Review of The Fund’s Capacity Development Strategy—Background Papers

April2024 IMFPOLICYPAPER REVIEWOFTHEFUND’SCAPACITYDEVELOPMENT STRATEGY—BACKGROUNDPAPERS IMFstaffregularlyproducespapersproposingnewIMFpolicies,exploringoptionsforreform,orreviewingexistingIMFpoliciesandoperations.Thefollowingdocumenthavebeenreleasedandisincludedinthispackage: ReviewoftheFund’sCapacityDevelopmentStrategy—BackgroundPapersThedocumentslistedbelowhavebeenorwillbeseparatelyreleased. APressReleasesummarizingtheviewsoftheExecutiveBoardasexpressedduringitsApril4,2024considerationofthestaffreport. TheStaffReport,preparedbyIMFstaffandcompletedonMarch4,2024forthe ExecutiveBoard’sconsiderationonApril4,2024. TheIMF’stransparencypolicyallowsforthedeletionofmarket-sensitiveinformationandprematuredisclosureoftheauthorities’policyintentionsinpublishedstaffreportsandotherdocuments. ElectroniccopiesofIMFPolicyPapersareavailabletothepublicfrom http://www.imf.org/external/pp/ppindex.aspx InternationalMonetaryFundWashington,D.C. ©2024InternationalMonetaryFund March4,2024 REVIEWOFTHEFUND’SCAPACITYDEVELOPMENT STRATEGY—BACKGROUNDPAPERS PreparedbyaninterdepartmentalteaminconsultationwiththeInstituteforCapacityDevelopment(ICD) ApprovedBy MichaelaErbenova(ICD) CONTENTS Glossary4 CDDELIVERYMODALITIES7 A.Overview7 B.Introduction8 C.TheNewNormal9 D.PathForward13 BOX 1.TheNewNormalforOtherCDProviders12 FIGURES 1.CDDeliveryModalitiesbyActivityCount,FY2021–FY20239 2.DeliveryandParticipationinIMFOnlineCourses,FY2022–FY202311 ANNEXES I.DeliveryModalitiesTerminology17 II.TransitiontotheNewNormalinCDDepartments21 III.RCDCCaseStudiesoftheNewNormal31 IV.BlendedTrainingCaseStudies35References45 EVALUATIONANDIMPACT46 A.Overview46 B.Introduction47 C.TheStateofM&EattheFund48 D.Tailoring,Effectiveness,andImpactofCD54 E.Conclusion65 FIGURES 1.DistributionofEvaluationofCDCompletedbetweenFY2018–FY202350 2.ImprovementinDataCompleteness52 3.IncreaseinSingleCountryProject52 4.EvidenceofTailoringinProjectDesign56 5.TextMiningofCDCountryStrategyNotes56 6.FactorsinfluencingRBMOutcomeRatings58 7.CARTACOutcomeResultsvs.ResourcesPersonDays59 8.ICDCourseLearningGains60 9.FactorsInfluencingLearningGainsofICDCourses60 10.AverageDifferencesinOutcomeImprovementsBetweenTreatedandUntreated62 11.Long-RunImpactofCDonTaxRevenue62 12.ImpactofCDonVATRevenues63 13.CorrelationMatrixMacroeconomicVariables&CompletedCDProjects64 ANNEXES I.RBMRiskAssessmentandCD-SurveillanceIntegration67 II.AnalysisofEvaluations69 III.ComparingInternalandExternalEvaluations72 IV.MOPANFindings:OrganizationsLearningfromandApplyingEvaluationFindings74 V.TheFund’sRBMFramework75 VI.SynchronousTrainingSurveyResults77 VII.ThePropensityScoreMatchingTechnique81References82 RCDCMODELANDFIELDPRESENCE84 A.Overview84 B.IntroductionandBackground85 C.DoRCDCshaveSufficientGeographicalandTopicalCoverage?87 D.HowcanRCDCsSupportBetterSynergies?89 E.HowtoStrengthenRCDCs’Governance?91 F.HowtoSupportFundingSustainability?93 FIGURES 1.GrowthofRegionalCapacityDevelopmentCentersoftheIMF87 2.RCDCCDDeliverySpendingbyModality,FY202389 3.ExternalFundingCommitmentstoRCDCs,CurrentMulti-YearPhase94 4.ProjectedLiquidityBalances95 5.CDDeliverySpending97 ANNEXES I.GeographicalCoverageofRCDCs99 II.RCDCsGovernanceStructure101 III.RCDCsFundingModel104References106 HRPOLICIES107 A.CDStaffingModel107 B.Issues111 C.WorkUnderwaytoAddressHRIssues113 BOXES 1.2012–2015TechnicalTrackPilot116 2.TheTAOfficerJobFamily117 FIGURES 1.ShareofStaffbyIncumbentType(FY2013–FY2023)107 2.HQSpecialists—EmploymentType(2024)109 3.CDStaffbyPersonnelType110 4.EconomistHiring:Fungiblevs.SpecialistFY2018–FY2022111 TABLE 1.SummaryofKeyFeaturesofThreeCareerTracks108References118 MAPPINGTHEFUND'SPOSITIONVIS-A-VISOTHERCDPROVIDERS119 A.Overview119 B.Introduction120 C.ComparativeAdvantagesoftheFund120 D.ViewsofRecipientsandStakeholders121 E.ViewsoftheDevelopmentandCDPartners126 F.ViewsoftheIMF’sCDDepartments129 G.Conclusion144 FIGURES 1.UsefulnessofFundCD123 2.Coordination123 3.Desirability124 4.Additionality124References146 ADAreaDepartment Glossary AFCAfricaRegionalTechnicalAssistanceCenter-CentralAfricaAFEAfricaRegionalTechnicalAssistanceCenter-East AFRAfricanDepartment AFRITACAfricaRegionalTechnicalAssistanceCenterAFSAFRITACSouth AFWAFRITACWest AFW2AFRITAC-West2 AIArtificialIntelligence AML/CFTAnti-MoneyLaundering/CombattingtheFinancingofTerrorismAPDAsiaandPacificDepartment ATIAfricaTrainingInstitute BAMBankAlMaghrib BdFBanquedeFrance BISBankforInternationalSettlements CAPTAC-DRCentralAmerica,Panama,andDominicanRepublicRegionalTechnicalAssistanceCenterCARTACCaribbeanRegionalTechnicalAssistanceCenter CBDCCentralBankDigitalCurrencies CCAMTACCaucasus,CentralAsia,andMongoliaRegionalCapacityDevelopmentCenterCCBCommitteeonCapacityBuilding CDCapacityDevelopment CDDCapacityDevelopmentDepartment CDMAPCapacityDevelopmentManagementandAdministrationProgramCDOTCapacityDevelopmentOfficeinThailand(formerlyTAOLAM)CDSRCapacityDevelopmentStrategyReview CEFIMF-MiddleEastCenterforEconomicsandFinanceinKuwait CMAPClimateMacroeconomicAssessmentProgramCPATClimatePolic