## Transcript of a Conference Call on the Independent Evaluation Office report on Fund governance

_IMF News, May 27, 2008_

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**Canonical URL:** [Transcript of a Conference Call on the Independent Evaluation Office report on Fund governance](https://www.imf.org/en/news/articles/2015/09/28/04/54/tr080527)

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## Bibliographic details
- Published: May 27, 2008

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### Overview
- Event: Conference call to discuss the Independent Evaluation Office (IEO) evaluation on Fund governance.
- Date and location: May 27, 2008; International Monetary Fund, Washington, D.C.
- Embargo: Documents were embargoed until 10:00 a.m. Washington time tomorrow.
- Speakers: Thomas Bernes, Director of the Independent Evaluation Office, with Ruben Lamdany, Assistant Director of the IEO.

### Purpose and scope of the evaluation
- The evaluation examines how the governance arrangements of the IMF itself work, focusing on the three principal organs of IMF governance:
  - the IMFC (the main body for ministerial engagement),
  - the Executive Board (to whom most authority has been delegated),
  - and management.
- The evaluation considered:
  - the formal role set out in the Articles of Agreement,
  - the informal ways the Fund operates,
  - best practice in the public and private sector.
- Rationale: Good governance is a critical element in institutional performance and reforms have not kept pace with broader changes in the environment in which the Fund operates.

### Key findings
- Overall performance dimensions:
  - Effectiveness has been the strongest aspect of Fund governance.
  - Accountability and voice have been the weakest aspects.
  - If unaddressed, weaknesses in accountability and voice could likely undermine effectiveness over time.
- Structural and evolutionary observations:
  - The Fund started with 44 member countries and 12 Executive Directors some 60 years ago.
  - Today the Fund has 185 member countries and 24 Executive Directors.
  - While roles have adapted, the formal structure remains largely untouched.
- Four main conclusions (high level):
  - Lack of clarity in the respective roles of the main governance bodies, particularly between the Board and management.
  - Need for more systematic ministerial involvement.
  - The Board's effectiveness is hindered by an excessive focus on executive rather than supervisory functions.
  - An operating framework is needed to hold management accountable for its performance.

### Main recommendations and proposed changes
- Clarify roles:
  - Clarify respective roles of the IMFC, Executive Board, and management to minimize overlaps and address possible gaps.
- Ministerial involvement:
  - Recommend activation of the Council provided for in the Articles as a decision-making body (the IMFC is currently an advisory body with only a limited mandate).
  - At a minimum, activation of the Council would strengthen transparency and accountability.
- Board function shift:
  - Recommend that the Board shift away from day-to-day executive operational activities and focus more on:
    - formulating strategy,
    - monitoring policy implementation,
    - exercising effective oversight over management.
- Management accountability:
  - Recommend putting in place an operating framework to hold management accountable for its performance.

### Interaction, process, and next steps
- The report is described as wide ranging and complex; many issues are interrelated and will need to be considered together.
- Implementation will require the attention and commitment of all stakeholders: the Executive Board, management, and ministers and governors.
- The IEO reported having had discussions with the Executive Board and management and viewed the issuance of press statements as a good start to the process.
- The IEO offered to respond to follow-up questions during the course of the day via contact details in the press release.

### Specific observations on Board behavior and governance practice
- The Board still discusses and approves most operational issues, reflecting an excessive focus on executive functions.
- Good governance requires balancing effectiveness, efficiency, accountability, and voice; there are difficult tradeoffs among these elements.
- There is no perfect model of good corporate governance; systems must address the elements above in a way appropriate to the institution.

### Key statistics and exact figures cited
- "44 member countries and 12 Executive Directors" (at Fund start).
- "some 60 years ago."
- "185 member countries and 24 Executive Directors" (current).
- "four main conclusions and recommendations."
- Embargo time: "10:00 a.m. Washington time tomorrow."

*Source: Transcript of a Conference Call on the Independent Evaluation Office report on Fund governance, May 27, 2008.*

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## References

- [Transcripts](https://www.imf.org/en/news/searchnews)
- [Joint Statement by the Executive Board and the IMF Managing Director](https://www.imf.org/external/np/sec/pr/2008/pr08121.htm)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/28/04/54/tr080527_