24 September 2010Monetary safety net needed to protect emerging economies: IMF
WASHINGTON: The International Monetary Fund (IMF) pointed out that it is critical to develop a monetary safety net to better protect emerging economies from a future financial crisis.
The IMF believed that will also help countries achieve sustainable growth - a key issue going into the Group of 20 or G20 summit in Seoul come November.
The G20, formed in 1999, is made up of major economies like the US, China and Germany.
High unemployment and a battered economic system were the results of the last financial crisis.
The IMF said in order to strengthen the financial systems globally, the G20 members must make a firm commitment to long term growth.
John Lipsky, First Deputy Managing Director, IMF, said: "We can look forward to some clear statements of intent, some medium policy adjustment that will both strengthen growth and improve its balance."
Although the strength of the Chinese currency has been a hot topic recently, the IMF is confident the issue will not dominate talks at the G20 summit.
"If there's a message here, it is not to focus excessively on one part of policies. The need for global rebalancing to establish strong, sustainable and balanced growth will require a broad set of policy measures both in those countries running large and persistent surpluses and those running large and persistent deficits.
So the adjustment needs to be symmetrical, it needs to be broad-based, currencies will be part of it but not the only part."
The IMF believed it is time to have more representation from Asia within the organization as the continent is leading the economic growth story.
Lipsky said, " Certainly, emerging Asia economies are the primary beneficiaries, but [they are] not the only [economy]. other areas, Turkey will be another beneficiary, but the big beneficiaries will be the rapidly growing Asian economies.
Asia's growth may be slowing down, but the IMF believed it will remain the fastest growing region in 2011. - CNA/fa
The IMF believed it is time to have more representation from Asia within the organization as the continent is leading the economic growth story.
Lipsky said, " Certainly, emerging Asia economies are the primary beneficiaries, but [they are] not the only [economy]. other areas, Turkey will be another beneficiary, but the big beneficiaries will be the rapidly growing Asian economies.
Asia's growth may be slowing down, but the IMF believed it will remain the fastest growing region in 2011. - CNA/fa
