Capacity development (CD) is one of the Fund’s three core activities and has grown in importance in recent years. It supports member countries’ efforts to build the institutions and capacity necessary to formulate and implement sound economic policies, thereby complementing the Fund’s surveillance and lending mandates. Member countries, partners, and external commentators give the Fund high marks for the quality of its CD. At the same time, efforts need to continue to strengthen Fund CD to serve members’ current and evolving needs. The 2018 CD Strategy Review examines progress under the Fund’s 2013 CD Strategy and proposes a CD strategy for the next five years. It notes substantial progress in addressing the 2013 recommendations, which included strengthening the CD governance structure, enhancing the prioritization processes, clarifying the funding model, strengthening monitoring and evaluation, promoting greater integration of TA and training, exploiting new technologies for delivery, and leveraging CD as outreach. However, background work for this review also pointed to the need to strengthen the CD framework further. The review builds upon the existing CD strategy, focusing on two mutually reinforcing objectives. First, the impact of Fund CD needs to be increased by further strengthening integration with the Fund’s policy advice and lending operations, while continuing to make progress in framing CD through comprehensive strategies tailored to each member’s needs, capacity, and conditions, focusing on implementation and outcomes. Stronger coordination between CD and the Fund’s other core functions will better connect CD with countries’ risks and vulnerabilities and ensure surveillance and lending integrate lessons from CD more effectively. Second, the efficiency of CD needs to be increased by improving CD processes and systems. This will enhance transparency and strengthen the basis for strategic decision making. Five specific areas of recommendations support the strategy. Likewise, they mitigate institutional risks stemming from the Fund’s CD activities. They include clearer roles and responsibilities for key internal and external stakeholders in the CD process; continued strengthening of prioritization and monitoring; better tailoring and modernization of CD delivery with a focus on implementation of TA recommendations; greater internal consultation and sharing of CD information; and further progress in external coordination, communication, and dissemination of information (Annex I).
Establish reasonable accountability standards without evaluating everything.
In progress. The medium-term evaluation work plan covers a representative sample of the Fund CD but relies mostly on external evaluators with varying degrees of familiarity with Fund outputs and CDprocesses.
Introduce a CD evaluation work plan with a rolling three-year horizon, revised annually.
Decide what and how to evaluate based on potential value of the information, cost, and achievement of accountability standards.
Use the information from
continuing to make progress in framing CD through comprehensive strategies tailored to each member’s needs, capacity, and conditions, focusing on implementation and outcomes. Stronger coordination between CD and the Fund’s other core functions will better connect CD with countries’ risks and vulnerabilities and ensure surveillance and lending integrate lessons from CD more effectively. Second, the efficiency of CD needs to be increased by improving CDprocesses and systems. This will enhance transparency and strengthen the basis for strategic decision making.
. This process also seeks to ensure strong integration between the Fund’s three core functions. Under the 2017 reforms, these regional strategies are to be complemented by country-level strategy notes (CSNs) for heavy CD users, including fragile states. The inclusion of training in this process beginning this year will help exploit further synergies between TA and training. To encourage coordination throughout the CDprocess, explicit area department agreement is required on the timing and scope of all CD missions.
CD funding model . In 2008, the Board endorsed
CD strategy. Country authorities play a leading role throughout the CDprocess, with due consideration to institutional and capacity constraints. Such a country-centered approach requires area departments to be in the leading role on the Fund’s overall country engagement, including establishing country strategies and priorities for CD, taking into account the country’s own strategy and absorptive capacity, and working in collaboration with CD departments. In this context, area departments, including resident representatives and RCDC directors/coordinators, play a
This statement summarizes the IMF’s policies and practices with regard to the delivery of capacity development (CD) activities. It updates the 2014 Statement on IMF Policies and Practices on Capacity Development and reflects the conclusions of the 2018 Review of the Fund’s Capacity Development Strategy, approved by the Executive Board on November 14, 2018. The purpose of the statement is to consolidate the guiding principles endorsed by the Board with policies and practices that are within the authority of IMF’s management and are followed by staff in carrying out capacity development activities. The statement is expected to be of use to IMF staff, Executive Directors and their staff, country authorities, and donors. It also serves as a point of reference for future reviews of the IMF’s CD activities.
(CD), including technical assistance (TA) and training, is one of the three core pillars of the Fund’s work. Its main objective is to help member countries build institutions and capacity necessary to formulate and implement sound economic and financial policies. The Institute for Capacity Development (ICD) was established in 2012 with a specific mandate to further define and develop the Fund's strategy on capacity building and provide a clear institutional framework to bring the coordination and oversight over TA and training activities under one umbrella, while building on partnerships with donors. The Fund’s capacity development strategy was last discussed by the Board in June 2013, and the Board subsequently endorsed the 2014 statement on IMF Policies and Practices on Capacity Development. The 2018 review of the CD strategy will include backward- and forward-looking components: The backward-looking component will consider the prioritization, funding, monitoring and evaluation, and delivery of CD as set out in the 2014 statement. The forward-looking component will provide the opportunity to outline reforms to increase the impact of CD. Emphasis will be on making CD more effective and efficient while building on its existing strengths. Conclusions from the 2018 review will be reflected in a revised statement on IMF Policies and Practices on Capacity Development.
delivering CD activities that lead to concrete changes and results on the ground.
Monitoring and Evaluation
• Maintaining focus on the results-oriented approach . The common evaluation framework and Results Based Management (RBM) for all CD activities are only just coming into use now (see Annex III ). It will take time for them to become entrenched in the Fund’s work practices. The review will assess the institutional arrangements necessary to ensure that the Fund’s RBM process and evaluations are successfully embedded in the Fund’s CDprocesses, including
This document updates the Common Evaluation Framework (CEF) for the Fund’s capacity development (CD) activities and provides practical guidance on its implementation. Since its adoption, the Fund has made progress in implementing the CEF. However, areas for improvement remain. The document aims to address these areas, drawing on lessons from experience with evaluations since the CEF’s adoption.
International Monetary Fund. Office of Budget and Planning
of double-digit real growth, the envelope for external funded spending has been held flat on a real basis. The strategy reflected a number of considerations: the need to modernize and harmonize CDprocesses and systems in light of the rapid growth; the benefits of a constraint to reinforce prioritization; considerations related to the balance among Fund outputs and between Fund-financed and externally financed CD; the need to control associated costs to IMF01, and the implicit financing risks associated with external financing. In the interim period, significant