Brown and Köhler hail "spirit of cooperation"

• Pages: 102-105

Page 102

Following are edited excerpts from the International Monetary and Financial Committee (IMFC) press conference that took place on April 12 in Washington, D.C. Participating in the press conference were Gordon Brown, Chair of the IMFC and U.K. Chancellor of the Exchequer, and Horst Köhler, IMF Managing Director.

The full transcript is available on the IMF's website (www.imf.org).

BROWN: We have been meeting at a time of economic uncertainty and faced by the challenge posed by the uncertainties in Iraq. It is a mark of the commitment of all that even in these challenging and difficult times we have been able to look beyond the here and now in examining all the long-term issues that the world economy faces. As we addressed these long-term challenges we did so in the spirit of cooperation, with the same shared purpose and common endeavor that was present at the creation of the IMF and the World Bank in 1945.

First, on Iraq, it is in this spirit of cooperation and looking to the future that we noted in the communiqué the significant challenges posed by the current situation and the urgent need to restore security to relieve human suffering and promote economic growth.We are all agreed on the need for a further UN Security Council resolution and on the engagement by the Bretton Woods institutions-the IMF and the World Bank. They stand ready to play the normal role in Iraq's redevelopment at the appropriate time.

The IMF and the Bank will also monitor closely the impact of the conflict on all members and stand ready to help those adversely affected.We also agreed on the importance of addressing the debt issue, and we look forward to the early engagement of the Paris Club on Iraqi debt. I believe it is in the same spirit of cooperation that we stood ready today to build on the sound fundamentals that exist in the world economy to examine and highlight the potential for renewed growth.

At this time of risk, we must remain vigilant, with each of us asking what contribution we can make to greater stability and growth, and what contribution we can make to support growth and prosperity inPage 103 developing countries and in emerging markets. In the advanced countries-with policies consistent with a sound medium-term fiscal position in the United States, accelerated labor and product market reforms in Europe, and further steps to strengthen banking and corporate reform in Japan-sound fundamentals and policies should deliver stronger growth in the second half of the year. Emerging market countries will need to strengthen their policies for macroeconomic stability and structural reform, while the prospects for growth in low-income countries should be supported by improved economic policies, stronger institutions, progress in resolving regional conflicts, and increased donor resources, including through debt relief under the HIPC [Heavily Indebted Poor Countries] Initiative.

On trade, we benefited from the views of the WTO [World Trade Organization] Director-General, who spoke to the IMFC this morning.We agreed on the urgency of concrete...