Asia and IMF Forge Stronger Partnership

IMF commits to "Daejeon Deliverables" to renew relationship with Asia

Conference discussed impact of Asia becoming global economic powerhouse

Increasing role and voice for Asia in the global economy

Acknowledging that the IMF’s relationship with Asia had been damaged during the 1997–98 Asian crisis, Strauss-Kahn said the IMF had changed and learned important lessons that had helped the 187-member global institution tackle the recent global economic crisis better.

“This conference has been an opportunity for the IMF to begin the process of stepping up its engagement with Asia,” said Il SaKong, chairman of Korea’s G-20 summit presidential committee.

More than 1,000 regional economists, bankers, analysts, and financial media crowded into the Korean city of Daejeon for the conference, titled “Asia 21: Leading the Way Forward,” hosted by the Korean government and the IMF.

Korean Finance Minister Yoon Jeung-Hyun (l) sits alongside IMF chief Dominique Strauss-Kahn at conclusion of Asia 21 Conference (IMF photo)

“The conference has provided a useful opportunity to reflect on Asia’s success over the past decade, but also to have a frank exchange of views on the challenges for the region going forward,” Il SaKong stated.

IMF’s commitments

At a concluding press conference, Strauss-Kahn made three key commitments to Asia, which is leading the world out of the recession caused by the global financial crisis, but which now faces challenges from large capital inflows that may trigger economic overheating.

• The IMF will work to make its analysis more useful and available to Asian members. This includes strengthening the IMF’s early warning systems, sharpening its focus on cross-border spillovers, and increasing work on cross-cutting themes, including macrofinancial linkages. It committed to a more even-handed approach to its surveillance of economies around the world.

• The IMF will work to strengthen the global financial safety net. To do so, the Fund will work closely with Asia—through Korea’s leadership on this issue in the G-20. The IMF is examining several options to strengthen its tools to help prevent crises and mitigate systemic shocks, including more tailored crisis prevention facilities and multi-country approaches.

• The IMF will support the further strengthening of Asia’s role and voice in the global economy. This can be done, first of all, by building on the package of 2008 IMF reforms which boosted Asia’s voting power in the...