In farewell address, Managing Director calls for ‘reinvigorated multilateralism’ to humanize globalization and combat poverty

• Pages: 49-50

Page 49

Immediately prior to leaving office as IMF Managing Director, Michel Camdessus delivered his final speech to the Tenth United Nations Conference on Trade and Development (UNCTAD) in Bangkok on February 13 (see page 50). Renewing his recent pleas for an all-out effort to address the “systemic threat of poverty,” Camdessus cited “incoherence” in efforts to move to the necessary higher level of international cooperation. He called for a “reinvigorated multilateralism,” which would imply extending the vision for the world’s economic and financial system beyond trade and payments to cover the whole gamut of international transactions. The need is to convince the public and political leadership, Camdessus said, that only multilateralism can succeed in humanizing globalization. To that end, it is essential to ensure that the IMF and other multilateral institutions are seen—far more visibly—to have the legitimate support of their shareholders.

As a move in that direction, Camdessus suggested replacing the annual Group of Seven (or Eight) economic summit meeting every twoPage 50 years with a meeting of the heads of state and government of the countries that have Executive Directors on the Boards of either the IMF or the World Bank. Such a meeting, he said, would be representative of the entire IMF membership of 182 countries and establish a clear and stronger link between the multinational institutions and a representative grouping of world leaders, endowing it with “unquestionable legitimacy.”

It is the opening of trade that will finally make the difference, especially for the poorest countries. —Camdessus

Before leaving Washington, Camdessus spoke on several of the issues with which he has been closely associated during his 13-year tenure as head of the institution. During a press conference at IMF headquarters on February 8 (see page 53), Camdessus said he was proud of the efforts of the past several years to make the IMF more transparent, despite a continuing uphill battle to change ingrained attitudes toward the institution. Stressing that the IMF’s ultimate objective was country ownership of economic reform programs, Camdessus pointed to recent conferences in Libreville and...