Statement by the Managing Director on the Work Program of the Executive Board - Executive Board Meeting - November 16, 2016

This Work Program (WP) translates the policy priorities and strategic directions laid out in the Fall 2016 Global Policy Agenda (GPA) and the International Monetary and Financial Committee (IMFC) Communiqué into an Executive Board agenda for the next six-twelve months. The Managing Director’s GPA called on members to use a balanced mix of all policy tools to revive demand and raise productivity, and ensure that gains from technology and globalization are shared more broadly. The GPA also warned against retreating from multilateralism at a time when cooperation and coordination are critical. It outlined how the Fund would support the membership by helping policymakers identify policy space and enhance resilience; assisting in understanding and tackling the underlying causes of low productivity growth; supporting members to expand economic opportunities—including by ensuring adequate and effective safety nets; and advocating for multilateralism that works for all. Where the work extends beyond traditional areas, the WP will focus on issues with a macro-economic impact that are systemically important or relevant for many and amenable to change through economic policies.

Abstract

This Work Program (WP) translates the policy priorities and strategic directions laid out in the Fall 2016 Global Policy Agenda (GPA) and the International Monetary and Financial Committee (IMFC) Communiqué into an Executive Board agenda for the next six-twelve months. The Managing Director’s GPA called on members to use a balanced mix of all policy tools to revive demand and raise productivity, and ensure that gains from technology and globalization are shared more broadly. The GPA also warned against retreating from multilateralism at a time when cooperation and coordination are critical. It outlined how the Fund would support the membership by helping policymakers identify policy space and enhance resilience; assisting in understanding and tackling the underlying causes of low productivity growth; supporting members to expand economic opportunities—including by ensuring adequate and effective safety nets; and advocating for multilateralism that works for all. Where the work extends beyond traditional areas, the WP will focus on issues with a macro-economic impact that are systemically important or relevant for many and amenable to change through economic policies.

This Work Program (WP) translates the policy priorities and strategic directions laid out in the Fall 2016 Global Policy Agenda (GPA) and the International Monetary and Financial Committee (IMFC) Communiqué into an Executive Board agenda for the next six-twelve months. The Managing Director’s GPA called on members to use a balanced mix of all policy tools to revive demand and raise productivity, and ensure that gains from technology and globalization are shared more broadly. The GPA also warned against retreating from multilateralism at a time when cooperation and coordination are critical. It outlined how the Fund would support the membership by helping policymakers identify policy space and enhance resilience; assisting in understanding and tackling the underlying causes of low productivity growth; supporting members to expand economic opportunities—including by ensuring adequate and effective safety nets; and advocating for multilateralism that works for all. Where the work extends beyond traditional areas, the WP will focus on issues with a macro-economic impact that are systemically important or relevant for many and amenable to change through economic policies.

Accordingly, the Work Program (WP) comprises four key elements:

  • i. Guide the global policy dialogue including through discussions on the Global Policy Agenda and IMF flagship publications, with special focus on the evolution of the labor income share and how it is affected by technological change and globalization (WE0, Spring 2017), on how structural fiscal policies can contribute to improving productivity (FM, Spring 2017), and on how the low interest rate environment affects financial intermediation (GFSR, Spring 2017).

  • ii. Help identify policy space and enhance resilience to guide bilateral surveillance on policy space. The fiscal space framework will be finalized in Assessing Fiscal Space and the Board will discuss how to enhance Surveillance of Macro-Structural Issues. The paper on Negative Interest Rate Policies will examine the initial experience with such monetary policy instruments. Building resilience will be discussed in Capital Flows—Review of Experience with the Institutional View and the Review of the Low-Income Countries Debt Sustainability Framework. Macroeconomic Developments and Prospects in Low-Income Developing Countries: 2016 will discuss policy priorities for low-income developing countries.

  • iii. Assist in promoting shared prosperity by understanding and addressing the Global Productivity Slowdown: Causes and Remedies, supporting low-income countries including through a Board Update on the IMF’s Deliverables for the 2030 Developmental Agenda, managing change by Making Globalization Work for All, and improving governance, including through a Review of the Role of the Fund in Governance Issues.

  • iv. Make multilateralism work for all. The focus will be on strengthening the global safety net by discussing the Adequacy of the Global Financial Safety Net—Considerations for Fund Toolkit and pending the Board’s guidance, on possible follow-up work on Reform Proposal for a New Liquidity Instrument and Proposal for a New Monitoring Instrument. This work also covers deliberating on the IMF’s Cooperation with Regional Financing Arrangements, on Conditionality in Currency Unions, and on the Fifteenth General Review of Quota.

Key Priorities of the Work Program

article image
article image
article image
article image
article image
Figure 1.
Figure 1.
Figure 1.

Priorities and Key Work Program Deliverables

Citation: Policy Papers 2016, 037; 10.5089/9781498345071.007.A001

Statement by the Managing Director on the Work Program of the Executive Board - Executive Board Meeting - November 16, 2016
Author: International Monetary Fund