IMF to tackle challenges in global economy

  • Business
  • Thursday, 21 Sep 2006

SUSAN TAM at the International Monetary Fund/World Bank Group meetings 2006 

SINGAPORE: The International Monetary Fund (IMF) has made its commitment for greater representation of member countries and is formulating strategies to tackle challenges in changing financial environments. 

“We are clear that Monday’s vote is the first step towards reform but it does not end there. 

“It is a start of an important process so that the future accomplishment of the reform agenda can be the achievement of all,” IMF managing director Rodrigo de Rato said at the closing of the meeting yesterday. 

He said it was a common view among governors attending the meeting that the IMF had to refine its instruments in the changing financial world. 

From left: Rodrigo de Rato, IMF/World Bank annual meetings chairman BharratJagdeo and World Bank president Paul Wolfowitz at the close of the meetings inSingapore

“The IMF also has to share knowledge and enhance its relationship between financial markets and the world's real economies,'' he added. 

de Rato said the IMF welcomed the support such as that from the Indian and Brazilian governments, which would work with the fund to move the second stage forward. 

“It is clear that there are many challenges ahead of us as we strive to make the IMF more responsive to these needs and challenges. 

“Multilateralism is at the heart of our efforts to respond to changes of the global economy,” he added. 

On Monday night, the IMF took the first step in reforms by increasing the voting power of China, South Korea, Mexico and Turkey.  

The IMF board of governors had said the IMF must strengthen the voice and representation of low-income countries that continued to borrow from the fund but which had only a limited voice in fund voting.  

The second step will see the extension of voting rights to other member countries and fine-tuning IMF’s instruments and surveillance systems. 

The target is to complete the reforms by the 2008 meetings.  

de Rato also said governors at the meetings had come together to call for action to conserve the gains made in negotiations so far and put the Doha Round back on track. 

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