Chairman's Opening Address: International Cooperation Is Vital to Overcome Human and Economic Crisis
| Pages | 312-313 |
Page 312
Wolfgang Ruttenstorfer, Secretary of State in the Federal Ministry of Finance of Austria, opened the fifty-third Annual Meetings of the IMF and the World Bank, urging the international community to redouble its efforts to overcome the most serious global crisis in over a generation. The principles of the postwar international financial system-cooperation, democracy, predictability, and accountability-created a foundation that has served the world well. It is now essential to build on this foundation to strengthen and adapt the architecture of the international financial system.
The international economic and financial system is evolving rapidly, with European economic and monetary union (EMU) slated to take effect in January 1999. EMU is expected to improve growth and employment prospects in Europe and have positive spillover effects for the world economy.
In keeping with the need to foster cooperation, the European Union (EU) is reaching out to the transition economies of central and eastern Europe. This process, Ruttenstorfer said, "marks a new quality of European integration." The IMF and the World Bank have supported the bold reform efforts of the transition economies and will continue to play a vital role in assisting their further integration into the world economy.
Integration into the world economy carries enormous potential for growth and prosperity. There is also the potential for destabilizing risks in countries unable to withstand the stress of its dynamic forces. Since the 1997 Annual Meetings, deep-seated problems have come to light in many countries. Even those with essentially sound policies have been affected by the current crisis, Ruttenstorfer observed.
To prevent and resolve such crises, it is not enough to rectify weaknesses in the countries themselves and for them to pursue sound domestic policies. Global problems, he stressed, need global answers. Therefore, a major challenge is to adapt the international financial system to better respond to the realities of today and the future challenges of globalization.
Work has progressed toward reinforcing the international monetary and financial system, although much more needs to be done. Countries...
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