Public Information Notice No. 07/93

Public Information Notice: Implementation Plan Following IEO Evaluation of the IMF and Aid to Sub-Saharan Africa

August 2, 2007

On June 29, 2007, the Executive Board of the International Monetary Fund (IMF) discussed the "Implementation Plan in Response to Board-Endorsed Recommendations Arising from the Independent Evaluation Office Report on the IMF and Aid to Sub-Saharan Africa".

Background

The Implementation Plan is the first forward-looking implementation plan required under a new framework established to ensure a more systematic approach for following-up on and monitoring the implementation of Board-endorsed IEO recommendations.

This new framework, which was established following an External Evaluation of the IEO, envisages i) the presentation to the Board of a forward-looking implementation plan for Board-endorsed recommendations soon after Board discussion of each IEO report, and ii) periodic monitoring of the state of implementation of actions set out in such plans.

Executive Board Assessment

Executive Directors welcomed the opportunity to provide management with feedback on its implementation plan developed in response to the Board-endorsed recommendations arising from the IEO report on the Fund and aid to Sub-Saharan Africa.

Directors noted that this was the first such implementation plan since the Board agreed in January 2007 on a more systematic approach and stronger monitoring of the implementation of Board-endorsed IEO recommendations. They observed that the paper specified that future Board papers would contain reaction to Board-endorsed recommendations, but did not state how policies would be clarified or operations modified to implement the recommendations. Many Directors called for actions targeted at addressing specific recommendations to be pulled together in due course to ensure a holistic approach and appropriate follow-up.

In this regard, Directors agreed that this process is moving forward in the context of the changing circumstances of low-income members and an already evolving Fund engagement. They recalled that the Medium-Term Strategy (MTS) identifies a number of related areas for improvement, with a more focused Fund engagement in support of its low-income members. Directors reaffirmed that the IEO report had provided a valuable input into the process of adapting and clarifying the Fund's work in this area, and noted the relevance of Fund-Bank collaboration.

Directors supported the intention to build on a number of distinct but complementary work streams, key elements of which are already in the work plan. In particular, they supported the intention to take forward:

• Fund policies related to handling aid inflows in the context of forthcoming discussions on the Role of the Fund in Managing Aid Inflows and Impact on the Design of Fund-supported Programs and Fiscal Policy Response to Scaled-up Aid;

Monitoring and evaluation of the implementation of clarified policy guidance in the context of a review of the staff guidance note on ex post assessments, and the next review of the Poverty Reduction and Growth Facility (PRGF);

• The role and resourcing of resident representatives' and mission chiefs' interactions with donor groups and civil society in the context of The Role of the Fund in the Poverty Reduction Strategy Papers (PRSP) and Donor Coordination Processes and The IMF's Communications Strategy; and

• The need for Fund policy and its implementation to be consistent and communicated clearly within the institution and outside, also in the context of The IMF's Communications Strategy.

Directors generally welcomed the efforts to cost the response to the IEO, and noted that it will be important to provide accurate estimates of the additional costings in future implementation plans. In particular, they looked forward to updated costings for the implementation phase, which will be presented in the context of individual forthcoming Board discussions, and in the light of the Fund's medium-term budget framework. A number of Directors considered that the costs would likely be considerably lower than currently estimated, as several of the recommendations parallel efforts that are already included in the work program.

Finally, Directors looked forward to the periodic monitoring report envisaged under the new framework, which will provide further opportunity for assessing the implementation of Board-endorsed IEO recommendations. Directors underscored the importance of monitoring and evaluating the implementation of clarified policy guidance, and some noted that, whether or not the next review of the PRGF could be advanced to a date before 2010, a monitoring and evaluation framework (benchmarks) will be needed.