Front Matter

Front Matter

Author(s):
Ruben Lamdany, and Leonardo Martinez-Diaz
Published Date:
July 2009
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    © 2009 International Monetary Fund

    Production: IMF Multimedia Services Division

    Cover design: Kelly Michele Barrett

    Cover photos: top: Stephen Jaffe/IMF photo; bottom: IMF file photo

    Cataloging-in-Publication Data

    Studies of IMF governance: a compendium / Independent Evaluation Office of the International Monetary Fund ; Ruben Lamdany & Leonardo Martinez-Diaz, editors. – [Washington, D.C.]: International Monetary Fund, 2009.

    p.; cm.

    Includes bibliographical references.

    ISBN 978-1-58906-863-6

    1. International Monetary Fund – Management. 2. Corporate governance. 3. Financial institutions, International – Management. I. Lamdany, Ruben, 1954-II. Martinez-Diaz, Leonardo, 1976- I. Title. II. International Monetary Fund. Independent Evaluation Office.

    HG3881.5.I58 S78 2009

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    Contents

    Foreword

    Abbreviations

    Part I. IMF Governance: Evolution and Comparisons

    Part II. Governance of the Internal Workings of the IMF

    Part III. Fund Governance in Action

    About the Authors

    The following conventions are used in this publication:

    • In tables, a blank cell indicates “not applicable,” ellipsis points (…) indicate “not available,” and 0 or 0.0 indicates “zero” or “negligible.” Minor discrepancies between sums of constituent figures and totals are due to rounding.

    • An en dash (–) between years or months (for example, 2008–09 or January–June) indicates the years or months covered, including the beginning and ending years or months; a slash or virgule (/) between years or months (for example, 2008/09) indicates a fiscal or financial year, as does the abbreviation FY (for example, FY 2009).

    • “Billion” means a thousand million; “trillion” means a thousand billion.

    • “Basis points” refer to hundredths of 1 percentage point (for example, 25 basis points are equivalent to ¼ of 1 percentage point).

    As used in this publication, the term “country” does not in all cases refer to a territorial entity that is a state as understood by international law and practice. As used here, the term also covers some territorial entities that are not states but for which statistical data are maintained on a separate and independent basis.

    Some of the documents cited and referenced in this report were not available to the public at the time of publication of this report. Under the current policy on public access to the IMF’s archives, some of these documents will become available five years after their issuance. They may be referenced as EBS/YY/NN and SM/YY/NN, where EBS and SM indicate the series and YY indicates the year of issue. Certain other documents are to become available 10 to 20 years after their issuance, depending on the series.

    Foreword

    The ongoing financial crisis has highlighted the importance of global institutions in addressing the main challenges facing a highly integrated world economy. The International Monetary Fund (IMF) is once again being called upon to help manage the current crisis and to bolster its surveillance activities to help prevent future crises. At the same time, there is an almost universal consensus that for the IMF to be effective, it will have to regain legitimacy by strengthening its governance, including by establishing better accountability frameworks and enhancing representation and voice of its members. These are some of the issues addressed in this volume.

    The studies in this compendium were prepared as background for an evaluation of IMF governance by the Independent Evaluation Office of the IMF, which was completed in 2008. This evaluation has become particularly relevant in view of the expanded role that the IMF has been called to play in confronting the global economic and financial crisis. Among its main messages, the evaluation found that the IMF needs more systematic ministerial-level involvement and calls for the activation of a ministerial-level Council to be charged with major Fund decisions and with holding the institution and its management more accountable. The evaluation also recommended a reorientation of the IMF Executive Board towards a supervisory role and away from day-to-day operations. This would enable it to play a more effective role in formulating strategy, in monitoring policy implementation to ensure timely corrective action, and in exercising more effective oversight of management, a better framework for which needs to be in place. These findings and recommendations have also been voiced by the Committee of Eminent Persons on IMF Governance Reform established by the Managing Director of the IMF and chaired by Trevor Manuel, the former South African Minister of Finance. The Committee is composed of nine eminent persons from around the world, including current and former IMF governors, academics and practitioners. Similar considerations underlie the corresponding sections of the G-20’s Global Plan for Recovery and Reform.

    It is my hope that the papers presented here will be helpful to policymakers and scholars studying how to promote reform at the Fund, a task that is now more critical and urgent than ever, and, more generally, will provide useful insights to those examining the governance of other international organizations.

    Thomas A. Bernes

    Director

    Independent Evaluation Office

    Abbreviations

    ACRM

    Advisory Committee on Risk Management

    AED

    Alternate Executive Director

    AfDB

    African Development Bank

    AG

    Advisory Group

    AML

    Anti-Money Laundering

    APC

    Agenda and Procedures Committee (IMF)

    ASC

    Ad Hoc Audit Selection Committee (IMF)

    AsDB

    Asian Development Bank

    ASX

    Australian Stock Exchange

    BCBS

    Basle Committee on Banking Supervision

    BIS

    Bank for International Settlements

    BP

    British Petroleum

    CAM

    Committee on Executive Board Administrative Matters

    CAP

    Committee on Administrative Policies

    CAR

    Committee on the Annual Report

    CBD

    Central Banking Department

    CEO

    Chief Executive Officer

    CFSP

    Committee on the Fund’s Strategic Priorities

    CFT

    Combating the Financing of Terrorism

    CLWTO

    Committee on Liaison with the World Trade Organization

    COB

    Committee on the Budget

    CoI

    Committee on Interpretation

    CODE

    Committee on Development Effectiveness (World Bank)

    COGAM

    Committee on Governance and Executive Directors’ Administrative Matters (World Bank)

    CSO

    Civil society organization

    CSU

    Chairman’s summing up

    C-XX

    Committee of Twenty (IMF Ad Hoc Committee on the Reform of the International Monetary System and Related Matters)

    DC

    Joint Development Committee (World Bank, IMF)

    DG

    Director General

    DMD

    IMF Deputy Managing Director

    DMV

    Double-majority voting

    DSU

    Draft summing up

    EAC

    IMF External Audit Committee

    EBRD

    European Bank for Reconstruction and Development

    ECB

    European Central Bank

    ECBR

    Employment, Compensation & Benefits Review

    ECOFIN

    European Union’s Economic and Financial Affairs Council

    ED

    Executive Director

    EIB

    European Investment Bank

    EPA

    Ex Post Assessment

    EU

    European Union

    FAD

    IMF Fiscal Affairs Department

    FDMD

    IMF First Deputy Managing Director

    FIN

    IMF Finance Department

    FSAP

    Financial Sector Assessment Program

    FSF

    Financial Stability Forum

    FSS

    Financial Sector Surveillance

    G-5

    Group of 5 advanced nations

    G-7

    Group of 7 advanced nations

    G-8

    Group of 7 advanced nations, plus Russia

    G-10

    Group of 10 advanced nations that formed the General Agreements to Borrow

    G-11

    A group of 11 developing countries established in 2006

    G-20

    A steering committee created by the G-7, with membership of G-7 countries and systemically important developing countries

    G-24

    24 developing countries that coordinate their positions on international monetary affairs and development

    G-33

    33 developing countries that coordinate their positions on trade and economic issues

    G-77

    Initially 77 developing countries that coordinate their positions on international economic issues, the group is currently comprised of 131 nations

    GAO

    General administrative order

    GATT

    General Agreement on Tariffs and Trade

    GDDS

    General Data Dissemination System

    GEF

    Global Environment Facility

    GFSR

    Global Financial Stability Report

    GMI

    Governance Metrics International

    GN

    Guidance note

    HIPC

    Heavily Indebted Poor Countries

    IADB

    Inter-American Development Bank

    IC

    Interim Committee (IMF)

    IEO

    IMF Independent Evaluation Office

    ILO

    International Labor Organization

    IGO

    Intergovernmental organization

    IMF

    International Monetary Fund

    IMFC

    International Monetary and Financial Committee of the IMF Board of Governors

    ISS

    Institutional Shareholder Services

    ITO

    International Trade Organization

    JCR

    Joint Committee on Remuneration of Executive Directors and Their Alternates

    JPC

    Joint Procedures Committee of the Bank and the Fund

    LIC

    Low-income country

    LTPE

    Longer-Term Program Engagement

    MAE

    Monetary and Exchange Affairs Department (IMF)

    MCM

    Monetary and Capital Markets Department (IMF)

    MD

    Managing Director (IMF)

    MDB

    Multilateral development bank

    MDRI

    Multilateral Debt Reduction Initiative

    MTS

    Medium-Term Strategy (IMF)

    NATO

    North Atlantic Treaty Organization

    NYSE

    New York Stock Exchange

    OCEG

    Open Compliance and Ethics Group

    OECD

    Organization for Economic Cooperation and Development

    OIA

    Office of Internal Audit and Inspection (IMF)

    OPEC

    Organization of the Petroleum Exporting Countries

    OWT

    One World Trust

    PIN

    Public Information Notice

    PDR

    IMF Policy Development and Review Department

    PRGF

    Poverty Reduction and Growth Facility

    PRSP

    Poverty Reduction Strategy Paper

    PS

    Policy Statement

    QMV

    Qualified majority voting

    ROSC

    Report on the Observance of Standards and Codes

    SDDS

    Special Data Dissemination Standard

    SDR

    Special drawing right

    SG

    Secretary General

    SOE

    State-owned enterprise

    SU

    Summing up

    TSE

    Tokyo Stock Exchange

    UFR

    Use of Fund resources

    UN

    United Nations

    UNCTAD

    United Nations Conference on Trade and Development

    UNDP

    United Nations Development Program

    WB

    World Bank

    WEMD

    World Economic and Market Developments

    WEO

    World Economic Outlook

    WHO

    World Health Organization

    WTO

    World Trade Organization

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