Why have RFAs decided to cooperate with the IMF and among themselves?
Given numerous comparative advantages among different institutions, there are good reasons for strong cooperation between the IMF and RFAs and among RFAs themselves. A well-structured cooperation between the IMF and RFAs will generate synergies for resource allocation and surveillance. It will also trigger a mutual learning process for institutions to improve their own policy frameworks. Coordination failure with respect to conditionality could lead to “programme shopping” and associated moral hazard.
An adequately resourced and well-coordinated GFSN will contribute to the macroeconomic and financial stability in the international monetary system. The first high-level dialogue of RFAs held in Washington in October 2016 established a regular framework for policy dialogue and coordination at the highest level among RFAs, with the IMF, and the G20 International Financial Architecture Working Group.