Macroeconomic policy advice and the Article IV consultations: A Development perspective

This paper undertakes a content analysis of 2009-2010 IMF Article IV consultations for a sample of 30 low-income and 20 middle-income countries on the following themes: (a) fiscal adjustments (b)inflation targets (c) employment generation, poverty reduction and expansion of social protection. Insufficient attention appears to have been given to employment generation, poverty reduction and expansion of social protection. ‘New’ generation Article IVs might need to be modified to respond to this lacuna. This might be best achieved when the IMF works with other development partners to broaden the content and scope of the IMF’s regular consultations with member states.