File1 by coa92779

VIEWS: 0 PAGES: 16

									        Annual Report
                2001




International Monetary Fund
           Washington D.C.
                                               HIGHLIGHTS


                            IMF Reforms Advance in FY2001



F
          inancial year 2001 saw the IMF actively          focus and prioritize conditions on measures critical to
          engaged in the process of reform, while          success of IMF-supported programs.
          advancing its operational work. The IMF fur-         To help its low-income member countries, the IMF
          ther increased its own openness and trans-       concentrated its low-cost lending activities on imple-
parency by releasing more information to the public,       menting the enhanced strategy for poverty reduction
and actively encouraged its member countries to be         introduced in 1999. By April 2001, 22 heavily
more transparent about their economic developments         indebted poor countries were benefiting from debt
and policies. It strengthened its surveillance work,       relief of about $20 billion (net present value terms)
notably in the area of financial sector assessments and    provided by the IMF, the World Bank, and other credi-
by progress in disseminating internationally recognized    tors under the joint IMF–World Bank Initiative for
standards and codes of good practice. At the same          Heavily Indebted Poor Countries (HIPC Initiative).
time, it rationalized and updated its lending policies.        In these and other ways, the IMF played its part in
The IMF also refocused work on its core responsibili-      helping make globalization work for the benefit of all.
ties—especially the promotion of international financial
stability as a public good—to give higher priority to
preventing financial crises among its members. And it          Highlights of the IMF’s work during the year were
streamlined the conditionality attached to its loans, to   as follows:

                                                           • Regular and concessional lending increased slightly
                                                                 in FY2001 following a sharp decline in the previous
                                                                 year. The IMF disbursed SDR 9.5 billion under reg-
                                                                 ular policies and facilities, compared with SDR 6.3
                                                                 billion in FY2000. Under the IMF’s concessional
                                                                 facility for poor countries, disbursements rose to
                                                                 SDR 0.6 billion from SDR 0.5 billion in FY2000.1
                                                           • Total IMF credit outstanding declined to
                                                                 SDR 48.6 billion at the end of FY2001 from SDR
                                                                 50.3 billion a year earlier. A high level of repay-
                                                                 ments, including substantial advance repayments,
                                                                 more than offset the increased lending. On April 30,
                                                                 2001, the IMF had SDR 78.7 billion in usable quota
                                                                 resources available for new financing, compared with
                                                                 SDR 74.8 billion a year earlier, and nearly four times
                                                                 the low point prior to the 1999 quota increase. The
                                                                 IMF’s liquidity ratio at the end of the financial year
                                                                 stood at 168.4 percent, up from 153.0 percent at
                                                                 the end of FY2000.
                                                           • In its surveillance of member country policies, the
                                                             IMF devoted more attention to factors that make
                                                             countries vulnerable to financial crises, including the
                                                             health of their financial sectors, capital account
                                                             developments, and public and external debt manage-
Prague, the venue for the September 2000
Annual Meetings. The Meetings focused on efforts
to make globalization work for the benefit of all,
while minimizing any adverse effects.                      1As   of April 30, 2001, SDR 1 = US$1.26579.




ii     ANNUAL         REPORT        2001
                                                                                                  H I G H L I G H T S       O F    F Y 2 0 0 1




                                                                                  IMF Managing Director Horst Köhler greets school
                                                                                  children at the start of a joint visit to Africa with World
                                                                                  Bank President James Wolfensohn in February 2001.
ment. To strengthen its role in promoting the stabil-
ity of the international financial system, the IMF:
 x further increased the transparency of its own
     operations and policy deliberations and of its
     members’ economic policymaking, most notably
     by allowing publication of country reports and
     other country documents when the member con-
     cerned agrees;
 x moved beyond the pilot phase of the Financial
     Sector Assessment Program (FSAP)—the joint
     IMF–World Bank program, launched in May
     1999, to help strengthen member countries’ finan-
     cial sectors. In its pilot phase, the FSAP included a
     dozen countries. In December 2000–January
     2001, the Executive Boards of the IMF and World
     Bank set a goal for assessing the financial sectors of
     about 24 countries a year;
 x took steps to improve the IMF’s analytical frame-
     work for evaluating countries’ external vulnerabil-
     ity to financial crisis—including work on early
     warning systems. The IMF also developed a
     framework for evaluating the adequacy of interna-                            x advanced its work on internationally recognized
     tional reserves, and developed guidelines with the                             standards and codes of good practice to guide
     World Bank for public debt management;                                         its members’ policymaking, in areas that directly
                                                                                    benefit macroeconomic policies and the function-
 x laid the foundation for a new International Capital
                                                                                    ing of financial markets. Using the Basel Core
     Markets Department to improve the IMF’s under-
                                                                                    Principles, the IMF also assessed the adequacy
     standing of financial markets and financial flows;
                                                                                    of member countries’ frameworks for banking
 x established a Capital Markets Consultative Group                                 supervision; and
     as a channel for regular and informal dialogue
                                                                                  x advanced toward agreement at the September
     with representatives of the private financial sector;
                                                                                    2000 Annual Meetings in Prague on a framework
 x moved forward with assessments of offshore                                       for the involvement of the private sector in crisis
     financial centers;                                                             prevention and management. Work also
 x enhanced the IMF’s contribution to international                                 advanced on two issues affecting the development
     efforts to combat money laundering, in collabora-                              of the framework—restructuring international
     tion with the World Bank;                                                      sovereign bonds and corporate sector workouts.




Regular and                                        Total IMF Credit Outstanding                         IMF Liquidity Ratio
Concessional Lending                               (In billions of SDRs, end financial year)            (In percent, end financial year)
(In billions of SDRs, financial year)

25                            Regular facilities   80                                                   200
20                            Concessional
                              facilities           60                                                   150
15
                                                   40                                                   100
10
                                                   20                                                    50
 5

 0                                                  0                                                     0
      1997   98     99 2000      01                     1997   98     99   2000    01                         1997     98     99   2000    01




                                                                                               ANNUAL     REPORT              2000              iii
H I G H L I G H T S




A lecturer at the IMF Institute in Washington, D.C.                       IMF’s financial resources continues to be safe-
Technical assistance and training is an increasingly                      guarded. The streamlining effort will continue in
important area of the IMF’s work. The IMF has                             the coming months, taking into account com-
issued guidelines to ensure that technical assistance                     ments from the public and outside experts, as well
better reflects its main priorities.                                      as member countries.
                                                                      x clarified its role in promoting good governance in
                                                                          member countries by reaffirming the importance of
                                                                          good governance to sound economic management
                                                                          and of the IMF’s role in this area, and by noting
                                                                          that the IMF’s involvement should be limited to
                                                                          aspects of governance that can have a significant
                                                                          macroeconomic impact.
                                                                  • In collaboration with the World Bank, the IMF con-
                                                                    tinued to play an important role in the international
                                                                    community’s efforts to promote poverty reduction,
                                                                    including by reducing debt burdens of heavily
                                                                    indebted poor countries and focusing its conces-
                                                                    sional lending activities more explicitly on the goal of
                                                                    poverty reduction. By April 2001, 22 heavily
                                                                    indebted poor countries (HIPCs) had reached their
• In FY2001, the IMF took steps to update its lending               “decision points” under the initiative, allowing them
     policies and revisit its policy conditionality. Specifi-       to benefit over time from debt relief amounting to
     cally, it:                                                     about $20 billion in net present value terms, and all
                                                                    22 countries were receiving interim relief from some
     x restructured its regular lending facilities to allow         creditors. One country, Uganda, reached its “com-
        the IMF to support more effectively its members’            pletion point” under the enhanced HIPC Initiative,
        efforts to resolve crises, to prevent crises arising        at which point debt relief was delivered uncondition-
        from contagion, and to help ensure a more effi-             ally, and several more countries are expected to do so
        cient use of IMF financial resources. For example,          by the end of 2001.
        it made the terms of Contingent Credit Lines              • In combination with traditional debt relief and
        more attractive to potential users and took steps           pledges of additional bilateral debt forgiveness, the
        to encourage more efficient use of IMF funds. It            external indebtedness of the 22 countries receiving
        also introduced changes to encourage the early              debt relief will be cut by almost two-thirds in net
        adoption of sound policies and to discourage                present value terms—by $33 billion—bringing
        overly long and heavy use of IMF financing.                 their indebtedness to levels below the average for
     x began the process of streamlining its policy                 all developing countries. Real debt-service savings
        conditionality to increase its effectiveness and give       in these countries are also substantial—about $1.1
        greater scope for country ownership of IMF-                 billion annually—and debt-service payments as a
        supported programs, while ensuring that the                 percent of exports, GDP, and government revenues
        essential objectives of such programs continue to           will fall dramatically. The Executive Board agreed
        be served and that the revolving character of the           that HIPC debt relief provided the benefiting



Technical Assistance by Function, FY2001                         Debt Stock Reduction for 22 HIPC Countries1
(As a percent of total resources in work-years)                  (Net present value of debt, in billions of US$ — in decision point terms)
                                                                 60
                       IMF Institute
  Statistics             (16%)          Other
   (14%)                                (4%)      Legal          40
                                                  (4%)
                                                                 20

      Fiscal affairs                           Monetary and       0
          (33%)                               exchange affairs           Existing       Debt after     Debt after       Debt after
                                                   (29%)                  debt          traditional    HIPC relief      additional
                                                                                           relief                       bilateral
                                                                                                                       forgiveness
                                                                   1 Countries that reached their decision points as of April 30, 2001. Excludes Chad,

                                                                 which reached its decision point in May 2001.




iv        ANNUAL               REPORT             2001
                                                                                                H I G H L I G H T S     O F    F Y 2 0 0 1




  countries with a good basis for ensuring a sustain-
  able debt burden over the long term, but it also
  required these countries’ continued adherence to
  sound macroeconomic management and structural
  reforms, as well as adequate flows of concessional
  financing from abroad and better access to the mar-
  kets of the advanced economies.
• Good progress was made in formulating and imple-
  menting Poverty Reduction Strategy Papers in
  FY2001, but challenges remained. Most poverty
  reduction strategy documents prepared in calendar
  2000 were “Interim” PRSPs, many of which were
  provided to the Executive Boards of the World Bank
                                                                         Students view an exhibit at the IMF Center in Wash-
  and the IMF in connection with decision point doc-
                                                                         ington, D.C. The Center, part of a wider effort to
  uments discussed under the enhanced HIPC Initia-                       make the IMF more transparent and accessible, was
  tive. As of April 30, 2001, the Boards had                             opened in November 2000.
  considered 32 Interim PRSPs and 4 full PRSPs, most
  prepared by African countries. For countries moving
  to the preparation of full PRSPs, the challenges                                   for the IMF’s work program. The Executive Board
  include inadequate poverty data and limited institu-                               approved the reclassification of the terms of employ-
  tional and analytical capacity on the part of both                                 ment of 217 staff positions, converting some con-
  governments and civil society, and the need to                                     tractual positions to staff jobs, and streamlined and
  ensure that broad-based participation does not                                     consolidated outsourcing arrangements. Also, the
  undermine the authority of national parliaments and                                IMF adopted several initiatives to reduce stress on its
  existing democratic processes.                                                     staff, and introduced and made public guidelines on
• During FY2001, the IMF continued to provide con-                                   ethical standards for the staff and the Executive
  siderable technical assistance to its member coun-                                 Board.
  tries, with about three-quarters of this assistance                           • To further enhance the transparency and accountabil-
  provided to low- and lower-middle-income coun-                                     ity of its activities, the IMF established in FY2001 an
  tries. At the September 2000 Annual Meetings in                                    Independent Evaluation Office to provide objective
  Prague, the International Monetary and Financial                                   reviews and assessments of its operational work. The
  Committee agreed that technical assistance should                                  Office will complement the review and evaluation
  play a major role in supporting the work of the IMF                                work within the IMF and should improve its ability to
  in crisis prevention and management, in capacity                                   draw lessons from its experience and more quickly
  building for low-income countries, and in restoring                                integrate improvements into its work.
  macroeconomic stability in countries in the wake of                           • Shortly after the end of the financial year, on May 8,
  crises. The Executive Board established new guide-                                 2001, First Deputy Managing Director Stanley
  lines for planning and delivering technical assistance                             Fischer announced his intention to leave his position
  in FY2002 to achieve more effective prioritization of                              later in 2001. Also after the close of the financial
  requests and delivery of services.                                                 year, the Managing Director announced that Michael
• Financial year 2001 was one of expansion for                                       Mussa, Economic Counsellor and Director of the
  selected initiatives within overall resource constraints                           Research Department, and Jack Boorman, Counsel-
                                                                                               lor and Director of the Policy Development
                                                                                               and Review Department, would be leaving
Assistance Under the                         Commitments                                       their posts. On June 7, the Managing Direc-
HIPC Initiative                              Under the PRGF1                                   tor announced the appointment of Anne
(In millions of SDRs)                        (In millions of SDRs, financial year)
                                                                                               Krueger as Mr. Fischer’s successor. He also
1000                                         2000
                             Commitments                                                       announced his intention to appoint Gerd
 800                         Disbursements   1500                                              Häusler to be Counsellor and Director of the
 600
                                             1000
                                                                                               new International Capital Markets Depart-
 400                                                                                           ment; Kenneth S. Rogoff to become Eco-
                                               500
 200                                                                                           nomic Counsellor and Director of the IMF’s
   0                                             0                                             Research Department, succeeding Mr. Mussa;
       1997 98 992000 01   98 99 2000 01            1997     98     99 2000 01
                                                                                               and Timothy Geithner to be Director of the
                                               1 Poverty Reduction and Growth Facility;
                                             before November 1999, the Enhanced                Policy Development and Review Department,
                                             Structural Adjustment Facility                    succeeding Mr. Boorman.




                                                                                        ANNUAL           REPORT           2001            v
Managing Director and Deputy Managing Directors
on April 30, 2001

                                                                     Managing Director Horst Köhler




                    First Deputy Managing Director Stanley Fischer




                                                                     Deputy Managing Director Shigemitsu Sugisaki




                       Deputy Managing Director Eduardo Aninat




vi    ANNUAL          REPORT           2000
Message from the Managing Director



A
             t our Annual Meetings in Prague in September 2000—my first Annual Meetings as Managing
             Director—I had the opportunity to outline my vision of the future role of the IMF. It is a vision
             in which I see the IMF playing an active role in making globalization work for the benefit of all,
             helping countries take advantage of the opportunities of the global economy, and finding ways of
containing the risks. I see also an IMF where work is refocused on the areas of responsibility that form its
core mandate. In Prague, our 183 member countries firmly endorsed this vision in which the IMF would:
   • strive to promote sustained noninflationary economic growth that benefits all people of the world;
  • be the center of competence for the stability of the international financial system;
  • focus on its core macroeconomic and financial areas of responsibility, working in a complementary
     fashion with other institutions established to safeguard global public goods; and
  • be an open institution, learning from experience and dialogue, and adapting continuously to changing
     circumstances.
    Our member countries are keenly aware that globalization requires a policy response based on interna-
tional cooperation, and the IMF is uniquely placed to help organize this cooperation in collaboration with
other organizations that have complementary responsibilities.
    Our members want a strong IMF, but also a reformed IMF—one that focuses on promoting macroeco-
nomic and financial stability in member countries; on helping its members develop sound financial sectors to
protect them against vulnerability and mobilize financing for productive investment; and on safeguarding the
stability and integrity of the international financial system, as a global public good. By concentrating on these
core areas of responsibility, the IMF can make its maximum contribution to sustained growth and poverty
reduction in its member countries.
    The IMF made solid progress with reform in financial year 2001, as shown in this Annual Report. Its capa-
bilities for crisis prevention were enhanced by further steps to increase transparency of the IMF and its mem-
ber countries; further progress in the implementation of internationally recognized standards and codes; and
the completion of a pilot phase of the Financial Sector Assessment Program (FSAP)—our joint effort with
the World Bank to diagnose strengths and weaknesses in member countries’ financial sectors. The FSAP,
together with the IMF’s newly instituted reviews of offshore financial sectors and our contributions to the
international effort to fight money laundering, forms a comprehensive approach to strengthening the finan-
cial systems in member countries and, thereby, the soundness of the international financial system as a whole.
Our reforms of the IMF’s financing facilities will also contribute to crisis prevention, while helping to sharpen
our necessary ability to help resolve crises when they occur. We have taken steps to streamline the IMF’s pol-
icy conditionality, enhance its effectiveness, and promote ownership. In partnership with the World Bank, we
have strengthened our assistance to low-income member countries and made substantial progress in the
enhanced initiative to provide debt relief to heavily indebted poor countries.
    Building on the progress to date, we intend to work even harder in the coming year to put crisis preven-
tion and financial market issues at the center of the IMF’s activities. What is crucial is that we sharpen our
ability to identify emerging problems and bring about early and preemptive policy action in member coun-
tries. Thus, we will be working to develop the IMF’s early warning capacity and to strengthen its financial
markets expertise—including through the creation of the new International Capital Markets Department.
More broadly, the IMF is committed to adapting its policies and operations continuously, to enable it to ful-
fill its mandate in an ever-changing and increasingly integrated global economy.




                                                                     ANNUAL        REPORT        2000         vii
Executive Board                                    on April 30, 2001


                                                                                                Japan                                                       Germany                                               France                                          United Kingdom
                                   United States                                                                                                                                                                                                                                                               Austria, Belarus, Bel-
                                                                                                                                                                                                                                                                                                               gium, Czech Repub-
                                                                                                                                                                                                                                                                                                               lic, Hungary,
                                                                                                                                                                                                                                                                                                               Kazakhstan,
                                                                                                                                                                                                                                                                                                               Luxembourg, Slovak
                                                                                                                                                                                                                                                                                                               Republic, Slovenia,
                                                                                                                                                                                                                                                                                                               Turkey




(Position Vacant)*                                           Yukio Yoshimura                                             Bernd Esdar                                                  Jean-Claude Milleron                                 Stephen Pickford                             Willy Kiekens
Meg Lundsager                                                Haruyuki Toyama                                             Wolf-Dieter Donecker                                         Gilles Bauche                                        Stephen P. Collins                           Johann Prader
(Alternate)

                                   Armenia, Bosnia and                                          Costa Rica,                                                 Albania, Greece, Italy,                               Antigua and                                     Denmark, Estonia,                            Australia, Kiribati,
                                   Herzegovina, Bul-                                            El Salvador,                                                Malta, Portugal, San                                  Barbuda, The                                    Finland, Iceland,                            Korea, Marshall
                                   garia,                                                       Guatemala,                                                  Marino                                                Bahamas, Barbados,                              Latvia, Lithuania,                           Islands, Federated
                                   Croatia, Cyprus,                                             Honduras, Mexico,                                                                                                 Belize, Canada,                                 Norway,                                      States of Micronesia,
                                   Georgia, Israel, FYR                                         Nicaragua, Spain,                                                                                                 Dominica, Grenada,                              Sweden                                       Mongolia, New
                                   Macedonia, Moldova,                                                                                                                                                            Ireland, Jamaica, St.                                                                        Zealand, Palau,
                                                                                                R.B. Venezuela
                                   Netherlands,                                                                                                                                                                   Kitts and Nevis, St.                                                                         Papua New Guinea,
                                   Romania, Ukraine                                                                                                                                                                                                                                                            Philippines, Samoa,
                                                                                                                                                                                                                  Lucia, St. Vincent and
                                                                                                                                                                                                                                                                                                               Seychelles, Solomon
                                                                                                                                                                                                                  the Grenadines
                                                                                                                                                                                                                                                                                                               Islands, Vanuatu




J. de Beaufort                                               Hernán Oyarzábal                                            Riccardo Faini                                               Thomas A. Bernes                                     Olli-Pekka                                   Michael J. Callaghan
Wijnholds                                                    Fernando Varela                                             Harilaos Vittas                                              Peter Charleton                                      Lehmussaari                                  Diwa Guinigundo
Yuriy G. Yakusha                                                                                                                                                                                                                           Åke Törnqvist

                                    Saudi Arabia                                                 Angola, Botswana,                                           Brunei Darussalam,                                    Bahrain, Egypt, Iraq,                          China                                        Russia
                                                                                                 Burundi, Eritrea,                                           Cambodia, Fiji,                                       Jordan, Kuwait,
                                                                                                 Ethiopia, The Gam-                                          Indonesia, Lao P.D.R.,                                Lebanon, Libya, Mal-
                                                                                                 bia, Kenya, Lesotho,                                        Malaysia, Myanmar,                                    dives, Oman, Qatar,
                                                                                                 Liberia, Malawi,                                            Nepal, Singapore,                                     Syrian Arab
                                                                                                 Mozambique,                                                 Thailand,                                             Republic, United
                                                                                                 Namibia, Nigeria,                                           Tonga, Vietnam                                        Arab Emirates,
                                                                                                 Sierra Leone, South                                                                                               Yemen
                                                                                                 Africa, Sudan,
                                                                                                 Swaziland, Tanza-
                                                                                                 nia, Uganda, Zam-
                                                                                                 bia, Zimbabwe




Sulaiman M. Al-Turki                                                                                                    Dono Iskandar                                                 A. Shakour Shaalan                                   WEI Benhua                                   Aleksei V. Mozhin
                                                             Cyrus D.R. Rustomjee                                                                                                                                                          JIN Qi
Ahmed Saleh Alosaimi                                         Ismaila Usman                                              Djojosubroto                                                  Abdelrazaq Faris Al-Faris                                                                         Andrei Lushin
                                                                                                                        Kwok Mun Low


                                    Azerbaijan,                                                 Brazil, Colombia,                                           Bangladesh, Bhutan,                                   Algeria, Ghana, I.R.                            Argentina, Bolivia,                          Benin, Burkina Faso,
                                    Kyrgyz Republic,                                            Dominican Republic,                                         India,                                                of Iran, Morocco,                               Chile, Paraguay,                             Cameroon, Cape
                                    Poland,                                                     Ecuador, Guyana,                                            Sri Lanka                                             Pakistan, Tunisia                               Peru, Uruguay                                Verde,
                                    Switzerland,                                                Haiti, Panama,                                                                                                                                                                                                 Central African
                                    Tajikistan,                                                 Suriname, Trinidad                                                                                                                                                                                             Republic, Chad,
                                    Turkmenistan,                                               and Tobago                                                                                                                                                                                                     Comoros, Republic of
                                    Uzbekistan                                                                                                                                                                                                                                                                 Congo, Côte d’Ivoire,
                                                                                                                                                                                                                                                                                                               Djibouti, Equatorial
                                                                                                                                                                                                                                                                                                               Guinea, Gabon,
                                                                                                                                                                                                                                                                                                               Guinea, Guinea-Bis-
                                                                                                                                                                                                                                                                                                               sau, Madagascar,
                                                                                                                                                                                                                                                                                                               Mali, Mauritania,
                                                                                                                                                                                                                                                                                                               Mauritius, Niger,
                                                                                                                                                                                                                                                                                                               Rwanda, São Tomé
                                                                                                                                                                                                                                                                                                               and Príncipe, Sene-
Roberto F. Cippa                                             Murilo Portugal                                            Vijay L. Kelkar                                               Abbas Mirakhor                                       A. Guillermo Zoccali                         Alexandre Barro        gal, Togo
Wieslaw Szczuka                                              Roberto Junguito                                           R.A. Jayatissa                                                Mohammed Daïri                                       Guillermo Le Fort                            Chambrier
                                                                                                                                                                                                                                                                                        Damian Ondo Mañe
Note: Alternate Executive Directors are indicated in italics. *Karin Lissakers relinquished her duties as Executive Director for the United States, effective April 15, 2001.
Senior Officers                          on April 30, 2001


Michael Mussa
Economic Counsellor
G.E. Gondwe
Director, African Department
Yusuke Horiguchi
Director, Asia and Pacific Department
Michael C. Deppler
Director, European I Department
John Odling-Smee
Director, European II Department
Thomas C. Dawson II
Director, External Relations Department
Teresa M. Ter-Minassian
Director, Fiscal Affairs Department
Margaret R. Kelly
Director, Human Resources Department
Mohsin S. Khan
Director, IMF Institute
François P. Gianviti
General Counsel, Legal Department
Paul Chabrier
Director, Middle Eastern Department
Stefan Ingves
Director, Monetary and Exchange Affairs Department
Jack Boorman
Director, Policy Development and Review Department
Michael Mussa
Director, Research Department
Shailendra Anjaria
Secretary, Secretary’s Department
Carol S. Carson
Director, Statistics Department
Brian C. Stuart
Director, Technology and General Services Department
Eduard Brau
Treasurer, Treasurer’s Department
Claudio M. Loser
Director, Western Hemisphere Department
Ernst-Albrecht Conrad
Director, Office of Budget and Planning
Rafael Muñoz
Director, Office of Internal Audit and Inspection
Kunio Saito
Director, Regional Office for Asia and the Pacific
Flemming Larsen
Director, Office in Europe (Paris)
Grant B. Taplin
Acting Director and Special Trade Representative,
Office in Geneva
Reinhard Munzberg
Director and Special Representative to
the UN, Office at the United Nations


David M. Cheney
Chief, Editorial Division




x       ANNUAL              REPORT          2001
Letter of Transmittal to the Board of Governors




August 22, 2001



Dear Mr. Chairman:

I have the honor to present to the Board of Governors the Annual Report of the Executive Board
for the financial year ended April 30, 2001, in accordance with Article XII, Section 7(a) of the
Articles of Agreement of the International Monetary Fund and Section 10 of the IMF’s By-Laws.
In accordance with Section 20 of the By-Laws, the administrative and capital budgets of the IMF
approved by the Executive Board for the financial year ending April 30, 2002, are presented in
Chapter 8. The audited financial statements for the year ended April 30, 2001, of the General
Department, the SDR Department, and the accounts administered by the IMF, together with
reports of the external audit firm thereon, are presented in Appendix IX.



                                                                         Yours sincerely,




                                                                        Horst Köhler
                                                                 Chairman of the Executive Board




                                                            ANNUAL       REPORT      2001          xi
         Board of Governors, Executive Board,
         International Monetary and Financial Committee,
         and Development Committee

        The Board of Governors, the highest decision-making body of the IMF, consists
        of one governor and one alternate governor for each member country. The
        governor is appointed by the member country and is usually the minister of
        finance or the governor of the central bank. All powers of the IMF are vested in
        the Board of Governors. The Board of Governors may delegate to the Executive
        Board all except certain reserved powers. The Board of Governors normally meets
        once a year.
           The Executive Board (the Board) is responsible for conducting the day-to-day
        business of the IMF. It is composed of 24 Directors, who are appointed or
        elected by member countries or by groups of countries, and the Managing
        Director, who serves as its Chairman. The Board usually meets several times each
        week. It carries out its work largely on the basis of papers prepared by IMF
        management and staff. In 2000/2001, the Board spent more than half of its time
        on member country matters (regular country consultations and reviews and
        approvals of financial arrangements) and most of its remaining time on global
        surveillance and policy issues (such as the world economic outlook exercise,
        developments in international capital markets, the IMF’s financial resources, the
        architecture of the international monetary and financial system and the IMF’s
        role, debt of the heavily indebted countries, and issues concerning IMF facilities
        and program design).
           The International Monetary and Financial Committee of the Board of
        Governors (formerly the Interim Committee on the International Monetary
        System) is an advisory body made up of 24 IMF governors, ministers, or other
        officials of comparable rank, representing the same constituencies as in the IMF's
        Executive Board. The International Monetary and Financial Committee normally
        meets twice a year, in April or May, and at the time of the Annual Meeting of the
        Board of Governors in September or October. Among its responsibilities are to
        provide ministerial guidance to the Executive Board and to advise and report to
        the Board of Governors on issues regarding the management and adaptation of
        the international monetary and financial system, including sudden disturbances
        that might threaten the international monetary system, and on proposals to
        amend the IMF's Articles of Agreement.
           The Development Committee (the Joint Ministerial Committee of the Boards of
        Governors of the World Bank and the IMF on the Transfer of Real Resources to
        Developing Countries) is composed of 24 members—finance ministers or other
        officials of comparable rank—and generally meets the day after the International
        Monetary and Financial Committee. It advises and reports to the Boards of
        Governors of the World Bank and the IMF on all aspects of the transfer of real
        resources to developing countries.




xii   ANNUAL    REPORT       2001
                                              C O N T E N T S




Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        ii

Message from the Managing Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      vii

Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         viii

Senior Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         x

Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          xi

Board of Governors, Executive Board, International Monetary and
  Financial Committee, and Development Committee . . . . . . . . . . . . . . . . . . . .                                                xii

Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii

1. The Setting: World Economic Developments in FY2001                                             ................                        1
      Global Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                3
      Key Developments in Emerging Market and Advanced Economies . . . . . . . . . . . . . .                                              4

2. IMF Surveillance in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 6
      Country Surveillance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             7
      Global Surveillance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            7
        World Economic Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             7
        International Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             14
      Regional Surveillance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             17
        West African Economic and Monetary Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          17
        Monetary and Exchange Policies of the Euro Area and
          Trade Policies of the European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  18

3. Strengthening the International Financial System . . . . . . . . . . . . . . . . . . . . .                                           21
      Financial Sector Assessment Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       22
      Standards and Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               24
        Experience with Basel Core Principles Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       24
        Assessing the Implementation of Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   25
      Data Provision to the IMF for Surveillance Purposes . . . . . . . . . . . . . . . . . . . . . . . . .                             27
      External Vulnerability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            27
        Reserves Adequacy and Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    27
        Debt Management Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              28
        Early Warning Systems and Vulnerability Indicators . . . . . . . . . . . . . . . . . . . . . . . . . .                          28
      Involving the Private Sector in Resolving Financial Crises . . . . . . . . . . . . . . . . . . . . .                              29
        Developing the Operational Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    29
        Practical Application of the Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  31
        Future Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   32
      Other Efforts to Strengthen Financial Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         32




                                                                                          ANNUAL                 REPORT                 2001   xiii
C O N T E N T S




                    Offshore Financial Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              32
                    Combating Money Laundering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    33
                  Transparency of the IMF and Its Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               33
                    Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      33
                    Implementation of the Transparency Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         35
                    Other Transparency Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              35

           4. IMF Lending Policies and Conditionality . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                           37
                  Review and Reform of IMF Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           37
                    Contingent Credit Lines (CCLs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    37
                    Expectation of Early Repayment of Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       40
                    Surcharges on Heavy Use of IMF Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       40
                    Emergency Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          41
                    Compensatory Financing Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   41
                    Extended Fund Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            41
                    Post-Program Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               41
                  Review of Conditionalilty in IMF-Supported Programs . . . . . . . . . . . . . . . . . . . . . . .                                     41
                    Areas of Consensus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        44
                    Issues Requiring Further Consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      45
                    Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    45
                  Review of Experience with Governance Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               46

           5. Poverty Reduction and Debt Relief for Low-Income Countries . . . . . . . . . . . . .                                                      47
                  Enhanced HIPC Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      47
                    Progress to Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      48
                    Challenges Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          49
                  PRSP Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 52
                    Progress to Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      52
                    Challenges Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          54
                  Promoting Trade in the Poorest Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              56

           6. Financial Operations and Policies in FY2001 . . . . . . . . . . . . . . . . . . . . . . . .                                               58
                  Regular Financing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    58
                    Lending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   59
                    Resources and Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             60
                    Other Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          61
                  Concessional Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    62
                    Poverty Reduction and Growth Facility (PRGF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              64
                    Enhanced HIPC Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                65
                    Financing of the HIPC Initiative and Interim PRGF . . . . . . . . . . . . . . . . . . . . . . . .                                   65
                  Special Drawing Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  66
                    Pattern of SDR Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               69
                  Income, Charges, Remuneration, and Burden Sharing . . . . . . . . . . . . . . . . . . . . . . .                                       70
                  Safeguarding IMF Resources and Dealing with Arrears . . . . . . . . . . . . . . . . . . . . . . .                                     71
                    Safeguards Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            71
                    Progress Under the Strengthened Cooperative Strategy . . . . . . . . . . . . . . . . . . . . . . . . .                              72

           7. Technical Assistance and Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                         74
                  Aligning Technical Assistance with Policy Priorities . . . . . . . . . . . . . . . . . . . . . . . . . .                              74
                  Strengthening Technical Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        77
                  Technical Assistance Delivery in FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           78




xiv    ANNUAL              REPORT                 2001
                                                                                                                                              C O N T E N T S




8. Organization, Staffing, and Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                            81
        Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               81
          Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        81
          Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        83
        Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        85
          Categories of Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               85
          Recruitment and Retention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  85
          Stress on IMF Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          86
          Salary Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         87
          Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    88
        Administrative and Capital Budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           88
          Budget Framework for FY2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    89
          Programs, Budgets, and Actual Expenditure in FY2001 . . . . . . . . . . . . . . . . . . . . . . .                                    89
          Programs and Budget in FY2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      90
        New Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               91
        Independent Evaluation Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        91
          Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       91
          Developments During FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     91
        Process for Selecting the Managing Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              93
        Management and Senior Staff Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              93

Appendixes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               95
   I International Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   101
  II Financial Operations and Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              106
 III Principal Policy Decisions of the Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  126
 IV  IMF Relations with Other International Organizations . . . . . . . . . . . . . . . . . . . . . . .                                       145
  V  External Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 148
 VI  Press Communiqués of the International Monetary and
        Financial Committee and the Development Committee . . . . . . . . . . . . . . . . . . . .                                             153
VII Executive Directors and Voting Power on April 30, 2001 . . . . . . . . . . . . . . . . . . . . .                                          168
VIII Changes in Membership of the Executive Board . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     172
 IX Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    175

Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

Boxes
2.1    IMF Publishes Quarterly Reports on Emerging Market Financing . . . . . . . . . . . . . . .                                              15
3.1    IMF–World Bank Financial Sector Assessment Program . . . . . . . . . . . . . . . . . . . . . . .                                        23
3.2    Outreach on Standards and Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           26
3.3    A Quiet Revolution in Reserves Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           28
3.4    IMF Creates International Capital Markets Department . . . . . . . . . . . . . . . . . . . . . . .                                      29
3.5    Capital Markets Consultative Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          30
3.6    First Annual IMF Research Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              36
4.1    Interim Guidance Note: Streamlining Structural Conditionality in IMF-Supported
          Programs, September 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         42
5.1    IMF Involved with UN’s Financing for Development Conference . . . . . . . . . . . . . . .                                               48
5.2    How Does the Enhanced HIPC Initiative Work? . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     48
5.3    IMF–World Bank Joint Visit to Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            53
6.1    The IMF’s Financing Mechanism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           59
6.2    Financial Transactions Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     61




                                                                                                ANNUAL                  REPORT                2001        xv
C O N T E N T S




           6.3    IMF Financial Resources and Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 62
           6.4    The IMF Can Borrow to Supplement Quota Funding . . . . . . . . . . . . . . . . . . . . . . . .                              63
           6.5    China’s Quota Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        64
           6.6    External Review of IMF Quota Formulas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   64
           6.7    SDR Valuation and Interest Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             68
           6.8    Early Experience with IMF Safeguards Assessments . . . . . . . . . . . . . . . . . . . . . . . . . .                        71
           7.1    Criteria for Prioritizing Technical Assistance Requests . . . . . . . . . . . . . . . . . . . . . . . .                     75
           8.1    Code of Conduct for Executive Directors and Ethics Website . . . . . . . . . . . . . . . . . . .                            83
           8.2    IMF Resident Representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            84
           8.3    Hong Kong Sub-Office Opened . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               84
           8.4    IMF’s Independent Evaluation Office: Terms of Reference . . . . . . . . . . . . . . . . . . . . .                           92

           Tables
           1.1    Overview of the World Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                2
           2.1    Article IV Consultations Concluded in FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       8
           3.1    Standards and Codes Useful for IMF and World Bank Operational Work . . . . . . . . . .                                      22
           4.1    IMF Financial Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      38
           5.1    Enhanced HIPC Initiative: Grouping of HIPCs as of April 30, 2001 . . . . . . . . . . . . .                                  51
           5.2    Net Aid Flows by Major Donors, 1990–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      54
           5.3    Trade Restrictiveness by Geographic Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  56
           6.1    IMF Financial Assistance Approved in FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     60
           6.2    General Arrangements to Borrow (GAB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    63
           6.3    New Arrangements to Borrow (NAB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    63
           6.4    Commitments and Disbursements of HIPC Initiative Assistance . . . . . . . . . . . . . . . . .                               66
           6.5    Currency Weights in SDR Basket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              68
           6.6    SDR Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   68
           6.7    Transfers of SDRs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     69
           6.8    Arrears to the IMF of Countries with Obligations Overdue by Six Months
                    or More, by Type and Duration, as of April 30, 2001 . . . . . . . . . . . . . . . . . . . . . . .                         73
           7.1    Core Areas of IMF Technical Assistance Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     76
           7.2    Technical Assistance Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         78
           8.1    Nationality Distribution of Professional Staff by Region . . . . . . . . . . . . . . . . . . . . . .                        86
           8.2    IMF Staff Salary Structure, effective May 1, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   87
           8.3    Gender Distribution of Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        88
           8.4    Estimated Cost of Major IMF Activities, FY2000–2002 . . . . . . . . . . . . . . . . . . . . . . .                           89
           8.5    Administrative and Capital Budgets, FY1999–2002 . . . . . . . . . . . . . . . . . . . . . . . . . .                         90

           Figures
           1.1    World Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     3
           5.1    Enhanced HIPC Initiative Flow Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 50
           5.2    Reduction of Debt Stocks for 22 Decision Point Countries . . . . . . . . . . . . . . . . . . . .                            52
           6.1    IMF Liquidity Ratio, April 1992-April 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    62
           6.2    SDR Interest Rates, 1991–2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             67
           7.1    Technical Assistance by Function, FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  79
           7.2    Technical Assistance by Region, FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  79
           8.1    IMF Organization Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          82
           8.2    Estimated Cost of Major Activities, FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  89




xvi    ANNUAL              REPORT               2001
                                        NOTE




T      his Annual Report of the Executive Board of the IMF reports on the activities of the
Board during the financial year May 1, 2000, through April 30, 2001. Most of the Report
consists of reviews of Board discussions of the whole range of IMF policy and operations.
The discussions are based on papers prepared by the staff. Typically, a staff paper includes
background factual and analytical material on various aspects of the issue at hand. It may
also present proposals by the IMF’s management on how the Board and the institution
should move forward on an issue. Although a staff paper presents the positions of staff and
management, it does not necessarily represent the IMF’s position on the issue. The Board
may or may not agree with the analysis or the proposals. The position of the IMF is, rather,
the position of the Board as reflected in a decision, or as explained in a statement summariz-
ing the discussion (usually referred to in the IMF as the “summing up”).
  Many documents discussed in this report can be found on the IMF’s website
(www.imf.org) and/or are available in print from IMF Publication Services.
   The unit of account of the IMF is the SDR; conversions of IMF financial data to U.S.
dollars are approximate and are provided for convenience. As of April 30, 2001, the
SDR/U.S. dollar exchange rate was $1 = SDR 0.7900204, and the U.S. dollar/SDR
exchange rate was SDR 1 = $1.26579. The year-earlier rates (April 30, 2000) were $1 =
SDR 0.758030 and SDR 1 = $1.31921. (All dollar references in this report are to US$
unless otherwise noted.)
   The following conventions are used in this Report:
   ...   to indicate that data are not available;
   —     to indicate that the figure is zero or less than half the final digit shown or that the
         item does not exist;
   –     between years or months (for example, 2000–2001 or January–June) to indicate
         the years or months covered, including the beginning and ending years or months;
   /     between years or months (for example 2000/01) to indicate a fiscal or financial
         year.
   “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 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 main-
tained on a separate and independent basis.




                                                              ANNUAL          REPORT         2001    xvii

								
To top