Recent turbulence in financial markets and increased risks in the global economy mean that the 2011 Annual Meetings of the IMF and World Bank are taking place at a critical time for the global economy. Economic leaders will come together to assess the state of the world economy and discuss the policy actions needed to deal with today’s global economic challenges. About 10,000 policymakers, private sector and civil society representatives, journalists, and academics are expected to attend the Annual Meetings, which are set to take place on September 23–24. In an interview, Reza Moghadam, Director of the IMF’s Strategy, Policy, and Review Department, discusses the issues that are likely to receive most attention at the meetings.
Finance ministers and central bank governors from around the world, gathering at the Spring Meetings of the IMF and World Bank in Washington last week. With the recovery solidifying but still fragile, ministers put the spotlight on how to strengthen the IMF’s surveillance—its economic assessment and analysis—to help countries take the action needed to address risks and avoid future crises. As the meetings were wrapping up in Washington DC, the IMF’s First Deputy Managing Director talked about the outcomes of the meetings. While there are concerns about risks in the global economy, there was important progress on a “multilateral cooperative approach on the various challenges we face.” Watch his interview to hear more about what Mr. Lipsky has to say about progress by the G-20 and about the likely changes to the IMF’s multilateral surveillance.
“Never again can we let ourselves be caught unprepared by an economic and financial crisis of such global magnitude.” This was the spirit, in late 2008, in which G-20 Finance Ministers tasked the IMF and the Financial Stability Board to jointly develop an Early Warning Exercise (EWE). The inspiration was clear: In the wake of the onset of unprecedented financial turmoil, policymakers recognized that earlier danger signs had not been synthesized into an actionable warning. The EWE was intended to fill the analytical gap—to produce an effective “call to arms” as threats emerge, but well before crises erupt. Here, IMF First Deputy Managing Director John Lipsky discusses how the EWE works, and how it will help to more systematically and effectively reduce the risk of a new global crisis.
In Daejeon, Korea earlier this week, a remarkable event took place that enabled the world to hear the voice of Asia and to learn how the region has been able to show such great resilience in the face of the worst global financial crisis since the 1930s. On July 12 and 13, more than 1,000 officials, economists, bankers, analysts, and media assembled for a conference titled Asia 21: Leading the Way Forward, hosted by the Korean government and the IMF. I personally learned a great deal about Asia’s growing stake in the global economy—and the global economy’s growing stake in Asia. As the world strives to leave the crisis behind, the economic center of gravity is shifting increasingly eastwards, and Asia’s role is more vital than ever before.
The Korean government and the IMF will jointly host a high-level international conference in Daejeon, Korea in just a few days time. In this blog, Anoop Singh outlines how the conference will be an important part of broader efforts by the Fund to enhance its strategic dialogue and partnership with Asia.