Capacity Development
Author:
International Monetary Fund. Secretary's Department
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English
Keywords:
Annual Report; vaccine; debt; public debt; inclusive; green economy; Great Depression; global policy; Great Divergence; living gap; debt dynamics; debt vulnerabilities; low-income countries; emerging markets; low-cost financing; digital; digital future; green future; capacity development; lending; economic surveillance; Deputy managing director; IMF organization chart; boards of governors of the bank; Joint Ministerial Committee of the boards of governors; IMF staff calculation; COVID-19; Debt relief; Credit; Balance of payments need; Debt service; Global; Central Asia; Africa
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Abstract

A recovery is underway, but the economic fallout from the global pandemic could be with us for years to come. With the crisis exacerbating prepandemic vulnerabilities, country prospects are diverging. Nearly half of emerging market and developing economies and some middle-income countries are now at risk of falling further behind, undoing much of the progress made toward achieving the UN Sustainable Development Goals.

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 these institutions by providing technical assistance and training focused on issues that are critical to economic stability and growth.

The IMF provides capacity development-hands-on technical assistance, policy-oriented training, and peer-learning opportunities-to help countries build sustainable and resilient institutions. These efforts are an important contribution to countries’ progress toward the UN Sustainable Development Goals. The IMF has a number of development partners that support more than half its capacity development work, including to help fund the first phase of the IMF’s COVID-19 CD Initiative to build forward better and work toward a greener, smarter, and more equitable future.

Capacity development focuses on the IMF’s core areas of expertise, such as public finances, financial sector stability, and economic statistics. The IMF also provides CD in cross-cutting issues, such as income inequality, gender equality, corruption, and climate change, within its areas of expertise. The IMF is uniquely positioned to support its membership with its global reach, institutional experience, and world-class expertise. The IMF’s capacity development activities benefit all members, but support is particularly targeted and tailored to fragile states.

At the request of country authorities, IMF country teams and technical experts develop and implement an integrated work plan tailored to countries’ specific needs. The IMF works with countries through a global network of 17 regional centers; the newest center, the Caucasus, Central Asia, and Mongolia Regional Capacity Development Center (CCAMTAC), opened virtually in February 2021. In response to the COVID-19 pandemic, the IMF has provided real-time policy advice and capacity development to more than 175 countries.

The IMF published more than 80 technical notes on crisis-related policy issues during the early stages of the COVID-19 crisis. It also helped countries strengthen their collection and publication of economic data to improve economic decision-making and boost transparency. As countries ramped up emergency spending, the IMF helped strengthen their governance frameworks to better ensure that money quickly reached those most in need and that governments were accountable for how they spent the money.

Figure 2.1
Figure 2.1

Capacity Development Spending as a Share of Major IMF Activities FY 2021

Sources: IMF Office of Budget and Planning Analytic Costing and Estimation System; IMF Office of Budget and Planning; and IMF staff calculations.

The IMF quickly adapted its capacity development delivery tools to the new remote environment imposed by the pandemic. It has continued to help its members address new challenges such as finding digital solutions for direct cash transfers as well as for tax compliance and revenue collection, protecting health expenditures and other social spending, and preparing for the challenges posed by climate change. Participation in the IMF’s free online courses has increased sharply.

Figure 2.2
Figure 2.2

Spending on Capacity Development FY 2017–21

(millions of US dollars)

Sources: IMF Office of Budget and Planning Analytic Costing and Estimation System; IMF Office of Budget and Planning; and IMF staff calculations.
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The IMF Online Learning Program:

A Global Public Good

The IMF’s online learning program has played an important role in serving the needs of our membership during the COVID-19 crisis.

Over the past year, participation in the program has increased significantly, and more than 7,000 government officials have successfully completed an IMF course. In April 2020, the IMF Institute Learning Channel was launched on YouTube, offering bite-sized microlearning videos in various areas of IMF expertise. Since the channel’s inception, this new and agile modality of learning has attracted more than 4,400 subscribers and 233,000 individual views.

The online curriculum continues to be enriched in key areas of global interest. A new series of five courses on public debt analysis, sustainability, and management launched in 2020, including a course on the Joint World Bank–IMF Debt Sustainability Framework for Low-Income Countries (LIC DSFx), developed with the World Bank. New courses on macroeconomic statistics (GFSx, BOPx) are now available, together with six new translations of online courses. An inclusive growth course (IGx), together with courses on revenue forecasting (RFAx) and tax administration (VITARA) were launched from April to June 2021.

All courses on the edX platform—used for the IMF’s online learning program—are available anytime, anywhere, and at no cost, which makes the program a global public good, spearheading knowledge and skills for a more sustainable and inclusive global economy.

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Capacity Development

See page 69 for all sources and notes.

Figure 2.3
Figure 2.3

Direct CD Delivery by Region FY 2017–21 (percentage of total)

Sources: IMF Office of Budget and Planning Analytic Costing and Estimation System; IMF Office of Budget and Planning; and IMF staff calculations.
Figure 2.4
Figure 2.4

Direct CD Delivery by Income Group FY 2017–21

Sources: IMF Office of Budget and Planning Analytic Costing and Estimation System; IMF Office of Budget and Planning; and IMF staff calculations.Note: Advanced economies are as classified in the April 2021 World Economic Outlook. Low-income developing countries are as defined by the IMF. Emerging market and middle-income economies comprise those not classified as advanced economies or low-income developing countries.
Figure 2.5
Figure 2.5

Direct CD Delivery by Topic FY 2017–21

Sources: IMF Office of Budget and Planning Analytic Costing and Estimation System; IMF Office of Budget and Planning; and IMF staff calculations.

TRAININGFY 2017–21

Figure 2.6
Figure 2.6

Participation by Participant Region of Origin

Sources: IMF Participants and Applicant Tracking System; and IMF staff calculations.Note: Most of the IMF’s training falls under the Institute for Capacity Development (ICD) Training Program, which includes training coordinated by ICD and delivered by ICD and other departments at IMF headquarters and globally at the IMF’s Regional Training Centers and in programs for country officials. Training also includes IMF online courses successfully completed by country officials. In addition, training is provided by functional departments outside of the ICD Training Program.
Figure 2.7
Figure 2.7

Participation by Income Group

Sources: IMF Participants and Applicant Tracking System; and IMF staff calculations.Note: Most of the IMF’s training falls under the Institute for Capacity Development (ICD) Training Program, which includes training coordinated by ICD and delivered by ICD and other departments at IMF headquarters and globally at the IMF’s Regional Training Centers and in programs for country officials. Training also includes IMF online courses successfully completed by country officials. In addition, training is provided by functional departments outside of the ICD Training Program.

Top 10 Partners for IMF Capacity Development

(Signed agreements in US dollars, average, FY 2019–21)

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Sources: IMF Office of Budget and Planning Analytic Costing and Estimation System; IMF Participant and Applicant Tracking System; and IMF staff calculations.

Top 10 Recipients of IMF Technical Assistance

(FY 2017–21 average, US dollars spending)

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Top 10 Recipients by Training Participation

(FY 2017–21 average, participant weeks)

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Table 2.4

Thematic and Country Funds for IMF Capacity Development

As of April 30, 2021

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Table 2.5

IMF Regional Capacity Development Centers

As of April 30, 2021

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Note: The IMF also delivers courses through regional training programs.

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Cover International Monetary Fund Annual Report 2021
International Monetary Fund Annual Report 2021
Build Forward Better
Author:
International Monetary Fund. Secretary's Department
ISBN:
9781513568812
ISSN:
2227-8915
Publication Date:
04 Oct 2021
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781513568812.011
Pages:
72
Figure 2.1

Capacity Development Spending as a Share of Major IMF Activities FY 2021
Figure 2.2

Spending on Capacity Development FY 2017–21

(millions of US dollars)

The IMF Online Learning Program:

A Global Public Good

Capacity Development

See page 69 for all sources and notes.
Figure 2.3

Direct CD Delivery by Region FY 2017–21 (percentage of total)
Figure 2.4

Direct CD Delivery by Income Group FY 2017–21
Figure 2.5

Direct CD Delivery by Topic FY 2017–21
Figure 2.6

Participation by Participant Region of Origin
Figure 2.7

Participation by Income Group