Reassessing the role of the IMF in a rapidly changing world

• Pages: 349

Page 349

The IMF has a critical role to play in fostering international economic cooperation and helping all countries benefit from the opportunities presented by globalization. But to do so, it must remain in step with a rapidly changing world. Mindful of this imperative, IMF Managing Director Rodrigo de Rato presented a medium-term strategy (MTS) to the IMF's membership in September 2005. Operational proposals for its implementation were set out in a report published in April 2006, where the Managing Director offered new directions for IMF surveillance of member countries' policies and global developments; an evolving role in emerging markets; more effective engagement in low-income countries; and rebalancing the way the Fund is governed.

In terms of surveillance, the MTS aims to increase the IMF's ability to address risks to economic stability stemming from payments imbalances, currency misalignments, and financial market disturbances.

To this end, at the country level, the Fund is sharpening its analysis of issues with cross-border spillover effects, in particular exchange rates and financial sector vulnerabilities, and focusing its advice on issues and countries that matter...