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).
prioritization processes, clarifying the funding model, strengthening monitoring and evaluation, promoting greater integration of TA and training, exploiting new technologies for delivery, and leveragingCD 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
, and enhancing monitoring and evaluation) and on enhancing CD delivery and outreach (greater TA-training integration, exploiting new technologies, and leveragingCD in outreach):
As highlighted in the 2014 Statement on IMF Policies and Practices on CD , CD governance has been strengthened under the management-led Committee on Capacity Building (CCB). Recently-introduced reforms seek to reinforce a more strategic medium-term orientation in CD planning and to allow greater flexibility in resource allocation. At the same time, strategic engagement with the Fund
the Executive Board and related operational aspects of the strategy:
Draft a new policy statement for Board endorsement. Prepare related staff guidance notes, which will be circulated to the Board for information.
Expand Results Based Management (RBM) coverage to all TA and training to focus CD planning on outcomes and provide information for evaluation.
Enhance CD effectiveness by exploiting TA and training synergies and harnessing new technologies.
LeverageCD, which is highly valued by the membership, as an outreach tool for the Fund.
This paper outlines reforms to increase the effectiveness of the Fund’s capacity development (CD) program. It builds on the 2008 and 2011 reviews of technical assistance (TA) and the 2008 review of training, which set in motion important changes to make CD more valuable to member countries. Reforms will involve Board endorsement in a few areas and implementation by staff of related next steps.
achieve these objectives, including with respect to updating the governance structure, enhancing prioritization, clarifying the funding model, and strengthening monitoring and evaluation. The Executive Board also saw scope for fostering greater integration of TA and training, exploiting new technologies for delivery, and leveragingCD as outreach.
Prior to 2013, the planning, prioritization, and funding of TA and training were conducted without centralized coordination of these functions—posing risks to ensuring full consistency with the institutional priorities
V. Seizing Opportunities for CD Delivery and Outreach
49. TA and training are greatly appreciated by member countries . However, opportunities remain to expand the reach and impact of CD activities and to leverageCD as outreach for the Fund. As a follow-up to the 2011 TA review, this paper considers ways to foster greater integration of TA and training.
A. Foster Greater Integration of TA and Training
50. TA and training are complementary products sharing similar goals . They share the objective of strengthening human and institutional capacity to
(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.