Financing For Development: Revisiting the Monterrey Consensus
This year is pivotal for global action on development, with the global community set to agree on the objectives and policies for promoting development that is economically, socially, and environmentally sustainable for the next fifteen years. The first stage in completing the debate on these issues will be during the upcoming Third UN Conference on FfD, which will be held in Addis Ababa. The conference aims to reach an international consensus on the actions needed to ensure that sufficient financing is available for developing countries in pursuing sustainable development.
The staff paper discusses the IMF’s policy positions on key topics in the FfD debate that fall within its mandate and it also illustrates the IMF’s role in supporting sustainable development. This role includes:
- assisting developing countries in designing national policies that support domestic development; and
- promoting policies at the global level that are crucial to providing an enabling external environment for developing countries.
The staff paper discusses several initiatives that the IMF could undertake to strengthen its support for developing countries as they pursue their development goals. These include:
- boosting access to its resources for developing countries to provide them with a wider safety net to manage adverse external shocks;
- scaling up support for national capacity building in the key area of domestic revenue mobilization;
- expanding assistance for countries seeking to address large infrastructure gaps and boost growth—through use of diagnostic tools and capacity building measures, while maintaining medium-term public debt sustainability;
- intensifying engagement on policy issues relating to inclusion, gender, and environmental sustainability, where they are important for growth and economic stability, drawing on the expertise of other institutions as needed;
- strengthening the effectiveness of the IMF’s work in fragile and conflict-affected states, both in assisting in policy-making and supporting capacity building;
- enhancing IMF technical assistance for domestic financial market development, in collaboration with other international organization; and
- strengthening statistical data dissemination through expanded use of new technologies.