IMF to Strengthen its Standing in Region, says new Asia Head

Ties between new Asia dept head and IMF forged during Asian financial crisis

IMF can learn from experience of development in Asia and Pacific, says Rhee

Financial market stability, a key priority for region in coming months

Speaking to IMF Survey just days after taking up his new position, Changyong Rhee—formerly Chief Economist with the Asian Development Bank—outlined his priorities and the prospects for the region.

IMF Survey: What made you decide to join the IMF?

Rhee: The IMF had a major impact on my career during the Asian financial crisis of the late 1990s. I was in academia at the time and consulted with the Korean government on negotiating the IMF program.

The experience of the crisis—the first-hand impressions of the severe problems faced by so many economies in the region—made me shift my research focus away from general macroeconomic questions and toward country-specific issues with direct policy implications.

From that point on, I became more actively engaged in policy, government consultations, and in working closely with IMF staff—those who regularly visited Korea as well as more broadly across several departments at Fund headquarters in Washington. Over time, the Fund has become very familiar to me and moving here was a natural choice.

IMF Survey: What will be your main goals as head of the IMF’s Asia and Pacific Department?

I have three main priorities. First, I want to contribute toward enhancing the IMF’s reputation in Asia. Relations between Asia and the IMF have improved greatly since the 1997 Asian financial crisis. Many policymakers in the region appreciate the Fund’s policy advice and technical expertise.

But there are still some in Asia who regard the IMF as an emergency doctor aiding a patient only during a crisis. I would prefer the Fund to be seen as a family doctor who provides ongoing care and candid advice based on a deep understanding of the patient’s history.

Second, I want to increase our efforts on technical training and capacity building. Asia and the Pacific is a very diverse region that includes many low-income and middle-income countries. From the IMF’s point of view, macroeconomic and financial stability are major goals. Of course, those aims are important, but for low- and middle-income countries the real question is: how to grow and develop in a sustained manner?

In this regard, I believe capacity building should be targeted at those government officers who will be in charge of...