IMF to Launch Trust Funds to Support Technical Assistance
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The IMF plans to launch a series of trust funds to channel its technical assistance to specific policy topics. The menu-based Topical Trust Funds approach is designed to augment IMF resources already allocated to technical assistance.
Demand for the IMF's technical assistance is rising continuously, particularly from low- and lower-middle-income countries seeking to build the institutions and capacity needed to implement growth-enhancing policies.
To meet this rising demand as well as to better coordinate assistance delivery, the Fund seeks to strengthen its partnerships with donors by engaging them on a broader, longer-term, and more strategic basis.
The idea is to pool donor resources in multidonor trust funds that would supplement the Fund's own assistance resources while leveraging the IMF's expertise and experience. The funding model is planned to operate by region and by topic, offering donors various entry points according to their priorities. Complementing the IMF's regional technical assistance centers, topical trust funds will provide global geographical coverage and specialized topical scope.
Supported by a research agenda, these trust funds are intended to be at the vanguard of international best practice in delivering assistance, addressing more advanced or complex issues within their field of specialization. The trust funds would create synergies with the work of the IMF's regional centers, which focus on hands-on implementation of such advice on-site.
The proposed trust funds have several advantages over more traditional forms of assistance delivery. For recipient countries, they...
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