Managing Director's Closing Press Conference: Agreement Achieved on Key Tenets of Efforts to Fight Contagion, Adapt Financial Architecture

• Pages: 329-331

Page 329

Let me emphasize two or three points that strike me. You have here 182 countries in a global crisis, but going together with an extraordinary sense of cohesion, seeking consensus and agreeing forcefully on what is our basic approach, endorsing what we are doing, reinforcing us in what they call our unique and central role. I am not too surprised by that, as this cohesion is illustrated by the fact that all these programs in Asia and all that we are doing in Latin America and other parts of the world have been continuously and unanimously supported by our 24 Executive Directors. Still, it is heartening that, after almost a full week of soul searching, analysis of the causes, and forward-looking reflections on what should be done, you have such an agreement. This is an important point regarding the handling of the crisis.

You have the same kind of cohesion and consensus on how to go forward and how to tackle the architecture problems. The five principles we have suggested as the basic avenues for progress have been very strongly endorsed. It is for us quite heartening to be able to go ahead on two fronts: the daily battles of continuing to fight contagion and to help countries in difficulties, and the longer-term issue of recasting the structure of the international financial system-urgently, of course, but with thoughtfulness-and working in cooperation with all institutions that are with us in these endeavors.

Question [interpreted]: On the new architecture, could you be a little more specific about the future, because we are dealing with different possibilities as to what this architecture will be in countries that oppose a broader role of the international institutions. Are you going to really act in support of the program of President Clinton of a contingency fund to forestall crisis? Mr. Camdessus [interpreted]: On the architecture, what was important to me was the strong agreement on the five basic approaches that are reflected in my Annual Meetings speech. What remains to be done is a monumental task, be it in regard to transparency; consolidation of banking supervision; the orderly, cautious progression toward the liberalization of capital movements; or the partnership with the private sector.

Regarding President Clinton's suggestion that we examine a preventive, precautionary facility in the IMF, I spoke to the U.S. authorities before the event and said this was a positive approach, particularly well adapted to helping countries to be prepared for the shocks to come. This is the philosophy of President Clinton. He has shown this through his courageous combat on behalf of our quotas.

Question [interpreted]: Have you and the different groups-G-7, G-10...