Asia pressed to play a greater role in IMF<\/p>\n
SINGAPORE (AFP): Asia needs to play a greater role in the
\nworkings of the International Monetary Fund (IMF) if it wants to
\nhave an impact on policy making, first deputy director Stanley
\nFischer said here Friday.<\/p>\n
Fischer defended the fund from criticism that its bitter
\nmedicine after the 1997-98 Asian crisis left a sour taste in the
\nmouths of those hurting the most, and said the IMF board
\npreferred to work by consensus.<\/p>\n
\"The effectiveness of executive directors was more related to
\ntheir persuasiveness than the size of their vote,\" he said in an
\naddress to bankers and economists.<\/p>\n
Asia has five of the 24 seats on the board and \"it is
\nimportant if Asia's voice is to be heard that these positions are
\noccupied consistently by the highest quality candidates.<\/p>\n
\"Those directors who have coherent positions and the ability
\nto advance them will usually see their views reflected in fund
\npositions on the issues.\"<\/p>\n
Describing his address as probably his last in Singapore
\nbefore leaving office, the IMF's number two reflected on the
\nAsian crisis and the fund's need to spearhead rescue packages
\nworth billions of dollars for Indonesia, South Korea and
\nThailand.<\/p>\n
The IMF has been accused of applying a template solution to
\nthe different crises in the three countries, and of imposing
\nheavy debt repayment burdens on countries at the cost of social
\nspending.<\/p>\n
Fischer said the crisis warning signs were evident long before
\nthe currency collapse in mid-1997, but they were ignored by
\ngovernments<\/p>\n
\"The economies began to turn only when new governments came in
\nto power, first in Thailand, then in Korea and last and with the
\nmost disruption unfortunately in Indonesia on May 1998.\"<\/p>\n
Fischer outlined several developments brought in as a result
\nof the Asian crisis, including improved surveillance,
\nreconsideration of the role of exchange rate and capital account
\nregimes, and the introduction of a contingent credit line and a
\nsupplementary reserve facility.<\/p>\n
\"If all these measures had been in place perhaps it would have
\nbeen possible to advance the adjustment thereby mitigating if not
\npreventing the crisis,\" he said.<\/p>\n
Since 1997-98, the IMF has sharpened its scrutiny of national
\npolicies and of international financial markets, while producing
\na constant flow reports focussing on daily developments.<\/p>\n
\"The fund has joined the information age and not too soon
\neither.<\/p>\n
\"Of all the changes that have taken place in the fund in
\nrecent years, this increase in two-way transparency between the
\nfund and the outside world is the most significant.<\/p>\n
\"We talk about transparency because it helps ensure better
\ninformed investors but it also ensures better informed citizens
\nand it encourages policymakers to strengthen their policies in
\ntheir institutions.\"<\/p>\n
Had there been more transparency in 1997, more would have been
\nknown about the state of foreign reserves in the crisis countries
\n\"and would have forced earlier action on the exchange rate.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asia-pressed-to-play-a-greater-role-in-imf-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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