Policy Papers

December 17, 2010

Implementation Plan in Response to Board-Endorsed Recommendations Arising from the IEO Evaluation of IMF Interactions with Member Countries

Description: This supplement reports on progress on various issues outlined in the staff’s Implementation Plan since its initial issuance on June 1, 2010.

Many of the steps included in the Implementation Plan, particularly proposals in the Mandate papers still under consideration last June, have been taken forward. These initiatives are aimed at better integration of bilateral and multilateral surveillance, sharpening analysis of financial sector issues and macro-financial linkages, and better tailoring of the Fund’s lending toolkit to members’ needs and circumstances. Many further initiatives are included in the latest Work Program, which was discussed by the Board on November 22, 2010.

December 6, 2010

Framework Administered Account for Selected Fund Activities - Caribbean Regional Technical Assistance Center (CARTAC) Subaccount

Description: In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Caribbean Regional Technical Assistance Center (CARTAC) subaccount (the “Subaccount”) under the terms of the SFA Instrument.

December 6, 2010

Framework Administered Account for Selected Fund Activities: Liberia Macro-Fiscal Subaccount

Description: In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Liberia Macro-Fiscal Subaccount (the “Subaccount”) under the terms of the SFA Instrument.

December 3, 2010

The Fund's Income Position for FY 2011 - Midyear Review

Description: This paper updates the outlook for the IMF’s income position for the financial year 2011 taking into account developments in the first half of the year. The outlook has improved primarily reflecting additional lending activity, which raised the projected average credit outstanding in FY 2011 by about SDR 3 billion to SDR 54 billion. Net operational income for FY 2011 is projected at SDR 328 million, some SDR 126 million higher than the projection in April 2010.1 The actual outcome is subject to considerable uncertainty related to the timing and amounts of disbursements under current and potential new arrangements and the performance of the Investment Account (IA).

November 18, 2010

Framework Administered Account for Selected Fund Activities: Sweden Subaccount for Selected Fund Activities

Description: In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund Activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Sweden Subaccount for Selected Fund Activities (the “Subaccount”) under the terms of the SFA instrument.

November 15, 2010

The Fund's Role Regarding Cross-Border Capital Flows

Description: Global capital flows have multiplied many times over in recent years, mainly between advanced economies but increasingly also to emerging markets, reflecting the general reduction in regulatory and informational barriers. Thus, with international asset positions now dwarfing output, global portfolio allocations and reallocations have profound effects on the world economy, as demonstrated by recent boombust episodes of both global reach (e.g., the transmission of the 2001 IT shock and the 2008 mortgage market shock from the United States) and regional significance (in Asia, Latin America, and Central and Eastern Europe). Such cycles and reversals in cross-border capital flows should not be surprising, given that these flows - more so than domestic ones - imply crossing informational barriers, currency and macroeconomic risks, and regulatory regimes.

Notes: This paper was the basis for a preliminary discussion by the Board on the topic of the Fund's role in capital flows. In the course of 2011, the Fund will carry out extensive analytical work, taking into account country experiences, to inform policy guidance on capital flows and help countries maximize the benefits from these flows while meeting any associated policy challenges. The Fund will communicate on this work as it progresses.

November 10, 2010

Framework Administered Account for Selected Fund Activities - Managing Natural Resource Wealth Topical Trust Fund Subaccount

Description: In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Managing Natural Resource Wealth (MNRW) Topical Trust Fund (TTF) subaccount (the “Subaccount”) under the terms of the SFA Instrument.

November 10, 2010

Framework Administered Account for Selected Fund Activities -Tax Policy and Administration Topical Trust Fund Subaccount

Description: In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the “SFA Instrument”). The financing of activities under the terms of the SFA Instrument is implemented through the establishment and operation of a subaccount within the SFA. This paper requests Executive Board approval to establish the Tax Policy and Administration (TPA) Topical Trust Fund (TTF) subaccount (the “Subaccount”) under the terms of the SFA Instrument.

November 9, 2010

Statement by the Managing Director on the Work Program of the Executive Board - Executive Board Meeting, November 22, 2010

Description: Persistent challenges: The multi-speed nature of the global economic recovery is testing the system, with strains already appearing in the form of large capital inflows to many emerging market countries and exchange rate pressures. At the same time, slow employment growth, high indebtedness, and remaining financial sector fragilities in some countries could yet derail a fragile recovery. Only cooperative approaches will succeed in relieving tensions and building a strong and sustainable recovery, based on a more balanced pattern of global growth.

October 31, 2010

IMF Quota and Governance Reform - Elements of an Agreement

Description: This paper sets out, and seeks to make operational, a core package for the consideration of the Executive Board and, subsequently, the Board of Governors. The reforms would lead to a major overhaul of the Fund’s quotas and governance, strengthening the Fund’s legitimacy and effectiveness. The paper proposes completion of the 14th General Review of Quotas with a doubling of quotas and a major realignment of quota shares among members. It also covers proposals that would lead to a more representative, all-elected Executive Board.