On May 29, 2012, the Executive Board of the International Monetary Fund (IMF) considered the IMF's bi-annual work program through November 2012. Recent developments point to the continued fragility of the world economy and the risks of renewed stresses with potentially systemic consequences. In this context, the work program focuses on issues to help restore global economic stability and confidence and to rekindle growth and job creation.

“The commitment to increase Fund resources by over $430 billion on a temporary basis attests to the membership’s willingness to act collectively and decisively to get ahead of the crisis,” IMF Managing Director Christine Lagarde said in presenting the work program to the Executive Board. “For our part, we must continue to support these efforts with clear and pointed advice on macro financial policies, and strong and well-designed programs. This is true not only for Europe, where the risks to stability have been acute, but across the span of the membership,” Ms. Lagarde emphasized.

An important challenge, in this context, is to enhance inclusive growth, while ensuring debt sustainability. The Fund will provide analysis and policy advice on achieving credible fiscal consolidation and government debt reduction, an issue germane to many members, while supporting growth. Analytical work is also underway on issues related to jobs and growth in Fund surveillance and programs.

“We need to continue to offer pragmatic remedies to the main risks confronting the global economy, help members address spillovers, and support their economic transitions and development agendas. We need also to strengthen our internal processes, with reforms of surveillance, quotas and governance,” Ms. Lagarde concluded.

The work program, published today, prioritizes efforts in these areas, including:

• Restoring stability and strengthening policy advice, including on the continued repair and reform of the financial sector, and on various aspects of growth and employment;
• Assessing the experience with Fund conditionality and drawing lessons for new programs;
• Stepping up support for Arab countries in transition;
• Assisting low-income countries with policy advice and financial support, including issues such as rebuilding buffers while meeting development needs, managing natural resource wealth, assessing experience to date with the comprehensive reform of facilities, and securing the longer-term sustainability of concessional financing;
• Promoting the long-term stability of the international monetary system, including improvements in the Fund’s surveillance framework, to help prevent future crises; and
Implementing the 2010 quota and governance reform that will enhance the legitimacy and effectiveness of the Fund.