1. Policy priorities. The Managing Director’s Global Policy Agenda (GPA) presented to the IMFC last month highlights the challenges associated with a rapidly changing and uncertain world. The limited room for policy maneuver and the need to adapt to new realities pose difficult trade-offs between supporting demand and current activity, reducing financial risks as financial conditions tighten, and implementing needed structural reforms to revive growth. Against this backdrop the GPA called to support growth today, invest in resilience and safeguard financial stability, improve the sustainability of the public finances, implement the structural reforms needed for sustainable and inclusive medium-term growth, and secure the effectiveness of the 2010 reforms (Figure 1).
2. Achieving a policy upgrade. The Fund will assist members in making a necessary policy upgrade to address the multiple challenges posed by ongoing transitions. Policy advice will combine macroeconomic, financial, and structural perspectives, and assess how policies in individual countries affect, and are affected by the rest of the world. Staff will also seek to build policy momentum by showing the global benefits of taking action and by monitoring closely the traction of Fund advice.
3. Fall 2015 Work Program. This document translates the policy priorities and strategic directions laid out in the Fall 2015 GPA and the IMFC communiqué into an Executive Board agenda for the next twelve months. The key focus of this agenda is to continue to refine and adapt the Fund’s core activities―surveillance, lending, and capacity building―to the challenges faced by member countries. The 2015 Work Program continues the implementation of the 2014 Triennial Surveillance Review (TSR) recommendations and underpins a broader effort of the Fund to respond to the needs of the membership in an even more agile, integrated, and member-focused manner (Box 1).
The AIM Approach
The Fund has both the universal membership and mandate to address growth and economic stability issues at the national and global levels. To support member countries effectively as they are undergoing several transitions and managing spillovers, this Work Program supports a broader focus on three priorities by the Fund:
Agility. Advice will focus on policies to help members cope with evolving transitions-respond to tighter and more volatile financial conditions and implement effective macro-structural reforms. The lending framework will deliver financial assistance quickly where needed. Delivery of technical assistance and training will be enhanced by greater use of online tools.
Integration. In the face of growing policy trade-offs, the Fund will support its members by better integrating policy advice across sectors, embracing evolving priorities, promoting integration of global, regional, and bilateral safety nets, and better leveraging synergies between surveillance and capacity building.
Member-focus. With policy concerns evolving rapidly and advice becoming more dependent on country-specifics, the Fund will deepen its engagement with members, better deliver its knowledge, and ensure faster feedback to policymakers.