VII Fund Administration in 1958-59
- International Monetary Fund
- Published Date:
- September 1959
THE reorganization of the Fund’s training program in 1957-58 permitted an increase in the number of participants during the past year when the program was further revised to give more attention to the problems and principles of financial policy formation. By studying both the potentialities and the limitations of financial policy, the participants in the program will be placed in a position where they can understand better the requirements for economic development and for the establishment of internal and external stability. Additional emphasis is also being placed on techniques for analyzing economic statistics as a basis for policy formation. While it is understood that it would not be practicable, or indeed desirable, for all countries to attempt to produce a range of statistical information as varied and as detailed as that available in some of the more developed countries, it is important in all countries that statistical information should be expanded in order to improve the general understanding of the problems that require attention and to make possible more effective government policies for dealing with them. These revisions should make the program still more effective in giving to the members of the staffs of central banks and government departments who participate in the program experience of a kind that will be of the greatest use when they return to their ordinary duties in their home countries.
The total number of participants in the Fund’s training program since its inception in 1951 is 165 from 55 member countries. The experience gained by them has already had recognizable beneficial results in several countries in helping to ensure fruitful cooperation between the Fund and its members.
Investment of Fund Assets
The Fund’s program of investing not more than $200 million of its gold in U.S. Treasury bills, which has been described in earlier Annual Reports, was continued during the past year. Investment income from May 1, 1958 to April 30, 1959 amounted to $4,108,526.63 and was placed in the Special Reserve Account, which at the end of the fiscal year showed a balance of $6,939,086.87.
In addition to its regular publications, the Fund published during the past fiscal year International Reserves and Liquidity (A Study by the Staff of the International Monetary Fund) and Enlargement of Fund Resources Through Increases in Quotas (A Report by the Executive Directors to the Board of Governors of the International Monetary Fund). Publication of the monthly International Financial Statistics and the weekly International Financial News Survey continued throughout the year. The publication program also included the Annual Report of the Executive Directors for the Fiscal Year Ended April 30, 1958 (Thirteenth Annual Report); the Ninth Annual Report on Exchange Restrictions; the Balance of Payments Yearbook, Volume 10, 1956-57; and Staff Papers, Volume VI, Number 3, and Volume VII, Number 1. The monthly Direction of International Trade is published jointly with the International Bank for Reconstruction and Development and the Statistical Office of the United Nations.
At the end of the fiscal year, the Fund staff numbered 437, including 9 temporary employees and 1 on extended leave. Thus during the year there was a net increase of 4. The total number of nationalities on the staff was 49, 1 less than in the previous year. In its recruitment program the Fund has maintained its policy of appointing staff members on as wide a geographical basis as possible, while at the same time giving due consideration to maintaining the highest standards of efficiency and technical competence. During the past year, 54 new staff members were recruited from 17 member countries.
In response to members’ requests, the Fund has continued to provide experts for technical assistance in fields ranging from monetary stabilization programs to the compilation of financial statistics. The periods of assignment have varied between a few weeks and more than a year. Staff members on longer term assignments were made available during the past fiscal year to 7 countries.
During the past fiscal year the Fund’s income of US$27,173,212 exceeded its total expenditure by $20,494,308. This excess was provisionally transferred to the General Reserve pending action by the Board of Governors. In addition, $4,108,527 was received from the Fund’s investment program during the year, and this amount was transferred to the Special Reserve.
The administrative budget approved by the Executive Directors for the period May 1, 1959-April 30, 1960 is presented in Appendix IX. A tabulation comparing the budget with the actual expenditures for the fiscal years 1958 and 1959 and a comparative statement of income are also presented there.
The Executive Board requested the Governments of Canada, Germany, and Guatemala to nominate members of the Audit Committee. The following nominations were made and confirmed: Mr. Ian Stevenson, Assistant Auditor General of Canada, Ottawa; Mr. Horst Peckolt, Member of the Board of Directors of the Deutsche Revisions- und Treuhand Aktiengesellschaft; and Mr. Gabriel Orellana, Dean of the Faculty of Economic Sciences of the University of San Carlos de Guatemala. The report of the Committee is submitted separately. Appendix X gives the Auditors’ Certificate, together with the audited Balance Sheet as of April 30, 1959, the audited Statement of Income and Expenditure, with supporting schedules, and audited financial statements of the Staff Retirement Fund.