Global Policy Agenda Aims to Sustain Growth Momentum, Build Inclusiveness

By IMFblog

For the first time in years, the global economy is gaining momentum against the backdrop of a rapidly changing and uncertain world. Trade, economic integration, and technological progress have brought enormous benefits—but some groups are missing out on the rewards. Policymakers are increasingly grappling with how to ensure that these benefits are shared more broadly. Working within the multilateral framework, countries should strive for strong and more balanced growth and to provide economic opportunities for all. Continue reading “Global Policy Agenda Aims to Sustain Growth Momentum, Build Inclusiveness” »

Tharman Sees “Greater Global Policy Resolve”

The world is now in a much better situation than six months ago when it comes to policy solutions, according to Tharman Shanmugaratnam, Singapore's Deputy Prime Minister and Minister for Finance , who is Chair of the IMF's policy-setting committee, the IMFC, speaking about the outcome of the IMF-World Bank annual meetings in Tokyo.

Lagarde: “World Economy Not Out of Danger Zone”

"Derailment of the global recovery, which was a clear and distinct danger a few months ago, has been avoided for now thanks to strong policy measures--in particular those of the European Central Bank--and strengthened governance in the euro area, and reforms and adjustment in countries such as Italy, Spain, and Greece," Lagarde said. "High frequency indicators also now suggest an uptick in activity, mostly in the United States."

Weekend in Washington: Cooperating Our Way Out of Crisis

This past weekend in Washington DC, as the economic leaders of 187 countries gathered for the Annual Meetings of the IMF and World Bank, the mood was tense. The world’s finance ministers and central bank governors were concerned because the global recovery is fragile. And, on top of the risks to the outlook, there is concern that the strong international cooperation that was shown during the crisis is in danger of receding. So, after the meetings, was the atmosphere less tense? Yes...and no. The world made some progress over the weekend. But we shouldn’t be too self-congratulatory. We are not yet out of the woods. The IMF’s analysis indicates that improved economic policy coordination, over the next five years, could increase global growth by 2.5 percent, create or save 30 million jobs, and lift 33 million more out of poverty. With such high potential returns, can we really afford each to go our own way?

Farewell from Istanbul

The bags are packed, the shuttle buses are waiting, and the conference center here in Istanbul is slowly emptying. More than 15,000 people have come and gone. Now is the time to take stock and figure out how to move forward on the big decisions coming out of Istanbul.

The IMF’s Managing Director, Dominique Strauss-Kahn, called them exactly that in his final speech at the plenary on October 6: "The Istanbul Decisions." So what are they? The IMF’s policy steering committee, the International Monetary and Financial Committee (IMFC), asked the IMF to move forward in four areas:

  • Updating the IMF’s mandate in light of the big changes in the global economy witnessed during the past decade
  • Reviewing the IMF’s financing role, possibly beefing up its role as a lender of last resort
  • Rethinking multilateral surveillance, with the idea of introducing peer review of economic policies
  • Giving more voice and representation to dynamic emerging market and developing countries
These Istanbul Decisions, Strauss-Kahn said, will be a focal point for the IMF’s work in the coming year.
By | October 7th, 2009|Annual Meetings, Economic Crisis|0 Comments
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