Capacity Development

Strengthening the capacity of institutions—including central banks, finance ministries, revenue administrations, statistical agencies, and financial sector supervisory agencies—results in more effective policies and greater economic stability and inclusion. The IMF works with countries to modernize their economic policies and strengthen such institutions by providing technical assistance and training focused on issues that are critical to economic stability and growth.

The IMF provides capacity development (CD)—hands-on technical assistance, policy-oriented training, a suite of diagnostic tools and publications, and peer-learning opportunities—so countries can build sustainable and resilient institutions. These efforts are an important contribution to countries’ progress toward the UN Sustainable Development Goals.

CD focuses on the IMF’s core areas of expertise, such as public finances, financial sector stability, central bank operations, macroeconomic frameworks, and economic statistics, and also helps countries tackle cross-cutting issues, such as income and gender inequality, corruption, climate change, and digital money. The IMF is uniquely positioned to support its membership in these areas, with its global reach, institutional experience, and world-class expertise. All IMF members benefit from CD, but support for fragile and conflict-affected countries is prioritized.

At the request of country authorities, IMF country teams and technical experts develop and implement an integrated work plan tailored to countries’ needs and absorptive capacities. The IMF works with countries through a global network of 17 regional centers, in-country placements of long-term resident advisors, short-term visits by IMF staff members and experts (in person and remotely), classroom training, and free online courses.In addition, a variety of publications provide technical information and cross-country analysis useful to country authorities.

In response to the COVID-19 pandemic, IMF CD swiftly adopted innovative remote delivery modalities providing real-time support to about 180 countries. These included working with tax administrations and budget offices to help restore operations and helping countries on issues such as debt sustainability, public investment management, cash management, financial supervision, and the development of strong macroeconomic frameworks. A series of about 110 technical notes on crisis-related policy issues has been published for the membership’s benefit. A new fiscal risk toolkit has been released on a dedicated portal, providing a suite of analytical tools to guide government policy and CD on fiscal risk management. As part of the move to a hybrid model for CD delivery, in-person delivery gradually resumed in the final months of FY 2022.

The IMF has also supported countries in strengthening the collection and publication of economic data to improve economic decision making and boost transparency. As countries ramped up emergency spending in response to the COVID-19 pandemic, the IMF supported them in strengthening their governance frameworks so money could quickly get to those who need it the most. The IMF is also helping them think through new challenges such as finding digital solutions for direct cash transfers, protecting health expenditures and other social spending, and preparing for the challenges posed by climate change.

During the pandemic the IMF significantly increased its number of free online courses, which saw a sharp increase in participation, with more than 140,000 cumulative active learners since program inception, compared with about 60,000 as recently as the end of 2019.

IMF development partners support about half of the Fund’s CD work. They have helped fund the IMF’s COVID-19 CD Initiative, with about $40 million raised so far. Together, the IMF and its partners are striving to help our members build forward better and work toward a greener, smarter, and more equitable future.

On May 1, 2022, the IMF launched its revised policy on the dissemination of CD information. The policy builds on existing dissemination progress and represents an important step in the IMF’s commitment to transparency. The policy was informed by discussions with the Executive Board and drew from the Updated Framework on the Dissemination of Capacity Development Information. It prioritizes sharing CD information more widely to support coordination and synergies among CD providers and financing partners, contribute to knowledge as a global public good, facilitate accountability to funding partners and the membership, and empower ownership within CD recipient countries. Protection of CD recipient confidentiality and preservation of the IMF’s role as a trusted advisor to its membership remain core to the policy.