Rato sees continued strong global growth despite recent rise in oil prices

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Rato's first week in office was spent in meetings with senior staff and the three Deputy Managing Directors, and chairing a session of the Executive Board. He indicated that he would be traveling to seek the views of the IMF's member countries. Later in June, he will visit Japan, China, Singapore, and Vietnam. Trips to Africa and Latin America are scheduled before the IMF's fall annual meeting and to other regions thereafter.

What should the IMF's role be? Should the IMF focus on macroeconomic matters and mitigating financial crises and leave development work to others, notably the World Bank and regional development banks? The question, posed by one reporter but echoing an ongoing debate among shareholders and academics, drew a forceful reply from Rato. There will be few opportunities to reduce poverty without macroeconomic stability and growth, he said, adding that he was not one of those who think development is one thing and macroeconomic stability, another.

The IMF, Rato observed, has the specialized capacity to help countries overcome crises and design financial policies. It also has expertise that can be used to collaborate with other organizations. Different international and regional institutions have different mandates, he said, but -we are all working in the same direction.- In the area of trade, which is a clear prerequisite for development and growth, the IMF is collaborating not only with the WTO [World Trade Organization] but also providing technical assistance to countries to help them cope with complicated negotiations and the new rules of open economies.

Argentina and its creditors Reporters also pressed Rato for his views on the status of Argentina's recovery and ongoing debt negotiations. The Managing Director complimented the country's -better than expected-macroeconomic performance but underscored that more progress is needed in key...