Today the Independent Evaluation Office (IEO) of the International Monetary Fund (IMF) concluded that newer IMF policy areas such as governance, social spending, digital money, climate change and gender are leading to “serious” challenges, including overburdening staff. That’s because the expansion of activities beyond its traditional areas has happened with “limited resources and expertise”, including a more or less flat budget in real terms. However, the Board approved each of the expansion areas.
The IEO is concerned this results in a trilemma where there’s a trade off between the expansion of scope, resource constraints and the ability to maintain high quality policy advice. It also raised concerns about the limited amount of discussion relating to the risks of the Fund engaging in the new policy areas.
While the report made four high level recommendations, such as around decision making and budget tracking, the real question is whether this will impact the IMF’s digital currency work.
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