## 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](https://www.imf.org/en/news/articles/2018/11/20/pr18434-imf-executive-board-concludes-2018-review-of-the-fund-s-capacity-development-strategy) ## Other formats - [Markdown version](/en/news/articles/2018/11/20/pr18434-imf-executive-board-concludes-2018-review-of-the-fund-s-capacity-development-strategy/index.md) - [Structured JSON version](/en/news/articles/2018/11/20/pr18434-imf-executive-board-concludes-2018-review-of-the-fund-s-capacity-development-strategy/index.json) - [Bundle manifest](/en/news/articles/2018/11/20/pr18434-imf-executive-board-concludes-2018-review-of-the-fund-s-capacity-development-strategy/bundle-manifest.json) ## 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** - [1. CD and Surveillance Interactions in the Policy-Making Cycle (Markdown version)](/-/media/files/publications/pp/2018/pp1002182018reviewfunds-cdstrategybackgroundshortnotes.pdf.md){rel="alternate" type="text/markdown"} - [1. CD and Surveillance Interactions in the Policy-Making Cycle (PDF)](/-/media/files/publications/pp/2018/pp1002182018reviewfunds-cdstrategybackgroundshortnotes.pdf){rel="external" type="application/pdf"} --- ## References - [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg) - [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) _Source: https://www.imf.org/en/news/articles/2018/11/20/pr18434-imf-executive-board-concludes-2018-review-of-the-fund-s-capacity-development-strategy_