Reflections on the IMF's transparency revolution

• Pages: 17-23

Page 17

Criticism of the IMF has been a constant through much of its history, but even harsh critics admit the organization is much more open now. Tom Dawson has guided the Fund through much of this transparency revolution. In an exit interview, he reflects on why the IMF remains relevant, what must be done to ensure that emerging market countries have a greater say in the Fund, and why formulating wise policy advice isn't enough-it must be communicated well, too.

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Public scrutiny helps reshape IMF, says departing spokesman

At the end of January, Tom Dawson steps down as Director of the IMF's External Relations Department-and IMF spokesman-a position he has held since July 1999. Previously, he spent about 25 years in the public and private sectors, including as Director of Financial Institutions at Merrill Lynch, IMF Executive Director for the United States (1989-93), and Deputy Assistant to the President at the White House (1985-87). He spoke with Laura Wallace of the IMF Survey about the IMF's image and the challenges of communicating its work to a diverse, and sometimes highly political, audience.

IMF SURVEY: Many Asian countries have built up massive reserves, partly, it seems, to avoid having to borrow from the IMF. In Latin America, Brazil and Argentina have been paying off IMF loans ahead of schedule, the latter declaring the end of colonization. The IMF's credit outstanding is at its lowest in 20 years, raising questions about how it will finance its operating costs. And the effectiveness of IMF surveillance continues to be frequently questioned, most recently on China. Isn't the IMF as much under siege now as it was during the Asian crisis of the late 1990s?

DAWSON: No.What Asia really wants is a greater voice and a greater stake in the IMF.

And, in the case of Latin America, only a few years ago, when the IMF made several big loans to the region, the "experts" said we would never be paid back. So getting paid back can't possibly be bad news. Anyway, Brazil has a history of strong implementation of its own programs and paying back early.

On lending generally, sometimes we're criticized for lending too much, but right now, we're being criticized for lending too little-or there's a concern that so little lending is somehow a threat.We're supposed to be an institution that lends when countries don't have other sources of financing. The fact that our...