First, we must recognize that the Fund has little direct ability to affect the policies of non-borrowing members. Consequently, its ability to influence discussions of important global issues, such as external imbalances, hinges on the quality of its economic and financial surveillance, its advice, and its ability to communicate its message.
The IMF should focus its surveillance on systemic issues that can affect global financial stability - an area where the Fund's particular expertise gives it a strong comparative advantage over other institutions. This surveillance must be seen to be independent of national authorities - and independent of the IMF's lending activities.