{
  "title": "IMF Executive Board Concludes 2018 Review of the Fund’s Capacity Development Strategy",
  "publication": "IMF News, November 20, 2018",
  "sourceUrl": "https://www.imf.org/en/news/articles/2018/11/20/pr18434-imf-executive-board-concludes-2018-review-of-the-fund-s-capacity-development-strategy",
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  "summary": "The IMF undertakes a comprehensive review of its capacity development efforts every five years. A core function of the IMF, capacity development accounts for more than 30 percent of IMF’s budget and includes support to member countries to build the institutions and capacity necessary to formulate and implement sound economic policies. As part of the 2013 CD Strategy, the Fund’s Executive Board endorsed recommendations to strengthen the governance structure for CD operations and CD prioritization, clarify the funding model, reinforce the orientation of CD delivery toward outcomes, enhance monitoring and evaluation, strengthen integration of technical assistance and training, exploit new technologies, and leverage CD in outreach. Updated CD Policies and Practices based on this review were endorsed by the Executive Board on September 4, 2014.",
  "publishDate": "2018-11-20",
  "sections": [
    {
      "heading": "Background",
      "content": "- The IMF undertakes a comprehensive review of its capacity development (CD) efforts every five years.\n- CD accounts for more than 30 percent of IMF’s budget.\n- Updated CD Policies and Practices based on the 2013 review were endorsed by the Executive Board on September 4, 2014.\n- 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.\n- 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.\n- The Executive Board concluded the 2018 Review on November 14, 2018; press materials dated November 20, 2018 (Press Release No. 18/434)."
    },
    {
      "heading": "Executive Board assessment — overarching conclusions",
      "content": "- Executive Directors broadly supported the main conclusions and recommendations of the 2018 Review.\n- Directors commended substantial progress in implementing the 2013 CD Strategy and noted widespread appreciation for the Fund’s CD.\n- Directors endorsed a continued focus on two mutually reinforcing objectives: enhancing the impact of CD and increasing the efficiency of CD."
    },
    {
      "heading": "Findings on impact and efficiency",
      "content": "- Impact:\n  - Need to strengthen integration of CD with the Fund’s policy advice and lending operations.\n  - Need to tailor strategies to each country’s institutional capacity and specific needs, with a focus on implementation and outcomes.\n  - Inclusion of risk considerations in the strategy was welcomed.\n- Efficiency:\n  - Improve processes and systems to enhance transparency and accountability.\n  - Strengthen the basis for strategic decision‑making, including by the Board.\n  - With CD spending projected to stabilize, effective prioritization is critical."
    },
    {
      "heading": "Five specific areas of recommendations supported by Directors",
      "content": "- Roles and responsibilities\n  - Country authorities should play a leading role throughout the CD process, accounting for institutional and capacity constraints.\n  - Area departments should lead overall country engagement, including establishing country strategies and CD priorities, and collaborate with CD departments.\n  - 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.\n- Prioritization and monitoring\n  - Move to a medium‑term orientation of CD planning to increase flexibility of resource allocation across departments and topics.\n  - Further strengthen overall monitoring of activities and narrow the list of priorities, building on better information systems.\n  - Operationalize Results‑Based Management and the Common Evaluation Framework.\n- Country‑tailored delivery focused on implementation\n  - Move toward greater modernization and agility in CD delivery; continue experimentation with innovative technologies.\n  - Encourage cost‑efficiency evaluation of different delivery modalities.\n  - Strengthen operational support for Regional Capacity Development Centers (RCDCs).\n  - Emphasize Fund CD activities in Fragile States; some Directors called for further prioritization for these countries.\n  - Interest in improving CD delivery in the Caucasus and Central Asia, including through a possible RCDC in the region.\n- Internal consultation and information sharing\n  - Strengthen information sharing on CD activities within the Fund.\n  - 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.\n- Coordination, communication, and dissemination\n  - Systematize coordination with other CD providers, notably the World Bank.\n  - Pursue innovative approaches to raise awareness of the Fund’s CD work.\n  - Improve presentation of recommendations in TA reports and publish more topical notes and TA reports while preserving confidentiality and client trust."
    },
    {
      "heading": "Funding, HR, and governance implications",
      "content": "- 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.\n- Requested more comprehensive information about the funding model; a few Directors noted need to discuss funding in future updates.\n- 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.\n- Directors noted importance of strengthening HR practices and better incentivizing CD work.\n- In accordance with the 2014 CD policy statement, the Board should provide strategic direction and oversight through regular reviews and the budget process.\n- Directors encouraged continued informal Board briefings on CD activities and more regular engagement on strategic direction and priority‑setting."
    },
    {
      "heading": "Timing and follow‑up",
      "content": "- It is expected that the next review of the Fund’s CD strategy will be completed no later than November 2023.\n- Reference note: an explanation of qualifiers used in summings up is provided by the Fund (see press material).\n\nSource: Press Release No. 18/434, IMF Communications Department, November 20, 2018.\n\n---\n\n Content in this bundle\n\n- 1. CD and Surveillance Interactions in the Policy-Making Cycle\n  - 1. CD and Surveillance Interactions in the Policy-Making Cycle (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1. CD and Surveillance Interactions in the Policy-Making Cycle (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- 2018 Review of the Fund's Capacity Development Strategy - Overview Paper\n- IMF Capacity Development Strategy and Policies\n- IMF Surveillance -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- endorsed\n- CD Policies and Practices\n- http://www.imf.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/11/20/pr18434-imf-executive-board-concludes-2018-review-of-the-fund-s-capacity-development-strategy"
    }
  ],
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    "Published: November 20, 2018",
    "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 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.",
    "Impact:",
    "Efficiency:",
    "Roles and responsibilities",
    "Prioritization and monitoring",
    "Country‑tailored delivery focused on implementation",
    "Internal consultation and information sharing",
    "Coordination, communication, and dissemination",
    "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.",
    "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).",
    "**1. CD and Surveillance Interactions in the Policy-Making Cycle**",
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    "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[2018 Review of the Fund's Capacity Development Strategy - Overview Paper](https://www.imf.org/en/publications/policy-papers/issues/2018/11/20/2018-review-of-the-funds-capacity-development-strategy)",
    "[IMF Capacity Development Strategy and Policies](https://www.imf.org/en/Capacity-Development/strategy-policies)",
    "[IMF Surveillance -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[endorsed](https://www.imf.org/en/News/Articles/2015/09/28/04/53/pn1372)",
    "[CD Policies and Practices](https://www.imf.org/en/Publications/Policy-Papers/Issues/2016/12/31/IMF-Policies-and-Practices-on-Capacity-Development-PP4891)",
    "[http://www.imf.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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