Today at the conclusion of the IMF-World Bank Annual Meetings held in Istanbul this week, IMF Managing Director Dominique Strauss-Kahn told the world’s economic and monetary policymakers that they have a “historic opportunity to reshape our post-crisis world” and encouraged leaders to continue to work together with the IMF to institute key policy measures and reforms. Mr. Strauss-Kahn further reflected upon the “profound change” that both formal and informal cooperation among governments has brought since the onset of the financial crisis. However, he cautioned that the financial crisis is far from over and warned that the recovery ahead will be slow. He also emphasized the “need to fully recognize losses, to increase bank capital and to repair bank balance sheets,” in order to ensure economic stability.
Mr. Strauss-Kahn also noted that the IMF must adopt the “Istanbul Decisions,” or the four key reform areas which include “the IMF’s mandate, its financing role, multilateral surveillance, and governance” outlined in the communiqué the International Monetary and Financial Committee (IMFC) released on Sunday. Acknowledging the work of the G-20 leadership thus far, he stated that global financial reforms must include contributions from all stakeholders, including low-income and developing nations.
On Monday, the Development Committee of the International Monetary Fund and the World Bank met and issued a communiqué that emphasized and outlined the impact of the recent financial crisis on the developing world.