annual report 2011
PURSUING EQUITABLE
AND BALANCED GROWTH
INTERNATIONAL
MONETARY FUND
IMF
ThE INTERNATIONAL MONETARY FUND
e IMF is the world’s central organization for international
monetary cooperation. With 187 member countries, it is an
organization in which almost all of the countries in the world
work together to promote the common good. e IMF’s primary
purpose is to safeguard the stability of the international monetary
system—the system of exchange rates and international payments
that enables countries (and their citizens) to buy goods and
services from one another. is is essential for achieving sustain-
able economic growth and raising living standards.
All of the IMF’s member countries are represented on its Execu-
tive Board, which discusses the national, regional, and global
consequences of each member’s economic policies. is Annual
Report covers the activities of the Executive Board and Fund
management and sta during the nancial year May 1, 2010,
through April 30, 2011.
e main activities of the IMF include
• providing advice to members on adopting policies that can help
them prevent or resolve a nancial crisis, achieve macroeconomic
stability, accelerate economic growth, and alleviate poverty;
• making nancing temporarily available to member countries
to help them address balance of payments problems, that is,
when they nd themselves short of foreign exchange because
their payments to other countries exceed their foreign exchange
earnings; and
• oering technical assistance and training to countries at their
request, to help them build the expertise and institutions they
need to implement sound economic policies.
e IMF is headquartered in Washington, D.C., and, reecting
its global reach and close ties with its members, also has oces
around the world.
Additional information on the IMF and its member countries
can be found on the Fund’s website, www.imf.org.
Ancillary materials for the Annual Report—Web Boxes, Web Tables,
Appendixes (including the IMF’s financial statements for the financial year
ended April 30, 2011), and other pertinent documents—can be accessed
via the Annual Report web page at www.imf.org/external/pubs/ft/ar/2011/
eng. Print copies of the financial statements are available from IMF
Publication Services, P.O. Box 92780, Washington, DC 20090. A CD-ROM
version of the Annual Report, including the ancillary materials posted on
the web page, is also available from IMF Publication Services.
ANNUAL REPORT 2011
PURSUING EQUITABLE
AND BALANCED GROWTH
INTERNATIONAL
MONETARY FUND
IMF
MESSAGE FROM THE MANAGING DIRECTOR
AND CHAIR OF THE EXECUTIVE BOARD 4
LETTER OF TRANSMITTAL TO THE BOARD
OF GOVERNORS 6
1 OVERVIEW 7
A Multispeed Global Recovery 9
Policies to Secure Sustained and Balanced
Global Growth 9
Reforming and Strengthening the IMF to Better
Support Member Countries 9
Finances, Organization, and Accountability 10
2 DEVELOPMENTS IN THE GLOBAL
ECONOMY AND FINANCIAL MARKETS 11
An Unbalanced Recovery 13
Old and New Challenges 14
3 POLICIES TO SECURE SUSTAINED
AND BALANCED GLOBAL GROWTH 15
Securing Balanced Growth and a Stronger,
More Sustainable Global Economy 17
Modernizing the Fund’s surveillance 17
Financial support for IMF member countries 18
Collaboration with other organizations 25
Promoting the Functioning and Stability of the
International Monetary System 26
Capital ows 26
International reserves 27
Special Drawing Rights 27
Building a More Robust Global Financial System 29
Integrating nancial stability assessments into
Article IV surveillance 29
Macroprudential policy: An organizing framework 30
Central banking lessons from the crisis 30
Cross-border bank resolution 30
Financial interconnectedness 31
Financial sector contribution to crisis costs 31
Review of the Standards and Codes Initiative 31
Supporting Growth and Stability
in Low-Income Countries 32
Macroeconomic challenges facing
low-income countries 33
Vulnerability Exercise for low-income countries 33
Revenue mobilization in developing countries 34
4 REFORMING AND STRENGTHENING
THE IMF TO BETTER SUPPORT
MEMBER COUNTRIES 35
Quota, Governance, and Mandate Reforms 37
Quota, voice, and governance 37
Modernizing the Fund’s mandate 38
Membership, Board, and Institutional Activities 38
Membership 38
Executive Board 39
IMFC Chairmanship 39
Passing of Alternate Governor Moeketsi Senaoana 40
Annual and Spring Meetings revamp 40
Building Capacity in Member Countries 40
Technical assistance 40
Training 44
Data and Data Standards Initiatives 45
e IMF’s standards for data dissemination 45
Interim report for the Eighth Review
of the Fund’s Data Standards Initiatives 46
5 FINANCES, ORGANIZATION,
AND ACCOUNTABILITY 47
Budget and Income 49
Quota increases 49
Expansion and activation of New Arrangements
to Borrow 49
Bilateral borrowing agreements 49
Adequacy of the Fund’s precautionary balances 50
Income, charges, remuneration, and burden sharing 50
Administrative and capital budgets 52
Arrears to the IMF 52
Audit mechanisms 52
Risk management 55
Human Resources Policies and Organization 56
Human resources in FY2011 56
Management changes 57
Passing of Tommaso Padoa-Schioppa 57
Accountability 58
Transparency policy 58
Independent Evaluation Oce 58
Engagement with external stakeholders 60
EXECUTIVE DIRECTORS AND ALTERNATES 62
SENIOR OFFICERS 63
IMF ORGANIZATION CHART 64
NOTES 65
CONTENTS
BOXES
3.1. Post-Catastrophe Debt Relief Trust 25
3.2. Mandatory nancial stability assessments 29
3.3. Liberia achieves long-term debt sustainability 33
4.1. A half-century of Fund service: A. Shakour Shaalan 40
4.2. Evaluating the eectiveness of IMF Institute training 45
4.3. Data and statistics activities in FY2011 46
5.1. Major building repairs at IMF headquarters 54
5.2. Tommaso Padoa-Schioppa 59
5.3. e IEO report’s recommendations
and the sta’s response 60
FIGURES
3.1. Arrangements approved during nancial years
ended April 30, 2002‒11 22
3.2. Regular loans outstanding, FY2002‒11 22
3.3. Concessional loans outstanding, FY2002‒11 24
4.1. TA delivery by subjects and topics 41
4.2. TA delivery during FY2011 by subjects and regions 42
4.3. TA delivery by income group 42
4.4. TA by country status 42
4.5. TA delivery by the IMF 44
TABLES
3.1. IMF nancing facilities 20
3.2. Arrangements under main facilities
approved in FY2011 23
3.3. Arrangements approved and augmented under the
Poverty Reduction and Growth Trust in FY2011 24
5.1. Administrative budget by major expenditure category,
FY2009‒14 53
5.2. Medium-term capital expenditure, FY2009‒14 53
5.3. Administrative expenses reported
in the nancial statements 53
5.4. Budgeted expenditures shares by responsibility area,
FY2010‒14 54
5.5. Arrears to the IMF of countries with obligations
overdue by six months or more and by type 54
The IMF’s financial year is May 1 through April 30.
The unit of account of the IMF is the SDR; conversions of IMF financial data
to U.S. dollars are approximate and provided for convenience. On April 30,
2011, the SDR/U.S. dollar exchange rate was US$1 = SDR 0.616919, and
the U.S. dollar/SDR exchange rate was SDR 1 = US$1.62096. The year-earlier
rates (April 30, 2010) were US$1 = SDR 0.661762 and SDR 1 = US$1.51112.
“Billion” means a thousand million; “trillion” means a thousand billion; minor
discrepancies between constituent figures and totals are due to rounding.
As used in this Annual Report, the term “country” does not in all cases refer
to a territorial entity that is a state as understood by international law and
practice. As used here, the term also covers some territorial entities that
are not states but for which statistical data are maintained on a separate
and independent basis.
