IMF Chief Works to Transform Fund's Image in Asia

Strauss-Kahn broaches dynamism of Asia, tackles bad memories of the IMF

Emphasizes importance of diversity in the Fund

IMF chief reveals reasons for choice of economics as career

Speaking to more than 200 high school and university students during the Asia 21 Conference organized in the Korean city of Daejeon, Dominique Strauss-Kahn addressed head on the thorny subject of the Asian crisis, described the importance to the 187-member Fund of its Asian members, and revealed his human side with an explanation of his reasons for choosing economics as a career.

Strauss-Kahn acknowledged that in the process of aiding governments during the Asian crisis over a decade ago, bad memories of the IMF had been created by the large number of conditions attached to the IMF loans, but he said the dynamic region—which has turned into an economic powerhouse--now needed to look to the future.

“I understand they [Asian countries] could be angry at the IMF, that is because a lot of things that we know now, we did not know at that time,” Strauss-Kahn stated. “Now we need to look forward and to see how Asian countries and the IMF could work together for the future.”

Asia got through the recent global financial crisis better than many other parts of the world, and Asian economists at the conference credited reforms from the Asian crisis period as helping to make the region more resilient.

Reflecting diversity within the Fund

In response to a question from a university student, who characterized the Fund as a “bad guy” because of the organization’s dominant western culture, Strauss-Kahn said it was important to represent the diversity of cultures within the global economy, so the IMF could better tailor advice to its members.

“You cannot implement difficult economic programs in countries if you don’t have some knowledge of the history, the political situation, of the country. If you just come from outside with no knowledge, then there is a big risk of failure,” he said.

Strauss-Kahn acknowledged that the IMF might formerly have been dominated by industrialized countries, but he noted that the Fund was tackling the issues of governance and representation to reflect the growing importance of the Asian region to the global economy. He pointed to the fact that during the recent crisis, countries like China, India, and Japan had made significant contributions to boosting the resources of the Fund.

“I want Asian countries to see the IMF as a second home. I...