IMF国际货币组织全球-A-Strategy-for-IMF-Engagement-on-Social-Spending_56页_1mb

IMF Engagement Strategy on Social Spending Summary

Core Content

The IMF's Policy Paper from June 2019 outlines a comprehensive strategy for engaging with social spending issues, aiming to enhance the Fund's effectiveness in promoting inclusive growth and addressing global challenges such as inequality, demographic shifts, technological change, and climate change.

Main Objectives

• To provide a framework for guiding IMF engagement on social spending.
• To ensure that the Fund's policy advice is transparent, evenhanded, and aligned with macroeconomic and fiscal considerations.
• To strengthen the Fund's role in supporting countries in addressing social spending challenges through surveillance, program design, and technical assistance.

Key Points

• Rising Interest in Social Spending: Over the last decade, there has been a growing interest in social spending, driven by concerns over inequality, the need to support vulnerable groups, and the global commitment to inclusive growth through the 2030 Sustainable Development Goals (SDGs).
• Social Spending Definition: Social spending includes social protection, health, and education. Social protection encompasses social insurance and social assistance, while basic education and health spending are defined based on country-specific needs and levels of development.
• Macro-criticality of Social Spending: Social spending can be macro-critical through three channels: fiscal sustainability, spending adequacy, and spending efficiency. The strategy emphasizes the importance of assessing these aspects when engaging on social spending.
• Enhanced Engagement and Technical Assistance: The Fund has increased its analytical and operational engagement on social spending, including the use of "social spending floors" in programs and expanded technical assistance to improve fiscal capacity and data quality.
• Collaboration with IDIs: The strategy encourages closer collaboration with International Development Institutions (IDIs), such as the World Bank, and the Fiscal Affairs Department (FAD) will act as a hub to facilitate such engagement.
• Conditionality and Social Outcomes: Program design and conditionality should focus on mitigating adverse effects on vulnerable groups, improving tax capacity, and ensuring the quality and adequacy of social spending.
• Communication and Transparency: The Fund will communicate its policy advice more clearly, emphasizing the broader macroeconomic context, explaining trade-offs and constraints, and reinforcing country ownership.
• Implementation Plan: A Staff Guidance Note is expected to be issued by end-2020, providing detailed implementation guidance for the strategy, including how to apply the concept of macro-criticality in different contexts.

Main Views and Recommendations

• Guided Engagement: The Fund should engage on social spending issues based on an assessment of macro-criticality, program context, and in-house expertise.
• Stakeholder Involvement: Broad consultations with civil society, academics, and IDIs are essential to ensure the strategy is inclusive and well-informed.
• Improved Technical Assistance: Enhanced technical assistance will support countries in improving data availability, fiscal space, and the quality of social spending.
• Balanced Conditionality: Conditionality on social spending should be evenhanded and informed by macro-fiscal context, political economy considerations, and social objectives.
• Communication Strategy: External communication should clarify the Fund's role, policy advice, and limitations, while promoting understanding and setting realistic expectations.

Key Information

• Document Types: The strategy includes background papers and case studies to support its development.
• Fiscal and Social Considerations: Social spending is viewed as a critical tool for addressing inequality, supporting vulnerable groups, and promoting inclusive growth.
• Resource Implications: Additional resources for implementing the strategy are expected to be limited, beyond initial setup costs.
• Support Mechanisms: The strategy builds on existing initiatives such as the 2017 IEO Report, the Review of Conditionality (ROC2018), and the Comprehensive Surveillance Review (CSR).

Conclusion

The strategy for IMF engagement on social spending aims to make the Fund's involvement more systematic, effective, and aligned with global priorities. It recognizes the complexity of social spending and the need for sustained engagement, supported by in-depth analysis, collaboration with IDIs, and improved communication. The strategy is expected to be implemented through a Guidance Note by end-2020, ensuring that the Fund can provide consistent and impactful policy advice on social spending.