The IMF, under scrutiny from critics and its own official watchdog over its approach to use of aid in low-income countries, is taking steps to clarify its role in advising members in the face of high and volatile aid inflows.
At issue is the need to achieve higher levels of economic growth to reduce grinding poverty in many parts of the world while avoiding destabilizing lurches in the economy triggered by sudden inflows of aid that can cause inflation, economic bottlenecks, and exchange rate volatility which could make the poor even worse off.
The IMF's Executive Board met on July 6 to consider how the 185-member institution can promote the effective and sustainable use of aid and endorsed a number of recommendations about how to make maximum and best use of such aid.
See full Press Release.
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