WB and ADB hold forum to discuss crisis
WB and ADB hold forum to discuss crisis
MANILA (AFP): The World Bank and the Asian Development Bank
(ADB) were opening a conference of experts here yesterday against
a backdrop of plunging regional currencies spooked by a standoff
between Indonesia and the International Monetary Fund (IMF).
More than 350 international delegates are expected to dissect
the Asian financial crisis in the latest of a series of meetings
and seek ways to rebuild Asian economies trampled by the turmoil.
World Bank chief economist Joseph Stiglitz said in a statement
released ahead of the five-day meeting that the turmoil "was the
result of a number of factors which have made these economies
especially vulnerable to a sudden withdrawal of confidence."
He stressed that "restoring growth in East Asia requires
restoring confidence," meaning setting up "an effective
regulatory system, improving corporate governance and enhancing
transparency more broadly."
The conference is being held amid worrying defiance by
Indonesian President Soeharto of the IMF over Jakarta's alleged
failure to comply with wide-ranging economic reforms in exchange
for a multi billion dollar aid package.
The IMF on Friday announced in Washington that it would
withhold the disbursement of the second bailout tranche worth
three billion dollars.
The square-off left most Asian currencies weaker against the
U.S. dollar midday Monday, as the market reacted negatively to
news.
Indonesia's rupiah dived to 13,300 against the greenback upon
opening of Asian trade in Singapore, before regaining its bearing
at 12,300 and then to 11,500-levels by midday.
A World Bank statement on the conference said the regional
turmoil has shown that "much remains to be done" to restore
Asia's plunging growth trajectory following the collapse of
financial systems, currencies and stock markets across the once-
booming region from mid-1997.
The IMF has marshaled more than US$100 billion to bail out the
Indonesian, South Korean and Thai economies in exchange for
bitter economic reforms.
In Indonesia, the IMF sought radical reforms such as the
dismantling of monopolies mostly controlled by the family of
President Soeharto, reforming the financial sector and tight
monetary policy.
Philippine President Fidel Ramos and Mitsuo Sato, head of the
Manila-based ADB, are expected to address the opening of the
five-day conference.
Plenary and special sessions as well as workshops involving
350 experts from the government and academia will begin on
Tuesday.
"The Asia Development Forum is designed to provide an
opportunity to the region's development community to discuss the
unfinished agenda and evaluate development priorities for the
next quarter-century," the World Bank statement said.
During the conference, the World Bank is expected to introduce
a recent study entitled "Rethinking the East Asia Miracle" which
tackled the links between past development policies and current
socio-economic strains, organizers said.
Discussions will focus on "how the region can transcend its
current economic turbulence and resume broad-based and poverty-
alleviating growth."