Abstract

A central objective of the IMF in low-income countries is to support sustained poverty reduction through policies that promote economic growth, employment generation, and targeted assistance to the poor. This follows from the IMF’s mandate to contribute “to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.” In doing so, the IMF works in four main broad areas—policy advice and program design, capacity building, financial support and debt relief, and coordinated international efforts. The IMF focuses on its core areas of responsibility and expertise, where it has a clear comparative advantage, namely: the pursuit of stable macroeconomic conditions and macro-relevant structural reforms, with supporting financial and technical assistance. In its work in low-income countries, the IMF works in close collaboration with other development partners, particularly the World Bank, which is the lead institution for poverty reduction.90