Statement by the Managing Director on the Work Program of the Executive Board

"This Work Program (WP) translates the strategic directions and policy priorities laid out in the Fall 2018 Global Policy Agenda and the International Monetary and Financial Committee Communiqué into an Executive Board agenda for the next twelve months. Its main policy priorities and deliverables are as follows: • Advise member countries to rebuild buffers, enhance resilience, and advance structural reforms for the benefit of all to respond to mounting vulnerabilities. The Spring 2019 World Economic Outlook (WEO) will analyze the macroeconomic implications of increased corporate market power. The Global Financial Stability Report (GFSR) will discuss global financial risks in light of tightening financial conditions, while the Fiscal Monitor (FM) will study how improved governance in fiscal frameworks and institutions can reduce corruption vulnerabilities and improve policy outcomes. • Promote cooperation to modernize the multilateral trade system and address other challenges that transcend borders. The spillover chapter of the Spring 2019 WEO will examine the determinants of trade imbalances and spillovers from different trade policies. Building on the “Bali Fintech Agenda,"" staff will provide a stock-take of fintech developments and study the implications for cross-border flows, financial integrity, and global monetary and financial stability in Fintech: The Experience So Far. To support Japan’s G-20 Presidency, staff will prepare a note on Macroeconomic and Fiscal Implications of Aging. • Adapt the Fund’s policy toolkits to further enhance its surveillance, lending, and capacity development. Scoping notes for the Surveillance Review and the Financial Sector Assessment Program (FSAP) Review will establish priorities. The Review of Conditionality and the Design of Fund Supported Programs will assess the effectiveness of Fund program design and conditionality. Building on an earlier paper, the Review of Facilities for Low-Income Countries-Reform Proposals will offer proposals on adjusting these facilities to better meet evolving membership needs. The Fund will implement a multipronged approach to enhance debt transparency and sustainable financing practices. Staff will also strengthen debt sustainability analysis by reviewing the Debt Sustainability Framework for Market Access Countries and the Fund’s Debt Limits Policy. The Revised IMF Policies and Practices on Capacity Development will reflect on suggestions made in recent discussions. • Improve governance of the Fund and modernize its operations. Work on the 15thGeneral Review of Quotas will continue with a view to completing it by the Spring Meetings, and no later than the Annual Meetings, of 2019. The Board will receive a briefing on Modernizing HR Policies and Practices: A Progress Report on Key Initiatives and continue the discussions on the Comprehensive Compensation and Benefits Review."

Abstract

"This Work Program (WP) translates the strategic directions and policy priorities laid out in the Fall 2018 Global Policy Agenda and the International Monetary and Financial Committee Communiqué into an Executive Board agenda for the next twelve months. Its main policy priorities and deliverables are as follows: • Advise member countries to rebuild buffers, enhance resilience, and advance structural reforms for the benefit of all to respond to mounting vulnerabilities. The Spring 2019 World Economic Outlook (WEO) will analyze the macroeconomic implications of increased corporate market power. The Global Financial Stability Report (GFSR) will discuss global financial risks in light of tightening financial conditions, while the Fiscal Monitor (FM) will study how improved governance in fiscal frameworks and institutions can reduce corruption vulnerabilities and improve policy outcomes. • Promote cooperation to modernize the multilateral trade system and address other challenges that transcend borders. The spillover chapter of the Spring 2019 WEO will examine the determinants of trade imbalances and spillovers from different trade policies. Building on the “Bali Fintech Agenda,"" staff will provide a stock-take of fintech developments and study the implications for cross-border flows, financial integrity, and global monetary and financial stability in Fintech: The Experience So Far. To support Japan’s G-20 Presidency, staff will prepare a note on Macroeconomic and Fiscal Implications of Aging. • Adapt the Fund’s policy toolkits to further enhance its surveillance, lending, and capacity development. Scoping notes for the Surveillance Review and the Financial Sector Assessment Program (FSAP) Review will establish priorities. The Review of Conditionality and the Design of Fund Supported Programs will assess the effectiveness of Fund program design and conditionality. Building on an earlier paper, the Review of Facilities for Low-Income Countries-Reform Proposals will offer proposals on adjusting these facilities to better meet evolving membership needs. The Fund will implement a multipronged approach to enhance debt transparency and sustainable financing practices. Staff will also strengthen debt sustainability analysis by reviewing the Debt Sustainability Framework for Market Access Countries and the Fund’s Debt Limits Policy. The Revised IMF Policies and Practices on Capacity Development will reflect on suggestions made in recent discussions. • Improve governance of the Fund and modernize its operations. Work on the 15thGeneral Review of Quotas will continue with a view to completing it by the Spring Meetings, and no later than the Annual Meetings, of 2019. The Board will receive a briefing on Modernizing HR Policies and Practices: A Progress Report on Key Initiatives and continue the discussions on the Comprehensive Compensation and Benefits Review."

This Work Program (WP) translates the strategic directions and policy priorities laid out in the Fall 2018 Global Policy Agenda and the International Monetary and Financial Committee Communiqué into an Executive Board agenda for the next twelve months. Its main policy priorities and deliverables are as follows:

  • Advise member countries to rebuild buffers, enhance resilience, and advance structural reforms for the benefit of all to respond to mounting vulnerabilities. The Spring 2019 World Economic Outlook (WEO) will analyze the macroeconomic implications of increased corporate market power. The Global Financial Stability Report (GFSR) will discuss global financial risks in light of tightening financial conditions, while the Fiscal Monitor (FM) will study how improved governance in fiscal frameworks and institutions can reduce corruption vulnerabilities and improve policy outcomes.

  • Promote cooperation to modernize the multilateral trade system and address other challenges that transcend borders. The spillover chapter of the Spring 2019 WEO will examine the determinants of trade imbalances and spillovers from different trade policies. Building on the “Bali Fintech Agenda," staff will provide a stock-take of fintech developments and study the implications for cross-border flows, financial integrity, and global monetary and financial stability in Fintech: The Experience So Far. To support Japan’s G-20 Presidency, staff will prepare a note on Macroeconomic and Fiscal Implications of Aging.

  • Adapt the Fund’s policy toolkits to further enhance its surveillance, lending, and capacity development. Scoping notes for the Surveillance Review and the Financial Sector Assessment Program (FSAP) Review will establish priorities. The Review of Conditionality and the Design of Fund Supported Programs will assess the effectiveness of Fund program design and conditionality. Building on an earlier paper, the Review of Facilities for Low-Income Countries-Reform Proposals will offer proposals on adjusting these facilities to better meet evolving membership needs. The Fund will implement a multipronged approach to enhance debt transparency and sustainable financing practices. Staff will also strengthen debt sustainability analysis by reviewing the Debt Sustainability Framework for Market Access Countries and the Fund’s Debt Limits Policy. The Revised IMF Policies and Practices on Capacity Development will reflect on suggestions made in recent discussions.

  • Improve governance of the Fund and modernize its operations. Work on the 15th General Review of Quotas will continue with a view to completing it by the Spring Meetings, and no later than the Annual Meetings, of 2019. The Board will receive a briefing on Modernizing HR Policies and Practices: A Progress Report on Key Initiatives and continue the discussions on the Comprehensive Compensation and Benefits Review.

I. Key Priorities of the Fall 2018 Work Program

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Trade

Open trade has delivered significant benefits, but waning support for multilateralism and recent trade tensions are threatening these gains. To foster stability and shared prosperity, the Fund will support efforts to modernize the multilateral trading system, resolve tensions to promote open trade, and provide analytical works in collaboration with others.

  • The G-20 Presidency and other international institutions have asked the Fund to undertake efforts to understand the impact to the global economy of trade tensions and to contribute to discussions about how to modernize the multilateral trading system. As in the past, modalities may involve a joint paper or conference.

  • Following the joint conference on trade with the OECD, World Bank, and World Trade Organization in Bali, the IMF’s Research Department Annual Jacques Polak Conference (November 1–2, 2018) focused on how domestic policies can have far-reaching international consequences in an increasingly interconnected world, and included, among others, studies on value-added linkages, and the macroeconomic consequences of trade policies.

  • The Spring 2019 WEO will feature a spillover chapter on trade imbalances, including whether they reflect the increasing fragmentation of production across countries, trade and FDI policy distortions, or macroeconomic imbalances. It will also analyze spillover effects of different trade policies/practices.

Fund Work on Demographics

The world is undergoing significant demographics changes driven by declining fertility and increased longevity, albeit at varying paces across countries. The best policy response will differ based on the specific demographic shock and countries’ institutional settings and policy space. Given the Board’s interest in the topic, staff is working on building blocks to help member countries address challenges.

  • For countries facing challenges from aging populations, staff is working on the G-20 Note on Macroeconomic and Fiscal Implications of Aging. The note will study the different channels through which countries are impacted by aging, focusing on economic growth, savings and investment, productivity, current account dynamics, and financial systems, concluding with a menu of policy options. The note also reflects Board discussion on The Future of Savings: The Role of Pension System Design in an Aging World from last May; a briefing is scheduled for late February 2019.

  • Some countries, particularly in Africa and Middle East, are encountering different demographic transitions. The focus for these countries will be on how to harness demographic dividends, analyze drivers and global implications, as well as assess fiscal costs of providing adequate social spending to support the enhancement of skills and productivity of youth in the face of rapid technological change. For instance, a Future of Work Conference, to be held in Ghana in December 2018, will look into investing in education systems, physical and digital infrastructure, and deepening integration.

Statement by the Managing Director on the Work Program of the Executive Board
Author: International Monetary Fund