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

This Work Program translates the strategic directions and policy priorities laid out in the Spring 2019 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 related deliverables are as follows: • Support domestic policies to enhance resilience and inclusion: • Upgrade global cooperation to level the playing field and address other shared challenges • Adapt the Fund’s toolkits to lead and support change: • Continue to modernize the Fund to deliver for the future:

Abstract

This Work Program translates the strategic directions and policy priorities laid out in the Spring 2019 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 related deliverables are as follows: • Support domestic policies to enhance resilience and inclusion: • Upgrade global cooperation to level the playing field and address other shared challenges • Adapt the Fund’s toolkits to lead and support change: • Continue to modernize the Fund to deliver for the future:

This Work Program (WP) translates the strategic directions and policy priorities laid out in the Spring 2019 Global Policy Agenda (GPA) and the International Monetary and Financial Committee Communiqué into an Executive Board agenda for the next twelve months.1 Its main policy priorities and related deliverables are as follows:

  • Support domestic policies to enhance resilience and inclusion: The World Economic Outlook (WEO) will discuss policies to sustain growth, enhance inclusion, and boost resilience. The Global Financial Stability Report (GFSR) will assess key vulnerabilities in the financial system and study the financial stability implications of US dollar funding of global non-US banks, while a staff discussion note (SDN) on Financial Services and Inequality will help to better understand how financial policies could enhance inclusion and opportunities for all. The 2019 External Sector Report analyzed the role of exchange rates in the external adjustment process. The briefing on the Integrated Policy Framework will lay out staff plans to develop a more systematic assessment of an effective policy mix by jointly considering monetary, exchange rate, macroprudential, and capital flow management policies.

  • Upgrade global cooperation to level the playing field and address other shared challenges: A Stock-take on the Fund’s Work on Illicit Financial Flows will provide a better understanding of such flows and discuss the issue of their quantification. The Board paper Fintech: The Experience So Far building on the Bali Fintech Agenda has taken stock of countries’ fintech experiences and identify key fintech-related issues meriting further attention. Adapting National Prudential Approaches to the International Reform Agenda: Lessons from Experience will look at how economies are adapting to recent international financial sector reforms. The Fiscal Monitor (FM) analytical chapter will examine fiscal policy tools to mitigate climate change.

  • Adapt the Fund’s toolkits to lead and support change: The Comprehensive Surveillance Review and the Review of the Financial Sector Assessment Program will discuss how to adapt Fund surveillance to the changing environment. The Fund’s debt policies will be improved through the Debt Sustainability Framework Review for Market Access Countries and the Review of the Debt Limits Policy. IMF Policies and Practices on Capacity Development was discussed following the completion of the 2018 review on the Fund’s capacity development strategy.

  • Continue to modernize the Fund to deliver for the future: The Board will discuss a briefing on the 2019 Diversity and Inclusion Report and the Comprehensive Compensation and Benefits Review. Briefings on the Big 5 Modernization Agenda, the Knowledge Management Strategy were held, and the Update on the IMF Communication Strategy is also scheduled.

I. Key Priorities of the Spring 2019 Work Program

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The Fund’s work on Illicit Flows

The Spring 2019 Global Policy Agenda highlighted that a level playing field is one of the key prerequisites for moving toward a new sustainable model for international cooperation. Fighting IFFs is a transnational issue and remains an important part of this agenda. The Board paper A Stock-take on the Fund’s Work on Illicit Financial Flows (May 2020) aims to:

  • Showcase the Fund’s wide-ranging IFF-related work, in particular on AML/CFT efforts and financial integrity more broadly, as well as tax evasion and IFF measurement and monitoring;

  • Clarify the definition of illicit financial flows by distinguishing illegal flows from other flows, such as legal tax avoidance and tax planning by multinationals;

  • Provide information on estimation practices and related challenges, which will be an input to the Seventh IMF Statistical Forum: Measuring the Informal Economy.

The paper will benefit from consultations with other international institutions and civil society organizations.

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The Fund’s work on Climate Change and Natural Disasters

The Fund is continuing efforts to provide macroeconomic guidance on climate change mitigation and adaptation strategies and support resilience-building in countries vulnerable to natural disasters, especially small states.

  • Building Resilience in Countries Vulnerable to Natural Disasters, discussed in May, considered a holistic approach to building resilience to natural disasters using a three-pillar approach that addresses building physical resilience, financial resilience, and social resilience.

  • Building on the recent Board discussion on “Fiscal Policies for Implementing Paris Climate Strategies” last March, the Fall 2019 Fiscal Monitor will analyze fiscal policies for climate change mitigation, the impact of international coordination through carbon price floors, policies for investment in the transition to low-carbon energy, possible options for overcoming political economy obstacles to pricing, and the implications of global mitigation for fiscal regimes in resource-rich countries.

  • Staff is also studying climate-related risks and implications for financial sector policies. This involves enhanced financial stress testing by integrating climate-related shocks with broader macroeconomic scenarios, including in non-life insurance sectors. Staff work on climate-related risks to financial stability will be discussed in the 2020 FSAP Review.

  • A joint WB-IMF working group is exploring more effective coordination on Climate Change Policy Assessment (CCPA) and Disaster Resilience Strategy. The Fund is also working with the European Union on revisions to its Climate Policy.

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1

This WP covers FY20 (May 2019 to April 2020).

2

These are: transformation of the HR system and operating model (1HR), reformed Capacity Development Management and Administration processes (CDMAP), development of an Integrated Digital Workplace (IDW), a next generation economic data platform (iDATA), and knowledge management (KM).

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