The global financial and economic crisis is hitting low-income countries (LICs) hard. LICs are facing several balance of payments shocks including reduced capital inflows, reduced exports, fewer remittances and pressures on aid. Development prospects of LICs are severely weakened. As a result, LICs are increasingly looking towards World Bank programmes to meet development goals and towards IMF programmes to play the counter-cyclical financing role.
As demand for IMF and World Bank programmes increases, ODI ran a web-based consultation on the adaptability and responsiveness of the IMF and the World Bank in LICs. The findings in the interim report, featuring preliminary results of this consultation, were presented an LICs finance ministers meeting in London in August 2009. The G-20 finance ministers then considered the overall emerging conclusions at their meeting on 4-5 September 2009. Finally, G-20 Leaders at the Pittsburgh Summit on 24-25 September 2009 will consider these issues.
This report provides a summary of the web-based consultation about the adaptability and responsiveness of International Financial Institutions. This kind of exercise often invites more critique than positive responses. It is important that the consultations are not seen in isolation therefore and need to be seen in conjunction with other elements of the Review of the IFI adaptability and responsiveness.