[stop-imf] IMF invites comments on conditionality

[Robert Weissman]

April 9, 2001

IMF Invites Comments on Streamlining and Focusing Conditionality

                       The International Monetary Fund (IMF) is inviting
comments from outside the institution on a set of papers that review the
                       evolution of IMF conditionalityÑthe conditions
attached to IMF financingÑand discuss issues associated with streamlining
                       and focusing it. These papers were published on
March 21, 2001 following a discussion by the IMF's Executive Board (see
                       IMF Public Information Notice No. 01/28) and also
have been posted on the IMF website (www.imf.org).

                       Interested parties are invited to send comments on
the conditionality papers by regular mail or facsimile to the contact
points
                       listed on this News Brief, or by email to
conditionality@imf.org via the hyperlink on the IMF website. Comments
received
                       through these channels by 6:00 PM Washington time
(2300GMT) May 18, 2001 will be conveyed to the IMF's Executive
                       Board as background information for a Board
discussion in June, and used in further work by IMF staff, thus
contributing
                       directly to further progress in reforming
conditionality.

                       IMF Executive Directors agreed in a discussion
March 7, 2001, that while conditionality remains indispensable there is a
need
                       to streamline and focus it, to leave maximum scope
for countries' policy choices while ensuring that essential policies are
                       implemented.

                       The Board's discussion identified several important
issues to be raised again in the period ahead; comments from the public
                       on these issues will be particularly useful in
guiding the Fund's work. They include:

                              where to draw the line between measures that
are critical to program objectives and those that are relevant but not
                              critical;
                              how to improve coordination with other
agencies on measures outside the IMF's core areas of responsibility;
                              what the IMF should do when its financial
support is requested by a country that lacks a strong commitment to
                              policies needed to achieve a sustainable
external position;
                              whether there is scope for results-based
conditionality, whereby the IMF would provide its financing only after
                              specific policy results have been achieved
(rather than on the basis of progress toward such results);
                              and the scope for the Fund to play a more
supportive role in helping countries build ownership of sound policies.

                       Two seminars to be held in the second quarter of
2001 will provide an opportunity for country officials, academic experts,
and
                       representatives of other international
organizations, donor groups, and nongovernmental organizations to
contribute to the
                       IMF's review of conditionality. One seminar is to
be held at IMF headquarters in Washington D.C. following the
                       IMF-World Bank Spring Meetings; the other will be
held in Berlin, Germany, June 10-11. Both seminars will be open to the
                       press.

                       For anyone unable to access the Internet, copies of
the background papers and the summary of the March 7 Executive Board
                       discussion are available from:

                       Public Affairs Division fax: 202 623-6278
                       External Relations Department
                       IMF
                       Washington, DC 20431 USA.

                       Written comments may be mailed or sent by facsimile
to:

                       Tim Lane fax: 202 623-4233
                       Chief of Policy Review Division
                       Policy Development and Review Department
                       IMF
                       Washington, DC 20431 USA

                                                    IMF EXTERNAL RELATIONS
DEPARTMENT
                                                    Public Affairs:
202-623-7300 - Fax: 202-623-6278
                                                   Media Relations:
202-623-7100 - Fax: 202-623-6772