2026 Review of Program Design and Conditionality
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- 2026 Review of Program Design and Conditionality
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Purpose and scope
- The 2026 Review of Program Design and Conditionality (ROC) examines how IMF-supported programs performed amid significant shocks and heightened global uncertainty.
- The 2026 ROC assesses program performance under both GRA and PRGT arrangements during a period that included the COVID-19 pandemic, the cost-of-living crisis, geopolitical conflicts, and heightened global economic and policy uncertainty.
- The 2026 ROC is the first such review since 2018 and reaffirms the appropriateness of the 2002 Guidelines on Conditionality while proposing targeted reforms.
Key findings from program experience (2018–24)
- Program performance was reviewed for the period 2018–24.
- The review identifies what worked well, where challenges remained, and how IMF-supported programs can be strengthened to better support countries navigating future shocks and uncertainty.
- Emphasis on tailoring programs to country circumstances while enhancing realism, coherence, and resilience.
Targeted reforms and benefits for borrowing countries
- More realistic and better-tailored programs:
- Economic assumptions, policy choices, and reform sequencing that are more realistic and mindful of social impacts and country capacity.
- Aims to create a more balanced policy mix and improve chances of achieving program objectives.
- Greater flexibility in responding to shocks:
- More systematic use of risk assessments, scenario analysis, and contingency planning to allow policies to adapt more quickly to shocks or changing conditions.
- More focused and impactful reforms:
- Reform agendas focused on fewer but deeper reforms that are critical for achieving program objectives.
- Better integrated IMF capacity development to help countries strengthen institutions and deliver reforms.
- Stronger and more durable outcomes:
- Greater emphasis on sustainable solutions to balance of payments problems through realistic financing strategies.
- Better monitoring of implementation and earlier course correction when circumstances change.
- Overall objective: strengthen the coherence and realism of IMF-supported programs, place greater emphasis on the catalytic role of Fund financing, and foster more durable external stability.
Reform package and implementation pathway
- Following endorsement by the IMF Executive Board, the Main Paper sets out the policy changes that will be implemented by IMF staff.
- The reform proposals aim to:
- Better calibrate IMF-supported programs in a more uncertain and shock-prone world.
- Improve program design and strengthen resilience to risks.
- Enhance the catalytic role of Fund financing.
- Promote durable resolution of balance of payments problems.
Analytical and diagnostic foundations
- The Review is supported by multiple analytical papers that together:
- Present findings and recommendations (Main Paper).
- Provide supporting analysis on operational, institutional, and implementation issues (Background Paper).
- Present reform options and proposals informed by diagnostic work and Board guidance (Reform Proposals Paper).
- Offer the analytical foundation for reform proposals via empirical analysis, case studies, and stakeholder feedback (Reform Proposals Background Paper).
- Provide the diagnostic foundation assessing program performance and identifying strengths and areas for further work (Initial Considerations Paper and Initial Considerations Background Paper).
References