Policy Papers

August 30, 2007

Aid for Trade-Harnessing Globalization for Economic Development

Description: Aid for trade can support countries trying to further benefit from the expanding global market place by helping to address poorly performing infrastructure and institutions. Needless to say, good policies also matter: trade liberalization, improving incentives for private investment in trade, and reducing the costs and improving the quality of services. Market access also matters; accordingly, a successful conclusion to the Doha Round remains a top policy objective.

The paper highlights three challenges and suggests some areas for further consideration/action: making competitiveness a pillar of country growth strategies; filling the remaining gaps in trade-related assistance; and expanding the overall aid envelope and making full use of opportunity to replenish the International Development Association.

August 28, 2007

Initiative for Heavily Indebted Poor Countries (HIPC) and Multilateral Debt Relief Initiative (MDRI)- Status of Implementation

Description: This report provides an update on the status of implementation, impact and costs of the enhanced Heavily Indebted Poor Country (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) since mid-2006. It also discusses the status of creditor participation in both initiatives and the issue of litigation of commercial creditors against HIPCs.

August 22, 2007

Review of the Fund's Strategy on Overdue Financial Obligations

Description: This paper provides an annual review of progress under the Fund’s strengthened cooperative strategy on overdue financial obligations and proposes to extend the availability of the rights approach by another year, to end-August 2008. The rights approach could provide a useful mechanism for arrears clearance for the remaining eligible members, depending on their specific circumstances. A draft decision to this effect is provided in Section V.

August 16, 2007

Implementation Plan in Response to Board-Endorsed Recommendations Arising from the IEO Report on the Evaluation of the IMF Exchange Rate Policy Advice, 1999-2005

Description: This paper presents an implementation plan that responds to the Board endorsed recommendations in the IEO Report on the Evaluation of the IMF's Exchange Rate Policy Advice, 1999-2005 ("the IEO Report"). The IEO recommendations and the views of the Executive Board are summarized in Section II, followed by descriptions of implementation plans (Section III) and the projected resource cost associated with the implementation plan (Section IV).

July 11, 2007

Quotas - Updated Calculations and Data Adjustments

Description: This paper presents the results of updating the data set for quota calculations through 2005. The updated data set would provide the basis for the next round of discussions on quota and voice reforms. The paper also revisits the issue of data adjustments. Consideration of a broader range of specifications for a new quota formula is left for the next paper on quota and voice reforms being issued concurrently.

Notes:

Quota Data 2007

July 11, 2007

Quota and Voice Reform - Stocktaking and Further Considerations, Statistical Appendices I and II, Statement by the Managing Director, and Summing Up of the Board Meeting

Description: At its Spring Meeting, the IMFC reiterated the importance of implementing the program of quota and voice reforms in line with the timetable set out by the Board of Governors in Singapore. The Committee welcomed the initial informal Board discussions on a new quota formula and stressed the importance of agreeing on a new formula, which should be simple and transparent and should capture members’ relative positions in the world economy. It noted that this reform would result in higher shares for dynamic economies, many of which are emerging market economies, whose weight and role in the global economy have increased. The Committee also stressed the importance of enhancing the voice and participation of low-income countries, a key issue for which is an increase in basic votes, at a minimum preserving the voting share of low-income countries. The Committee called on the Executive Board to continue its work on the reform package as a matter of priority.

June 29, 2007

Staff Report on the Multilateral Consultation on Global Imbalances with China, the Euro Area, Japan, Saudi Arabia, and the United States

Description: Multilateral Consultations are a new tool of multilateral surveillance for the IMF, designed to foster action-oriented debate and policy actions on a problem of systemic or regional importance. The first multilateral consultation focused on facilitating the resolution of global imbalances while sustaining robust global growth. China, the euro area, Japan, Saudi Arabia, and the United States agreed to participate.

June 21, 2007

Review of the 1977 Decision on Surveillance over Exchange Rate Policies - Proposal for a New Decision

Description: This paper presents a draft Decision that reflects the guidance provided by the Board. In February, the Board endorsed three overarching principles to guide a new Decision: (i) no new obligations for members, together with confirmation that dialogue and persuasion are key pillars of surveillance; (ii) due regard for country circumstances and emphasis on the need for evenhandedness; and (iii) continued flexibility.

June 14, 2007

Aid Inflows - The Role of the Fund and Operational Issues for Program Design - Background Paper

Description: This paper contains background material to the Board paper on "Aid Inflows— The Role of the Fund and Operational Issues for Program Design." The main paper draws operational implications for program design of increased and volatile aid inflows, based on selected case studies (Annex I) and a review of program conditionality (Annex II). It also uses findings on recent developments in official donor assistance (ODA) and meeting the Millennium Development Goals (MDGs) (Annex III).

June 14, 2007

Aid Inflows - The Role of the Fund and Operational Issues for Program Design

Description: The paper focuses on the operational implications of high and volatile aid for the design of Fund-supported programs. It provides a conceptual framework that should guide country teams in giving advice to low-income countries on a case-by-case basis, without specific quantitative performance thresholds for the spending and absorption of additional aid. In doing so, it responds to some of the concerns raised by the Independent Evaluation Office (IEO) in its recent evaluation of the Fund and aid to sub-Saharan Africa.