Paradoxically, the rise in global geopolitical friction has spurred a greater desire for cooperation within the IMF. The managing director observes that member nations no longer take collaboration for granted, leading to more mature and willing discussions inside the institution as an 'island of cooperation'.
The IMF projects AI will impact 60% of jobs in rich countries but only 26% in poor ones. This disparity signals that developing nations lack the infrastructure to leverage AI for productivity gains, risking a significant widening of the economic gap between advanced and emerging economies.
The IMF assesses national AI readiness using a four-part index: digital infrastructure, labor market flexibility, innovation flow, and the most difficult component, regulation and ethics. This framework shows that technical capability is insufficient without adaptable labor policies and a strong ethical and regulatory foundation.
The global economy proved more resilient than feared due to three factors: stronger institutions built after the 2008 financial crisis, the private sector's agility in absorbing shocks like tariffs, and the fact that widespread retaliatory trade wars did not fully materialize.
The IMF and World Bank have distinct roles. The IMF provides emergency financing for macroeconomic stability when a country faces a crisis (e.g., balance of payment needs). In contrast, the World Bank funds specific, long-term development projects like roads, schools, and energy access, primarily in developing nations.
Since the IMF's most critical decisions require an 85% supermajority vote, the United States' 17% quota share effectively grants it veto power. No major strategic decision can pass without U.S. approval, cementing its central role in global financial governance.