IMF Collaboration with the World Bank on Macro-Structural Issues

The IMF's effectiveness in collaborating with the World Bank to raise the quality and influence of its work on macro-structural issues and contain costs is evaluated in the report. The evaluation found that collaboration can bring significant benefits, but also poses challenges. It recommended that the IMF develop and agree on concrete frameworks to ensure effective collaboration, improve internal incentives, address cultural reluctance, and strengthen the strategic role of the Executive Board.

Format: Paperback / softback
Length: 2 pages
Publication date: 30 June 2023
Publisher: International Monetary Fund (IMF)

This comprehensive report evaluates the effectiveness of the International Monetary Fund (IMF) in collaborating with the World Bank as the Fund endeavors to enhance the quality and impact of its work on macro-structural issues while containing costs. The evaluation specifically focuses on IMF pilot initiatives aimed at improving coverage of inequality, gender, energy/climate, and macro-structural reforms in Article IV surveillance.

Overall, the evaluation finds that IMF collaboration on macro-structural issues has been broad but uneven. While informal consultation was widespread, initial aspirations that the Fund would be able to systematically leverage Bank expertise proved over-optimistic. In-depth collaboration was relatively limited, reflecting a decentralized approach adopted in the pilots, as well as a tendency among Fund staff to rely on their own expertise and the institutional complexities of working with the Bank, including accessing the right people and inputs and aligning goals and timetables.

The evaluation concludes that collaboration can bring significant benefits to the quality and influence of Fund work, but also poses challenges and is not a panacea for extending the Fund's ability to cover a widening range of issues at a time when resources are under strain. It recommends that the IMF develop and agree on concrete frameworks to ensure effective collaboration with the World Bank on key macro-structural issues (such as climate) where collaboration is judged to bring the greatest strategic returns. Recognizing that more effective collaboration depends not only on the Fund but also on other partners, the evaluation also recommends that the Fund improve internal incentives and address the wider cultural reluctance to engage with external partners; work with the World Bank to enhance coordination and information-sharing; and explore opportunities for greater collaboration with regional development banks and other international financial institutions.

In conclusion, this evaluation provides valuable insights into the strengths and weaknesses of IMF collaboration with the World Bank on macro-structural issues. It highlights the need for the Fund to improve its approach to collaboration, leverage Bank expertise more effectively, and engage with other partners to address the complex challenges facing the global economy. By taking these steps, the IMF can enhance its effectiveness in supporting countries' efforts to achieve sustainable development and promote global economic stability.

ISBN-13: 9781513537351