1. The Role Of The IMF In Low-income Countries
2006 Annual Meetings – Singapore
September 2006
Mark Plant
International Monetary Fund

2. The Medium-term Strategy
Put forth by Managing Director and approved by Executive Board
Reiterates continued engagement by IMF in low-income countries
Stresses the need for focus on areas of comparative advantage – macroeconomics and financial sector expertise
Underscores new challenges of scaled-up aid and debt relief

3. Outline Of Presentation
Three new macroeconomic challenges
New tools
Open questions

4. Three New Macroeconomic Challenges
Widening gaps
Scaled up aid / – absorb and spend
No more debt? – the challenge of borrowing

5. New Tools – Principles Of Engagement
Remain engaged in low-income countries
Surveillance, technical assistance and lending
Align with Poverty Reduction Strategies (PRS), in support of the Millennium Development Goals (MDGs)
Focus on core areas of competence
Recognize need for international cooperation

6. New Tools Poverty Reduction and Growth Facility
Policy Support Instrument
Exogenous Shocks Facility
Debt Sustainability Framework
Debt relief
Heavily Indebted Poor Countries (HIPC) Initiative
Multi-lateral Debt Relief Initiative (MDRI)
New lenders

7. Open Questions How to achieve focus, flexibility and streamlining?
What resources does the Fund need – financial and human?
What role in PRS and donor coordination?
What role in debt decisions?
Rethink post-conflict/failed states strategy?

8. References The MD’s Medium-Term Strategy PRGF-supported Program Design
PRGF-supported Program Design
Debt Sustainability Analysis
To be published