The Acting Chair’s Summing Up Independent Evaluation Office—IMF Engagement with Small Developing States: Executive Board Meeting May 6, 2022

Executive Directors welcomed the report of the Independent Evaluation Office (IEO) on IMF Engagement with Small Developing States (SDS) and appreciated its insights and recommendations. They welcomed the report’s finding that the Fund has substantially stepped up its engagement with its SDS members over the past decade, and that SDS country officials generally considered Fund surveillance and capacity development (CD) activities of high quality and well-tailored to their needs. At the same time, Directors noted the evaluation’s findings of several challenges facing Fund engagement with SDS, including the suitability of the Fund’s lending architecture to SDS needs and capacities, limited institutional capacity in SDS, difficulties in staffing SDS assignments, and political economy considerations. Against this background, Directors broadly agreed that based on the evaluation’s findings, additional actions should be considered to strengthen the value added and impact of IMF engagement with SDS, although a major overhaul was not needed. Many Directors broadly supported the IEO recommendations and looked forward to the Management Implementation Plan (MIP) to implement them. Many other Directors broadly agreed with the partial and qualified support provided by the Managing Director’s statement as a broadly balanced approach to addressing the identified challenges, ensuring appropriate tailoring while considering evenhandedness and resource constraints.