Front Matter

Front Matter

Author(s):
Ruben Lamdany, and Leonardo Martinez-Diaz
Published Date:
July 2009
Share
  • ShareShare
Show Summary Details

© 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

Please send orders to:

International Monetary Fund, Publication Services

700 19th Street, N.W., Washington DC. 20431, U.S.A.

Telephone: (202) 623-7430 Telefax: (202) 623-7201

E-mail: publications @imf.org

Internet: www.imfbookstore.org

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

    Other Resources Citing This Publication