Posted on September 7, 2011 by iMFdirect
By Dominique Desruelle
War-torn Iraq, quake-ravaged Haiti, conflict-devastated Sierra Leone. So many countries around the world face the legacy of terrible hardships that have left them scarred and fragile.
Everyone agrees that countries need help to recover from these situations. But it is not easy to come to a shared understanding on what this really takes.
Some have questioned whether the IMF has a meaningful role to play. They argue that engagement in fragile states—countries with weak institutions and infrastructure, internal conflict, and governments that face difficulties delivering core services to the population—should mainly be left to bilateral donors and development institutions.
And they couldn’t be more wrong. Helping a country’s economy to work better—the IMF’s core expertise—is a central building block to move beyond fragile situations and achieve better lives for its citizens. Continue reading
Filed under: concessional lending, IMF, International Monetary Fund, LICs, Low-income countries | Tagged: capacity building, conflict-affected states, Extended Credit Facility, Fostering Engagement with Fragile States, fragile states, IMF, IMF-supported program, iMFdirect, International Monetary Fund, low-income countries, middle income countries, multi-donor trust fund, program design, Rapid Credit Facility, sustainable macroeconomic framework, technical assistance | 1 Comment »
Posted on October 1, 2009 by iMFdirect
By Caroline Atkinson
In town for the Annual Meetings, Dominique Strauss-Kahn, our Managing Director, paid a visit to Bilgi University in the heart of Istanbul. He spoke to a gathering of students about the role of the IMF in the current crisis, and took some of their questions.
The Managing Director likened the IMF to an “economic Red Cross” because its goal is to help solve a country’s economic problems while avoiding social unrest and war. He noted that the relationship between peace and economic stability was well understood by the people who founded the IMF in 1944, in the aftermath of the Great Depression and the second world war.
Continuing with the medical analogy, he pointed out that countries only need IMF resources when they are “sick”—when they face serious balance of payments problems requiring policy adjustment. If you go to the doctor with a liver problem, he mused, the doctor will treat you, yes, but will also insist that you stop drinking. So policy conditions are necessary. Still, the Managing Director admitted, the medicine had sometimes been too bitter in the past. The IMF had developed a “harsh image”—not paying enough attention to local circumstances, political realities, or social consequences. It was seen as more of a policeman than a doctor.
Strauss-Kahn at Bilgi University: IMF is like an “economic Red Cross” because its goal is to help solve a country’s economic problems while avoiding social unrest and war (photo: Stephen Jaffe/IMF)
Filed under: Annual Meetings, Economic Crisis, Low-income countries | Tagged: Asian crisis, Bilgi University, Donomique Strauss-Kahn, policy conditions, program design, shoe, Turkey | Leave a comment »