Summary |
The IMF has recognized the important role of good governance in influencing economic performance. The IMF’s role in this area is founded on its mandate to promote macroeconomic stability and sustained noninflationary growth in member countries. Poor governance and widespread corruption cut into government revenues and lead to wasteful spending, thereby weakening the macroeconomic position of a country. Corruption also impinges on the effectiveness of the state, and erodes the confidence of the public in its institutions and policies. It is against this background that the IMF is actively promoting good governance in member countries through enhanced surveillance; the promulgation of standards and codes of good practice in the fiscal, monetary, and statistical areas; technical assistance to strengthen institutional capacity; and specific measures to address particular instances of poor governance and corruption in IMF-supported programs. While the IMF provides member countries with the know-how and the tools, the main responsibility for tackling these problems resides with the countries themselves.
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