A Window of Opportunity
The Managing Director's Global Policy Agenda

The global recovery continues. Although it is not yet complete, the more favorable conjuncture offers an opportunity to tackle key policy challenges to stave off medium-term downside risks, rebuild buffers, and raise potential output. Countries should undertake well-sequenced reforms to increase productivity, improve governance, and reduce policy uncertainty and future risks. Reforms should also aim to harness the benefits of technology and economic integration and ensure that they are widely shared. Tackling challenges to the global economy continues to require cooperation and joint action across the membership. The Fund will assist members through tailored policy advice and capacity development, and stands ready to provide financial assistance to support adjustment programs.

Abstract

The global recovery continues. Although it is not yet complete, the more favorable conjuncture offers an opportunity to tackle key policy challenges to stave off medium-term downside risks, rebuild buffers, and raise potential output. Countries should undertake well-sequenced reforms to increase productivity, improve governance, and reduce policy uncertainty and future risks. Reforms should also aim to harness the benefits of technology and economic integration and ensure that they are widely shared. Tackling challenges to the global economy continues to require cooperation and joint action across the membership. The Fund will assist members through tailored policy advice and capacity development, and stands ready to provide financial assistance to support adjustment programs.

The global recovery continues. Although it is not yet complete, the more favorable conjuncture offers an opportunity to tackle key policy challenges to stave off medium-term downside risks, rebuild buffers, and raise potential output. Countries should undertake well-sequenced reforms to increase productivity, improve governance, and reduce policy uncertainty and future risks. Reforms should also aim to harness the benefits of technology and economic integration and ensure that they are widely shared. Tackling challenges to the global economy continues to require cooperation and joint action across the membership. The Fund will assist members through tailored policy advice and capacity development, and stands ready to provide financial assistance to support adjustment programs.

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Annex I. Implementation of Policy Priorities by the Membership

Monetary policy continues to bear the burden of supporting demand while some countries are exploring options for making fiscal policy more growth-friendly. There has been good progress in the financial sector area. Structural reforms are advancing only gradually.

Annex II. Key IMF Activities since the Spring Meetings

Financial support

  • New arrangements were approved for Cameroon, Chad, Sierra Leone, Togo (ECF); Gabon and Mongolia (EFF). Disbursement under the Rapid Credit Facility Instrument was approved for Gambia.

Policy reviews and analytical work to sustain the recovery and enhance resilience

  • Continued to mainstream macro-structural issues and the assessment of fiscal space in surveillance;

  • Initiated work on the Measurement of the digital economy;

  • Discussed the potential challenges and statistical implications of Big Data;

  • 2nd Progress Report of the Second Phase of the G-20 Data Gaps Initiatives (with the FSB Secretariat).

  • Examined the impact of household debt on financial stability;

  • Investigated the links between financial conditions and risks to future growth;

  • Reviewed the Role of the Fund in Governance Issues;

  • Discussed building fiscal capacity in fragile states;

  • Identified initial considerations on Fintech and Financial Services;

  • Reviewed the LIC debt sustainability framework;

  • Examined the role of macroprudential policies to increase resilience to capital flows;

  • Reviewed the Standards and Codes Initiative.

Promote policies for a more inclusive global economy:

  • Examined the role of fiscal policy to tackle inequality;

  • Reviewed the drivers and implications of recent wage dynamics in advanced economies;

  • Explored how Low-Income Countries can cope with the economic effects of weather shocks;

  • Reviewed social safeguards in Fund-supported programs in Low-Income Countries;

Work to strengthen international cooperation

  • Made proposals for Toolkit Reform leading to the creation of a new Policy Coordination Instrument;

  • Analyzed external positions within the ESR’s multilaterally consistent framework;

  • Analyzed the IMF’s Role on Compact with Africa;

  • Issued a paper on collaboration between Regional Financing Arrangements and the IMF, and initiated work on program design in currency unions;

  • Commenced work on the 15th General Review of Quotas.

Capacity development activities supported the global policy agenda:

  • Continued to grow activities, with nearly half of all technical assistance (TA) going to low-income countries and over half of training to emerging and middle-income market economies.

  • Continued to expand the reach of IMF training through online learning, now accounting for about 30 percent of all training participation.

  • Assessed capacity development efforts supporting the Medium-Term Debt Management Strategy;

  • Enhanced synergies among surveillance, lending, TA and training, including through the newly created South Asia Regional Training and Technical Assistance Center.

  • Continued to develop capacity in financial sector related issues, with Africa as the main recipient.

  • Continued to develop a capacity development framework for fragile states to support institution building goals, strengthen outcome monitoring, and enhance coordination with other partners.

  • In collaboration with the OECD, UN, and World Bank, continued to support work on international tax issues, including through the Platform for Collaboration on Tax.

  • Worked with partners on tackling the challenges laid out in the post-2015 development agenda, including by supporting countries’ efforts for revenue mobilization.

Annex III. Implementation of IMF Deliverables

(April-October 2017)

A Window of Opportunity: The Managing Director's Global Policy Agenda
Author: International Monetary Fund