Photo Credit: Thai E- News
The International Monetary Fund (IMF) made its first major updates to its policy towards corruption since 1997. This update is largely viewed as a response to Transparency International’s (TI) letter on anti-corruption compliance shared at the Civil Society Townhall during the IMF’s 2017 Annual Meetings. The IMF published a new framework on anti-corruption compliance and promised engagement with all its member countries during a roundtable call on July 2nd.
During the July 2nd meeting, the IMF also stated a new commitment to including evaluations of corruption in member countries in the reports produced by staff. This significant shift in policy demonstrates an explicit acknowledgement of corruption’s macroeconomic impact. Two existing examples of this approach can be seen in the latest lending agreements with Argentina and Ukraine.
For observers, it remains unclear whether the IMF will limit lending due to widescale public graft and corruption. “To refuse to lend because of a corrupt country environment is tough, but the IMF has that sort of leverage, and it seems that management at the fund is taking corruption compliance more seriously,” commented Richard Stern, a retiree of the World Bank and current President of the Partnership for Transparency. Read More...