Reform of international institutions essential to meet global challenges
4 Nov 2008
President Bharrat Jagdeo of Guyana reinforces the Commonwealth's call for reform of the multilateral institutions
In order to ensure the relevance of today's financial institutions - the International Monetary Fund (IMF) and the World Bank - a critical revision of their mandates must be initiated, President Bharrat Jagdeo of Guyana has said.
Writing in the latest Commonwealth Finance Ministers Reference Report he argues that "their effectiveness in fulfilling revised mandates can only be assured if the instruments they currently have at their disposal are also modified appropriately.
"If the Fund and the Bank are to retain their legitimacy and be seen as representative of the world they aspire to serve, much more needs to be done than the current set of governance changes under consideration."
Mr Jagdeo suggests that the IMF should focus now on forestalling crisis through concerted action. As a result, this might mean advocating more conservative economic and financial policies to avert systemic problems. "It is important that the Fund serves as an early warning system, assuming the role of evaluating and monitoring the global financial system, as well as the economies of individual member countries, with a view to avoiding global financial catastrophes, as well as national crises."
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Source: Commonwealth Secretariat
Writing in the latest Commonwealth Finance Ministers Reference Report he argues that "their effectiveness in fulfilling revised mandates can only be assured if the instruments they currently have at their disposal are also modified appropriately.
"If the Fund and the Bank are to retain their legitimacy and be seen as representative of the world they aspire to serve, much more needs to be done than the current set of governance changes under consideration."
Mr Jagdeo suggests that the IMF should focus now on forestalling crisis through concerted action. As a result, this might mean advocating more conservative economic and financial policies to avert systemic problems. "It is important that the Fund serves as an early warning system, assuming the role of evaluating and monitoring the global financial system, as well as the economies of individual member countries, with a view to avoiding global financial catastrophes, as well as national crises."
Read More...
Source: Commonwealth Secretariat
