While the controversy surrounding International Monetary Fund (IMF) Managing Director Kristalina Georgieva has drawn the bulk of the attention as the IMF and World Bank settle in for their annual meetings this week, IMF members would be better off engaging in a serious discussion of the organization’s strategic direction.
The risks inherent in its economic outlook, such as the withdrawal of pandemic-driven stimulus and stretched asset valuations, will require reconciling differing views on how much the institution has changed its focus toward climate policy and development finance in the last two years.
Some observers are concerned about the IMF moving too far away from its traditional area of expertise. Their worries are justified: progress on climate and development can only be achieved via strong job growth and a healthy global economy. The fund therefore needs to stay focused on its global stability mandate.