Background

These are notes from the first 20 minutes of the meeting only, owing to a very late start.

Recent initiatives include ‘spillover reports’ on 5 major economic players; and cross-cutting themes – economies with large financial sector + employment effects

New tools include: early warning and vulnerability exercises – focus on risk including those with low probability but big impact (vulnerability exercise for LICs being developed); financial sector surveillance – mandatory FSAPs for 25 countries with substantial financial sector; capital flows and global liquidity – strengthened focus.

IMF triennial surveillance review

Last was in 2008 – too early to draw implications from crisis.

Looking at bilateral, regional and multilateral levels – previous reviews had concentrated on bilateral. Concept note available on website.

Will review the legal framework (2008 decision) and how Articles of Agreement are supportive of surveillance.

Results will be presented to board December 2011

Objectives include:take stock of recent initiatives; evaluate value added of surveillance, particularly its candidness and evenhandedness.

Approach: document review; background studies (euro area; financial sector issues; stimulus and exit policies; low-income countries); stakeholder surveys (country authorities, mission chiefs, financial markets, media, CSOs); increased recourse to independent external experts (consultants + advisory group od people who are mostly former policy-makers)