Managing Director's opening address: Camdessus says cooperation is essential, calls for action to ensure reforms
| Pages | 309-311 |
Page 309
Governors, the global economy has passed through a great ordeal. For a time, we faced the threat of the most extensive and the harshest crisis since our institutions were established. Its human cost has been immense, and we may need a few more years to heal all the wounds. Now, the storm is abating, even though some risks remain. Several countries that were in the depths of crisis-Korea, Thailand, the Philippines, Brazil, and others-are advancing in their recovery. Above all, the recovery comes from the intense effort, the wisdom, and, most emphatically, the sense of cooperation of all concerned.
A major lesson of this crisis is that, in the new world of globalization, cooperation is a must. A second lesson is that we always run the risk, when economic prospects have improved, of moving too slowly to implement the reforms that are needed. There is still an urgent need for action. So I shall largely confine my remarks to the two domains where I see a pressing need to move quickly to implementation: reform of the international monetary and financial system and the offensive to eradicate poverty and humanize globalization.
Before proceeding, let me say a few words about IMF programs with two of our largest members-Russia and Indonesia. In Russia, the economy is recovering, and the program that began in July this year is on track. We look forward, as the program moves ahead, to Russia's advance in both structural reforms and improved governance. We should not lose sight of the real progress that has been achieved during seven years of endless efforts to assist Russia in its journey toward a market economy. Nor should we ignore the fundamental decision, on which Russia has not wavered, to seek to develop a modern market economy and integrate itself into the international community.
In troubled Indonesia, the government turned the economy around after taking office last year. Economic stability in turn helped make possible the freest elections in Indonesia's history. Now, these achievements are threatened. But, we stand ready to resume our assistance as soon as the shadows hanging over the program are lifted. We expect to continue working with the next government of Indonesia to help the country achieve its great potential, while we look forward to contributing, when the day comes, to the rebuilding and sustainable development of East Timor.
First, in the area of architecture, work is in progress. Sunday's communiqué of the Interim Committee contains an impressive catalog of steps. They focus on prevention; transparency; financial sector stability; and the definition of global standards to underpin stable, fair, efficient, and transparent markets. An important step forward is the Committee's adoption of the Code of Good Practices on Transparency in Monetary and Financial Policies. New facilities have been created: the Contingent Credit Lines and the Y2K facility. The foundations of a safer, more robust, more adaptable architecture are there. But progress is slower in other areas where full consensus has yet to emerge.
First, on the scope and focus of surveillance...
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