Transparency at the IMF

Greater transparency, in both economic policy and in data on economic and financial developments, is critical for smoothly functioning national economies and a stronger international monetary system. The IMF has taken a number of steps to provide more information on its own role and operations to its global audience. These include an expanded publication program and development of an extensive Internet web site (http://www.imf.org). Most papers, whether on country matters or policy issues, are now published. Internal and external reviews of IMF policies and operations- often conducted in consultation with the public-are also released.

Transparency, on the part of IMF member countries and the IMF itself, helps economies function better and makes them less vulnerable to crisis. Greater openness on the part of member countries encourages more widespread discussion and examination of members' policies by the public; it enhances the accountability of policymakers and the credibility of policies; and it facilitates efficient functioning of financial markets. Greater openness and clarity by the IMF about its own policies and the advice it provides to members contributes to a better understanding of the IMF's role and operations, and increases the Fund's accountability for its policy recommendations.

The IMF's Executive Board has adopted a series of measures that aim to improve the transparency of members' policies and data, and to enhance the Fund's own external communications. As a result of these measures, the Fund is:

Making available more information about IMF surveillance of members:

Between the January 2001 Transparency Decision and August 2002, 84 percent of members chose to publish their Public Information Notices (PINs )-a key source of information on the IMF Executive Board's assessment of countries' macroeconomic and financial situations-following their Article IV consultations;

114 members published 201 Article IV staff reports between June 1999 (when the Board authorized release of these reports on a voluntary basis) and August 2002.

Making available more information on countries' IMF-supported programs:

Letters of Intent for 94 percent of countries' requests for/reviews of the use of Fund resources (UFR) were released between January 2001 and August 2002;

54 percent of stand-alone reports on IMF-supported programs were published between January 2001 (when the Board authorized their release) and August 2002;

Statements by the Chairman of the Executive Board, Newsbriefs, and Press Releases are issued routinely following Board discussions of members' requests for loans.

Publishing papers written for the Executive Board on policy issues:

In the recent review of the Fund's transparency policy, the Board endorsed the principle of "presumed publication" of IMF policy papers;

During 2001, 21 of 26 papers on policy issues discussed by the Executive Board were published.

Making available more financial and operational information about the IMF:

"Members' Financial Data"-timely information for every member country on its financial position with the IMF-is posted on the IMF website;

Quarterly IMF Financial Statements, quarterly data on Financial Transactions, and monthly data on Financial Resources and Liquidity are posted on the IMF website.

Other information posted about the IMF includes the Codes of Conduct for IMF staff and Executive Directors, recruitment policies, and procurement guidelines.

Engaging in dialogue and consultation with the public on IMF activities and carrying out internal and external evaluations of IMF practices:

An Independent Evaluation Office (IEO) was established in July 2001 to provide objective and independent evaluations on issues related to the IMF. IEO reports will be published; the first, on prolonged use of Fund resources, is expected to be available during September 2002;

Reviews of the Poverty Reduction Strategy Paper (PRSP) approach to reducing poverty in low-income countries and of the Poverty Reduction and Growth Facility (PRGF), the Fund's concessional lending window for low-income countries, were made public March 2002. Both reviews were open and inclusive, drawing on contributions from developing countries, donor agencies, international organizations, and civil society organizations, as well as analyses by IMF and World Bank staff;

An internal review of conditionality was initiated in the fall of 2000, which included public involvement through the Internet and through seminars with wide participation of academics, policymakers, and civil society organizations;

An external review on IMF economic research was released April 2000;

A comprehensive review of the Heavily Indebted Poor Countries Initiative (HIPC) was done in conjunction with the World Bank, and included consultations with civil society organizations and the public at large. This report was published, and the public's views were incorporated into the enhanced HIPC initiative announced in September 1999.

In taking these steps to enhance the IMF's transparency, the Executive Board has had to consider how to balance the Fund's responsibility to oversee the international monetary system with its role as a confidential advisor to its members. As part of its regular reassessment of this balance, the Board completed another review of the IMF's transparency policy in September 2002; the associated report will be published.