IMF-World Bank spring meetings overview: Mood upbeat on economic front, but MDGs at risk
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IMFC Chair Gordon Brown, right, with Anne Krueger, told reporters that all countries need to cooperate in tackling global imbalances. Page 114 cooperate in tackling global imbalances (see IMFC press briefing, page 120). For the United States, this will mean fashioning a credible medium-term framework that will allow it to transit from expansionary fiscal policies-which have helped fuel its recovery-to a healthier budget environment in which the pension and health care costs of an aging population can be addressed (see World Economic Outlook, page 130). For Europe, where subdued growth cast one of the few shadows on a generally bright global horizon, it will mean accelerated labor market and other structural reforms; and for Japan, continued banking and corporate reforms.
Brown also pointed to what he termed the strongest language yet from the Group of Seven top industrial countries on the urgency of revitalizing global trade talks. "Rapid progress on and early conclusion of the Doha Round is imperative," the group's communiqué said, noting that this "will require action by all parties to resolve key outstanding issues" (see Group of Seven communiqué, page 124). The Group of 24 developing countries concurred, but its chair, Minister Conrad Enill of Trinidad and Tobago, also chided advanced countries "to deliver on their commitments to increase market access for developing country exports and drastically reduce impediments to agricultural trade so that the round can be concluded as scheduled in 2005."
The IMFC commended the IMF's work in advocating trade liberalization and in helping countries take the steps needed to benefit fully from open markets- stressing the importance of open markets, fair access, and reductions in trade-distorting subsidies (notably in sectors crucial to developing countries, such as agriculture, textiles, and clothing). Also widely welcomed was the IMF's establishment of the Trade Integration Mechanism. IMF Acting Managing Director Anne Krueger told reporters that it put the IMF in a position to provide "very quick financial support" if a country experienced a "shortfall in its exports or an increase in commodity prices of its imports" because of multilateral trade liberalization efforts.
On the eve of the IMF's biennial review of its surveil- lance, the IMFC credited this core responsibility with contributing an "essential...
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