IMF deepens dialogue with Central American legislators
| Author | Kathleen White |
| Position | IMF External Relations Department |
| Pages | 178-179 |
Page 178
Domestic support is essential to the successful implementation and maintenance of sound macroeconomic policies and structural reforms. But how do governments convince citizens of longer-term benefits when short-term sacrifices are involved? Legislators and journalists from six Central American countries-Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama, plus the Dominican Republic-joined IMF officials on May 18-20 to discuss the region's policy priorities and the role legislatures and the media play in shaping public debate and in building understanding of the trade-offs that policymakers confront. Also on the agenda was the importance of greater regional integration and cooperation to Central America's ability to compete successfully in the global economy.
The discussions-structured around twin seminars in San Jose, Costa Rica-broke new ground by bringing together lawmakers who hold key positions on finance, economic, and banking committees, and who approve budgets and legislation on taxation, trade, and banking matters.
IMF Deputy Managing Director Agustín Carstens explained that the institution is keenly aware of legislators' crucial responsibilities in passing budgets and advancing economic reforms, which is why it is so important that "the IMF knows your views." Carstens also noted that poverty reduction strategies, to be successful, need to be designed by the countries themselves and must reflect a broad consensus across society.He saw a two-way street in which "as the people's representatives, legislators have an important part to play in formulating these strategies and in building consensus for reforms."And, the IMF seeks robust and constructive relationships with policymakers, legislators, and other stakeholders to "better tailor our advice and assistance to the most pressing needs of the countries,"Carstens said.
Legislators expressed support for greater and earlier communication with the IMF. Topmost among their concerns were economic growth, poverty and social conditions, debt, the budget process, and the quality of expenditures. They stressed their own need to develop greater technical capacity, the potential benefits of regional integration, and the importance of promoting transparency and fighting corruption.
They also raised the issue of...
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