Social dimensions of IMF financing
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By pursuing its mandate to promote international monetary cooperation, the balanced growth of international trade, and a stable system of exchange rates, the IMF contributes to sustainable economic and human development.
The IMF recognizes that successful macroeconomic programs must also include policies that directly address poverty and social concerns and that, to support these objectives, IMF-supported programs must integrate social sector spending that focuses on improving the education and health status of the poor.
The reason for attention to social policy issues is twofold: it reflects the recognition that "country ownership" is necessary if the programs are to succeed and that good health and education contribute to, and benefit from, growth and poverty reduction.
In pursuing this aspect of its work, the IMF collaborates extensively with other institutions, including regional development banks, the United Nations Development Program, the International Labor Organization, the World Health Organization, and, especially, the World Bank. Drawing on their expertise, the IMF advises countries on how social and sectoral programs aimed at poverty reduction can be accommodated and financed within a growth-enhancing macroeconomic framework. It does so by identifying not only unproductive spending that should be reduced to make more money available for basic health care and primary education, but also key categories of public expenditure that must be maintained or increased. Through policy discussions and technical assistance, the IMF also plays a role in improving the transparency of governments' decision making and their ability to monitor poverty-reducing spending and social developments.
The IMF is committed to integrating poverty and social impact...
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