By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE) – The Independent Evaluation Office (IEO) of the International Monetary Fund (IMF) Wednesday advised the Fund to reduce unnecessary disclosure concerns on individual countries as part of its recommendations aimed to address some longstanding problems that undermine trust in the Fund and other key challenges identified by the IEO.

This is contained in a Report by IEO on “The Role of the IMF as Trusted Advisor” and made available to www.investadvocateng.com in Lagos Nigeria.

The evaluation examines the extent to which, and in what circumstances, the Fund is viewed as a trusted advisor to its member countries. The evaluation was discussed by the IMF’s Executive Board on February 1, 2013.

According to the IEO, it found that the degree to which the IMF is viewed as a Trusted Advisor tends to differ by region and country type.

“But in the aftermath of the global crisis, the Fund’s image appears to have improved markedly, and the Fund is now viewed as more flexible and responsive than in the past” the IEO said in a Statement.

The IEO said the evaluation explores how the IMF can sustain this more positive image when the crisis abates, while recognising that tensions will always exist between the Fund’s roles as a watchdog on behalf of the global economy and as Trusted Advisor to individual countries.

The Report says that concerns about confidentiality arose most often with regard to the IMF’s transparency and publication policy; which the IEO said came out clearly in the survey questions on disclosure, where concerns regarding disclosure to the general public (via the Fund’s policy on publication) ranked highest, among the possible levels of disclosure, as a reason which limited authorities’ willingness to discuss or seek advice on sensitive issues

“Authorities in large Emerging Markets and Asian countries expressed more concern than those in other country groups regarding all levels of disclosure, but particularly about disclosure to the general public. In contrast, the survey shows that, owing to concerns about disclosure to the IMF Board, G-20 countries (even more so the advanced members of the G-20) were much more likely than non-G-20 countries to limit their discussions of sensitive issues with the Fund” the IEO Report said.

Other recommendations according to the IEO include enhancing the value-added of Article IV consultations for country authorities, strengthening the continuity of the relationship between the Fund and member countries, incorporating early and openly the views of all countries during the preparation of major policy papers.

Also, the IEO recommends working closely with country authorities to design a customised outreach strategy and Implement the Fund’s transparency policy in a uniform and fair manner.

The evaluation concludes that the IMF’s recent reform efforts and initiatives provide an opportunity for the institution to address some of the findings it identifies. But to ensure that these reforms truly take root in the culture of the institution will require close monitoring and accountability by all IMF stakeholders over an extended period.

Click here to download IEO Main Report