Policy Papers
2006
April 12, 2006
Review of the Fund's Income Position for FY2006 and FY2007
Description: This paper provides the basis of the Executive Board's annual review of the Fund's income position, the burden-sharing mechanism, and the system of special charges, and makes proposals for the rate of charge in FY07.
April 11, 2006
Heavily Indebted Poor Countries Initiative - List of Ring-Fenced Countries that Meet the Income and Indebtedness Criteria at end-2004
Description: This paper identifies the countries that meet the enhanced Heavily Indebted Poor Countries (HIPC) Initiative’s income and indebtedness eligibility criteria based on end-2004 data. It also updates the status of these countries toward qualifying for debt relief and presents cost estimates of debt relief.
April 5, 2006
Report on the Incidence of Longer-Term Program Engagement
Description: The assessments are intended to provide an analysis of the economic problems facing the member and a critical and frank review of progress during the period of Fund-supported programs, as the basis for a forward-looking assessment and strategy for future Fund engagement, including, where appropriate, an explicit exit strategy.
April 5, 2006
The Managing Director's Report on Implementing the Fund's Medium-Term Strategy
Description: In September, 2005, the Fund published its Medium-Term Strategy, which considered the future direction of the Fund in light of the economic transformation wrought by 21st century globalization. The strategy concluded that the emergence of new economic powers, integrated financial markets, unprecedented capital flows, and new ideas to promote economic development required an updated interpretation of the Fund’s mandate as the steward of international financial cooperation and stability. Without new focus and carefully chosen priorities, the institution risked being pulled in too many directions and losing its relevance to large parts of the membership.
March 29, 2006
Report of the External Evaluation of the Independent Evaluation Office
Description: The IEO of the IMF was created in 2000 to enhance the learning culture of the IMF, to build the IMF’s external credibility by undertaking objective evaluations in a transparent manner, to provide independent feedback to the Executive Board in its governance and oversight responsibilities, and to promote greater understanding of the work of the IMF among its members and the broader public. In the period October 2005-February 2006, the Evaluation Panel assessed how well the IEO meets these objectives, asking at the outset whether the IMF needs an IEO and whether the existing office is adequately independent. The Panel concludes that the IEO has served the IMF well but identifies certain weaknesses and makes recommendations to the IEO and the IMF to address them.
March 24, 2006
Review of Low-Income Country Debt Sustainability Framework and Implications of the Multilateral Debt Relief Initiative (MDRI)
Description: This paper reviews the experience with the joint IMF-World Bank Debt Sustainability Framework for low-income countries, including cooperation between the staffs, and highlights the implications of the Multilateral Debt Relief Initiative.
March 23, 2006
Precautionary Arrangements - Purposes and Performance
Description: This paper compares experience under precautionary and non-precautionary programs over the period 1992-2005, with a view to answering two questions: Are there systematic differences between precautionary and non-precautionary programs in terms of policies, conditionality, or macroeconomic outcomes? And, if so, are these attributable to the nature of the arrangement or to the economic problems facing the member and the circumstances that led it to seek the Fund’s support? The paper finds that countries with weak initial macroeconomic performance tend to request drawing programs whereas those with stronger macroeconomic fundamentals, but facing economic uncertainties, favor precautionary programs. While significant differences exist in the behavior of key macroeconomic variables (output growth and inflation) at the outset of the programs, these differences tend to disappear over the following two to three years, and can be largely explained by the different initial conditions facing the member.
March 23, 2006
Fund-Supported Programs and Crisis Prevention
Description: This paper examines the theoretical foundations for, and empirical evidence of, Fund support in preventing capital account crises. At a theoretical level, Fund supported programs can lower the crisis probability in two ways. First, such programs provide the member with additional external reserves, making a run for the exit by private creditors less likely. Second, such programs induce and signal better economic policies, though this needs to be supported by conditionality.
March 22, 2006
Review of Financing of the Fund's Concessional Assistance and Debt Relief to Low-Income Member Countries
Description: Immediately following the effectiveness of the decisions on the Multilateral Debt Relief Initiative (MDRI) and the Exogenous Shocks Facility (ESF), debt relief totaling SDR 2.3 billion was delivered to 19 qualifying members, including 17 countries under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative and two non-HIPCs, on January 6, 2006, with financing from the HIPC Umbrella sub-accounts and the newly established MDRI Trusts.
March 21, 2006
Heavily Indebted Poor Countries Initiative - Statistical Update
Description: This document updates the information provided in the September 2005 Heavily Indebted Poor Countries (HIPC) Initiative – Status of Implementation report. It deals exclusively with the enhanced HIPC Initiative, and does not consider the implications of the Multilateral Debt Relief Initiative (MDRI).