IMF Surveillance
- August 7, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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IMF Surveillance
Subject :International Relations
Section: International organization
Context: IMF help to Sri Lanka and Bangladesh
- Surveillance is one of three main activities of the International Monetary Fund (IMF), together with lending and technical assistance. Via surveillance, the IMF oversees the international monetary system and the policies of all of its member countries to promote global financial and economic stability. It does so at the country, regional, and global levels.
- At the country level, the IMF conducts bilateral surveillance through the ‘Article IV Consultation’, named after Article IV of the IMF’s Articles of Agreement. These consultations involve an annual IMF staff visit to each of its member countries, during which they discuss, with government officials and other stakeholders, the country’s overall economic condition, its fiscal and monetary policies, and any perceived economic risks. The IMF then compiles a staff report with an evaluation and recommendations,the views of the IMF Executive Board, a summary press release, and in some cases a summary from the Executive Director representing the country. Together, these materials are the Article IV report.
- Policy advice in Article IV reports is not binding, but it is mandatory for all 189 IMF member states to undergo bilateral surveillance.
Article IV Scanner
- The Article IV Scanner has therefore been designed to enable civil society, researchers, and officials to search for key words and phrases in over 2,000 IMF Article IV reports since 2000 all in one place. This allows the IMF’s bilateral surveillance to be more transparent, accessible, and open to civil society engagement.