The IMF’s Evolving Role Within a Constant Mandate

ABSTRACT

The International Monetary Fund (IMF) is by design an economic institution, with an exclusive economic mandate. Traditionally, this has meant that the IMF focused its work on monetary, fiscal, exchange rate, and financial sector policies, along with closely related structural aspects. In recent years, however, the IMF’s work has widened to cover a broader range of substantive topics, including governance and anti-corruption, climate change, fintech and the digitalization of finance, inequality, social protection, and gender. This article posits that the IMF’s work in these emerging areas with demonstrated criticality for the institution’s macroeconomic and financial stability mandate is not an expansion of the IMF’s mandate, but rather reflects continuing evolution in the economic understanding of what is critical for the achievement of that mandate. The article explores how macro-criticality is assessed within the IMF’s legal and institutional framework in the context of the IMF’s core powers generally and with a special focus on governance and anti-corruption, climate change, and gender. It also discusses the IMF’s strategies for engagement with its member countries in these three areas.