CENTERFORGLOBALDEVELOPMENTThe IMF's Resilience and SustainabilityTrust:How Conditionality Can HelpCountries Build ResilienceJOHN HICKLINAbstractThe IMF's Resilience and Sustainability Trust(RST)has been operationalforover a year,with the first seventeen countries receiving commitments offinancial support.But iflending fromthe RST is to achieve its objectives,the IMF should make it fitter for purposeby taking a radically different approachin applying conditions to the loans.This paperfirst gives the background and summarizes the argument;sets out the unique challengesinvolved in designing best practice conditionality to dealwith climate change-the focusof the RST so far;and makes three specific suggestions to address shortcomings in theemerging conditionality to make the most ofthe IMF's new initiative to help membercountries build resilience and sustainability.The IMF has adapted its approachbased oninitial experience.A forthcoming Executive Board review will allow for further coursecorrection and much-needed greater traction for the RST.POLICY PAPER 324.MARCH 2024The IMF's Resilience and Sustainability Trust:How Conditionality Can HelpCountries Build ResilienceJohn HicklinCenter for Global DevelopmentThe author is grateful forhelpful conversations with David Andrews,Sanjeev Gupta,Kathryn McPhail,MarkPlant,and Etienne Romsom,and for comments from two anonymous reviewers;andis responsiblefor anyremaining errors.John Hicklin.2024."The IMF's Resilience and SustainabilityTrust:How Conditionality Can Help Countries BuildResilience."CGD Policy Paper 324.Washington,DC:Center for Global Development.https://www.cgdev.org/publication/imfs-rst-how-conditionality-can-help-countries-build-resilience203060双碳文库www.203060.vipCENTER FOR GLOBAL DEVELOPMENTThe Center for Global Development works to reduce global2055 L Street,NW Fifth Floorpoverty and improve lives through innovative economicWashington,DC 20036research that drives better policy and practice by the world'stop decision makers.Use and dissemination of this Policy Paper1 Abbey Gardensis encouraged;however,reproduced copies may not be usedGreat College Streetfor commercial purposes.Further usage is permitted under theLondonterms of the Creative Commons Attribution-NonCommercial 4.0SW1P 3SEwww.cgdev.orgThe views expressed in CGD Policy Papers are those of theauthors and should not be attributed to the board of directors,Center for Global Development.2024.funders of the Center for Global Development,or the authors'respective organizations.