IMF Outlines New Vision for Helping Build Capacity

IMF is developing a new strategic approach to capacity building

Rising demand for capacity building calls for setting priorities

Results-based management helps IMF measure impact of technical assistance

Speaking to a group of donors that provide funding for capacity building, Shafik noted that the economic difficulties currently experienced in many parts of the world have generated strong demand for IMF technical assistance and training. Thanks to generous bilateral support and multilateral donor trust funds, which finance a growing share of this core IMF activity, the institution is able to meet the demand.

But as work in this area expands, the IMF has found it necessary to develop a new, more coherent approach to capacity building in order to increase its effectiveness.

“Given where we are, it is time to have a more strategic discussion with all of our donor partners,” Shafik told the April 23 gathering. “I hope this is the start of a much more ambitious partnership between us to build capacity on macroeconomic issues.”

The inaugural meeting of the Donor Consultative Group, held during the IMF-World Bank Spring Meetings in Washington, brought together close to 50 representatives of some 30 donor agencies and other development partners. Some had been supporting IMF technical assistance and training for a long time; others were just learning about how they can help other countries by supporting IMF capacity building.

Exploiting synergies

As part of the revamped strategy, the IMF has merged its technical assistance and training activities to form the Institute for Capacity Development. The new department, launched May 1, brings together the former IMF Institute and the Office of Technical Assistance Management.

“This integration of the two branches of the IMF’s capacity building will allow the institution to exploit synergies in these areas,” explained Sharmini Coorey, who heads the new department. A key role of the new department would be to further define and update the Fund’s strategy on capacity building and conduct periodic reviews to the IMF’s Executive Board.

The merger of technical assistance and training will also enhance the effectiveness of the IMF’s large global capacity building network.

The seven Regional Training Centers and training programs in Austria, Brazil, China, India, Kuwait, Singapore, and Tunisia, which supplement headquarters-based training, allow the IMF to adapt its training to local needs. The IMF also...