54. In the period reviewed (1999–2005), the IMF was simply not as effective as it needs to be to fulfill its responsibilities for exchange rate surveillance. This judgment is not meant to detract from the dedicated and hard efforts of staff, nor to fail to recognize the inherent complexity and lack of professional consensus on many of the issues discussed in this report. However, the effectiveness of IMF surveillance in fostering international cooperation depends, ultimately, on the IMF’s adeptness in focusing on the key analytical issues of the day (which have shifted radically over time) and in engaging in effective dialogue with its members, individually and collectively. While by no means evident in all countries, this evaluation observed serious shortcomings in both respects that resulted in an “effectiveness gap” in the IMF’s main line of business. The reduced traction with advanced economies is in danger of being extended to large emerging market economies, and beyond. Such an evolution is corrosive, breeds cynicism among the staff as well as the members, and builds on perceptions of a lack of evenhandedness. Unless the shortcomings are successfully addressed in the period ahead, and as the number of countries looking else-where for policy advice and support continues to grow, there could be serious implications for the ability of the IMF to discharge its responsibilities in the future.