“The well-being IMF Annual Report 2017 of the world economy and the family IMF Annual | depends of nations Promoting Inclusive Growth Repor t 2017 on an enduring Promoting willingness Inclusive Growth towork together.” Christine Lagarde IMF Managing Director International Monetary Fund www.imf.org 700 19th Street NW Washington, DC 20431 USA ©International Monetary Fund. Not for Redistribution Contents Part 1: Part 2: 2 Overview 31 What We Do About the IMF ...................................................................................................2 Economic Surveillance ......................................... 32 Message from the Managing Director ...................................................2 Bilateral Surveillance .................................................................................. 33 IMF Policy Work ...............................................................................................4 Multilateral Surveillance ........................................................................... 34 The IMF’s Key Roles ........................................................................................5 Policy Advice ................................................................................................... 38 Data ..................................................................................................................... 42 Spotlights—How to Jump-Start Global Growth ........ 6 The Challenges of World Trade .................................................................7 Lending .................................................................. 46 Productivity Falters .........................................................................................9 Nonconcessional Financing Activity ................................................... 47 Promoting Inclusive Growth ................................................................... 11 Concessional Financing Activity ........................................................... 54 Gender Work ................................................................................................... 13 Program Design ............................................................................................. 56 Capacity Development for Debt Management ............................... 15 Policy Support Instruments ..................................................................... 56 Regional Highlights .............................................. 18 Capacity Development ......................................... 58 Sub-Saharan Africa ...................................................................................... 18 Highlights: Fiscal Capacity Development ......................................... 61 Middle East and North Africa ................................................................. 20 Highlights: Monetary and Financial Sector Asia and the Pacific ...................................................................................... 23 Capacity Development .......................................................................... 64 Western Hemisphere ................................................................................... 26 Highlights: Statistics Capacity Development ................................. 65 Europe ................................................................................................................ 28 Highlights: Legal Capacity Development .......................................... 66 Highlights: Training ..................................................................................... 67 IMF Capacity Development in Numbers........................................... 68 Partnerships for Capacity Development ........................................... 70 South Asia Regional Training and Technical Assistance Center .............................................................. 74 Common Evaluation Framework .......................................................... 74 Boxes Figures 2.1 2018 Quinquennial Review of the IMF’s Capacity 1.1 Real trade and real GDP growth, 1960–2016 ..................................8 Development Strategy ..................................................................60 1.2 Productivity growth by country group, 1990–2016 .................... 10 2.2 Fiscal assessment tools .................................................................63 1.3 Advanced economies, per capita real market income, 2.3 G20 Compact with Africa ..............................................................71 1980–2012 ........................................................................................11 3.1 HQ1 building renovation progress ...............................................78 1.4 Low-income developing countries, growth and 3.2 Profiles of outgoing and incoming senior staff ...........................80 inequality, 1996–2013 .....................................................................12 3.3 Managing risks with safeguards assessments ............................83 1.5 Women’s labor force participation and GDP ............................... 14 1.6 Saudi Arabia, fiscal balance, 2010–16...........................................15 1.7 Uruguay, public sector debt, 2011–16 ..........................................16 1.8 Uruguay, public sector debt composition, 2015 ..........................16 1.9 Sub-Saharan Africa, exports and imports by partner, 1995–2015 ....................................................................18 1.10 Sub-Saharan Africa, GDP growth, 2010–16.................................. 19 1.11 Middle East and North Africa, change in GDP associated with conflicts, 1970–2014 ............................................20 1.12 Energy subsidies by region, 2015 .................................................22 1.13 Average gas prices by region, 2004–16 .......................................22 International Monetary Fund ii ©International Monetary Fund. Not for Redistribution Part 3: Finances, 75 Organization, and Accountability IMF Organization Chart ........................................ 75 The IMF’s financial year is May 1 through April 30. Budget and Income ...................................................................................... 76 The analysis and policy considerations expressed in this publication are those of the IMF Executive Income Model, Charges, Remuneration, Directors. Burden Sharing, and Net Income ..................................................... 77 The unit of account of the IMF is the SDR; conver- Human Resources Policies and Organization ................................. 79 sions of IMF financial data to US dollars are approx- Accountability ................................................................................................ 82 imate and provided for convenience. On April 28, Independent Evaluation Office .............................................................. 84 2017, the SDR/US dollar exchange rate was US$1 = SDR 0.729382 and the US dollar/SDR ex- Outreach and Engagement with External Stakeholders............ 86 Overview change rate was SDR 1 = US$1.37102. The year-earlier Quota and Governance .............................................................................. 91 rates (April 30, 2016) were US$1 = SDR 0.705552 and Special Drawing Right ................................................................................ 92 SDR 1 = US$1.41733. Transparency .................................................................................................. 93 “Billion” means a thousand million; “trillion” means a thousand billion; minor discrepancies between con- stituent figures and totals are due to rounding. IMF Executive Directors (photo) ........................................................... 94 Management Team (photo) ..................................................................... 96 As used in this Annual Report, the term “country” does not in all cases refer to a territorial entity that Executive Directors and Alternates (list) .......................................... 98 is a state as understood by international law and Senior Officers ..............................................................................................100 practice. As used here, the term also covers some Notes .................................................................................................................102 territorial entities that are not states but for which statistical data are maintained on a separate and Acronyms and Abbreviations ...............................................................109 independent basis. Letter of Transmittal .................................................................................110 What We What We Do Tables 1.14 Mexico, foreign direct investment and portfolio investment 1.1 Argentina, growth in real GDP, consumer prices, current account liabilities, 2007 and 2016 ...............................................................26 balance, and unemployment, 2016 and projected 2017–18 .......27 1.15 Spain, Italy, France, and Germany, real GDP 1.2 Albania, main economic indicators, 2013 and 2016 ....................28 growth, 2007–21 ............................................................................29 2.1 Arrangements approved in the General Resources 2.1 Number of FSI reporting countries, by region, 2009–17 ............43 Account in FY 2017 ........................................................................47 2.2 Arrangements approved in the General Resources Account 2.2 Financial terms under IMF