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International Monetary Fund
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.
International Monetary Fund

. The Rationale for Enhancing the IMF’s Engagement in FCS D. Overview of IMF Engagement, Progress Made, and Remaining Challenges FCS STRATEGY: ENHANCING THE EFFECTIVENESS OF IMF CORE ACTIVITIES IN FCS A Principles of Engagement B. Identification and Classification of FCS C. Rolling out Country Engagement Strategies (CES) D. Strengthening IMF Core Functions in FCS E. Enhancing Partnerships ORGANIZATIONAL IMPLICATIONS A. Engagement Model and Resources B. Human Resources and Support for Staff C. Monitoring Progress D. Risks CONCLUSIONS ISSUES

International Monetary Fund

comparative advantage. Building on past engagements and lessons learned, the FCS Strategy aims to achieve these goals . FCS Strategy: Enhancing the Effectiveness of IMF Core activities in FCS The Strategy provides a renewed vision for the IMF’s role in FCS: Through long-term engagement and working with partners, the Fund will enhance its effectiveness to support FCS in achieving macroeconomic stability, promoting sustainable and inclusive growth, and strengthening their resilience to help them exit from fragility. The objective is to develop a coherent, explicit

International Monetary Fund. Strategy, Policy, & Review Department

institutions and engagement with other stakeholders. This vision guides the remainder of this strategy paper. 20. The vision recognizes the fundamental diversity of lived human experience. It acknowledges the need to better understand how the different circumstances of women and men can lead to sub-optimal macroeconomic outcomes, and how policies can contribute to or diminish peoples’ well-being. As such, it offers a broader frame for conducting the core work of the Fund. 21. Mainstreaming gender therefore entails a shift in the mindset on how to conduct IMF core

International Monetary Fund. Strategy, Policy, & Review Department
On July 22, 2022, the Executive Board of the International Monetary Fund (IMF) approved the IMF’s first Strategy toward Mainstreaming Gender into the IMF’s core activities. Mainstreaming gender at the IMF starts with the recognition that reducing gender disparities goes hand-in-hand with higher economic growth, greater economic stability and resilience, and lower income inequality. At the same time, economic and financial policies can exacerbate or narrow gender disparities. Well-designed macroeconomic, structural, and financial policies can support efficient and inclusive outcomes and equitably benefit women, girls, and the society in general. The strategy lays out how the IMF can help its member countries address gender disparities in the context of carrying out its core functions—surveillance, lending, and capacity development. The strategy comprises four key pillars: first, gender-disaggregated data collection and development of modeling tools to enable staff to conduct policy analysis; second, a robust governance framework for an evenhanded approach across members based on the macro-criticality of gender; third, strengthening collaboration with external partners to benefit from knowledge sharing and peer learning, leverage complementarities, and maximize the impact on the ground; and fourth, the efficient use of resources allocated to gender by putting in place a central unit for realizing scale economies and supporting country teams.