts Into Action