Use of Third-Party Indicators in Fund Reports

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Fund staff use indicators developed by other organizations as input into analysis in surveillance and, to a lesser extent, in program work.
These third-party indicators (TPIs) measure concepts such as business environment, competitiveness, and quality of governance.
Staff are expected to continue drawing on other institutions’ expertise and estimates, consistent with Executive Board guidance where internal expertise is lacking or limited.

Continued efforts to foster global economic and financial stability require staff to work with indicators drawn from numerous third-party compilers.
The TPIs used are of varied qualities, which places a premium on staff understanding of the TPIs to:
- add analytical value,
- avoid flawed conclusions and presentation,
- support traction with the membership.
The framework described will apply to all documents that are subject to the Fund’s Transparency Policy. Staff are encouraged to follow similar guidelines for other Fund documents.

The paper outlines a framework to promote best practice with respect to use of TPIs in Fund reports.
The framework draws on:
- lessons from current practice in the Fund,
- practices from other selected international organizations (IOs),
- insights from the application of an adapted data quality assessment framework (DQAF) to a subset of TPIs commonly used by Fund staff.
Common good practices across IOs include emphasis on:
- staff judgment,
- review,
- consultation with stakeholders.

Application of the adapted DQAF to commonly used TPIs provides insights to improve TPI use in Fund reports.
The framework aims to ensure that use of TPIs enhances analytical quality and preserves credibility with member countries.

Use of Third-Party Indicators in Fund Reports, November 22, 2017.