1. In recent years, the IMF has been at the center
of an array of criticism concerning the adverse side
effects of its interventions in the countries that it
supports financially, the effectiveness of the eco-
nomic programs that form the basis for this support,
and even its very role in today’s international finan-
cial system, with the fiercest critics arguing that it
has outlived the mission for which it was created.
While the criticism is extensive, it is not unanimous
and there are many who recognize that the IMF has
an important role to play in promoting stability in
the international financial system and especially in
helping member countries manage balance of pay-
ments problems in a manner consistent with the pur-
suit of other economic objectives.
2. The purpose of the Independent Evaluation Of-
fice is to undertake independent studies, which will
further the objectives of strengthening the learning
culture of the IMF and contribute to transparency by
providing objective assessment of the effectiveness
of IMF activities in various fields. This study, which
is the first report of the IEO, focuses on the phenom-
enon of prolonged use of IMF resources by a num-
ber of countries. It is an issue that is closely related
to the broader debate about the IMF’s role and has
been the subject of external criticism and also inter-
nal concern.
3. External observers have criticized prolonged
use from a number of perspectives, suggesting
that:1
• It contradicts the IMF’s mandate as set forth in
the Articles of Agreement, which stress that IMF
resources should be made available to members
“temporarily”2 to cope with balance of pay-
ments disequilibria.
• It suggests a lack of effectiveness of IMF-sup-
ported programs, as the repeated need to make
use of IMF resources indicates a persistence of
the balance of payments difficulties which such
programs are intended to solve (Meltzer and
others, 2000; and Vásquez, 1999). In recent
years, some critics have argued that lack of own-
ership, leading to poor program implementat