This paper proposes a comprehensive Strategy to strengthen IMF support to FCS in accordance with the Fund’s mandate and comparative advantage. The Strategy is a response to the Board-endorsed recommendations of the 2018 Independent Evaluation Office (IEO) Report on The IMF and Fragile States. To achieve these goals, the Strategy will benefit from additional resources reflected in the FY23-25 Medium-Term Budget, as per the budget augmentation framework discussed by the Board in December 2021. The Strategy also provides measures to better support staff working on FCS. Given the inherent risks in FCS engagement, the Strategy will be phased in starting in FY22, with implementation gradually accelerating between FY23-FY25.
undermine macroeconomic stability and growth prospects in neighboring countries and regions.
Directors noted that about one fifth of Fund members are classified as FCS. They agreed that the Fund has an important role to play, within its mandate, to help these countries exit from fragility and support them to achieve macroeconomic stability, enhance resilience, strengthen governance, and promote inclusive growth. Directors expressed strong support for the proposed FCSstrategy and its measures, which responds to the Board-endorsed recommendations of the 2018 Independent
also gives a brief overview of the Fund’s FCS engagement, and the challenges identified by the 2018 Independent Evaluation Office (IEO) Report on The IMF and Fragile States . Second, the paper presents concrete proposals to better tailor the IMF’s approach, instruments, and policy advice to the case-specific manifestations of fragility and conflict—including by leveraging partnerships with humanitarian, development, peace, and security actors. Third, the paper provides an overview of the FCSStrategy resource allocation, measures to support staff, and indicators to
. The Board will consider a Gender Strategy to support the analysis of gender issues and the core operations of the Fund. The Board will also be briefed on the SDN on Women and Finance in the Post-COVID World . In late FY 2023, the Board is expected to be briefed on the Implementation of the Inclusion and Gender Strategies .
Fragile and conflict-affected states (FCS) . Following earlier engagement on FCS, the Board work agenda focuses on Enhancing Fund Financial Engagement in FCS and the FCSStrategy . In FY 2023, the Board is expected to be briefed on the
This Work Program puts forward an IMF Board agenda focused on activities of critical importance to our members. In line with the strategic directions laid out in the Fall 2021 Global Policy Agenda and the International Monetary and Financial Committee (IMFC) Communiqué, the Work Program supports three policy priorities: (i) vaccinate the world to combat the pandemic everywhere; (ii) calibrate bilateral and multilateral policies to support the recovery and reduce scarring and divergences; and (iii) accelerate the transformation of the global economy to make it greener, more digital, and inclusive. To deliver on this agenda, it is also important to ensure that the Fund remains appropriately equipped to maintain its role at the center of the global financial safety net.
continuing to implement the full pass-through petroleum pricing formula, our Office appeals to the Board to accommodate a phased approach to fuel pricing changes if the need arises, as allowance for such flexibility was instituted in the Fund’s FCSstrategy. Given the disconcerting youth unrest images seen in Sierra Leone just prior to the pandemic, following fuel price hikes when subsidies were lifted, the timing of fuel price measures at this time carries significant risk, with activists already threatening unrest in 2022 over fuel price hikes. We would appeal for the
International Monetary Fund. Office of Budget and Planning
underlying the 2021 CSR, the new staff will be allocated to the country teams where gaps in macrofinancial analysis are highest. Onboarding and training will facilitate wider skills transmission as the staff are rotated to area departments.
4. Next steps . In addition to regular budget updates, staff will report on progress in the context of the interim Surveillance Review expected for FY 24.
Annex IV. Fragile and Conflict-Affected States Strategy 1
The FCSStrategy, discussed by the Board on July 6, 2021 and October 22, 2021, will equip the Fund with a renewed
International Monetary Fund. Strategy, Policy, & Review Department
targets is critical for the IMF to support its poorest members. Work is ongoing work to better tailor conditionality to country needs.
Fragile and conflict-affected states (FCS) are particularly vulnerable to rising food and oil prices. The IMF is working on customizing policy analysis and financial support to country-specific circumstances and is strengthening partnerships with development institutions, in line with the IMF’s FCSstrategy.
On April 15, the IMF Executive Board approved the establishment of a new Resilience and Sustainability Trust by which members
International Monetary Fund. Office of Internal Audit
The Eleventh Periodic Monitoring Report (PMR) on the Status of Management Implementation Plans (MIPs) in Response to Board-Endorsed Independent Evaluation Office (IEO) Recommendations assessed the progress made over the past 18 months on 72 actions contained in 10 MIPs. Significant progress has been made with the implementation of management actions, despite challenges that have arisen from the ongoing COVID-19 pandemic. Overall, 29 of the 72 actions for which implementation progress is assessed in the Eleventh PMR were deemed to have been satisfactorily implemented, while 35 remain open, and eight actions are being reformulated in line with the Board-approved triage framework for long-standing open actions. Despite the effect of reprioritization to make space for the urgent needs of the membership resulting from the pandemic, the pace of implementation observed in the Eleventh PMR, with the 29 actions closed, significantly exceeds the previous trend of about 15 implemented actions per year. Of the 35 open actions, 16 are more than one year past their implementation due dates. The reprioritization of activities owing to the COVID-19 pandemic and resource constraints on account of several years of flat budgets led to delays in the implementation of several actions, partly because of the postponement of important reviews.