IMF Pledges to Fight Global Economic SlowdownThe International Monetary Fund (IMF) pledged Sunday to fight the current global economic slowdown and take measures to meet common objective of open trade for greater global prosperity.The pledge was contained in a communique issued at the end of the meeting of the International Monetary and Financial Committee of the Board of Governors of the IMF. "In the increasingly interconnected global economy, we will continue to promote international economic cooperation and work together, adopting a forward looking approach to meeting our common objective of open trade for greater global prosperity," the communique said. The International Monetary and Financial Committee, the policy- making body of the IMF, also promised to maintain the momentum for reform in the international financial system, strengthen economy through structural reform, maintain sound macroeconomic conditions for strong non-inflationary growth, and encourage poverty reduction and growth in the poorest countries. The committee agreed that short-term prospects for global growth have weakened significantly since its September 2000 meeting in Prague. However, the panel considered it likely that the slowdown in global growth will be short-lived, though it notes that the downside risks have increased, the communique said. The committee expressed particular concern that the slowdown in global growth risks adversely affecting the Fund's poorest member countries and stressed that developing countries need to pursue sound and stable policies and to build strong institutions as part of a commitment to poverty reduction and growth, and to create a favorable environment for domestic and foreign investment and private sector activity. On the issue of crisis-prevention, the policy-making body said it will take measures to set up better procedures to prevent a repeat of the Asian currency crisis in 1997-1998, which plunged two-fifths of the world into recession. It stressed that strong and effective crisis prevention should be a top priority for the agency, and asked IMF Managing Director Horst Koehler to proceed with efforts to overhaul the agency's procedures for the prevention of crisis. On the trade liberalization issue, the committee urged all countries to support efforts to launch a new round of multilateral trade liberalization talks later this year. The committee is unanimous in its view that recourse to protectionism would be the wrong response to the global economic slowdown and the attendant difficulties in particular sectors, the communique said. The panel also underscored that money laundering is an issue of global concern requiring strengthened policies and concerted action on the part of governments and a range of institutions. "Effective anti-money laundering measures at the national level are important for all Fund members, including those with large financial markets," the communique added. Crisis-Prevention MechanismThe International Monetary Fund (IMF) said here Sunday that it will take measures to set up better procedures to prevent a repeat of the Asian currency crisis in 1997-1998, which plunged two-fifths of the world into recession.The International Monetary and Financial Committee, the policy- making body of the IMF, said in a communique that strong and effective crisis prevention should be a top priority for the agency. "The committee strongly supports the redoubling of the Fund's efforts to put crisis prevention at the heart of its activities, and especially of its bilateral and multilateral surveillance," the communique said. The panel welcomes the steps being taken -- including the recent reforms of the Fund's financing facilities -- to strengthen the Fund's capacity to respond to financial crises in member countries and to minimize their adverse impact. The committee asked IMF Managing Director Horst Koehler to proceed with efforts to overhaul the agency's procedures for the prevention of crisis. New Round of Multilateral Trade TalksThe International Monetary Fund (IMF) urged all countries Sunday to support efforts to launch a new round of multilateral trade liberalization talks later this year.The opening of markets will enhance growth prospects for developing countries, said the International Monetary and Financial Committee, the policy-making body of the IMF, in a communique issued at the end of a meeting. Therefore, the committee called on all developed and developing countries to find a common ground for the launch of new multilateral trade negotiations this year. The committee is unanimous in its view that recourse to protectionism would be the wrong response to the global economic slowdown and the attendant difficulties in particular sectors, the communique said. It also urged all countries to resist protectionist pressures and to reduce or eliminate trade barriers and trade-distorting subsidies. Disagreements between developed and developing nations contributed to the failure of World Trade Organization (WTO) ministers to launch a new round of talks in Seattle, the United States, in December 1999. In particular, non-industrialized nations resented efforts by certain rich countries, notably the United States, to have a trade accord linked to provisions protecting workers' rights and the environment. The International Monetary and Financial Committee stressed that protectionism in any form would be the wrong response to the world's current economic woes. The World Bank has estimated that eliminating such obstacles would yield an estimated 100 billion dollars in export earnings in the developing world. |
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